Singapore government is definitely determined to handle the “CPF hot potato“. There were several amendments to the CPF Act passed in Parliament lately on Oct 10, 2016. It is called Amendment No. 2 bill. Below are the 4 key changes.
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There’s a popular English proverb saying: “Look after the pennies and the pounds will look after themselves.” In another words, if you concentrate on saving small amounts of money, you’ll soon amass a large amount.
When it comes to investing for retirement, this can’t be more true. We never learn to plan our retirement in school and it is hardly anybody’s dream to build a retirement portfolio. The truth is, most of us wake up one day and say, “Gosh, I need to do something for my retirement.”
Make sensible investment decisions becomes harder and harder in today’s age, the financial predators no longer need to hide things from you, they just overwhelm you with facts, so you don’t know what is important and what is not. – Ivan Guan
Naturally, very few of us are prepared for investment nor to have the luxury to start our retirement fund with a big bang. To make it worse, the modern world posts challenges to all of us and makes traditional way of savings hardly work.
So if you want to be successful investing in the modern worlds, there are 3 things you must do.
Bond investment is always in voracious demand in Singapore. With many years of low deposit rate and lifeless Singapore stock market, people are struggling to find a better investment to place their hard earned savings.
Probably because majority of the retail bonds are sold by the banks, many Singaporeans treat bonds just like fixed deposits – You put money with the bank, reap the coupons, and take your principle back when it is matured.
This created an interesting phenomenon that people lining up to buy bonds from whichever company that promises a higher coupon.
Do these offers sound attractive to you? They certainly were to our fellow Singaporeans:
But these investors are going to have a hard time to get their money back because these bonds were issued by Swiber Holdings, who has just made an application to wind up the company.
If you are someone who is interested in investing in bonds, here are the 3 lessons you must learn from this event.
CPF Medisave Minimum Sum (MMS) scheme was abolished since 1 Jan 2016. It used to be the amount which you need to retain in your Medisave Account (MA) for your healthcare needs before any excess Medisave savings can be withdrawn on or after 55.
In the past, if you have met the CPF Minimum Sum requirement (now called Retirement Sum scheme) but do not meet Medisave Minimum Sum, you still need to top up your Medisave Account before you can make any withdrawal when you turn age 55.
The last change of Medisave Minimum Sum was $43,500 since 1 July 2014, it has since been replaced by a new scheme called Basic Healthcare Sum scheme.
It is hard for you not to notice that the people in the United Kingdom have decided to leave the European Union (also known as Brexit). The news shocked the world on 23 June 2016.
On that single day
It was a doomed news for the financial market, or really?
Judging by the speed of stock market fall after Brexit, most investors must have been very panicked and sold their stocks holding. The interesting thing is that suddenly a lot of “experts” came out with a crystal ball, some say volatility will remain high; some say there will be contagious effect; some say financial crisis is coming again…
There are no facts, only opinions. – Ivan Guan
The real question we should ask is, “how should you invest now”? You have 3 choices:
To survive any stock market crash or event such as Brexit, you need to be the third one. Here is why.