Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee!

[tanwahp]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

A large sovereign fund do not put all their eggs in one basket. Money is partitioned out to hedge funds, PIMCO, real estate investment, private equities etc. Some will lose money but overall it should return higher than the market unless the people in Temasek are that stupid in their selection of funds to invest in.

Moreover, you don't get the same returns every year does not mean you cannot promise your investors the same. There are low risk funds that provide low but constant returns every term. According to many people, they are paying better than CPF.

 

[eatshitndie]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

the best way to "beat the cpf" is to withdraw all of it at your own terms, and re-invest in something else more rewarding, such as either a 100-year old victorian house in sf 20 years ago or 1000 shares of google or netflix over 5 years ago. how to withdraw all at your own terms? give up on the sg citizenship and emigrate when you think your sizable cpf savings can do better for you somewhere else. the sg citizenship is practically and monetarily worthless when you consider the opportunity cost of part of your funds being tied down with a constant moving target. the sg citizenship itself is becoming a global laughing stock. anybody crowing about identity, national pride and loyalty must be either a moron or in delusion.

 

[sleaguepunter]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

I am amazed that after all the sound and fury, no one has forwarded a good method to game and beat the system. The following is Aurvandil's Beat-the-CPF strategy:

1) Transfer all monies from your Ordinary Account to your Special Account. With the ever rising minimum sum, you may as well earn 4% interest in the SA as opposed to 2.5% in your OA.
2) Take care of your health by taking supplements and living a health lifestyle.
3) When the time comes, choose the CPF Life option with the LARGEST monthly payout.
4) Continue to keep healthy and live a healthy lifestyle.

If you do this and live beyond 85 years, you will have beat the system and take out much more than you put in. If all Singaporeans did this, they will be seriously screwed.

sound interesting but looking at family history, most men die before 75yo, many barely cross the 60 mark.

then for those lives no so long type, what other ways to beat the system?:p

 

[scroobal]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

The current laws allow this Govt do what they did with the CPF. It is legal. However some feel that it is unethical and others feel that they do not what is going and are seeking clarity from the Govt. Roy is doing the right thing in asking all the right questions and raising this issue.

But he overstepped when he made those allegations. There is nothing the PM did that is illegal. They have the majority and they have abused their power in coming out with laws and regulations that do not serve the people but themselves.

I have a different view. The concept of defamation needs to be defined. In this case, Roy made an allegation on the government not PM Lee. The PM cannot move money around Temasek and CPF since this is a collective decision.

There is also no evidence to suggest that the PAP lost a single vote from Roy's allegations. Anyone who thinks the PAP is corrupt already thinks so without Roy. Fence sitters are unlikely to be won over as they look at other aspects, not to mention PAP voters.

 

[aurvandil]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

Current male life expectancy is 80.2 years.

http://www.singstat.gov.sg/statistics/visualising_data/chart/Life_Expectancy_At_Birth.html

The break even point for the current CPF Life scheme with the largest monthly payout is around 85 years.
If you live past 85 years, you start obtaining a positive return.

If you don't want to look after yourself and plan to die young, then the optimum strategy would be

1) Marry a young foreign girl
2) Give up your citizenship
3) Withdraw your CPF
4) Live a life of sin.
5) Die before the money runs out.

sound interesting but looking at family history, most men die before 75yo, many barely cross the 60 mark.

then for those lives no so long type, what other ways to beat the system?:p

 

[Seee3]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

I am amazed that after all the sound and fury, no one has forwarded a good method to game and beat the system. The following is Aurvandil's Beat-the-CPF strategy:

1) Transfer all monies from your Ordinary Account to your Special Account. With the ever rising minimum sum, you may as well earn 4% interest in the SA as opposed to 2.5% in your OA.
2) Take care of your health by taking supplements and living a health lifestyle.
3) When the time comes, choose the CPF Life option with the LARGEST monthly payout.
4) Continue to keep healthy and live a healthy lifestyle.

If you do this and live beyond 85 years, you will have beat the system and take out much more than you put in. If all Singaporeans did this, they will be seriously screwed.

Have to disagree on point 3. A friend hit 55 recently with RA of 148k. We were discussing which life plan should he opt for. I jokingly suggested that he should opt for the one that is NOT the default plan. The default plan is the standard plan that gives more monthly payout than the basic plan.

Much later he told me he had taken the basic plan. I got worried as I thought that he had taken my advice for real. I was relieved when he explained why.

For standard plan, 50% of the "min sum" will be deducted from his RA at 55 and all that is left in the RA will he deducted at 65. For basic plan, I remembered it to be 10% and 10% respectively.

The scary part is that for standard plan, should one died at 75, the bequest will only be about 15% of your original RA while for basic plan, the bequest will still be about 100% of the original RA amount. The additional monthly pay out is only about $100 more for the standard plan. Over 10 years, one will only gain additional $12000. To gain $12000 at the risk of losing 85% of the original RA may not be worthwhile as the average life expectancy is only 82.

 

[aurvandil]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

Prob a good idea to reference this handy CPF Life guide.

http://mycpf.cpf.gov.sg/NR/rdonlyres/09EA0C05-C8E9-4705-9D91-E8BD1D12CF1E/0/LIFEBrochure.pdf

The standard plan is the one with the higher payout but lower bequest.
The basic plan is the one with the lower payout but higher bequest.

Referring to pg 28 and 29, there is a worked example if the person has $100k in their retirement account.

If you opt for the standard plan, $74k is deducted when you reach 55. $26k is deducted when you reach 65.
If you opt for the basic plan, $10k is deducted when you reach 55. $90k is deducted when you reach 65.

The monthly payout for the standard plan is $817 and $903.
The monthly payout for the basic plan is $734 and $812.
The difference is therefore between $83 to $91.

Based on this, the standard plan is clearly inferior if you die before 65.
If however you live past 85, then the standard plan becomes superior.
Assuming the difference between standard and basic is $87. Over a 20 year period from (65 to 85 years old), the difference in payout is 20x12x87=$20,880.

If the worry is that you will die young, then the best strategy is to get out of CPF Life by giving up citizenship and withdrawing your CPF before the first CPF Life deduction.
If however you are in good health and plan to live to 85 and beyond, then the best strategy is to go with the standard plan. After year after 85 is gravy as far as CPF Life is concerned.

Have to disagree on point 3. A friend hit 55 recently with RA of 148k. We were discussing which life plan should he opt for. I jokingly suggested that he should opt for the one that is NOT the default plan. The default plan is the standard plan that gives more monthly payout than the basic plan.

 

[Thick Face Black Heart]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

As aurvandil has alluded to, the best strategy to beat the CPF is through emigration.

All young Singaporeans should give it a shot.

 

[eatshitndie]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

the best way to "beat the cpf" is to withdraw all of it at your own terms, and re-invest in something else more rewarding, such as either a 100-year old victorian house in sf 20 years ago or 1000 shares of google or netflix over 5 years ago. how to withdraw all at your own terms? give up on the sg citizenship and emigrate when you think your sizable cpf savings can do better for you somewhere else. the sg citizenship is practically and monetarily worthless when you consider the opportunity cost of part of your funds being tied down with a constant moving target. the sg citizenship itself is becoming a global laughing stock. anybody crowing about identity, national pride and loyalty must be either a moron or in delusion.

ok, i'm not advocating wholesale abandonment of sg just to gain a pittance from your cpf savings. if you time it well and re-invest wisely, you may get a windfall. but it's never always that rosy due to risks, events and circumstances. on the flip side, if you stay in sg and leverage your cpf for a hdb flat many years ago, you would have enhance your asset more than my investment in some stocks, and overall with a stronger sgd, you may be better off than i am financially.

thanks to the pap for increasing your overall wealth!

 

[aurvandil]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

If you have plan to emigrate, then you need to do it before you hit 55. If you wait till after 55, you take a big financial hit because of CPF Life.

If you plan to live in Singapore in your retirement years, you are forced to take up CPF Life. In this case, then your best bet is to live healthy until at least 85. If you manage to make to 90 or even 95, then you will have managed to "makan" the PAP.

ok, i'm not advocating wholesale abandonment of sg just to gain a pittance from your cpf savings.

 

[Getloud]

Re: Even Goh Meng Seng ex-Secretary General of NSP agrees Roy Ngerng deframed PM Lee

If you have plan to emigrate, then you need to do it before you hit 55. If you wait till after 55, you take a big financial hit because of CPF Life.

If you plan to live in Singapore in your retirement years, you are forced to take up CPF Life. In this case, then your best bet is to live healthy until at least 85. If you manage to make to 90 or even 95, then you will have managed to "makan" the PAP.

Emigration should be planned and action before 35, by 40 to move on latest.