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- Jul 25, 2013
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i was reading this book serious money straight talk,was at this chapter about bond funds when i realise why CPF is the scam of the century!!!
bonds can do the same thing as CPF but are way way superior.
0.bonds are generally safe compared to stocks on crack cocaine.
1.bonds can be traded or sold anytime....even if u bought a US treasury bond with a 30 year maturity period.i assume bonds do not lose too much of their value unless there happens to be a major crisis going on like interest rates being raised.....unlike CPF which locks ur money away till 55,and even then theres tons of conditions for full redemption.i suppose liquidity could be a problem,but should not be problem for blue chip bonds and government bonds which are traded in millions or even billions and trillions.
2.bonds always return to their full face value at maturity,means ur capital is 100% guaranteed.....of course this depends on the institution that issued the bond,if its a major blue chip company,chances are ur bond is pretty safe....rates of default are low,if ur bond is issued by the government it should be even safer(they got unlimited printing press should hell break loose)......if its issued by singapore government u can bet ur donkey ass its safe....this means ur capital is 100% secured,like CPF.
3.now wheres the offset u ask?the returns of bonds must be sucky right?wrong!!!!!the returns of bonds are so fappilicious compared to the crap 2.5% we call CPF.here is a graph i saw....
9.7% annualised between 1984 and 1996 are u kidding me???????12.1% for corporate bonds????????????now people say 1980s to 1999 were inflation but cmon!!!!!!!2.5%?????????????
now can any expert come in and clarify what i just wrote?im a noob and i may not know wtf im talking.
bonds can do the same thing as CPF but are way way superior.
0.bonds are generally safe compared to stocks on crack cocaine.
1.bonds can be traded or sold anytime....even if u bought a US treasury bond with a 30 year maturity period.i assume bonds do not lose too much of their value unless there happens to be a major crisis going on like interest rates being raised.....unlike CPF which locks ur money away till 55,and even then theres tons of conditions for full redemption.i suppose liquidity could be a problem,but should not be problem for blue chip bonds and government bonds which are traded in millions or even billions and trillions.
2.bonds always return to their full face value at maturity,means ur capital is 100% guaranteed.....of course this depends on the institution that issued the bond,if its a major blue chip company,chances are ur bond is pretty safe....rates of default are low,if ur bond is issued by the government it should be even safer(they got unlimited printing press should hell break loose)......if its issued by singapore government u can bet ur donkey ass its safe....this means ur capital is 100% secured,like CPF.
3.now wheres the offset u ask?the returns of bonds must be sucky right?wrong!!!!!the returns of bonds are so fappilicious compared to the crap 2.5% we call CPF.here is a graph i saw....
9.7% annualised between 1984 and 1996 are u kidding me???????12.1% for corporate bonds????????????now people say 1980s to 1999 were inflation but cmon!!!!!!!2.5%?????????????
now can any expert come in and clarify what i just wrote?im a noob and i may not know wtf im talking.
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