bepgof 20 Report post Posted October 18, 2011 precisely. Liability in the form of HDB loan is covered by insurance, so when one dies, insurance takes over. Spouse can live in flat still.Cash is king. Keep enough reserves in CPF ordinary account for rainy days. Slaves got many kinds:- slave to money- slave to career- slave to wife- slave as a slave (the kind we all know about)No person can be a King. We are all held to be slaves in one way or another.Hard to get ppl nowaday like you to interpret my "poem" so correctly, congratulation! You have won the 1st price!Slaves remained slaves because they are not aware they are slaves. Some kings do not aware they are kings yet prefer choose to be slaves. Share this post Link to post Share on other sites
bepgof 20 Report post Posted October 18, 2011 Cheers bro, market very volatile, like roller coaster Where got roller coaster, all this while only low tide with wild waves hitting the roacks only lah.Stand on top of rock, when strong wave comes hit the rock, quickly grasp some "splash" to solve the thirst first. Share this post Link to post Share on other sites
chronograph 0 Report post Posted October 18, 2011 Humm,...... I'm not good with figures.... neither am i good with investment.About financing loan, my view is to repay as soon as possible since I'm not using OA to invest, isn't the sooner u repay the less interest u pay? Which mean u save on interest, say 30 year loan u repay in 15 year time, save 15 year interest, the next 15 years for u to accumulate $$ in OA for retirement. Tio bo? Share this post Link to post Share on other sites
Seabass 0 Report post Posted October 19, 2011 Valuation Limitdepend when you brought the HDB.I think the latest is 120%.Mean.. eg.. you bought the HDB @$400k. So VL is $480k.U only can use max $480k in ur CPF on that HDB. It include all expense.. like stamp fee, lawyer fee. Any $ that u use CPF to service that house. I think I read somewhere before, someone did a est calculation. By est 25-26 yrs.. VL run out liao.Juz to share :-For my case, I borrowed 172K (to be paid over a period of 30yrs) from HDB in Oct 2010. They started deducting from my OA Feb/Mar this year ($693 per mth). I did a lump sum prepayment from my OA ($6700).. My VL (as of Aug 2011) left $159k (should last me for 19 years) only... I am not good with all these calculations, but the way, I interpreted that HDB is only lending me the amount for paying for the flat... I have to fork out hard cash for the interest rate (2.6% of loan amt/30 years)...Headache ! Headache ! Share this post Link to post Share on other sites
Seabass 0 Report post Posted October 19, 2011 Thank you for the various inputs ... Now is the time to do some maths... At least, we don't have any 'unwanted' surprises when we reach old age... Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted October 19, 2011 Humm,...... I'm not good with figures.... neither am i good with investment.About financing loan, my view is to repay as soon as possible since I'm not using OA to invest, isn't the sooner u repay the less interest u pay? Which mean u save on interest, say 30 year loan u repay in 15 year time, save 15 year interest, the next 15 years for u to accumulate $$ in OA for retirement. Tio bo?paying off loans quicker saves interest, no doubt about that. In most instances, it would be logical. However, under a HDB loan where the rate is fixed at 2.6%, there is actually no incentive to repay it off as soon as possible.For example, u can choose to accumulate your CPF OA and use it to invest, (subject to meeting the terms n conditions).Beating 2.6% returns is not hard, accumulate blue chips when economy dips will get u more than 2.6%. Namely, SG banks, SMRT, Telecoms, etc.There could be a thousand and one scenarios where you could be caught in a situation when you have no $$ in CPF OA to pay for housing if u use the entire OA contribution to pay off housing loan. So normally i would prefer if i have some excess of CPF OA building up in the account. Share this post Link to post Share on other sites
chronograph 0 Report post Posted October 20, 2011 Thanks for the advice.Mine is a bank loan, at 1.28% this year. I used 65% of my monthly contribution in OA to finance HDB loan and have more than 2 years of excess in case for raining days. Not planning to do any investment that's why people like me only can lead simple life. So my only option is to save on housing interests and work towards clearing the loan soonest possible, plan to clear it in 3 years time with lump sum payment. Besides, my AHWL is still within limit. Probably will consider investment once I cleared my housing loan, fund manager a good idea?paying off loans quicker saves interest, no doubt about that. In most instances, it would be logical. However, under a HDB loan where the rate is fixed at 2.6%, there is actually no incentive to repay it off as soon as possible.For example, u can choose to accumulate your CPF OA and use it to invest, (subject to meeting the terms n conditions).Beating 2.6% returns is not hard, accumulate blue chips when economy dips will get u more than 2.6%. Namely, SG banks, SMRT, Telecoms, etc.There could be a thousand and one scenarios where you could be caught in a situation when you have no $$ in CPF OA to pay for housing if u use the entire OA contribution to pay off housing loan. So normally i would prefer if i have some excess of CPF OA building up in the account. Share this post Link to post Share on other sites
bepgof 20 Report post Posted October 20, 2011 Not planning to do any investment that's why people like me only can lead simple life. So my only option is to save on housing interests and work towards clearing the loan soonest possible, plan to clear it in 3 years time with lump sum payment. Besides, my AHWL is still within limit. Probably will consider investment once I cleared my housing loan, fund manager a good idea?Investments should always start YOUNG. Experience borns confidence. When one gets older, heart gets old, then comes high resistance to change, afraid of failures, and prefer to remain "as it is".....Try different hobbies to make "heart" stays young. Besides building character, hobbies also widen the horizons. "Waste" time and money but....Sound investments need some knowledge background of accounting, finance, econ, statistic, business law.....So far, have stepped into:IPOsStock mkt(cash, no cpf)Foreign currency timed depositUnit trusts(wife likes, I don't like)Different sorts of insurances(considered investment???)Properties (hdb, L99, FH)FDs, saving, bond.....Last but not least, raising 2 children, now age 16 & 14 liao.Pls share yr experience leh. Share this post Link to post Share on other sites
chronograph 0 Report post Posted October 20, 2011 Nothing compare to yours lah.......Stock:a) many years back i had Singtel stock, the one offer by gov, waited for all the bonus payout before selling at $3 plus.b) 2005 went to do fix deposit, end up bought posb up side(20k), kind of regretted. Still there, about 5% to go. Capital guaranty.c) extended from b) use CPF special account to invest 10k, some unit trusts, surprisingly doing ok.A couple of insurances. Consider investment? One maturing next year(20 years), about 4.5% return per year. Another 3 got 10 more years to maturity. Got 3 kids, 9, 5, 2.Got a roof over my head, HDB nia.If really want to invest, will look at blue chips like some recommended. Buy DBS lower risk but returns not high.Also i low risk taker.Oh... another thing super important, i failed accounting, finance as free electives during my uni days... Investments should always start YOUNG. Experience borns confidence. When one gets older, heart gets old, then comes high resistance to change, afraid of failures, and prefer to remain "as it is".....Try different hobbies to make "heart" stays young. Besides building character, hobbies also widen the horizons. "Waste" time and money but....Sound investments need some knowledge background of accounting, finance, econ, statistic, business law.....So far, have stepped into:IPOsStock mkt(cash, no cpf)Foreign currency timed depositUnit trusts(wife likes, I don't like)Different sorts of insurances(considered investment???)Properties (hdb, L99, FH)FDs, saving, bond.....Last but not least, raising 2 children, now age 16 & 14 liao.Pls share yr experience leh. Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted October 20, 2011 Thanks for the advice.Mine is a bank loan, at 1.28% this year. I used 65% of my monthly contribution in OA to finance HDB loan and have more than 2 years of excess in case for raining days. Not planning to do any investment that's why people like me only can lead simple life. So my only option is to save on housing interests and work towards clearing the loan soonest possible, plan to clear it in 3 years time with lump sum payment. Besides, my AHWL is still within limit. Probably will consider investment once I cleared my housing loan, fund manager a good idea?i think financially u are in great shape, definitely better than most people in SG.Low risk taker is fine, investments are not limited to fixed deposits, bonds, shares, etc. We sometimes forget to invest in ourselves, which is the most profitable economic activity.Some people do very well in their area of work and thus earning high enough income to retire comfortably, with or without investing in all these financial assets.consider starting investing earlier if you have interest, can stay on sidelines to watch the euro and america crisis happen and learn from it. Failing accounting in uni is no problem... Analysis of financial results leave it to brokers. More often than not, the stock market is driven by sentiment, feel good or feel scared. My observations these few years. Share this post Link to post Share on other sites
bepgof 20 Report post Posted October 21, 2011 (edited) Really envy u guys have chance to go to uni. I don't. At times, I get sentimental easily. 2 or 3 forumers already know the following story of mine, i repeat here and shall not in the future, wish to get your blessing for next yr and the next.Some 18 or 19 yrs ago wanted to get a bachlor degree in management after poly's engineering & SIM's dms, somehow or rather, it is "fate" than "manipulates" ppl or God's will? HDB key came, reno follow by wedding. Facing issue of "money not enough". So dream remains as dream. Work, work, work. Son comes to this world 2 yrs later, 20 months after, daughter comes, then again work, work, work and save, save, save & also invest, invest & invest.They've grown up & have quite certain degree of "independence", so I can let go more or less. It is time.I'll go to SIMGE's bachlor of business(management), major in finance, starting from next jan, with advance standing, need to take only 12 modules, 2 yr, part time, cert by RMIT, australia. Just to fulfill "my dream" - this dream really takes long time to be realised.Don't stop your dreams. Edited October 21, 2011 by bepgof Share this post Link to post Share on other sites
chronograph 0 Report post Posted October 21, 2011 bepgof all the best to your long expired further studies. Better late than never having the heart to get what u wanted.I had similar situation like u had faced before. Graduated 1998, can't do Master even tot my FY supervisor had something planned for me, house came needed $$, 2000 collect house key, same year got married, 2002 first child. After which all attention on family and work, work and work..... Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted October 22, 2011 Really envy u guys have chance to go to uni. I don't. At times, I get sentimental easily. 2 or 3 forumers already know the following story of mine, i repeat here and shall not in the future, wish to get your blessing for next yr and the next.Some 18 or 19 yrs ago wanted to get a bachlor degree in management after poly's engineering & SIM's dms, somehow or rather, it is "fate" than "manipulates" ppl or God's will? HDB key came, reno follow by wedding. Facing issue of "money not enough". So dream remains as dream. Work, work, work. Son comes to this world 2 yrs later, 20 months after, daughter comes, then again work, work, work and save, save, save & also invest, invest & invest.They've grown up & have quite certain degree of "independence", so I can let go more or less. It is time.I'll go to SIMGE's bachlor of business(management), major in finance, starting from next jan, with advance standing, need to take only 12 modules, 2 yr, part time, cert by RMIT, australia. Just to fulfill "my dream" - this dream really takes long time to be realised.Don't stop your dreams.hats off to you. Nowadays few youngsters treasure the chance to study. Many just go through it as their parents forced them to. They probably realise the importance later. Never too late to pursue dreams. Share this post Link to post Share on other sites
kusudama 0 Report post Posted March 15, 2014 (edited) . Edited January 16, 2017 by kusudama Share this post Link to post Share on other sites
gemini 8 Report post Posted March 15, 2014 (edited) . Edited May 13, 2014 by gemini Share this post Link to post Share on other sites
