Category: CPF & Government Policies

4 Things to Invest in that will Make You (Not Your Financial Planner/Broker) Wealthy

investing conf
You’ll never hear these tips in a financial seminar (because these tips won’t generate a commission).

It seems that everywhere you look, there’s some guy hosting a free seminar who’s going to tell you secrets on how to pick winning stocks. Sometimes these talks are hosted by financial services companies like RHBInvest and Phillip Capital. Or, they are given by notable “experts” in the field, like Mark Lin and Nicholas Tan. Other seminars are held by financial education companies, like Wealth Mentors, where much of what they teach could be found in a good book (free, from the library).

As a former financial educator who was not tied to an investment company or to selling certain products (and therefore, I had absolutely no conflicts of interest), I can honestly say that for the vast majority of people, these seminars won’t benefit them. They will mainly benefit the organiser(s). So what should these people invest in? (more…)

What the CPF Advisory Panel Should Consider

cpf focus group
These are some things the CPF Advisory Panel should consider.

I recently attended a focus group discussion on various aspects of CPF. These included the minimum sum scheme, how much one needs for retirement, how much of a part should CPF play in retirement, the possibility of a partial lump sum withdrawal, and different considerations on the life annuity payouts. My discussion group was very diverse. There were people in their mid-20s, who have just started their careers, and retirees who were in their early-70s. These are my insights and take-away points from the discussion: (more…)

To Seniors: 5 Reasons Why Renting is the Better Choice

National Day rally singapore 2014
Sorry, but I disagree with you – home ownership is not always the best thing!

When Prime Minister Lee Hsien Loong listed the various ways in which a “cash poor” senior can get extra income from his/her home in retirement, he said, “It is better if you keep your property. Even if you rent out the whole flat. It does not matter, it is yours. And you can fall back on it for your old age, just in case anything happens.” Here’s why I disagree, and why I think selling then renting is a viable option. (more…)

CPF: The Right Balance Between Flexibility versus Sustainability

retirement
The National Day Rally addresses more flexibility in retirement.

The Singapore government has the difficult task of finding the right balance between flexibility and sustainability. CPF is a prime example of how the government is trying to allow some individual flexibility, while ensuring that the retirement scheme is sustainable for years to come. The CPF Minimum Sum scheme aims to provide Singaporeans with a monthly income to support a basic standard of living during their retirement. The portion of CPF that exceeds the Minimum Sum can be withdrawn at age 55. Compared to other countries, the CPF is actually quite flexible. Here’s why:

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How You Can Feel Better About the Singapore CPF

singapore central provident fund
3 ways to feel better and more secure about your CPF account.

I’ve heard a lot of concerns and complaints recently about the Singapore CPF. It seems that there are three main camps of concerned people. Those who think their CPF is not generating enough returns (they believe CPF is cheating them from earning higher returns, and that they can do better if they invested the money themselves). Those who believe CPF is too restrictive or confusing (they do not like the rules, particularly regarding the Minimum Sum). And those who flat-out think the CPF is operating like a ponzi scheme. Regardless of which camp the concerned citizens belong to, nearly all of them have one thing in common. They want access and full control over their “hard-earned money”. And they want it now. (more…)

How the Singapore CPF compares to US Social Security

CPF may have some issues, but it's nothing like the US Social Security system, and that's a good thing!
CPF may have some issues, but it’s nothing like the US Social Security system, and that’s a good thing!

There have been many articles and blogs lately about the fairness and viability of the Singapore CPF. As a new PR to Singapore, I know that I have much more to learn and understand on this topic; in no way do I claim to be an expert in it. But I am quite familiar with the US Social Security scheme, its current status and future viability. Since one blogger in particular has compared the two retirement schemes, skewing his findings in favor of these western schemes, I would like to shed some light on some of the “heart truths” about the US Social Security system (all backed by references, of course). (more…)