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(18-07-2022, 09:54 AM)Napoleon Porlumpar Wrote: can choose meh ?
i thought CPF Life is mandatory ?
i will be for sure...............with CPF Life, they no need pay any more interests at age 65yo.................
anyway, if people are in their 20-30s today................no need worry................CPF will collapse before they retire.............paying compound interests on an ever-growing sum is an impossible situation...............especially when GIC and Temasek had been losing god knows how many billions all these years
What you said is not true for a simple reason.
The scheme pays in Singapore dollars which the govt can always print more if needs.
It does not adjust for inflation....and this can wipe you out jn terms of buying power but scheme will not collapse ...you suffer instead.
Instead of reducing risk the scheme merely pass the risk from govt to the people....exposing them to inflation.
$1300 q month to live on ....until you die? ...inflation can just wipe off buying power quickly.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
(This post was last modified: 18-07-2022, 10:03 AM by
sgbuffett.)
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(18-07-2022, 09:54 AM)Napoleon Porlumpar Wrote: can choose meh ?
i thought CPF Life is mandatory ?
i will be for sure...............with CPF Life, they no need pay any more interests at age 65yo.................
anyway, if people are in their 20-30s today................no need worry................CPF will collapse before they retire.............paying compound interests on an ever-growing sum is an impossible situation...............especially when GIC and Temasek had been losing god knows how many billions all these years
CPF life is mandatory but you can choose
1. Basic or standard
2. FRS or BRS.
This thread is saying most people choose wrongly.
The best is Basic + BRS. The rest keep in SA....this is superior to standard + FRS.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
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(19-10-2021, 10:01 AM)sgbuffett Wrote: I really think a much simpler scheme is best for people ...an annuity scheme has to be Conservative so they need to keep reserves, buffers and contingencies. ...they end up using your money to do this.
For a person with upwards of 250K at 55....it grows to above 385k by age 65 in CPF SA. This can give a decent steady payout until around 100 yo. If you go early the bequest is superior because you don't need to contribute to common pool.
Unfortunately CPF Life is compulsory. ..so to optimise your finance. Opt for basic to minimise participation. Rest of it leave in CPF SA.
The govt wants CPF Life to have a scheme to stretch the money to beyond 98yo so they don't have to budget and have another financial assistance scheme in place for those who go above that.
But the reality is not so simple due to inflation. $1600 ...25yrs from now will feel more like $800...one cup or Kopi will be $220..mee rubus will be $6.
Those with $1.5M will keep part in stocks, some in SA ...some in 2nd property to try to hedge against all situations.
Depending on how much you have...your retirement finances are always at risk if you don't have enough to hedge away the risk.
No SA anymore. All merged into RA
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(18-07-2022, 10:19 AM)RichDad Wrote: No SA anymore. All merged into RA
You are mistaken at age 55 RA is formed you have 3 accounts RA SA and OA.
You can choose BRS or FRS.
If BRS , less go to RA and you can keep rest in SA.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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(18-07-2022, 09:26 AM)sgbuffett Wrote: The most important chart is this.
If you choose basic scheme for cpf life you get a bit less each month but your bequest is much larger.
If you die at around 80 the standard and enhance have zero bequest and the basic has 100k to give to your children...
![[Image: uHFWTz8.jpg]](https://i.imgur.com/uHFWTz8.jpg)
By taking just 100$ a month less than standard, the basic gives 100k more in bequest at age 80.
The difference is so large it make no sense to go for standard scheme which is the default.
Many will make this mistake of choosing standard because they did not bother to check......and took things for granted.
l
So those above 55 now....which did you choose?
Thanks for sharing.
Your earlier post indicated the Internal return for Basic and Standard are close...But as I know we just need to put in 50% for Basic compared to Standard, and you are showing above that can get back monthly payout for Basic at about only $100 less than Standard ( and additionally bequeath is higher! ) , which don't seem to jive.
It would seem the Basic IRR would be much higher, since the input is half, and output is much higher.........
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(18-07-2022, 10:19 AM)RichDad Wrote: No SA anymore. All merged into RA
TS talks so much...
https://www.cpf.gov.sg/member/faq/growin...-my-specia
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(18-07-2022, 10:31 AM)lylcnn Wrote: Thanks for sharing.
Your earlier post indicated the Internal return for Basic and Standard are close...But as I know we just need to put in 50% for Basic compared to Standard, and you are showing above that can get back monthly payout for Basic at about only $100 less than Standard ( and additionally bequeath is higher! ) , which don't seem to jive.
It would seem the Basic IRR would be much higher, since the input is half, and output is much higher.........
That is why CPF is confusing.
There are 2 dimensions.
1. The amount you want to participate in CPF Life....BRS vs FRS. BRS is half of FRS. BRS = basic retirement sum.
2. After you choose the amount, you select between basic cpf life vs standard cpf life.
You can choose BRS + Basic; FRS+Basic...etc 4 combination.
In the above example it illustrate FRS+basic vs FRS + standard...meaning the participation sum is same.
To understand alone is complicated never mind making the right decision. Most people don't bother.
Hope I answered the correct question.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
(This post was last modified: 18-07-2022, 10:51 AM by
sgbuffett.)
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