28-03-2013, 04:09 PM
I just did a PV calculation using the above and 4% interest and you have to live up to 99 (draw down from 65) before CPF Life becomes better than MSS...
(28-03-2013, 04:09 PM)egghead Wrote: [ -> ]I just did a PV calculation using the above and 4% interest and you have to live up to 99 (draw down from 65) before CPF Life becomes better than MSS...i actually have some worry because CPF's MSS also doesn't guarantee minimum 4% interest rate for those who have opted out of CPF LIFE.
(28-03-2013, 04:45 PM)safetyfirst Wrote: [ -> ]... but then again, i think the mss with cpf is a very unfair option for singaporeans, it is like a 20 year bond priced at 4%, this is ridiculously low. And you have no chance of selling the bond even when interest rate goes down. The corporation that is on the opposite side of the deal is the one that has all the advantages.i am not sure CPF's MSS is comparable to a 20 year bond @ 4%. For one thing you are withdrawing a certain sum per month from your MSS. Why do you think Papies started the CPF LIFE? More for you or for themselves? Use simple logic again will cast doubts in our hearts, isn't it?
(28-03-2013, 04:45 PM)safetyfirst Wrote: [ -> ]... but then again, i think the mss with cpf is a very unfair option for singaporeans, it is like a 20 year bond priced at 4%, this is ridiculously low. And you have no chance of selling the bond even when interest rate goes down. The corporation that is on the opposite side of the deal is the one that has all the advantages.
(28-03-2013, 03:48 PM)CityFarmer Wrote: [ -> ]Ah!(28-03-2013, 03:07 PM)specuvestor Wrote: [ -> ]CPF Life has an insurance component so it cannot have a better payout than the old MSS in 20 years
To add-on base on CPF calculator online, to back-up specuvestor statement.
https://www.cpf.gov.sg/cpf_trans/ssl/fin...imator.asp
https://www.cpf.gov.sg/cpf_trans/ssl/fin...s_cal2.asp
For a Singaporean born in Mar 1951, with MS of S$90K in cash. MSS payout is S$711, while CPF life standard is $499 - $530
So MSS payout is higher but only for 20 years, but CPF life is for life.
Feel free to comment if any mistake.
(28-03-2013, 05:08 PM)yeokiwi Wrote: [ -> ](28-03-2013, 04:45 PM)safetyfirst Wrote: [ -> ]... but then again, i think the mss with cpf is a very unfair option for singaporeans, it is like a 20 year bond priced at 4%, this is ridiculously low. And you have no chance of selling the bond even when interest rate goes down. The corporation that is on the opposite side of the deal is the one that has all the advantages.
So, any good alternative proposal?
By the way, the current 30 years SGD bond's coupon rate is only 2.5-2.6%.
(28-03-2013, 08:43 PM)safetyfirst Wrote: [ -> ]Sorry! i don't think any BLUE CHIP is cheap now. Even people working in the banks say so.(28-03-2013, 05:08 PM)yeokiwi Wrote: [ -> ](28-03-2013, 04:45 PM)safetyfirst Wrote: [ -> ]... but then again, i think the mss with cpf is a very unfair option for singaporeans, it is like a 20 year bond priced at 4%, this is ridiculously low. And you have no chance of selling the bond even when interest rate goes down. The corporation that is on the opposite side of the deal is the one that has all the advantages.
So, any good alternative proposal?
By the way, the current 30 years SGD bond's coupon rate is only 2.5-2.6%.
haha buy undervalued shares, i thought our banks (uob / ocbc) looks cheap compared to the current 30 years SGD bond's coupon rate of 2.5-2.6%.
(28-03-2013, 05:08 PM)yeokiwi Wrote: [ -> ](28-03-2013, 04:45 PM)safetyfirst Wrote: [ -> ]... but then again, i think the mss with cpf is a very unfair option for singaporeans, it is like a 20 year bond priced at 4%, this is ridiculously low. And you have no chance of selling the bond even when interest rate goes down. The corporation that is on the opposite side of the deal is the one that has all the advantages.
So, any good alternative proposal?
By the way, the current 30 years SGD bond's coupon rate is only 2.5-2.6%.