AMA 1M65

Held on 7th Nov 2018, Monday

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(AMA Ended) I reached $1 Million in CPF savings by 45 years old. Ask me anything!

NOTE: This AMA has ended! It was held on 7th November 2018! Simply search for all tags "AMA 1M65". It was a fun one. Thanks!

Hi Seedly Community!

My name is Loo Cheng Chuan, but most people know me as 1M65 (S$1 Million By 65 years old). I am an ordinary Singaporean with an extraordinary CPF investment strategy that could help many Singaporean couples become millionaires at retirement. 

In 2018, my wife and I crossed S$1M in our CPF savings at 45 years old, proving many skeptics wrong. I advocate a contrarian-type investment strategy to reap lucrative returns by investing heavily in equity markets during financial crisis which has been featured in Straits Times, BT and many other online media.

Working in the corporate world for about two decades, my 1M65 strategy and financial assets have given me an early retirement at 43 years of age to pursue an entrepreneurial passion with my wife. I was educated locally and abroad. Apart from that, I have three lovely teenagers that are also deeply grounded with good financial values and it is my firm belief that wealth building starts young.

I am here to answer your questions in the following areas:

  1. How you can save 1M just by using your CPF?
  2. Why CPF is a good strategy as a long term 'bond' savings?
  3. General Wealth Management or investment mindset?
  4. Any forms of personal finances tips or rules?
  5. Stock Investing during financial crisis and why I do it?
  6. Should you invest in Unit Trust or REITs?
  7. Family financial planning and starting a family in Singapore?
  8. What does Retirement at 43 feel like?

NOTE: The host may choose at his/her preference to not answer particular questions. The AMA is moderated by Kenneth from Seedly, so let’s keep the questions friendly and open!

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Resale HDB

Property

CPF

AMA 1M65

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 07 Nov 2018
It is a good idea because cash carries a lower opportunity cost compared to the CPF OA. With the CPF SA, you actually get up to 6% returns where the HDB Housing Loan is currently at 2.6% interest rate. Hence, I would suggest you to use cash every month to pay for the HDB housing loan.

AMA 1M65

Property

Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 3. Wonderkid
Answered on 20 Mar 2019
Use Cash if you do not intend to buy the next BTO. Use CPF to save cash so that you can use it to buy the next BTO or private.

Investments

Retirement

AMA 1M65

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 11 Feb 2019
1m65 is a retirement strategy using CPF. It is outlined here https://dollarsandsense.sg/1-million-65-using-cpf-heres-math-behind-1m65-concept Hence if you are looking to retire earlier you will need a different strategy. Personally, I'm looking to retire in my early 40s via the use of an options portfolio to generate the 60% roi I need

Financial Planners

AMA 1M65

Investments

Just 2 questions: 1. Is the person a licensed representative of a Financial Advisers? 2. Is the product licensed/regulated to be sold in Singapore? If the answer is No to either question, walk away as it just sounds too good to be true and is probably a scam.

Investments

CPF

AMA 1M65

My flat is funded fully from CPF, I have zero cash outlay for it. Recommended investment vehicles besides CPF: Risk averse investor: SSB, STI ETF, FDs Moderate investor: Mid cap, small cap and blue chip stocks High risk investor: CFDs, Forex, Options trading Ask yourself first, what is the time horizon you're looking at to set aside the money? What is the amount that you're trying to achieve through investments? Are you reliant on your investments to generate income for the long term? Do you have any emergency funds parked aside outside of your investments portfolio? That way, you can determine which investment vehicle is most suitable for you.

AMA 1M65

Savings

Career

Salary

CPF

Investments

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Answered on 07 Nov 2018
I have answered a similar question earlier but I will add on to it here: It is always easier to see looking hindsight in life. 1. Following my passion early will make me happy and most likely richer. 2. Learn and personalise the power of compounding from young. 3. Don't listen to my insurance agent especially when they offer me good return rates. I should have been more careful of Investment Linked Policies. 4. Govt loves the stock market to rise (which usually means the economy is booming) but hates Property Bubble. Specifically I dont believe in Property Investment now a days. The good days are over in Singapore. 5. Your wife can make you poor or make you rich so choose carefully. Dont expect her to change her financial habits after marriage easily. 6. Between looking rich and being rich, you can only choose one.

CPF

Loans

AMA 1M65

Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 30 Nov 2018
Yes, it is advisable. The interest of your fixed deposit is lower than the interest of your CPF OA. Hence it makes sense to use cash instead of CPF OA to repay your hdb mortgage.

AMA 1M65

CPF

Retirement

Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 30 Nov 2018
CPF is a tool for saving and building up our funds when we are young. However, it is a tool for retirement when we are 65 years old.

Savings

Retirement

AMA 1M65

Good Day Every Day
Good Day Every Day,
Level 6. Master
Updated 3w ago
We should do a CPF nomination now so that our money would go to only the intended people. We do not know what is going to happen in the future.
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