Another white skunk declares CPF system is robust

[halsey02]

After all these days he could not add any new information. Looks like they are stuck.

They will become so sensitive, in the coming days, they will use the laws to silence all those who make noises on the CPF & even "threaten" a few by throwing them the "book" HARD!. There is nothing more to add, deduct or contribute, what is clear in most people minds are, when we retire, we WANT ALL OUR MONEY BACK, cut the craps, on how we will squander our savings etc...you can give a person a $1...he will squander that....but it is our hard earned BLOOD SWEAT & TEARS MONEY, we want it all , when we retire. The other thing is, WE DO NOT TRUST THEM ANYMORE...honestly, though I may not agree or like LKY for his actions & policies...I DO TRUST him! not his son & the current generation of leaders.

 

[frenchbriefs]

You're entitled to your twisted opinion but the international markets view Singapore government securities to be up there with the best.

http://www.bloomberg.com/news/2012-...ers-in-shrinking-aaa-pool-southeast-asia.html

wait u telling me singapore government bonds are returning 11 percent per year?what hogwash is this?so why are we getting 2.5% interest on our cpf?

 

[Leongsam]

wait u telling me singapore government bonds are returning 11 percent per year?what hogwash is this?so why are we getting 2.5% interest on our cpf?

Because CPF is a guaranteed return. The lower the risk the lower the return. This is true everywhere not just in the Singapore context.

However, CPF members who wish to invest in Government bonds can do so with their CPF funds.

Details are at http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/CPFInvestmentSchemes

However, they have to take note that the potentially higher returns also carry higher risk so there could be periods when the returns are negative.

 

[frenchbriefs]

oh yeah yeah yeah u so full of shit,first its bonds,thats safe,secondly thats government bonds,thats super safe,third ur there bragging singapore bonds are the muthfucking 5 stars A muthfucking A ratings internationally acclaimed pulitzer prize winning oprah book award....so tell me why arent we getting 11% returns?

2.5%?thats muthafarking lame.its guaranteed because even blindfolded monkey can do better over 20 to 30 years....thats why they all say its guaranteed,u have to be an imbecile to not attain 2.5%....we are not asking for warren buffet returns here 22% compounded over 26 years.

Because CPF is a guaranteed return. The lower the risk the lower the return. This is true everywhere not just in the Singapore context.

However, CPF members who wish to invest in Government bonds can do so with their CPF funds.

Details are at http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/CPFInvestmentSchemes

However, they have to take note that the potentially higher returns also carry higher risk so there could be periods when the returns are negative.

 

[Leongsam]

oh yeah yeah yeah u so full of shit,first its bonds,thats safe,secondly thats government bonds,thats super safe,third ur there bragging singapore bonds are the muthfucking 5 stars A muthfucking A ratings internationally acclaimed pulitzer prize winning oprah book award....so tell me why arent we getting 11% returns?

If you stopped behaving like a raving lunatic and actually analysed information in a calm, non judgmental and rational manner , you'd see that the 11% returns mentioned includes currency movement vs the USD.

Government bonds are pretty safe and that is why they don't pay much in interest either.

 

[Seee3]

Your understanding is wrong.

"When you reach 55 years old, your Special Account (SA) savings, followed by your Ordinary Account (OA) savings will be transferred to your Retirement Account (RA) to meet your MS.

If the savings in your SA and OA are not enough to make up the MS, your property which was purchased using CPF savings will be automatically pledged, for up to half of your MS, to make up the difference. The pledge amount will be the amount of CPF used for the property or the Minimum Sum shortfall, whichever is lower."

So I am wrong. But I couldn't find any other write-up in the CPF web-site on the option available for those with more than the minimum sum to pledge his/her property for half of it. The use of "if" in the above extracted from CPF gives the impression that the pre-requisite to use property as pledge is that the cash for ms must first be not enough.

Anyway, I called them, and they confirmed that you are right. My next question to them was on how much of the property can be pledged. In the above write up, it was clearly stated that the amount would be limited to the amount that CPF was used for the purchase of the property or half the ms, which ever is lower. The person who answered my call wouldn't confirm that the value is not limited to the amount of CPF used. Instead she just said that it shouldn't be a problem

Sigh. Such a great board should be able to give a clearer picture. Or is there other reasons.

 

[Leongsam]

Anyway, I called them, and they confirmed that you are right.

I knew I'd be right because I have checked with them myself.

 

[frenchbriefs]

If you stopped behaving like a raving lunatic and actually analysed information in a calm, non judgmental and rational manner , you'd see that the 11% returns mentioned includes currency movement vs the USD.

Government bonds are pretty safe and that is why they don't pay much in interest either.

so on a sgd basis how much did singapore bonds earn last year?

 

[Leongsam]

so on a sgd basis how much did singapore bonds earn last year?

Do you even understand what a government bond is?

 

[Seee3]

I knew I'd be right because I have checked with them myself.

But what about the amount from the property that can be used? Is it based on valuation or the amount of CPF used for the purchase ? I am still not sure.

 

[Leongsam]

But what about the amount from the property that can be used? Is it based on valuation or the amount of CPF used for the purchase ? I am still not sure.

You cannot take out more than the amount of CPF you put into the property.

 

[frenchbriefs]

Do you even understand what a government bond is?

so why did u say fluctuations between sgd and usd matters?if u know what singapore securities does?

 

[Seee3]

You cannot take out more than the amount of CPF you put into the property.

Thanks. That was what I expected and the woman who answered my call was equally confused. It also highlighted that Thaman's statement needs to be more specific because those who do not pay their property with CPF do not have much to pledge.

 

[Leongsam]

so why did u say fluctuations between sgd and usd matters?if u know what singapore securities does?

I didn't say it matters. In fact currency fluctuations are of no significance to someone whose ref point is SGD. However, on the international stage, how well a government manages its currency can have a big impact on bond values.

You asked a question why CPF only paid 2.5% whereas the article mentioned 11% return on government bonds. I was simply explaining things to you as you are obviously unable to digest the bigger picture yourself.

 

[frenchbriefs]

I didn't say it matters. In fact currency fluctuations are of no significance to someone whose ref point is SGD. However, on the international stage, how well a government manages its currency can have a big impact on bond values.

You asked a question why CPF only paid 2.5% whereas the article mentioned 11% return on government bonds. I was simply explaining things to you as you are obviously unable to digest the bigger picture yourself.

hmm ok,bond returns are linked to currency inflation,that much is a given,so how did singapore government securities return 11% based on USD basis?did they manipulate sgd and temasek linked companies again for steriod based results?

and thats fucking lame why cpf only pays 2.5% and gov bonds earned nearly 11%.we all know bonds are rock solid instruments especially gov bonds.

someone tell me which sg bonds are earning 11% and where do i go about buying them with cash.

 

[escher]

Hang those PAP maggots cockroaches with piano wires from lamp posts to make them dance before it is too late and we have no more CPF to get back.
BBQ those PAP maggots cockroaches before it is too late and we have no more CPF to get back.
Cut a few more arseholes into those PAP maggots cockroaches to let out their shit before it is too late and we have no more CPF to get back.
Make those PAP maggots cockroaches eat joss sticks and candle wax before it is too late and we have no more CPF to get back.

 

[Leongsam]

hmm ok,bond returns are linked to currency inflation,that much is a given,so how did singapore government securities return 11% based on USD basis?did they manipulate sgd and temasek linked companies again for steriod based results?

The SG government bonds rose in value by 11% when quoted in USD.

You need to understand the fundamentals of what government bonds are all about, why they are issued, how the yield is calculated and how they are traded.

Once you know the fundamentals, you'll have a much better picture of what is going on and how it relates to CPF returns.

Suggested reading :

List of issues : https://secure.sgs.gov.sg/fdanet/BondPricesAndYields.aspx

Returns : http://www.tradingeconomics.com/singapore/government-bond-yield

http://www.moneysense.gov.sg/unders...sense-of-singapore-government-securities.aspx

http://www.moneysense.gov.sg/unders...s/investments/types-of-investments/bonds.aspx

http://www.sgs.gov.sg/Individual-Investors/Indv-FAQ.aspx

 

[Hans168]

I want to know why GIC n Termasick do not borrow from banks to fund their investments..
If so how much interest wud they be paying the banks & hence what wud be their net profit after deducting bank charges n costs...!!!

 

[frenchbriefs]

I want to know why GIC n Termasick do not borrow from banks to fund their investments..
If so how much interest wud they be paying the banks & hence what wud be their net profit after deducting bank charges n costs...!!!

the institution of GIC and Temasek is worth 700 billion....surely u dont think banks have that much money to loan....and besides banks dont lend real money,they follow fractional banking system and besides the biggest bank in singapore is called MAS,monetary authority of singapore,they have the ability to print money out of thin air.MAS is headed by a shiny head shitskin called Tharman.

 

[Leongsam]

My general impression of this CPF debate is not so much the lack of transparency on the part of the government but rather the lack of understanding of the financial world by Singaporeans in general.

Once they understand what is going on, they'll view the 2.5% return in a different light. Will this ever happen?... i doubt it simply because strident rhetoric requires far less effort than digesting the ins and outs of bonds, securities and T bills.

I'd be the first to admit that I am no expert myself. I just know the basics. That is why I have always restricted my investments to

1. Investing in Myself [nobody knows me better than me]
2. Property.
3. Companies that I have an in-depth knowledge of.
4. Term deposits.