[forum456]

https://www.youtube.com/watch?v=sF5igdWKYU4

[sgbuffett]

For some it is good but i think it's a bad idea to overly focus ones funds into CPF...if one just put in minimal effort can do significantly better.

While it us NOT a horrible idea, there are better things one can do right now.

Here's WHY

1. From age 25 to 48 is 23yrs it is a long time.
2  with a long runway investors should invest in equities through regular investing in stock indices.
3. You can afford the ride volatility while young ...when older then you can go for safety.
4. Given long runway use it to build solid equity holdings.

[sgbuffett]

Just to summarise the kung-fu.
At age X max out CPF SA.

35 yrs the amount you have in SA increase to 4x.

My alternative kung fu is this.

Put in same amount into global.equities index ETF example Lion Global Infinity fund.

35 yrs later the amount you put inside grows to almost 15x based on returns of 8% which is historic returns.

Instead of taking no risk. By taking some risks the amount you have is 3.7x more. There is no 35yr period that global equities avg below 4%.



Is it so difficult? ....no many have done it....but most don't bother.

In financial knowledge you don't need to know so many things just one thing- compounding. Use this well and you finances will turn out well.

Many are just confused by trivail things. Path to wealth is simple though not easy as it requires discipline.

[Instinct]

Fund is like unit trusts that was popular 20 years ago as projected 8% to 10% yield. What happened? Most lost money as the money shrink over time. Don't get con by them again.

[Instinct]

Most of the Funds were gone or closed down after 10 years and some change name. Most people lost money in Unit Trust.

[sgbuffett]

Most of the Funds were gone or closed down after 10 years and some change name. Most people lost money in Unit Trust.

From my experience most are okay.
Some funds shrink to too small so they have to merged or closed otherwise not economical to run.

Main problem is the expense ratio of 1+% that eats into the return.

Some low cost funds like STI ETF are available and some are now available from  Endowus ...but options are limited. Realistically one just needs 1 or 2 funds to compound over long term.