(10-07-2016, 01:33 PM)funman168 Wrote: [ -> ] (09-07-2016, 10:59 PM)pianist Wrote: [ -> ]How did u manage to amass such huge value for yr cpf? Amazing
1) RafflesEdu&Midas 30k=> 200k
2) Yoma 200k => 500k
3) Vibrant&Penguin 500k => 900k
btw, i lost 100-200k on junk counter such as acma etc
so in the end only left abt 800k
Raffles Education IPO was in 2002. Midas IPO was in 2004. So the earliest this investment snowball could have started would be 2002.
However, in 2001 the Singapore government had already implemented a 35% limit on CPF investments in shares using the Ordinary Account. The Special Account could not (and still cannot) be used to invest in shares.
This means that even if $30k did turn into $200k, when the shares were sold, that $200k went back into OA, and only 35% of this new OA amount i.e. $70k (plus 35% of fresh CPF contributions) would be available for reinvestment.
For fresh CPF contributions, the salary limit prior to Sep 2011 was $4,500, then it was $5,000 until 2016. Maximum annual contribution including bonus is 17 months * 37% * salary limit. Let's assume the limit was $5,000 from the start date of Jan 2002, the error is only about 10%.
From Jan 2002 to Dec 2015, assuming a salary limit of $5,000, the maximum contribution would be:
17 mths * 14 years * $5,000 * 37% (contribution to CPF) = $440,300.
However at most 23% of the 37% goes to OA (age below 35), so maximum going into OA would be $273,700. Of this, at most 35% is usable for CPF investment into shares i.e. $95,795. Interest paid on CPF is not counted but it is not material for this analysis.
Based on the analysis above, the 3-step snowball given above could not have been achieved with CPF money, whether from the original $30k alone or with help from subsequent CPF contributions.