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Topic Review (Newest First)
29-07-2018 06:16 PM
Unregistered Married couple
Lives in a condominium unit in the OCR
Our combined net worth is average for our age group
Total net worth only $2.3 mil, including our home
We hope to retire by 55
How about you?
29-07-2018 04:23 PM
lazyplane
Quote:
Originally Posted by Unregistered View Post
Thanks for sharing. May I know how did you invest your SRS funds? I have been toying with the idea of SRS but banks are charging outrageous fees for transactions.
What kind of outrageous fee did you get ?

I am charged 0.25% percent + nominal fee for investing in equity. Just buy STI ETF using SRS when you dividend level of STI hits 5%.

If you dont invest, then SRS is really a cash investment. 0.25% leh . If you hold for 10 years, assume 4% missed growth, the value of this cash is 40% drop in purchasing power.

In fact SRS is my defacto equity account. I hold it to do equity. I prefer this to using my real free cash float which is unrestricted.
29-07-2018 04:12 PM
lazyplane I am also a super strong advocate for CPF and because i am one, i also know the journey to build $250 k CPF portfolio.

I just want to clarify why i said it is a bluff to have 250k at age 28.
It is not impossible as the poster set to clarify after my post. In addition, he made a screenshot of the contribution to CPF at age 18 somewhere as he clarified after JC

I just wish to say- at age 18, you are able to "contribute" approx 900 to CPF.
Annual limit for CPF as mentioned by other 37.74k.
So it is possible to hit S$250k . But this limit also means it cannot be easily done at one go.


But to build $250k portfolio in CPF means you must have sufficient means to contribute significantly over the 10 years period. so lets do some rough maths . Lets assume the full balance of the contribution was earning 4% across the full 10 years. So if the poster had 250k after 10 years, what was the size of investment at year 0 ?
Simple financial maths will let you know the initial capital was S$168k.
Again, just to make things simple assume this capital sum was contributed over 10 years, it means 16k per year. I dont even wish to talk about moving OA to SA or how if you contribute later, then the total amount at the back end years will need to be more etc?

I just wish to state
Age 18 - contributing 16 k per year to CPF all the way to 28 on average.
Has to complete study and maybe NS , degree , then work 3-4 years.
is not a normal kid. Somemore , never touch his CPF even to pay for university . Wah - i wish i started my life like you.

Hence i can only conclude-
The poster must have a lot of financial help in other areas or has a way of making money more than what he is saying.

Flipping property can increase because your cpf especially if you dont touch your cpf for your next property. this is especially true for downgraders.

As said, i am strong advocate for CPF. Some poster here, i dont know if saying such large number means more people will say CPF is a real retirement plan. But for me, i have done it and it is working nicely. I am already on track with those whom are like me to get my yearly 20k interest dividend... and i have a few years more to work so should hit some of the target that other have said. but it is not so easy to do it when young.
I also think young people have higher risk tolerance so if you can make money and have already so much, then should take more risk to get better returns. i didnt have much when younger so couldnt take the investment risk so i find myself doing an inverse thing ie taking more equity risk when i am older since my portfolio has enough stable ones . And now i do this equity risk now to build more income stream.

Anyway, i am just an old man rambling...


Quote:
Originally Posted by Unregistered View Post
No reason for bluff. As previous poster has mentioned, based on the CPF contribution limit, it is possible to achieve this amount.

Just consistent and diligent CPF contributions and top ups. I also do transfer from OA to SA so that helps in compounding at higher interest rate. Below is my CPF balance as of today. I have maxed out MA and almost hit FRS in SA. The reason that I have some amount in OA is to act as a buffer for my upcoming property purchase and I intend to transfer the OA funds to SA if I do not need it for my property (highly likely).

As an additional fun fact, I have attached my first CPF contribution in Jun 2008 prior contribution was from my part time job in JC. Lol. Based on my projection, I should be able to reach 1mil CPF by 50 (albeit a conservative estimate). Being able to reach such an amount like the previous poster is one of my retirement goals.

PS: I am a strong advocate of using CPF for retirement planning. That being said, I think I have got some room to brush in terms of my portfolio as I am holding on to too much safe assets which may impede my portfolio growth.



27-07-2018 05:24 AM
ffreedom It has been a couple of years since I last posted.
Now am coming 38...

Took a 15 mths of career break since early 2017
for some personal reasons.

Realize that unnecessary expenses actually go down when not working - we have no kids
and mthly expenses about 4K+ combined, only debt is housing paid entirely using cpf OA mthly.

Back to workforce soon & thankful able
to fetch similar salary.

With our low combined networth near to 1mil, ( really pale in comparison with most posts) we will continue work on it by saving most of salary & buy growth stocks using bonus or comms.

Striving to continue to live simple and work towards achieving financial freedom (I hope).

Combined Assets
—————————
Cash 126k
Cpf oa 70k
Cpf sa 150k
Cpf ma 100k
Housing 630k
Stocks & endowment 130k
Car 13k (scrap next year, value back -
will go carless coz no kids don’t need car)

Liabilities
—————
housing loan 223k (9 years remaining)
13-06-2018 02:23 PM
Unregistered
Quote:
Originally Posted by Unregistered View Post

What is a person to do?
You are well-off. I highly urge you to donate $8888 to the needy people every 8 months starting 18 June 2018.
31-05-2018 11:30 AM
Unregistered
parts of an elephant

Many of us are familiar with the parable about a group of blind men and an elephant.

The blind men heard that a strange animal (the elephant) was brought into town and they wanted to feel for themselves what this animal was like. So each of them felt part of the elephant.

The one who touched the side of the elephant said the animal was like a wall. The one who touched the tail, said no, the animal was like a rope. The one who touched the trunk described the animal as a huge snake. The one who touched the ear proclaimed that the animal was like a fan. The one who touched one of the elephant's legs said it was more like a tree.

This story reminded me of my own experience with different friends when we talked about our investments.

When discussing the CPF with one group of friends, I told them that my wife and I could withdraw the interests from our OA and SA amounting to $50k pa. My friends immediately proclaimed that we were too conservative and that we parked too much money into the CPF. They advised that we should invest some of the money in property or stocks.

Yet with another group of friends talking about stocks and shares, I told them that my yearly dividends were around $55k and one of the friends quickly estimated that my invested capital must be above $1M. The rest expressed concern that I might over exposing myself to the vagaries of the stock market. They advised caution and suggested that I move some of the money to safer investment such as SSB or even the CPF.

Then with yet another group of friends discussing property prices and en-blocs, upon hearing that I have 2 condos, they said better to play safe and not to over invest in property as the market is unpredictable especially now that we are closer to retirement age.

What is a person to do?
28-05-2018 09:56 PM
Unregistered Thanks for the honest and good reply.

May I know which insurance company policy that you have invested?

Recently I have been approached by banks and they recommended me NTUC SAIL & TM TM&[email protected]

It seems like NTUC is a better choice because of reinvestment option when you reach the 10 years mark.


Quote:
Originally Posted by Unregistered View Post
I treat my SRS contribution strictly for retirement. As such I do not invest them in stocks!

I want to have certainty on their availability when I start my SRS withdrawal at 62, so the SRS funds must be safe and available. I use the money to buy single premium insurance products with fixed and guaranteed payout upon maturity. Their returns are low but guaranteed.

When you invest your SRS in shares, you may enjoy higher returns but the risk of loss is also higher. The worst that could happen is when you are about to withdraw your SRS for your retirement, the stock market goes into a big melt down like in 2008/9 and you sell at a great loss.

Use money that you can afford to lose to invest in stock market. Gains can be high, but loss can be big too! You should not be losing sleep over that money if the market value drops! If it cause you stress and anxiety, then you should not be investing that money in the stock market.
28-05-2018 02:07 PM
Unregistered
Quote:
Originally Posted by Unregistered View Post
Thanks for sharing. May I know how did you invest your SRS funds? I have been toying with the idea of SRS but banks are charging outrageous fees for transactions.
I treat my SRS contribution strictly for retirement. As such I do not invest them in stocks!

I want to have certainty on their availability when I start my SRS withdrawal at 62, so the SRS funds must be safe and available. I use the money to buy single premium insurance products with fixed and guaranteed payout upon maturity. Their returns are low but guaranteed.

When you invest your SRS in shares, you may enjoy higher returns but the risk of loss is also higher. The worst that could happen is when you are about to withdraw your SRS for your retirement, the stock market goes into a big melt down like in 2008/9 and you sell at a great loss.

Use money that you can afford to lose to invest in stock market. Gains can be high, but loss can be big too! You should not be losing sleep over that money if the market value drops! If it cause you stress and anxiety, then you should not be investing that money in the stock market.
28-05-2018 01:30 PM
Unregistered Me too wondering what do I invest using SRS.

Guess since that poster has dividends from stocks, likely he would have invested in equities.

Myself have bought UT and looking at either single premium, another UT or stocks. Don't wanna risk the SRS as that would form a huge part of my retirement besides CPF Life and SA.

Lost a big chunk of money through scam investment and think it is safer to put in CPF and SRS, draw down slowly when retired.



Quote:
Originally Posted by Unregistered View Post
Thanks for sharing. May I know how did you invest your SRS funds? I have been toying with the idea of SRS but banks are charging outrageous fees for transactions.
28-05-2018 08:53 AM
Unregistered
Quote:
Originally Posted by Unregistered View Post
Still working.

The CPF is one of my three "pillars" in my retirement funding scenario. The other two are divideds from shares and rental from my investment property. And a small amount of FD which forms the emergency fund. This amount is one year's worth of expenses at $100k.

This is what our income sources (outside of work income) would look like :

Currently (age 58), combined passive income with wife

Dividends : $55k pa
Rental : $38k pa
CPF interest (OA & SA) : $48k pa (keep in CPF to compound)

From age 62 to 64 (retired)

Dividends: ~ $55k pa
Rental : ~ $36k pa
SRS drawdown : $26k pa
CPF interest (OA & SA) : $50k pa

From age 65 to 71

Dividends: ~ $55k pa
Rental : ~ $36k pa
SRS drawdown : $26k pa
CPF interest (OA & SA) : $50k pa
CPF Life : ~ $40k pa

From age 72 onwards

Dividends: ~ $55k pa
Rental : ~ $36k pa
CPF interest (OA & SA) : $50k pa
CPF Life : ~ $40k pa
Thanks for sharing. May I know how did you invest your SRS funds? I have been toying with the idea of SRS but banks are charging outrageous fees for transactions.
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