tks so much for the coming talk . pls more of this to come , tks again

Sorry I couldn’t make it today, Sze Hian. Any news or information to share with us about the forum? CPF is the “in” thing now. :)

According to the Business Times of 2 May, the yield on 10 -year Government bonds now range from 0.93 to 2.08 per cent. So, the SMRA rate which is pegged to the average 10-year Government Bond yield plus 1%, is likely to be below 4% (the old SMRA rate). Note: Before 1 January 2010, if the SMRA rate under the new formula is less than 4%, 4% will be paid. After that date, the floor rate (lowest possible rate) on all CPF accounts will be 2.5%.

Hi Sze Hian, I missed both of your talk. Can share the highlights of your presentation here for the benefit of all? Thank you for sharing.. :-)

Thanks Sze Hian for sharing the info.

As CPF holders, we all face a dilemma. CPF-SA will probably be never as high as 4% in the low interest environment. Hence, we must invest to get the best returns for our nest-egg. For many who are in their 20s-30s, there is a very long horizon till the draw-down age.

However, the most aggressive financial instruments available for CPF-SA now are at best balanced funds. Given the mixture of bonds and equities in such funds, it is likely the returns will probably be in the range of 5 to 6%. Minus off another 1-2% for expense fees, and the risk-reward pay-off does not justify in investing. Quite sad for people with long time horizons and can take on more risks.

In my opinion, CPF-SA should be re-structured to allow investments into low-cost all equity funds like Street-tracks STI ETF. How can ordinary people like us make CPF see the light of this issue?

I shall be speaking on inflation at a free public forum on 24 May, 2 – 5 pm, National Volunteer and Philanthrophy Centre, The Central (above Clarke Quay MRT).
No registration required, just turn up

The attendance at Mr Leong’s talk for the World Investor’s Forum was really pathetic, less than twenty people turned up. Frankly, Mr Leong has something interesting to say about the CPF system but the audience are not interested and the changes in CPF will not affect them anyway, it is as if Mr Leong is “playing zither to the cows” (to borrow a chinese proverb). The people who attended are moneyed and educated class whereas the people who should be concerned about what Mr Leong has to say are the unverprivileged and uneducated. So, Mr Leong, what are you going to do about that?

I could attest to the poor attendance. Maybe the audience was not interested as there was an arts auction next door and people who do not bat an eyelid paying $20,000 for a piece of Chinese trash is certainly not interested in what the government is doing to their CPF.

I have a question for Mr Leong but there was not Q&A so here is it: you suggested investing wisely, namely a certain percentage in equity, commodities and bonds and a less than 1% overall charge with free switching. I wonder if there exists banks which offer such an attractive package. In any case, the lower income group may not have the necessary acumen or education (not CFA like Mr Leong) so how can they avoid being fleeced off by the banks? This is acute since according to Mr Leong, they are already being fleeced off by our benevolent government.

Your take, Mr Leong?