17-07-2014, 10:21 PM
(17-07-2014, 12:40 PM)specuvestor Wrote: [ -> ]^^ Yeah SA used to be open to guaranteed products... not sure nowadays. Old timers who invested using SA will realise how difficult it was to do better than 4% year in year out. Beauty is that CPF calculates your opportunity cost for you and remind you how much you owe yourself by your actionsSometime I am bemused by people who complain why CPF wants them to pay themselves back / "pay CPF"... they have no idea what is the implication.
We always think it is easy until we try to do it over a cycle. Everyone looks smart until the tide goes out.
Fully agree on this and I was always laugh at when they claim they can do >10%. On the SA I actually could do better than the 4%. this was many moons ago when the interest rate was high, I used part of my SA to buy a lump single premium insurance from NTUC. At that time the projected yield was 6% . so I get couple of % more and have TPD insurance coverage. Good deal. nowadays with low interest rate environment, single premiums is yielding <3%. So not worth it anymore. Just sit tight and wait for interest rates to shoot up.