Something to think abt http://www.investopedia.com/financial-edge/0312/How-To-Invest-If-Youre-Broke.aspx?partner=ntu12#axzz1qSB7HnlK
The “forced saving” reason is why I like the CPF concept. However my sore points about the current system are i) its too much of one’s gross pay (over 1/3 up till the $5k limit!), ii) the rate of return is abysmally low for long-term investors and iii) no easy/low-cost way to regularly invest CPF funds (sure you can do RSP into a unit trust – but the trust has high upfront and mgmt fees). The use of CPF for housing also muddies the waters – CPF should be for retirement savings only.
Fill in your details below or click an icon to log in:
You are commenting using your WordPress.com account. ( Log Out / Change )
You are commenting using your Twitter account. ( Log Out / Change )
You are commenting using your Facebook account. ( Log Out / Change )
You are commenting using your Google+ account. ( Log Out / Change )
Connecting to %s
Notify me of new comments via email.
Notify me of new posts via email.
Blog at WordPress.com.
The DePo Masthead Theme.
Get every new post delivered to your Inbox.
Join 245 other followers