MPs offer ideas to improve CPF

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#11
(27-05-2014, 12:40 PM)Temperament Wrote: For a man-in-street, i have always think why all these years EPF returns always better than CPF? Correct me if I am wrong. Is it because their bank FD even now is > 3% therefore their EPF has to operate/invest differently. So it seems their G has to take the higher risk for EPF. And our G just want to sit on the fence?


EPF may be a 'later participants pay earlier participants' scheme...all the money concentrated in top stocks on Bursa. As long as everyone dont ask for the money back at once..
or the Bursa dont crash jialat jialat...e.g. Sarawak/Sabah seeking independence.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#12
(27-05-2014, 01:06 PM)opmi Wrote:
(27-05-2014, 12:40 PM)Temperament Wrote: For a man-in-street, i have always think why all these years EPF returns always better than CPF? Correct me if I am wrong. Is it because their bank FD even now is > 3% therefore their EPF has to operate/invest differently. So it seems their G has to take the higher risk for EPF. And our G just want to sit on the fence?


EPF may be a 'later participants pay earlier participants' scheme...all the money concentrated in top stocks on Bursa. As long as everyone dont ask for the money back at once..
or the Bursa dont crash jialat jialat...e.g. Sarawak/Sabah seeking independence.

Another thread on CPF versus EPF.
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#13
I don't know why CPF vs EPF keeps on being talked about.

One offers riskfree return while the other offers equity linked return. If you want a equity linked return with your CPF, all you need to do is dump your CPF into an STI ETF (you can put 100% of investible limit).
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#14
CPF vs EPF for man-in-street is the closest thing they can think of. And why it's always in their mind and can't go away i think the answer is in "Another thread on CPF versus EPF. "
http://www.valuebuddies.com/thread-5116-page-5.html
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#15
Why not allow CPF members to purchase Singapore Government Bond that offers more than existing CPF interest rate? Both are backed by Government but bond seems to offer higher rate? Maturity is not a concern, as you cannot draw out the money anyways.
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#16
(28-05-2014, 07:51 AM)tanjm Wrote: I don't know why CPF vs EPF keeps on being talked about.

One offers riskfree return while the other offers equity linked return. If you want a equity linked return with your CPF, all you need to do is dump your CPF into an STI ETF (you can put 100% of investible limit).

As they say, the grass is always greener on the other side.
Let me put a contratrian view.

I was working in Malaysia for 3-4 yrs and when I reached 55 yrs I withdraw all the EPF money but at the same time I still keep my CPF(OA) money which I can withdraw at any time. This is despite the fact that EPF pays at least twice the CPF interest rate. This is putting yr money where yr mouth is and why did I do this?

1. S$ has a direction of appreciation whereas RM has the opposite direction. how fast is subject to speculation but for sure the gap will widen.

2. my money is more secured under cpf than in epf. During the AFC, Mahathir wanted to raid the EPF to use it to prop up the RM and the KLSE crony stocks. fortunately/unfortunately there were not much cash lying around as it was all invested n he couldn't do much except trying to get GCT to release the money in CPF owned by Malaysians. there is no telling in the next crisis what they will do with the epf money. already some are invested in crony companies.
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#17
^^ This was exactly what we talked about in the other thread. We have to adjust the returns by risk. Otherwise we will be naked when the tide goes out Smile
http://www.valuebuddies.com/thread-5116-...l#pid82474


(28-05-2014, 09:56 AM)kagemusha Wrote: Why not allow CPF members to purchase Singapore Government Bond that offers more than existing CPF interest rate? Both are backed by Government but bond seems to offer higher rate? Maturity is not a concern, as you cannot draw out the money anyways.

Which tenor? Current SGS 1yr is 0.38% and 30 years is 3% yield
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#18
(28-05-2014, 07:51 AM)tanjm Wrote: I don't know why CPF vs EPF keeps on being talked about.

One offers riskfree return while the other offers equity linked return. If you want a equity linked return with your CPF, all you need to do is dump your CPF into an STI ETF (you can put 100% of investible limit).

Sorry but you cannot dump all your CPF into STI ETF. Only monies in excess of $20,000 in your CPF OA can be invested in STI ETF and CPF SA funds cannot be invested in STI ETF. Medisave cannot be invested in STI ETF as well.
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#19
(28-05-2014, 09:56 AM)kagemusha Wrote: Why not allow CPF members to purchase Singapore Government Bond that offers more than existing CPF interest rate? Both are backed by Government but bond seems to offer higher rate? Maturity is not a concern, as you cannot draw out the money anyways.

That's a good idea but cpf is acting like a government bank. HDB need money for development go borrow from cpf and pay back interest slightly abv what cpf paying for OA. I think gic temasek same thing if they need money issue iou.

If given the option everybody allowed to buy bonds directly without restriction then cpf becomes redundant and people will start to compare yields example the 10y sgs bonds is about 2.35% but other countries offering more then all the money will fly out of spore and they can't have that.

http://www.tradingeconomics.com/bonds
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#20
(27-05-2014, 11:13 AM)cfa Wrote: A very hot topic now . May continue to boil till next GE.

Thanks to a blogger haha. Wink
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