The future of Singapore
Yesterday, the National Rally Speech was out. In the midst of Singapore's progress, the elderly are not left out of the picture.
The government is extending the retirement age. CPF is also being stretched to aid the elderly through their golden years; make retirement savings last longer. In today's Straits Times, it was also mentioned that there is a new HDB buy-back scheme for older owners, essentially, the Government buys the flats from the elderly but the elderly can still live in the same apartment for another 30 years.
Now the targeted topic here is about stretching the CPF, but here's the catch; one cannot use the extra savings fund for investments in the stock market. This is done to minimise any possible risk of losing money, especially at the old age.
Is it a good idea? Well, I think it works both ways.
Good idea: Well, it preps the older generation for their older age as in recent times, medication is much more advanced and that people are living longer hence the need for cash in the golden years is quite critical.
On top of that, it'll stop them from spending it in the stock market; allowing them to realise that risks should no longer or advisable not to be there, especially when it comes to money at that age.
Young working adults would then have more money in their CPF to allow them to afford a more luxurious choice of housing when the time comes.
Bad idea: The higher monthly cut from CPF would result lesser spending for the working adults. On top of that, there is no guarantee that they may live that long to enjoy the CPF savings.
From the time they work with the monthly CPF cut to the day they get their money, is a long way to go. For some people, CPF cut may be quite a burden for them.
In terms of savings, one can always start having his or her own, without having to depend solely on CPF. Every month, just set aside some cash as savings.
Well, at the end of it, it is still 'our' money and we can do whatever we want with it, be it even investing, but I guess the Government is looking at our end as well, the possibility of not having enough cash for the old age.
Well, this issue of stretching the CPF can really go both ways. What do you think?
Nurwidya Abdul
The government is extending the retirement age. CPF is also being stretched to aid the elderly through their golden years; make retirement savings last longer. In today's Straits Times, it was also mentioned that there is a new HDB buy-back scheme for older owners, essentially, the Government buys the flats from the elderly but the elderly can still live in the same apartment for another 30 years.
Now the targeted topic here is about stretching the CPF, but here's the catch; one cannot use the extra savings fund for investments in the stock market. This is done to minimise any possible risk of losing money, especially at the old age.
Is it a good idea? Well, I think it works both ways.
Good idea: Well, it preps the older generation for their older age as in recent times, medication is much more advanced and that people are living longer hence the need for cash in the golden years is quite critical.
On top of that, it'll stop them from spending it in the stock market; allowing them to realise that risks should no longer or advisable not to be there, especially when it comes to money at that age.
Young working adults would then have more money in their CPF to allow them to afford a more luxurious choice of housing when the time comes.
Bad idea: The higher monthly cut from CPF would result lesser spending for the working adults. On top of that, there is no guarantee that they may live that long to enjoy the CPF savings.
From the time they work with the monthly CPF cut to the day they get their money, is a long way to go. For some people, CPF cut may be quite a burden for them.
In terms of savings, one can always start having his or her own, without having to depend solely on CPF. Every month, just set aside some cash as savings.
Well, at the end of it, it is still 'our' money and we can do whatever we want with it, be it even investing, but I guess the Government is looking at our end as well, the possibility of not having enough cash for the old age.
Well, this issue of stretching the CPF can really go both ways. What do you think?
Nurwidya Abdul
Labels: CPF, generation, golden years, government, investment, luxurious, National Day rally, risk, savings
Trust Companies To Make Right Decisions.
For the longest time, companies venturing into businesses unrelated to their core competencies have been scaring investors away.
That is because they either don't understand why the company is diversifying into the new segment, or are worried the unfamiliar territory will weigh it down.
Investors really should not be too worried because these companies are just trying to make more money from these forays.
Take Popular Holdings, for example.
When it first announced investing in property development One Robin, investors frowned upon the news and a knee-jerk selling of Popular's shares took place.
This was probably further exacerbated by how Popular's core publishing business was facing margin pressures.
Investors wondered why the company would jump into property when it should be concentrating on its core business.
But Popular had its own reasons.
First, it wanted to park a sum of money somewhere before taking it out a few years later.
Second, the property market was riding high and the company would be able to make some money from investing that particular sum in a project.
In essence, the company has found a way to make more money while waiting to pump money into a planned investment a few years later.
The same goes for Time Watch Investments.
Why would a watch-maker and retailer want to buy a shopping complex in Zhengzhou for S$20 mln?
The company wants to brand the shopping centre under its name and to house its various brands in it.
It can also make more money through commissions collected from the other retail outlets operating in it.
Of course, investors should be extremely concerned if a company like UTAC wanted to start selling canned food.
Otherwise, companies should be trusted to make the right decisions that would benefit it and its shareholders.
Serene Lim
ArchivesThat is because they either don't understand why the company is diversifying into the new segment, or are worried the unfamiliar territory will weigh it down.
Investors really should not be too worried because these companies are just trying to make more money from these forays.
Take Popular Holdings, for example.
When it first announced investing in property development One Robin, investors frowned upon the news and a knee-jerk selling of Popular's shares took place.
This was probably further exacerbated by how Popular's core publishing business was facing margin pressures.
Investors wondered why the company would jump into property when it should be concentrating on its core business.
But Popular had its own reasons.
First, it wanted to park a sum of money somewhere before taking it out a few years later.
Second, the property market was riding high and the company would be able to make some money from investing that particular sum in a project.
In essence, the company has found a way to make more money while waiting to pump money into a planned investment a few years later.
The same goes for Time Watch Investments.
Why would a watch-maker and retailer want to buy a shopping complex in Zhengzhou for S$20 mln?
The company wants to brand the shopping centre under its name and to house its various brands in it.
It can also make more money through commissions collected from the other retail outlets operating in it.
Of course, investors should be extremely concerned if a company like UTAC wanted to start selling canned food.
Otherwise, companies should be trusted to make the right decisions that would benefit it and its shareholders.
Serene Lim
Labels: investment, property
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