CPF Interest @ 2.5%, Inflation @ 6.7%
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Originally posted by maurizio13:
CPF is a source of cheap funds for the goverment to exploit.
I think it is no secret that they use our CPF money for investments. Thus, we have a choice really, especially for those younger ones, not saying we should have a spiteful mentality, but it makes financial sense to invest your CPF monies. -
Originally posted by gasband:
I think it is no secret that they use our CPF money for investments. Thus, we have a choice really, especially for those younger ones, not saying we should have a spiteful mentality, but it makes financial sense to invest your CPF monies.
Not much we can do for the $20,000 cap, it's a compulsory cheap loan to the government.But some folks here are quite the evil, they encourage folks to keep their money in CPF. I hope nobody was convinced by him.
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Originally posted by gasband:
CPF is never an investment. Like what is mentioned, it is a forced savings plan and in fact, a plan that you can never receive in cash until you are almost dead haha. CPF is a savings plan so that when you reach a certain age, say 35 and you need to buy a flat, there is at least a sum of money for you to buy your flat or should I say pay the downpayment. But it is never an investment. At 2.5%, it is risk free and if you choose to look at it that way as an investment, it is a good investment return with no risks.
BUT!
Why should you let it stay inside there for 2.5% when there are so many better options out there with manageable risks and yielding higher returns. Before April 1st this year, I have cleared out whatever money in the CPF as investments because at my age, I do not foresee myself needing the CPF money to buy a flat till 4 years later so why not invest it?
Of cos now, with the 20K cap, there is nothing much you can do with the first 20K of your CPF money but hey why the cap is there is another issue, partly to do with what those "wayward" finanical planners do to "spoil" market. So dun blame the CPF for just giving the 2.5%, there is always another choice one!
If you think you can do better than 2.5%, then you should invest your CPF fund through CPFIS. Over the last 7 years, by yield from stock investment only is about 275% or 39% a year.. But then again during good times, or when the market is on its up trend, it is always easier to make money.
However if you get burn, please dont blame the government for letting you use the money to invest.
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Originally posted by Love Supreme:
If you think you can do better than 2.5%, then you should invest your CPF fund through CPFIS. Over the last 7 years, by yield from stock investment only is about 275% or 39% a year.. But then again during good times, or when the market is on its up trend, it is always easier to make money.
However if you get burn, please dont blame the government for letting you use the money to invest.
Then everybody should just keep their money in the bank and CPF.Don't invest in stocks, business ventures, real estate, commodities. If everybody thinks like you, then all businesses in the world would come to a standstill.
Seriously, if I was your daddy, I would be extremely disappointed to have a son like you.
Are you elaborating how Temasek got it's fingers (ooops should be arm) burned when it invested in Global Crossing, Merrill Lynch, Shin Corp, Suzhou Industrial Project and Optus?
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Originally posted by maurizio13:
Then everybody should just keep their money in the bank and CPF.Don't invest in stocks, business ventures, real estate, commodities. If everybody thinks like you, then all businesses in the world would come to a standstill.
Seriously, if I was your daddy, I would be extremely disappointed to have a son like you.
Are you elaborating how Temasek got it's fingers (ooops should be arm) burned when it invested in Global Crossing, Merrill Lynch, Shin Corp, Suzhou Industrial Project and Optus?
From telling us that property value will appreciate in tandem with inflation rate, now you are telling everyone that it is stupid to keep your money in CPF and you MUST invest because some idiot in sgforums said so.
During the late 90s, (maybe you are still studying for exams) CPF have made the annoucement that majority of CPF members who use their money in investment would actually be better off leaving their money with CPF.
Any financial advisor will tell you that one must always set aside some liquid assets in risk free enviroment, and not put everything into high risk basket.
And btw, what makes you think that if everybody dont invest, the world will come to a standstill? Honestly I dont know what the hell are you talking about!!
If I am your dad, I will pray do God that it was my neighbour who actually made your mum pregnant not me.
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Originally posted by Love Supreme:
From telling us that property value will appreciate in tandem with inflation rate, now you are telling everyone that it is stupid to keep your money in CPF and you MUST invest because some idiot in sgforums said so.
During the late 90s, (maybe you are still studying for exams) CPF have made the annoucement that majority of CPF members who use their money in investment would actually be better off leaving their money with CPF.
Any financial advisor will tell you that one must always set aside some liquid assets in risk free enviroment, and not put everything into high risk basket.
And btw, what makes you think that if everybody dont invest, the world will come to a standstill? Honestly I dont know what the hell are you talking about!!
If I am your dad, I will pray do God that it was my neighbour who actually made your mum pregnant not me.
So 1990s is high inflationary period of 6.7%?CPF is liquid? I can cash out as and when I want.
In case you don't understand, business has risk too. According to you, it's safer to keep everything risk free. Then might as well ask everybody to keep all their assets in banks and CPF. No investments where got kopi tiam to eat. No investments where got bus to ride in. If no investments, the world don't come to standstill, then I don't know which dream world you in.
You can never ever have any genetic relationship with me lah, you so stupid, you must have inherited your genes from ah meng. Wait a second, ah meng is too smart to be your daddy. Maybe probocis monkey.
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Originally posted by Love Supreme:
Both Eagle and Maurizio are saying that investing in property will help you to hedge against inflation. And they both seems to agree that, if you buy a 1.4m property today and if the inflation is 6.7%, by next year, the property will be valued at $1.4m x 106.7% = $1.4938m
Hahahaha...
a) Price of Singapore private property down by 2.1% in April 2008.
http://idealresidence.wordpress.com/2008/05/13/luxury-home-prices-down-21-says-report/
b) Analyst is predicting that luxury property prices in Singapore could fall 32% by 2010.
http://singaporepropertyfrontiers.com/2008/03/27/luxury-home-prices-to-fall-32-by-2010-nomura/
I guess if what they are saying is true, then Singapore should be experiencing deflation by now..:)
Are you dumb or what? You mean you seriously think investing is for the short term, that you have to see month by month prices? If Warren Buffett followed your thinking, he wouldn't have what he has today. In his words, the best period to hold is forever.
If analysts were always right in the news, everyone would have been millionaires now... Duh... If you want to buy at a high now, then of course you wouldn't earn... Prices were up nearly 80% for some districts before the current bull run, and given a 32% drop, there would be still an overall rise... Let me give you this fact. Take a look at the straits times index, or the US S&P 500. For sti, for the last 10+ years, it has been constantly on the uptrend. Even if you have bought the etf (if it was present at that time, but it wasn't) just before the 97 crash, the current price is still higher than the peak point in 96. The same goes for S&P 500; constantly on the uptrend with the occasional ups and downs. The same goes for housing prices.
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Originally posted by Love Supreme:
I suspect that Eagle and Maurizio are infact the same person in this forum, and their purpose is to create a fake sense majority opinion.
If not, can you help to explain where there are only "2" persons in this forum who believe that property prices by default will appreciate in tandem with inflations?
:D
This is really pathatic dude!!
You are pathetic. If you don't understand the concept of inflation, and be so bothered about short-term fluctuations, you are seriously dumb.
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Originally posted by redDUST:
OT
redDUST = 16/f/lonely = Gazelle = Love supreme = Oxford Mushroom = Eagle = Maurizio13 = ?
all the nick association is really taking the discussion in this forum to a whole new low. why can't we all recognize that there are opposing views and people take different stand. often times, getting into emotional verbal assault is fine too, and even enjoyable to some (those in the ring and outside as well); but the ones resorting to name calling & lacing expletives (me sometimes guilty too but will exercise restrain going forward) really have nothing better to offer. your credible views offered is often diminished when you resort to these nick association just to discredit another.
me and 16/f/lonely had 1 pm exchange recently over my last folly, but i could very well be talking to myself since redDUST = 16/f/lonely.
How about we compare the following statements:
By Love Supreme:
I suspect that Eagle and Maurizio are infact the same person in this forum, and their purpose is to create a fake sense majority opinion.Compare with TCH05's statement:
eagle and maurizio13 are the same person. They always appear at the same time and they always echo one another just to make up the majority in this forum
Isn't it so obvious?
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Originally posted by Love Supreme:
1) Are you talking about Suntec City Reits or Bond?
2) I am not sure which university or "experts" in this forum teaches you that, value of property always move in tandem with inflation.
If you are so sure about what you are saying, I would appreciate if you could help explain why in the US, UK and Spain for example, the price of food, energy, gas are all going up, while property price are falling?
I suppose if Singapore would to adopt your sort of investment strategy for our CPF, we would have been going belly up by now.
3) Your property friend must be lying to you, or he is just a rookie property agent who doesnt know what he is talking about.
You just continue to blabber ba. My gf will continue to collect the interest. It's ok one.
We earn the money, no need tell you how de. Just continue believing in yourself ok? CPF best for you. Put all your money into CPF hor. Just go earn your 2.5%. Since you are already happy and contented with it, why bother?
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Originally posted by Love Supreme:
From telling us that property value will appreciate in tandem with inflation rate, now you are telling everyone that it is stupid to keep your money in CPF and you MUST invest because some idiot in sgforums said so.
During the late 90s, (maybe you are still studying for exams) CPF have made the annoucement that majority of CPF members who use their money in investment would actually be better off leaving their money with CPF.
Any financial advisor will tell you that one must always set aside some liquid assets in risk free enviroment, and not put everything into high risk basket.
And btw, what makes you think that if everybody dont invest, the world will come to a standstill? Honestly I dont know what the hell are you talking about!!
If I am your dad, I will pray do God that it was my neighbour who actually made your mum pregnant not me.
During the late 90s, there are still investors who constantly made money.
I have no idea why you would want to compare "gamblers" with trained investors
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Originally posted by Love Supreme
During the late 90s, (maybe you are still studying for exams) CPF have made the annoucement that majority of CPF members who use their money in investment would actually be better off leaving their money with CPF.
Thats because Singaporeans are not allowed to invest CPF in Unit Trusts until 1999. With all their CPF investments concentrated in the Singapore share market, the choices to diversify risk are limited.
Do you know Temasek Holding only managed just a 3% annual return in the late 90s??? Does this means we should sack the chairman and make them invest in fixed deposit??
Source http://www.singapore-window.org/sw04/041012aw.htm
The company managed just a 3% annual return to its sole shareholder -- Singapore's Ministry of Finance -- during the past 10 years in part because of the effects of the Asian financial crisis, the 2001 terrorist attacks in the US, and last year's outbreak of severe acute respiratory syndrome, or SARS, in Asia.
CPF is simply a hidden tax on Singaporean's retirement savings.
Any financial advisor will tell you that one must always set aside some liquid assets in risk free enviroment, and not put everything into high risk basket.
As M13 has pointed out, CPF is not a liquid asset. If you fall sick or need emergency money, can you use CPF?
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Originally posted by eagle:
You just continue to blabber ba. My gf will continue to collect the interest. It's ok one.
We earn the money, no need tell you how de. Just continue believing in yourself ok? CPF best for you. Put all your money into CPF hor. Just go earn your 2.5%. Since you are already happy and contented with it, why bother?
Hahaha...eagle eagle.....
1) Your gf's money is not your money, so dont use the word WE earn money.
2) You just graduated from Uni, and you are only in your early twenties, so please dont tell us that your gf own the $1.4m property and she is the one what is collecting "interest". unless
a) Your gf is as old as your mum
b) Your gf is the fat and ugly daughter of some tycoon in Singapore.
And btw, what sort of "interest" is your gf collecting? She is the daughter of AH LONG head from Geylang or what? :D
3) Tell us more about your Suntec Bond leh? 5+% RISK FREE...hahah. You are smoking too much already lah!!
Eagle, please stop imagining things lah....and please stop giving us all that your gf this your gf that, you are sounding like a useless gigolo hidding under your gf skirt.
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Originally posted by Chinkara:
Hahaha...eagle eagle.....
1) Your gf's money is not your money, so dont use the word WE earn money.
2) You just graduated from Uni, and you are only in your early twenties, so please dont tell us that your gf own the $1.4m property and she is the one what is collecting "interest". unless
a) Your gf is as old as your mum
b) Your gf is the fat and ugly daughter of some tycoon in Singapore.
And btw, what sort of "interest" is your gf collecting? She is the daughter of AH LONG head from Geylang or what? :D
3) Tell us more about your Suntec Bond leh? 5+% RISK FREE...hahah. You are smoking too much already lah!!
Eagle, please stop imagining things lah....and please stop giving us all that your gf this your gf that, you are sounding like a useless gigolo hidding under your gf skirt.
1) I earn money by dividends of 5%~6% from stocks.
2) None of my statements mentioned that she owned a 1.4m property. Putting words into my mouth eh. Or are you just plain dumb, not being able to understand simple english?
3) Just go UOB to ask. Pls go. No use blabbering here.
Lastly, how come you start new account already?
Happy waiting every 5 mins. -
Originally posted by eagle:
1) I earn money by dividends of 5%~6% from stocks.
2) None of my statements mentioned that she owned a 1.4m property. Putting words into my mouth eh. Or are you just plain dumb, not being able to understand simple english?
3) Just go UOB to ask. Pls go. No use blabbering here.
Lastly, how come you start new account already?
Happy waiting every 5 mins.Eagle, I think you have missed the point of our discussion. We are not talking about who can make the most returns from investment. we are talk about RISK FREE investment, so please stop bragging about your 5-6% dividends from stocks because investing in stock is NEVER risk free.
Your claim that Suntec City Bond returns of over 5% is risk free and I would like you to show us what exactly is this bond you are talking about and why is it risk free.? Please dont direct us to UOB because we prefer to hear it from you.
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Originally posted by Chinkara:
Eagle, I think you have missed the point of our discussion. We are not talking about who can make the most returns from investment. we are talk about RISK FREE investment, so please stop bragging about your 5-6% dividends from stocks because investing in stock is NEVER risk free.
Your claim that Suntec City Bond returns of over 5% is risk free and I would like you to show us what exactly is this bond you are talking about and why is it risk free.? Please dont direct us to UOB because we prefer to hear it from you.
Duh, who else better to hear it from other than the one who recommended and sold the bond. If you are too lazy to even go down to UOB to ask for the information, just keep to your 2.5% CPF ok?
And don't put words into my mouth again. I didn't say the bond is risk-free. Apparently, you can't understand english.
No point trying to tell you what is good. Doesn't benefit me, and doesn't bother me at all if you are contented with a measly 2.5%.
And finally if you know which dividends stocks I'm talking about, you would have seen that it is quite as risky as a fixed d, and it is much much more liquid than fixed d.
If you are too lazy to do your research, just live with your 2.5%.
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Originally posted by eagle:
Duh, who else better to hear it from other than the one who recommended and sold the bond. If you are too lazy to even go down to UOB to ask for the information, just keep to your 2.5% CPF ok?
And don't put words into my mouth again. I didn't say the bond is risk-free. Apparently, you can't understand english.
No point trying to tell you what is good. Doesn't benefit me, and doesn't bother me at all if you are contented with a measly 2.5%.
And finally if you know which dividends stocks I'm talking about, you would have seen that it is quite as risky as a fixed d, and it is much much more liquid than fixed d.
If you are too lazy to do your research, just live with your 2.5%.
Eagle, I hope you are aware that this thread is talking about CPF returns, NOT about which investment give you the best returns. As we all (maybe excluding some in this forum) know that investments with higher returns always comes with higher risk. Hence what is the point of comparing higher risk and higher returns investment to CPF?.You talk about ComfortDelgro, high dividend, however you have failed to highlight that share price of Comfortdelgro has fallen by 33% since Apr2007 last year.?
You talk about Suntec City Bonds, but you have failed to even tell us what exactly this bond is all about and now you are calling others lazy?
My suggestion to you is that, if you dont know what you are talking about, just keep you mouth shut.
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Originally posted by Chinkara:
Eagle, I hope you are aware that this thread is talking about CPF returns, NOT about which investment give you the best returns. As we all (maybe excluding some in this forum) know that investments with higher returns always comes with higher risk. Hence what is the point of comparing higher risk and higher returns investment to CPF?.You talk about ComfortDelgro, high dividend, however you have failed to highlight that share price of Comfortdelgro has fallen by 33% since Apr2007 last year.?
You talk about Suntec City Bonds, but you have failed to even tell us what exactly this bond is all about and now you are calling others lazy?
My suggestion to you is that, if you dont know what you are talking about, just keep you mouth shut.
1) You really don't know what you are talking about. I've not even started talking about any investment with high risks and giving you the best returns.
2) Where did I ever talk about ComfortDelgro? You seemed very very fond of putting words into pple's mouth. In all of your 3 posts, you have done it consistently.
3) You are just plain lazy. Why should I tell you more info about it? Anything stopping you from going to UOB to ask? I gave you the name, I gave you the bank that recommended and sold it. You mean you still do not have enough info to find out more? Are you still a baby waiting to be spoonfed?
I wonder how many new accounts you have started to showcase your plain stupidity.
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Originally posted by Chinkara:
Hahaha...eagle eagle.....
1) Your gf's money is not your money, so dont use the word WE earn money.
2) You just graduated from Uni, and you are only in your early twenties, so please dont tell us that your gf own the $1.4m property and she is the one what is collecting "interest". unless
a) Your gf is as old as your mum
b) Your gf is the fat and ugly daughter of some tycoon in Singapore.
And btw, what sort of "interest" is your gf collecting? She is the daughter of AH LONG head from Geylang or what? :D
3) Tell us more about your Suntec Bond leh? 5+% RISK FREE...hahah. You are smoking too much already lah!!
Eagle, please stop imagining things lah....and please stop giving us all that your gf this your gf that, you are sounding like a useless gigolo hidding under your gf skirt.
Hahaha....No intellect to argue constructively, use profanities to snub your opponents.
Seriously, you are a sad case.
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Originally posted by eagle:
1) You really don't know what you are talking about. I've not even started talking about any investment with high risks and giving you the best returns.
2) Where did I ever talk about ComfortDelgro? You seemed very very fond of putting words into pple's mouth. In all of your 3 posts, you have done it consistently.
3) You are just plain lazy. Why should I tell you more info about it? Anything stopping you from going to UOB to ask? I gave you the name, I gave you the bank that recommended and sold it. You mean you still do not have enough info to find out more? Are you still a baby waiting to be spoonfed?
I wonder how many new accounts you have started to showcase your plain stupidity.
1) The reason why I have been asking you about the so-called 5% return Suntec City Bond which you brag about (on behalf of your GF) is because I want to understand the risk involved. Personally I dont believe it is guranteed return and risk free like CPF. Anybody who have been following this thread will know that you are incapable for saying anything more about this stupid bond other than directly us to UOB and calling other lazy.
2) You use Comfortdelgro as an example of high dividend stock, which offer dividend higher than CPF 2.5%. What I am highlighting is that if you use your CPF to buy that stock in April 07 last year, you would much better off putting your money with CPF, regardless if it pay 5 or 6% dividend.
3) Me lazy? Why should I waste me precious time looking into something that is coming from some dumb, stupid, ignorant wannabe investor who only capable to bragging about his gf and pretend to talk like a Pro?
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Originally posted by Chinkara:
1) The reason why I have been asking you about the so-called 5% return Suntec City Bond which you brag about (on behalf of your GF) is because I want to understand the risk involved. Personally I dont believe it is guranteed return and risk free like CPF. Anybody who have been following this thread will know that you are incapable for saying anything more about this stupid bond other than directly us to UOB and calling other lazy.
2) You use Comfortdelgro as an example of high dividend stock, which offer dividend higher than CPF 2.5%. What I am highlighting is that if you use your CPF to buy that stock in April 07 last year, you would much better off putting your money with CPF, regardless if it pay 5 or 6% dividend.
3) Me lazy? Why should I waste me precious time looking into something that is coming from some dumb, stupid, ignorant wannabe investor who only capable to bragging about his gf and pretend to talk like a Pro?
1) 3) Lazy means lazy. Why should I waste precious time telling a baby waiting to be spoonfed if you don't want to go and find out yourself? If you don't believe then don't believe lor. I never ask you to believe. I'm not a seller nor do I earn any commission from selling it. Duh... Just keep your money in your CPF and don't worry about this bond. Period.
2) You still haven't point out where I raised ComfortDelgro as an example. Anyone who reads this thread will see that all you can do is to use words to insult, and put words into other's mouth just for the sake of arguing.
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Originally posted by Chinkara:
Eagle, I think you have missed the point of our discussion. We are not talking about who can make the most returns from investment. we are talk about RISK FREE investment, so please stop bragging about your 5-6% dividends from stocks because investing in stock is NEVER risk free.
Your claim that Suntec City Bond returns of over 5% is risk free and I would like you to show us what exactly is this bond you are talking about and why is it risk free.? Please dont direct us to UOB because we prefer to hear it from you.
Never risk free? But CPF and Banks also not risk free leh.Banks and CPF don't cover you for inflation risk.
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The makings of a hypocrite:
Please dont direct us to UOB because we prefer to hear it from you.
Your gf's money is not your money, so dont use the word WE earn money
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Originally posted by eagle:
Suntec City bond. My gf has already put the money in, so I can definitely say for sure. Already bought it in March. Armchair critic?
It is fact!Property goes up in price with inflation. You forgot about that.
For SPH and ComfortDelGro stocks, they have been consistently giving out 5% (6% if you buy at the low) dividends each year.
There's one more way to achieve even greater returns (~10%) with equally low risk, but you have to hold if for long term (at least 10 years). But I guess since you won't understand the market, no point sharing with you.
A perfectly new one costs around $1.6 to $1.7 million. Again, my gf's family bought it (because their current house has gone to en bloc sale). And according to my property agent friend, that type of house (supposed not new), even if in ulu area, can fetch minimum of $5k a month for rental.
Boys and girls, just take a look at the load of rubbish that is coming out from his mouth..
You should be ashame of yourself.
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Originally posted by Chinkara:
Boys and girls, just take a look at the load of rubbish that is coming out from his mouth..
You should be ashame of yourself.
Obviously you cannot read this part which you highlighted
if you buy at the low
Then you tell us
however you have failed to highlight that share price of Comfortdelgro has fallen by 33% since Apr2007 last year
Pls go and brush up on your English comprehension skills, lazy bum