Yixiong Chang - Seedly
Yixiong Chang

I am not an insurance agent. I empower one with appropriate financial knowledge to make sound financial decisions for themselves

Yixiong Chang

80Upvotes

About

I am not an insurance agent. I empower one with appropriate financial knowledge to make sound financial decisions for themselves

Credentials

Yixiong Chang's credentials are not filled up yet.

Yixiong Chang

80Upvotes
  • Answers (223)
  • Questions (0)
  • Reviews (0)

SeedlyTV EP06

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Answered 4d ago
Getting 4% riskfree interest rate is way above market rate. Which is indirectly subsidised by taxpayers. Such restriction is there to limit the rich that can fully take advantage of this.

SeedlyTV EP06

CPF

Investments

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 2w ago
Depends how technical u want the answer to be. =D In short, CPF monies are 'invested' by the CPF Board (CPFB) by 'buying' Special Singapore Government Securities that are issued and guaranteed by the Singapore Government. Thus the 4% is guanranteed by the full faith of Singapore government. Which in turn effectively by the tax moneies of the nation. =D So indirectly, tax payers subsidise the high interest rates cPF members get.

SeedlyTV EP06

Investments

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Answered 2w ago
If u are refering to the SSGS that CPFB 'buys'. No you can't buy them, no one else can buy them. It is 'special' for that reason. =D CPF monies are invested by the CPF Board (CPFB) in Special Singapore Government Securities (SSGS7) that are issued and guaranteed by the Singapore Government. By law, the monies collected with SGS or SSGS cannot be used in government spendings. The proceeds from SSGS are invested by the Government via MAS and GIC.

SeedlyTV EP06

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Answered 2w ago
Are u refering to the retirement topping up scheme (top up special account)? The $14k is the max relief for that scheme, $7k for topping up your own special account, and $7k for topping up your parents, spouse etc account (T&C applies). SRS is a different scheme with its own limit. SRS tax relief is $15,300 for singapore residents.

SeedlyTV EP06

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Answered 3w ago
Unfortunately, no, there isn't. Any laws can be changed with a simple majority of elected MP. Even the constitution can be changed with a supermajority vote. There are only certain areas with a 'backup' plan. That is using Singapore's past reserves and appointment of key civil service appointment holders. This power lies in our elected President. But this is only possible for a term, and hopefully the next term a 'proper' governemnt will be voted in place. The elected presidency is actually mooted by our late Lee Kuan Yew. Quoting Mr Lee said in an interview (regarding if a 'rogue government' was voted in) " if you change all the permanent secretaries, military chiefs, commissioner of police, heads of statutory boards, then you’ll ruin the system. For five years, the President can prevent that. And our past reserves cannot be raided. "

SeedlyTV EP06

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 3w ago
The primary purpose of the money (CPF) is for a basic level of retirement fund. Money taken out means it is not earning interest, and thus its real value will not be maintain in the future when it is paidout (in CPF Life). If someone had sold off his property (for a profit) after decades of using CPF monies to pay for it, And only returns the principle, and somehow mismanages his money and spent most of it away (before he even reaches retirement). His retirement CPF money is now of significant lower real value to depend on in future. 2.5% accrued interest over decades can be very significant, and that is the purpose to protect (at the very basic level) your retirement funds. Think of that same example, but he had to return principle plus accrued interest, and he will have less available cash on hand to spend. The CPF money is protected will continue to earn guaranteed interest. Albeit, we still can use the OA again to purchase another property. Bear in mind, if your property sold is not enough to return the full amount (principle + accrued interest), you will not need to pay any additional cash. It is a basic policy to safeguard your basic retirement funds. Not everyone will be able to manage their money well. Paying the mortgage interest is a separate issue as you are borrowing money you do not have. You could also choose to borrow from bank at a potential lower rate.

Lifestyle

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 3w ago
I wouldnt say if it is right or wrong. Trump is just acting in the interest (from his point of view), whether USA will ultimately benefit(net benefit) is another story. It will be more of a matter will it be effective at all. China had long ban the use of Google (youtube, gmail, googlemaps etc), facebook, whatsapp, netflix and many other websites and services in their country. So China is right to block foreign businesses to protect their own industries? Among many issues, it is no secret China businesses had stolen/copied technologies/IP from western business, and China is doing little about them. In part maybe of course it is beneficial to China itself in the 'technology transfer'. etc etc We all just happen to be caught up in collateral damage.

Investments

Retirement

CPF

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 3w ago
No. The amount used for investment is still counted as part of the limit.

Insurance

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 3w ago
Just get hospitalisation insurance (integrated shield plan). You can use your medisave to pay part of it. Upgrade to the tier that u can best afford.

Savings

Endowment Policies

Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated 3w ago
It just a loose reference to the interest rate environment at that time. The contract wrote ' the crediting rate will be determined by us based on the prevailing rate, subject to the minimum guaranteed crediting rate of 0% p.a '. So Technically they can set the rates at any percentage, or even zero if they like to. =D But there will lose them clients' monies. In reality what it means is just they will set the rates they deemed to be competitive (while they still can make money).
Load more questions
Level 5. Genius
80UpvotesGoal 100
20 UPVOTES TO LEVEL UP
Browse Rewards
Top Contributor
Top Contributor
NOV · DEC