If you read social media, you may get the impression that CPF is a terrible scheme that is concocted to “steal” everyone’s money. Here is a different view of CPF. In Singapore, your CPF account is the safest investment you can make with the highest returns. Unlike savings account that are insured up to $50K, your entire CPF savings is backed by the full faith and strength of the Government of Singapore, which has one of the highest credit rating that any country can aspire to. In short, there is virtually no chance that CPF will default on its obligations. And it is politically untenable to let that happen!Continue reading “How Much Money Did CPF Make For You in 2018?”
Since 1 in 3 Singaporeans will likely live past 90 years, one of the biggest challenge is to make sure you have the financial means to have a reasonable quality of life. In reality, the biggest challenge that most older persons worry most is outliving their savings. In simple terms, you can protect against the risk by using an insurance product known as life annuity. Typically, you hand over a lump sum to the insurance company who then agrees to pay you a regular stream of payment (typically monthly) for the rest of your life.