Whats your net worth

Originally Posted by Unregistered

Try to avoid stocks, seen many pple losing over 50K paon stocks and yet being very happy on the dividends. Try bonds like hyflux 6%.

There are safe stocks and there are high-risk stocks. The same goes for bonds. I'm not a bond expert but generally the higher the coupon the higher the risk.

Originally Posted by lazyplane

Suggest you consider this post before doing bonds.

[url=://thefinance.sg/2016/05/22/hyflux-6-perpetual-security/]Hyflux 6% Perpetual Security[/

I am not the writer but i think he has a good basic bond evaluation technique..

Thanks lazyplane. I'm clueless about bonds, but it was a good read. What's your strategy?

AC

As a young man I used to think of ways to utilize my CPF savings, not treating it as my own money if I wasn't able to touch it. When we bought our first home, we quickly emptied our OA to pay for the purchase, and we would plan to use all our monthly CPF contribution to pay for the monthly installment. We were disappointed that we were unable to utilize our SA and MA money.

Now at 56, we are glad we didn't "squander" our CPF savings. With the current weak economy and low interest rate environment, the CPF is still giving out relatively decent returns on our money : 2.5% for OA, 4% for SA, MA & RA.

It gets sweeter when you turn 55. It means you can withdraw money from your CPF, first from your SA and then from your OA - after you have set aside the minimum sum required in your RA. Now there is no minimum sum required for the MA but they will still keep aside some money in it. This year, the MA limit is $49.8k

You are allowed to withdraw all of your "excess" OA & SA money in one go or you could choose to withdraw an amount of your choosing once a year (if you are still working) or monthly if you are retired. I like the monthly withdrawal option, although we are not touching our CPF just yet as we are still working.

Withdrawing a monthly fixed amount from the CPF would give you a sense that you are still receiving a monthly pay check and helps you control your expenses.

For our case, when we retire, we are planning to withdraw just the yearly interest earned by CPF OA & SA savings as passive income. Currently we are looking at an interest of $35 a year. By next year, the yearly interest earned will be more than $36k pa or $3k per month.

At 65, we will see the amount supplemented by RA payout of another $36k pa combined for the two of us giving us a total of $72k pa just from CPF alone - without drawing down on the principal savings amount in the OA.

As you can see, the CPF can be a good and steady source of passive income in your retirement years. Don't look down on its "low" interest rate. It makes up for it with steady and compounding returns over many years.

[lazyplane]

Originally Posted by Unregistered

Thanks lazyplane. I'm clueless about bonds, but it was a good read. What's your strategy?

AC

I have a few . but at present, i am staying clear of Mr. Market as i am really confused by the news and fundamental analysis.

Eg , at start of the 2016 year, it was Fed.. it was going to raise interest, etc as the market seems to have recovered. so i thought equities will going to go up. ie move cash to equities .. It was going to be boom time again baby !

But then came China bad data. everything came down. So the quick money is back to bonds/cash.. so was scouring for good bonds.

But instead of going down like a rock like Global Financial crisis (GFC) because there is really no good news coming out of the market with BREXIT , Brazil crisis, SG GDP dropping etc... all the markets seem to have bottom up y quickly and stabilise (despite the data coming out continuing to be bad) .

Why did it stabilised ? Honestly, ignoring those punting economist/market news generators , i feel it is really not clear.

If interest rate in SG any signal, you can see i/r in govt bonds is really low. What does this mean, it means lots of investors r holding on to cash . quick cash. If the market has really bottom up, this quick cash will go to equities.
And i believe that is a big big pool of cash that can be worth the ride.

Until now, i cant see the cash flowing clearing. Hence staying out of equity. Fundamentals are not helping so will also only play with very safe bonds.
3 yr bonds r too long. i think the lesson i learnt from GFC now the crisis are in very short waves. and the high / lows are also very short tenor. If the high come, it will come and be very high for 3 months to half year.. then it drops very suddenly...

[lazyplane]

Agree. I think CPF is good.

But i know many whom disagree and it is impossible to convince.

Having said that, any singaporean must take a hard look at CPF and know how it work. dont just listen to the junk that is out there without studying the intent of the system, the mechanics , the different accounts and how to use it to fit a long term retirement plan. Reading up on CPF is really boring stuff.. But if you want to max it out , you must really study it.

Also know your savings goals and risk appetite for the market. Then utilise your tools. CPF is just one of them.

Originally Posted by Unregistered

As a young man I used to think of ways to utilize my CPF savings, not treating it as my own money if I wasn't able to touch it. When we bought our first home, we quickly emptied our OA to pay for the purchase, and we would plan to use all our monthly CPF contribution to pay for the monthly installment. We were disappointed that we were unable to utilize our SA and MA money.

Now at 56, we are glad we didn't "squander" our CPF savings. With the current weak economy and low interest rate environment, the CPF is still giving out relatively decent returns on our money : 2.5% for OA, 4% for SA, MA & RA.

It gets sweeter when you turn 55. It means you can withdraw money from your CPF, first from your SA and then from your OA - after you have set aside the minimum sum required in your RA. Now there is no minimum sum required for the MA but they will still keep aside some money in it. This year, the MA limit is $49.8k

You are allowed to withdraw all of your "excess" OA & SA money in one go or you could choose to withdraw an amount of your choosing once a year (if you are still working) or monthly if you are retired. I like the monthly withdrawal option, although we are not touching our CPF just yet as we are still working.

Withdrawing a monthly fixed amount from the CPF would give you a sense that you are still receiving a monthly pay check and helps you control your expenses.

For our case, when we retire, we are planning to withdraw just the yearly interest earned by CPF OA & SA savings as passive income. Currently we are looking at an interest of $35 a year. By next year, the yearly interest earned will be more than $36k pa or $3k per month.

At 65, we will see the amount supplemented by RA payout of another $36k pa combined for the two of us giving us a total of $72k pa just from CPF alone - without drawing down on the principal savings amount in the OA.

As you can see, the CPF can be a good and steady source of passive income in your retirement years. Don't look down on its "low" interest rate. It makes up for it with steady and compounding returns over many years.

Originally Posted by lazyplane

I have a few . but at present, i am staying clear of Mr. Market as i am really confused by the news and fundamental analysis.

Eg , at start of the 2016 year, it was Fed.. it was going to raise interest, etc as the market seems to have recovered. so i thought equities will going to go up. ie move cash to equities .. It was going to be boom time again baby !

But then came China bad data. everything came down. So the quick money is back to bonds/cash.. so was scouring for good bonds.

But instead of going down like a rock like Global Financial crisis (GFC) because there is really no good news coming out of the market with BREXIT , Brazil crisis, SG GDP dropping etc... all the markets seem to have bottom up y quickly and stabilise (despite the data coming out continuing to be bad) .

Why did it stabilised ? Honestly, ignoring those punting economist/market news generators , i feel it is really not clear.

If interest rate in SG any signal, you can see i/r in govt bonds is really low. What does this mean, it means lots of investors r holding on to cash . quick cash. If the market has really bottom up, this quick cash will go to equities.
And i believe that is a big big pool of cash that can be worth the ride.

Until now, i cant see the cash flowing clearing. Hence staying out of equity. Fundamentals are not helping so will also only play with very safe bonds.
3 yr bonds r too long. i think the lesson i learnt from GFC now the crisis are in very short waves. and the high / lows are also very short tenor. If the high come, it will come and be very high for 3 months to half year.. then it drops very suddenly...

True. I'm trying to build cash currently, but life is tough. Hai.. Money is always finding a reason to flow out. Markets are bottoming, so am I..

Originally Posted by Unregistered

True. I'm trying to build cash currently, but life is tough. Hai.. Money is always finding a reason to flow out. Markets are bottoming, so am I..

Above post from me:

Can only look forward and be harder than life!

From AC

[lazyplane]

Originally Posted by Unregistered

Above post from me:

Can only look forward and be harder than life!

From AC

Then you might one to consider reading this

https://forums.salary.sg/income-jobs/...l#.V0aiJzV97Dc

Originally Posted by lazyplane

Then you might one to consider reading this

[://forums.salary.sg/income-jobs/831-how-much-you-earning-per-annum-1002.html#.V0aiJzV97Dc[/

Why read this forum?

Early 40s.

Family net worth
200k cash, 300k cpf. No stocks or investment.
Terrace house with 550k loan. 7 year old car fully paid.

Family income 350k per annum, both working.