1 00:00:00,000 --> 00:00:02,320 Speaker 1: this is a C. N A podcast. 2 00:00:04,220 --> 00:00:06,010 Speaker 1: So, Adam, in a few words, can you give us 3 00:00:06,010 --> 00:00:09,750 Speaker 1: your thoughts about the following, investing through CPF, 4 00:00:09,760 --> 00:00:10,820 Speaker 2: make sure you know what you're doing 5 00:00:10,830 --> 00:00:12,789 Speaker 1: retirement age in Singapore. 6 00:00:12,800 --> 00:00:16,250 Speaker 2: I think it's fine, 7 00:00:17,579 --> 00:00:19,049 Speaker 1: we'll get there eventually. 8 00:00:20,270 --> 00:00:24,040 Speaker 1: one thing you'd change about CPF if you could 9 00:00:24,050 --> 00:00:28,910 Speaker 2: higher interest rate, but you know, that would come with 10 00:00:28,910 --> 00:00:30,330 Speaker 2: implications as well. How 11 00:00:30,330 --> 00:00:31,990 Speaker 1: about topping up your CPF? 12 00:00:32,000 --> 00:00:34,209 Speaker 2: Yeah, definitely. If you can do it, why not? 13 00:00:34,220 --> 00:00:38,409 Speaker 1: How about the fire movement? Financial Independence, retire early, 14 00:00:38,420 --> 00:00:40,029 Speaker 2: make sure you got your plans right. 15 00:00:57,490 --> 00:01:00,580 Speaker 1: The Central provident Fund or CBF has been a huge 16 00:01:00,580 --> 00:01:03,900 Speaker 1: part of our lives, especially during major life decisions, like 17 00:01:03,900 --> 00:01:07,050 Speaker 1: buying a house, paying for medical bills and securing funds 18 00:01:07,050 --> 00:01:11,209 Speaker 1: for retirement. But CBF can be a complex beast, loved 19 00:01:11,220 --> 00:01:14,240 Speaker 1: by some and hated by others. While there may be 20 00:01:14,240 --> 00:01:17,150 Speaker 1: no escape to pay deductions, experts say we can make 21 00:01:17,150 --> 00:01:18,600 Speaker 1: the most of the scheme 22 00:01:19,000 --> 00:01:21,760 Speaker 1: in this episode. We work through the maths and unravel 23 00:01:21,760 --> 00:01:24,789 Speaker 1: the myths surrounding CPF with the help of our guest, Adam. 24 00:01:24,790 --> 00:01:28,080 Speaker 1: Wong Adam is the editor in Chief of the fifth person, 25 00:01:28,090 --> 00:01:32,820 Speaker 1: a financial literacy and investment website. So, Adam, let's just 26 00:01:32,830 --> 00:01:33,890 Speaker 1: get straight to it. 27 00:01:33,900 --> 00:01:34,760 Speaker 2: Sure, 28 00:01:34,880 --> 00:01:38,350 Speaker 1: CPF is a fact of life here in Singapore and 29 00:01:38,450 --> 00:01:41,760 Speaker 1: some are for it. Some are against it. But how 30 00:01:41,760 --> 00:01:43,780 Speaker 1: should we approach CPF? 31 00:01:44,300 --> 00:01:47,370 Speaker 2: I think CPF is here to stay. I mean, whether 32 00:01:47,370 --> 00:01:49,170 Speaker 2: you like it or not. I think a lot of 33 00:01:49,170 --> 00:01:52,390 Speaker 2: controversy or surrounding CPF, you get the most headlines out 34 00:01:52,390 --> 00:01:55,000 Speaker 2: of that. I think the majority of people in Singapore. 35 00:01:55,000 --> 00:01:56,760 Speaker 2: I think they work with the C. P. F. As 36 00:01:56,760 --> 00:01:59,450 Speaker 2: in it's a system that it's here to stay, it's 37 00:01:59,450 --> 00:02:02,280 Speaker 2: been around for a long time and whether you have 38 00:02:02,280 --> 00:02:05,080 Speaker 2: your complaints about it or not, it's something that you 39 00:02:05,080 --> 00:02:07,120 Speaker 2: have to work with. And I think there are benefits 40 00:02:07,120 --> 00:02:10,700 Speaker 2: to the CPF that you can definitely make use of 41 00:02:10,710 --> 00:02:13,750 Speaker 2: and use it as part of your financial planning. 42 00:02:13,950 --> 00:02:16,390 Speaker 1: Yeah. What are the benefits? And let's start with that. 43 00:02:16,400 --> 00:02:19,320 Speaker 2: I think the most obvious one is that its interest 44 00:02:19,320 --> 00:02:21,130 Speaker 2: rate is pretty good. I mean if you go to 45 00:02:21,130 --> 00:02:25,130 Speaker 2: the bank right now, fixed deposits in Singapore have been, 46 00:02:25,139 --> 00:02:27,560 Speaker 2: the rates have not been great for the longest time. 47 00:02:27,560 --> 00:02:43,530 Speaker 2: It's always been less than 1%. 48 00:02:43,700 --> 00:02:46,489 Speaker 2: I think that's a great option for people out there. 49 00:02:46,500 --> 00:02:49,580 Speaker 2: Even if you go into the stock market, the bond market, 50 00:02:49,590 --> 00:02:52,630 Speaker 2: it's not easy to find a risk free instrument that's 51 00:02:52,630 --> 00:02:56,980 Speaker 2: backed by the Singapore government for 4% interest per annum. 52 00:02:56,990 --> 00:02:58,840 Speaker 2: I think that's the main thing that we have as 53 00:02:58,840 --> 00:03:01,160 Speaker 2: Singaporeans that we should make use of. 54 00:03:01,430 --> 00:03:04,700 Speaker 1: You mentioned that it is risk free. Can you explain 55 00:03:04,700 --> 00:03:07,419 Speaker 1: to us like how it can be considered at risk 56 00:03:07,639 --> 00:03:10,860 Speaker 1: for many of us, we won't be touching this money 57 00:03:10,860 --> 00:03:14,019 Speaker 1: until like when we're in our sixties, that's decades away, 58 00:03:14,030 --> 00:03:16,310 Speaker 2: right? So when I say risk free, it comes from 59 00:03:16,310 --> 00:03:19,020 Speaker 2: an investment perspective. So if you go invest money in 60 00:03:19,020 --> 00:03:22,360 Speaker 2: the stock market, even with bonds of property, there's risk involved, 61 00:03:22,370 --> 00:03:24,660 Speaker 2: right prices can come up, they can come down, you 62 00:03:24,660 --> 00:03:27,380 Speaker 2: might lose money in your investment. So technically 63 00:03:27,520 --> 00:03:30,010 Speaker 2: you shouldn't lose money in your CPF. The risk you 64 00:03:30,010 --> 00:03:32,620 Speaker 2: have is that you have to trust that the government 65 00:03:32,630 --> 00:03:35,260 Speaker 2: will continue to run things as well as they have 66 00:03:35,260 --> 00:03:38,170 Speaker 2: done for the last many decades. Right? And the policy 67 00:03:38,170 --> 00:03:40,510 Speaker 2: doesn't change. So there's policy risk in that sense. 68 00:03:41,030 --> 00:03:44,430 Speaker 2: But when it comes to investment risk, it's technically risk free. 69 00:03:44,430 --> 00:03:46,750 Speaker 2: You don't risk losing your money in the CPF Yes, 70 00:03:46,750 --> 00:03:50,050 Speaker 2: there are restrictions in the CPS system. You can't redraw 71 00:03:50,060 --> 00:03:52,570 Speaker 2: everything at 55 but the money is still yours and 72 00:03:52,570 --> 00:03:54,130 Speaker 2: it goes back to you through the form of a 73 00:03:54,140 --> 00:03:57,470 Speaker 2: monthly payments when you retire. So it's risk free in 74 00:03:57,470 --> 00:03:59,050 Speaker 2: that sense. Um 75 00:03:59,060 --> 00:04:01,820 Speaker 1: I guess trust that you said is important and 76 00:04:02,040 --> 00:04:04,380 Speaker 1: you can also look at history, I guess and see 77 00:04:04,380 --> 00:04:09,100 Speaker 1: how it has been quite consistent. But these deductions, of course, 78 00:04:09,100 --> 00:04:12,610 Speaker 1: we can't opt out of them, right? It is required. 79 00:04:12,620 --> 00:04:15,800 Speaker 1: And at the same time we don't actively manage our 80 00:04:15,800 --> 00:04:18,339 Speaker 1: CPF money because someone else does it for us. But 81 00:04:18,339 --> 00:04:21,390 Speaker 1: sometimes that also means that we don't really check it. 82 00:04:21,425 --> 00:04:24,575 Speaker 1: Don't read about it, we don't care about the details 83 00:04:24,575 --> 00:04:27,045 Speaker 1: because it's someone else's problem and we'll think about it 84 00:04:27,045 --> 00:04:29,815 Speaker 1: when they were older. So some might think that, you know, 85 00:04:29,815 --> 00:04:31,985 Speaker 1: I put money in it, I'll get it, I'll check 86 00:04:31,985 --> 00:04:34,455 Speaker 1: it when I'm older. So how do you think people 87 00:04:34,455 --> 00:04:39,335 Speaker 1: can maximize CPF, even if they're decades away from getting 88 00:04:39,335 --> 00:04:41,094 Speaker 1: their hands on that money? 89 00:04:41,105 --> 00:04:44,105 Speaker 2: I think that's the best time to maximize the use 90 00:04:44,105 --> 00:04:46,285 Speaker 2: of CPF when you're much younger and you're such a 91 00:04:46,295 --> 00:04:48,360 Speaker 2: long runway to grow. I mean if you're 92 00:04:48,500 --> 00:04:51,070 Speaker 2: Near 55 and you don't have a lot of time 93 00:04:51,070 --> 00:04:52,830 Speaker 2: to grow your money if you haven't been putting money 94 00:04:52,830 --> 00:04:55,650 Speaker 2: in the CPF over the last, you know, many decades. 95 00:04:55,660 --> 00:04:58,120 Speaker 2: So if you're young and you want to contribute to 96 00:04:58,120 --> 00:05:00,790 Speaker 2: the CPF, I think it's an option. I would treat 97 00:05:00,790 --> 00:05:03,450 Speaker 2: it like a bond actually, because bonds out there, they 98 00:05:03,450 --> 00:05:06,670 Speaker 2: pay you a fixed interest rate is technically safe in 99 00:05:06,670 --> 00:05:10,159 Speaker 2: that sense. But bonds have their own risk as well. 100 00:05:10,160 --> 00:05:14,110 Speaker 2: You have to understand the company's financial position and their 101 00:05:14,110 --> 00:05:16,029 Speaker 2: bonds that have defaulted as well. 102 00:05:16,200 --> 00:05:20,099 Speaker 2: So this is arguably a safer instrument that pays you 103 00:05:20,100 --> 00:05:22,570 Speaker 2: a 4% interest rate and you can treat it as 104 00:05:22,570 --> 00:05:25,589 Speaker 2: part of your bond portfolio. I know of many Singaporeans 105 00:05:25,589 --> 00:05:27,719 Speaker 2: who just decide not to invest in bonds and just 106 00:05:27,730 --> 00:05:31,150 Speaker 2: invest in the CPF as their bond portfolio if you're young, 107 00:05:31,160 --> 00:05:33,040 Speaker 2: that's the best time to maximize because you have a 108 00:05:33,040 --> 00:05:34,980 Speaker 2: lot of time to grow and compound the money that 109 00:05:34,980 --> 00:05:37,850 Speaker 2: you have and yes, of course the part of it 110 00:05:37,850 --> 00:05:39,800 Speaker 2: has to stay inside when you turn 55 111 00:05:40,000 --> 00:05:43,789 Speaker 2: But then I think that is crucial anyway because we've 112 00:05:43,790 --> 00:05:47,029 Speaker 2: heard so many horror stories of Singaporeans who once they 113 00:05:47,029 --> 00:05:50,070 Speaker 2: turn 55 to withdraw a big sum from the CPF 114 00:05:50,080 --> 00:05:52,670 Speaker 2: and it just goes away in a few years. So 115 00:05:52,670 --> 00:05:54,450 Speaker 2: I think the government is doing the best to protect 116 00:05:54,450 --> 00:05:56,940 Speaker 2: as many people as they can by providing some level 117 00:05:56,940 --> 00:05:58,800 Speaker 2: of income all the way to the end of your 118 00:05:58,800 --> 00:06:01,330 Speaker 2: life to make sure that you're taken care of. 119 00:06:01,360 --> 00:06:03,350 Speaker 1: Yeah, I guess one side of it too is some 120 00:06:03,350 --> 00:06:06,140 Speaker 1: people feel like they are not being trusted with their 121 00:06:06,150 --> 00:06:07,100 Speaker 1: own funds 122 00:06:07,365 --> 00:06:11,105 Speaker 1: because this restriction is enforced upon them when it comes 123 00:06:11,105 --> 00:06:13,664 Speaker 1: to saving for their retirement. 124 00:06:13,675 --> 00:06:15,805 Speaker 2: I totally hear that, I mean my mom used to 125 00:06:15,805 --> 00:06:18,895 Speaker 2: complain about the CPF. So I grew up thinking that 126 00:06:18,895 --> 00:06:21,935 Speaker 2: the CPF was a restriction that the government put on 127 00:06:21,935 --> 00:06:24,875 Speaker 2: people and there are restrictions of course in any system. 128 00:06:24,885 --> 00:06:27,115 Speaker 2: So I used to think for the longest time that 129 00:06:27,115 --> 00:06:30,464 Speaker 2: the CPF was just keeping our money from us. When 130 00:06:30,464 --> 00:06:33,070 Speaker 2: I grew up, I realized that I can't change the system, 131 00:06:33,279 --> 00:06:35,740 Speaker 2: it's here to stay and actually if you're self employed, 132 00:06:35,740 --> 00:06:38,260 Speaker 2: you don't have to contribute CPF is not forced in 133 00:06:38,260 --> 00:06:40,770 Speaker 2: that sense you do if your employee with a salary 134 00:06:40,770 --> 00:06:42,599 Speaker 2: and all that you do still have to pay your 135 00:06:42,600 --> 00:06:45,200 Speaker 2: money safe. So back to my anecdote, I remember when 136 00:06:45,200 --> 00:06:49,070 Speaker 2: I was self employed income and I just had this 137 00:06:49,070 --> 00:06:50,840 Speaker 2: mindset that I just didn't want to put any money 138 00:06:50,839 --> 00:06:52,830 Speaker 2: in the CPF, I want full control of my money, 139 00:06:53,210 --> 00:06:55,840 Speaker 2: which is a good thing too. And then I realized 140 00:06:55,839 --> 00:06:58,590 Speaker 2: that I ended up paying a lot in texas because 141 00:06:58,600 --> 00:07:01,110 Speaker 2: I didn't put in the CPF there and the CPF 142 00:07:01,110 --> 00:07:04,260 Speaker 2: helps you to reduce your taxable income as well. So 143 00:07:04,260 --> 00:07:07,930 Speaker 2: between the choice of paying taxes or putting money in 144 00:07:07,930 --> 00:07:11,260 Speaker 2: my CPF account which grows interest, I would put money 145 00:07:11,260 --> 00:07:13,360 Speaker 2: in the CPF now that I know better when I 146 00:07:13,360 --> 00:07:15,650 Speaker 2: was much younger as well. So 147 00:07:16,030 --> 00:07:18,980 Speaker 2: yes, there are restrictions, but I will make the most 148 00:07:18,980 --> 00:07:20,760 Speaker 2: use of it. And I think the benefits in the 149 00:07:20,760 --> 00:07:21,630 Speaker 2: CPS system, 150 00:07:21,640 --> 00:07:25,600 Speaker 1: you mentioned taxes. Can you explain to us how CPF 151 00:07:25,610 --> 00:07:27,510 Speaker 1: can help you in the tax front? 152 00:07:27,520 --> 00:07:30,620 Speaker 2: So basically when you make income, there's income tax rate 153 00:07:30,620 --> 00:07:33,000 Speaker 2: you pay that every year to the I. R. S. 154 00:07:33,010 --> 00:07:35,350 Speaker 2: The more you make, the more you pay in taxes. 155 00:07:35,360 --> 00:07:38,830 Speaker 2: But then when it comes to calculating your taxable income, 156 00:07:38,840 --> 00:07:41,680 Speaker 2: they also take into account the CPF contributions that you 157 00:07:41,680 --> 00:07:42,780 Speaker 2: made throughout the year. 158 00:07:43,010 --> 00:07:45,250 Speaker 2: So based on the CPF contributions that you've made, they 159 00:07:45,250 --> 00:07:48,690 Speaker 2: deduct that portion from your taxable income and then what's 160 00:07:48,690 --> 00:07:52,430 Speaker 2: left that's taxable becomes lower. So your taxes reduced as 161 00:07:52,430 --> 00:07:54,630 Speaker 2: a result. So I mean it depends on how much 162 00:07:54,630 --> 00:07:57,400 Speaker 2: you make as an individual because there's a limit to 163 00:07:57,410 --> 00:08:00,890 Speaker 2: how much you can reduce your taxes by. But it 164 00:08:00,890 --> 00:08:03,610 Speaker 2: definitely helps. You can basically go to the CPF website 165 00:08:03,610 --> 00:08:05,020 Speaker 2: and they tell you all the I. R. S. Website 166 00:08:05,020 --> 00:08:05,510 Speaker 2: as well 167 00:08:05,880 --> 00:08:08,450 Speaker 2: every single year when you make your submissions they will 168 00:08:08,450 --> 00:08:10,880 Speaker 2: tell you exactly what your taxable income is. So the 169 00:08:10,880 --> 00:08:13,030 Speaker 2: first thing that they do is that what is your 170 00:08:13,040 --> 00:08:15,370 Speaker 2: income that you made? Does the headline figure? And then 171 00:08:15,370 --> 00:08:17,660 Speaker 2: you have your deductions? Right? So maybe you have your 172 00:08:17,660 --> 00:08:20,000 Speaker 2: text relief because you're an N. S. Man because you're 173 00:08:20,000 --> 00:08:22,860 Speaker 2: a parent or because you're a caregiver. So if you 174 00:08:22,860 --> 00:08:25,040 Speaker 2: make donations to charities and all that stuff. So these 175 00:08:25,040 --> 00:08:25,980 Speaker 2: are deductions 176 00:08:26,270 --> 00:08:30,010 Speaker 2: that go into reducing your taxable income anyway. And CPF 177 00:08:30,020 --> 00:08:32,710 Speaker 2: is part of that deduction as well. So it reduces 178 00:08:32,710 --> 00:08:35,890 Speaker 2: your taxable income. So what's left over is the amount 179 00:08:35,900 --> 00:08:38,770 Speaker 2: that can be taxed. So based on that amount 180 00:08:39,070 --> 00:08:42,760 Speaker 2: then the ras will calculate what your taxes based on 181 00:08:42,760 --> 00:08:45,709 Speaker 2: that new taxable amount. So the CPF helps to reduce 182 00:08:45,710 --> 00:08:48,980 Speaker 2: that when you contribute CPF amounts. 183 00:08:48,990 --> 00:08:51,560 Speaker 1: Is that for everyone or just if you top up 184 00:08:51,570 --> 00:08:55,760 Speaker 2: it's for everyone. So even your regular monthly CPF contributions 185 00:08:55,770 --> 00:08:56,559 Speaker 2: go to that. 186 00:08:56,809 --> 00:08:58,709 Speaker 2: And of course if you do the cash top up 187 00:08:58,720 --> 00:09:02,429 Speaker 2: as well up to $8,000 every year, there's a tax 188 00:09:02,429 --> 00:09:05,810 Speaker 2: relief on that as well and for most people it 189 00:09:05,809 --> 00:09:07,610 Speaker 2: just makes sense to put money in your CPF rather 190 00:09:07,610 --> 00:09:08,900 Speaker 2: than pay taxes. Right? 191 00:09:08,910 --> 00:09:11,420 Speaker 1: You mentioned your mom earlier has she had a change 192 00:09:11,420 --> 00:09:12,230 Speaker 1: of heart? 193 00:09:12,240 --> 00:09:15,209 Speaker 2: She did take her money and her complaint was that 194 00:09:15,220 --> 00:09:17,240 Speaker 2: at that point the time they called it, the minimum 195 00:09:17,240 --> 00:09:22,459 Speaker 2: sum was $80,000 today. It's about $192,000 as of this 196 00:09:22,460 --> 00:09:23,140 Speaker 2: year I think. 197 00:09:23,460 --> 00:09:25,590 Speaker 2: So it's called the fr s not full retirement some 198 00:09:25,590 --> 00:09:28,920 Speaker 2: so my mom's gripe was that that $80,000 was something 199 00:09:28,920 --> 00:09:31,730 Speaker 2: that she could never touch. That was a complaint. Everything 200 00:09:31,730 --> 00:09:34,070 Speaker 2: else she had above that she took out and she 201 00:09:34,070 --> 00:09:36,640 Speaker 2: had no complaints about that. So she was complaining about 202 00:09:36,640 --> 00:09:38,090 Speaker 2: that $80,000. 203 00:09:38,280 --> 00:09:40,929 Speaker 2: But I look at my mom today and she has 204 00:09:40,929 --> 00:09:43,230 Speaker 2: this stream of income from the CPF every single month 205 00:09:43,230 --> 00:09:45,730 Speaker 2: that supplements her income and it's been really useful for 206 00:09:45,730 --> 00:09:48,270 Speaker 2: her in her retirement. I don't know if she agrees 207 00:09:48,270 --> 00:09:50,490 Speaker 2: with it nowadays, but the way I look at it 208 00:09:50,490 --> 00:09:54,100 Speaker 2: and the way she's managing her finances, the CPF income 209 00:09:54,100 --> 00:09:55,310 Speaker 2: for her has been very very 210 00:09:55,309 --> 00:09:59,679 Speaker 1: useful and that's an issue to the raising of the minimum. 211 00:09:59,679 --> 00:10:01,700 Speaker 1: Some that you mentioned because some people look at it 212 00:10:01,700 --> 00:10:04,040 Speaker 1: and go, oh no, now I have to put even 213 00:10:04,040 --> 00:10:07,130 Speaker 1: more money in in the CPF 214 00:10:07,320 --> 00:10:10,670 Speaker 1: and it could be quite worrying for some because there 215 00:10:10,679 --> 00:10:13,360 Speaker 1: are tweaks that are made along the way. 216 00:10:13,370 --> 00:10:17,439 Speaker 2: Yes, that's true. So yes, this raising of the minimum 217 00:10:17,440 --> 00:10:20,860 Speaker 2: some of the full retirement, some is another common complaint. 218 00:10:20,870 --> 00:10:23,220 Speaker 2: I mean I totally understand that it feels like if 219 00:10:23,220 --> 00:10:26,470 Speaker 2: it's something that feels very far away and every few 220 00:10:26,470 --> 00:10:28,880 Speaker 2: years or so they raise it, then you're gonna feel 221 00:10:28,890 --> 00:10:33,090 Speaker 2: the goalpost keeps shifting and they have explained this before 222 00:10:33,090 --> 00:10:35,420 Speaker 2: that it has to keep up with inflation 223 00:10:35,650 --> 00:10:38,280 Speaker 2: And the cost of living expenses. So just take my 224 00:10:38,280 --> 00:10:41,730 Speaker 2: mother's example if they never raised it and your retirement, 225 00:10:41,730 --> 00:10:44,350 Speaker 2: some today is $80,000 and that's all you need to 226 00:10:44,360 --> 00:10:46,970 Speaker 2: put aside your CPF, let's say for me, I'm like 227 00:10:46,980 --> 00:10:50,770 Speaker 2: probably like 15, 20 years away from my retirement, how 228 00:10:50,770 --> 00:10:53,910 Speaker 2: much is $80,000 going to be worth in that time? 229 00:10:54,290 --> 00:10:56,550 Speaker 2: So it doesn't make sense because then if you can 230 00:10:56,550 --> 00:10:58,390 Speaker 2: return that amount, it's not going to be enough. So 231 00:10:58,390 --> 00:11:01,930 Speaker 2: the government has to increasingly steadily shift up the frs 232 00:11:01,940 --> 00:11:04,219 Speaker 2: to keep in line with inflation. It's just a fact 233 00:11:04,220 --> 00:11:06,589 Speaker 2: of money and investments in general. 234 00:11:07,010 --> 00:11:11,070 Speaker 1: So do you think we should solely rely on CPF, 235 00:11:11,080 --> 00:11:15,330 Speaker 1: is it enough to focus on putting our money in 236 00:11:15,330 --> 00:11:20,160 Speaker 1: CPF and not looking in other investment schemes, investment products? 237 00:11:20,170 --> 00:11:24,520 Speaker 2: My answer would be no, I think CPF alone is 238 00:11:24,530 --> 00:11:27,360 Speaker 2: not enough. I mean, I think there are people who 239 00:11:27,360 --> 00:11:30,380 Speaker 2: just rely on CPF alone. There has been a famous 240 00:11:30,380 --> 00:11:32,210 Speaker 2: example of this gentleman 241 00:11:32,559 --> 00:11:36,290 Speaker 2: that run this one m 65 movement where he advocates 242 00:11:36,290 --> 00:11:40,040 Speaker 2: having one million in your CPF. And then from then on, 243 00:11:40,040 --> 00:11:42,390 Speaker 2: once you've taken care of that base, you can kind 244 00:11:42,390 --> 00:11:44,550 Speaker 2: of relax and then focus on your other investments because 245 00:11:44,550 --> 00:11:46,949 Speaker 2: he knows that whatever happens to him, he always had 246 00:11:46,960 --> 00:11:49,640 Speaker 2: that CPF amount to rely on, he's never gonna get 247 00:11:49,640 --> 00:11:52,100 Speaker 2: busted out. He's always has that you have to take 248 00:11:52,100 --> 00:11:52,650 Speaker 2: care of him, 249 00:11:52,950 --> 00:11:55,679 Speaker 2: that's his philosophy and it makes sense. Some people feel 250 00:11:55,679 --> 00:11:58,460 Speaker 2: that CPF is not good enough. 4% is not good enough. 251 00:11:58,460 --> 00:12:01,880 Speaker 2: I can make more money in the stock market 567 10%. 252 00:12:01,880 --> 00:12:05,459 Speaker 2: And that's entirely possible as well. So I share that approach. 253 00:12:05,460 --> 00:12:11,520 Speaker 2: I think the CPF forms one pillar of your financial portfolio. 254 00:12:11,530 --> 00:12:13,390 Speaker 2: There's so many other options you can consider out there. 255 00:12:13,390 --> 00:12:17,130 Speaker 2: This property, there's stocks, that dividend stocks and stuff like 256 00:12:17,130 --> 00:12:18,210 Speaker 2: that reads as well 257 00:12:18,450 --> 00:12:21,450 Speaker 2: and they all form a basket of investments that you 258 00:12:21,450 --> 00:12:23,309 Speaker 2: can consider and how much you want CPF, how much 259 00:12:23,309 --> 00:12:25,340 Speaker 2: you want, your stocks, depends on your risk profile, your 260 00:12:25,340 --> 00:12:28,680 Speaker 2: financial goals, your investment goals. So the CPF is just 261 00:12:28,679 --> 00:12:31,480 Speaker 2: one tool that you can use it like a lever 262 00:12:31,480 --> 00:12:34,160 Speaker 2: of how much you want to put in CPF and 263 00:12:34,160 --> 00:12:35,530 Speaker 2: the rest of it is really up to you. So 264 00:12:35,530 --> 00:12:37,890 Speaker 2: it's not a black or white thing is like zero 265 00:12:37,890 --> 00:12:40,260 Speaker 2: CPF or all in CPF, it's just one thing you 266 00:12:40,260 --> 00:12:40,979 Speaker 2: can use 267 00:12:44,679 --> 00:12:47,329 Speaker 1: Hi, my name is steve Lie and I'm Teresa Tang 268 00:12:47,550 --> 00:12:49,920 Speaker 1: and we are the hosts of the new podcast, CNN 269 00:12:49,920 --> 00:12:53,510 Speaker 1: correspondent from new york to Bangkok, join us as we 270 00:12:53,510 --> 00:12:56,540 Speaker 1: kick back and chat with our colleagues across the globe 271 00:12:56,550 --> 00:12:59,599 Speaker 1: about the latest news developments. Look out for our weekly 272 00:12:59,600 --> 00:13:01,870 Speaker 1: episodes wherever you get your podcasts. 273 00:13:06,050 --> 00:13:09,559 Speaker 1: How about those who are in the gig economy, who 274 00:13:09,559 --> 00:13:13,140 Speaker 1: are freelancers where they don't have employee contributions, they're not 275 00:13:13,150 --> 00:13:17,950 Speaker 1: required to keep a part of their income in CPF. 276 00:13:17,960 --> 00:13:21,520 Speaker 1: Do you recommend or suggest that they put money into 277 00:13:21,520 --> 00:13:26,569 Speaker 1: CPF or should they go to equities or other investment streams? 278 00:13:27,120 --> 00:13:29,360 Speaker 2: Yeah. This really depends on the individual. So I do 279 00:13:29,360 --> 00:13:32,250 Speaker 2: think I can make recommendations for anyone because it really 280 00:13:32,250 --> 00:13:36,479 Speaker 2: depends on what their goals are, how financially, literally they 281 00:13:36,480 --> 00:13:38,740 Speaker 2: are because investing in the stock market, yes, you can 282 00:13:38,750 --> 00:13:42,650 Speaker 2: earn potentially higher returns, but you have risks and if 283 00:13:42,650 --> 00:13:44,110 Speaker 2: you don't know what you're doing, you can end up 284 00:13:44,120 --> 00:13:47,600 Speaker 2: losing money wherever you are, whether you're self employed and employed, 285 00:13:47,600 --> 00:13:50,590 Speaker 2: all these things have to be balanced out, taking into 286 00:13:50,590 --> 00:13:53,010 Speaker 2: account what makes most sense for you. 287 00:13:53,200 --> 00:13:55,819 Speaker 2: So if you're self employed and you feel that you 288 00:13:55,820 --> 00:13:59,100 Speaker 2: understand what investing in the stock market or the crypto 289 00:13:59,100 --> 00:14:02,170 Speaker 2: market is like and you take care of your risks 290 00:14:02,179 --> 00:14:05,179 Speaker 2: then Yeah, sure. Go ahead. And then you still can 291 00:14:05,179 --> 00:14:07,600 Speaker 2: consider contributing to your CPF because that helps with your 292 00:14:07,600 --> 00:14:10,219 Speaker 2: taxes as well if you don't want that, I would 293 00:14:10,220 --> 00:14:12,949 Speaker 2: treat it as a potential bond as an option that 294 00:14:12,950 --> 00:14:15,559 Speaker 2: you can use if you want to. I'm just totally 295 00:14:15,559 --> 00:14:18,429 Speaker 2: agnostic about these things and just make use of what 296 00:14:18,429 --> 00:14:19,540 Speaker 2: makes more sense for you. 297 00:14:19,800 --> 00:14:24,790 Speaker 1: What about those who are nearing their retirement age? Because 298 00:14:24,800 --> 00:14:26,920 Speaker 1: it's one thing when you're decades away and you still 299 00:14:26,920 --> 00:14:31,870 Speaker 1: have time to recover from any financial losses. Those who 300 00:14:31,870 --> 00:14:35,550 Speaker 1: are a few years away from retirement and maybe they 301 00:14:35,550 --> 00:14:39,980 Speaker 1: haven't really put a whole lot of attention into trying 302 00:14:39,980 --> 00:14:43,980 Speaker 1: to see if they have enough money once they hit retirement. 303 00:14:43,980 --> 00:14:45,990 Speaker 1: What do you think they should do at this point 304 00:14:45,990 --> 00:14:48,150 Speaker 1: to make sure that they are on the right track 305 00:14:48,550 --> 00:14:52,150 Speaker 2: when you're near retirement and then if you don't have 306 00:14:52,150 --> 00:14:55,250 Speaker 2: enough money, I think the reality is you just have 307 00:14:55,250 --> 00:14:56,350 Speaker 2: to continue working. 308 00:14:56,360 --> 00:14:57,290 Speaker 1: Yeah, 309 00:14:57,300 --> 00:14:59,700 Speaker 2: that's true, right? But if you've saved up enough or 310 00:14:59,700 --> 00:15:02,080 Speaker 2: maybe if you're lucky enough, one of your Children are 311 00:15:02,090 --> 00:15:04,840 Speaker 2: so rich, they can take care of you. You know, 312 00:15:04,850 --> 00:15:06,979 Speaker 2: that could happen. And hopefully you have a good relationship 313 00:15:06,980 --> 00:15:08,230 Speaker 2: with that kid 314 00:15:09,070 --> 00:15:11,920 Speaker 2: In any case, if you're older, then your margin for 315 00:15:11,920 --> 00:15:14,040 Speaker 2: error is going to be a lot smaller. You can 316 00:15:14,040 --> 00:15:19,300 Speaker 2: take risks because if one thing wipes you out at 5560, 317 00:15:19,310 --> 00:15:21,950 Speaker 2: it's gonna be really tough. You don't have the energy 318 00:15:21,950 --> 00:15:24,090 Speaker 2: or the opportunities as someone who was 30 years younger 319 00:15:24,100 --> 00:15:26,800 Speaker 2: is different. So you gotta be really careful with that 320 00:15:26,800 --> 00:15:29,180 Speaker 2: and it doesn't just apply to CPF applies to every 321 00:15:29,180 --> 00:15:30,950 Speaker 2: investment that you have out there, you can't be taking 322 00:15:30,950 --> 00:15:32,130 Speaker 2: unnecessary risks. 323 00:15:32,360 --> 00:15:36,650 Speaker 2: So you want to invest in things that are very stable, predictable, 324 00:15:36,660 --> 00:15:39,220 Speaker 2: that suit your risk profile. Maybe something that pays you 325 00:15:39,220 --> 00:15:41,910 Speaker 2: a very stable dividend doesn't give you a very high return, 326 00:15:41,910 --> 00:15:45,630 Speaker 2: but it gives you certainty. So CPF is something like that. 327 00:15:45,630 --> 00:15:48,010 Speaker 2: In fact, I actually have a friend's father who actually 328 00:15:48,010 --> 00:15:49,660 Speaker 2: put more money in the CPF. 329 00:15:49,810 --> 00:15:52,350 Speaker 2: So when he retired, he decided to put more money 330 00:15:52,350 --> 00:15:54,020 Speaker 2: because he just didn't want to take the risk of 331 00:15:54,030 --> 00:15:55,850 Speaker 2: that sum of money that he had to put it 332 00:15:55,850 --> 00:15:59,150 Speaker 2: in the stock market or something. He's not familiar with that. 333 00:15:59,160 --> 00:16:03,850 Speaker 2: But the CPF is something that he understands, it's basically 4% 5% 334 00:16:03,860 --> 00:16:06,470 Speaker 2: up to 56% as well, you know, for some of 335 00:16:06,470 --> 00:16:08,670 Speaker 2: the balances in your CPF account, especially once you cross 336 00:16:08,670 --> 00:16:11,510 Speaker 2: 55 as well. So he decided to just put more 337 00:16:11,510 --> 00:16:14,430 Speaker 2: money there because it's something that he understands and he 338 00:16:14,430 --> 00:16:17,140 Speaker 2: trusts and is risk free, like I said, 339 00:16:17,510 --> 00:16:21,470 Speaker 2: and he gets an increased payment out of it every 340 00:16:21,470 --> 00:16:23,900 Speaker 2: single month. So rather than risking his money somewhere, he 341 00:16:23,900 --> 00:16:26,510 Speaker 2: doesn't understand, he decided to just put more money in 342 00:16:26,510 --> 00:16:27,650 Speaker 2: the CPF. 343 00:16:27,660 --> 00:16:31,010 Speaker 1: That's an interesting point there adam. But what do you 344 00:16:31,010 --> 00:16:33,950 Speaker 1: think are the things that are misunderstood when it comes 345 00:16:33,950 --> 00:16:35,140 Speaker 1: to Cp f 346 00:16:35,150 --> 00:16:36,950 Speaker 2: I think what people think about, when it comes to 347 00:16:36,950 --> 00:16:39,720 Speaker 2: being misunderstood about the system is that when you have 348 00:16:39,720 --> 00:16:41,840 Speaker 2: something that's mandatory, people are gonna complain about it. 349 00:16:42,110 --> 00:16:46,490 Speaker 2: What comes most first is that people understand about financial 350 00:16:46,490 --> 00:16:49,580 Speaker 2: literacy about money in general, because I think if you 351 00:16:49,580 --> 00:16:54,550 Speaker 2: don't understand how investments work, how financial planning works and 352 00:16:54,550 --> 00:16:57,850 Speaker 2: all you care about is I want my money back 353 00:16:57,860 --> 00:17:00,600 Speaker 2: then yes, I think you're going to complain about things 354 00:17:00,600 --> 00:17:02,930 Speaker 2: because it's what you see and what you understand. But 355 00:17:02,930 --> 00:17:05,930 Speaker 2: once you become a financial literacy and you understand the 356 00:17:05,930 --> 00:17:07,740 Speaker 2: risk of the markets out there, how can you actually 357 00:17:07,740 --> 00:17:08,570 Speaker 2: make money? 358 00:17:08,780 --> 00:17:11,180 Speaker 2: And then you start to realize that actually 4% from 359 00:17:11,180 --> 00:17:14,780 Speaker 2: the CPF is just another option to you, then you 360 00:17:14,780 --> 00:17:16,820 Speaker 2: can take that into account and go, yeah, alright, I 361 00:17:16,820 --> 00:17:19,119 Speaker 2: think this is pretty reasonable, you can't find that anywhere 362 00:17:19,119 --> 00:17:22,520 Speaker 2: in the world and it's something that's available to Singaporeans. Yeah. 363 00:17:22,530 --> 00:17:24,880 Speaker 2: Then from that perspective, because you have a lot more 364 00:17:24,880 --> 00:17:27,969 Speaker 2: information about financial planning and stuff like that, then you 365 00:17:27,970 --> 00:17:30,439 Speaker 2: would have a different perspective when it comes to CP 366 00:17:30,440 --> 00:17:31,820 Speaker 2: F as an instrument, 367 00:17:32,420 --> 00:17:35,080 Speaker 1: it sounds like what you're saying is even if we 368 00:17:35,080 --> 00:17:38,510 Speaker 1: have CPF and there is that option for us that, 369 00:17:38,510 --> 00:17:41,720 Speaker 1: as you mentioned earlier, pretty risk free, we still have 370 00:17:41,730 --> 00:17:46,109 Speaker 1: to study how investments work and we still have to 371 00:17:46,109 --> 00:17:49,650 Speaker 1: be financially literate, despite having kind of something to fall 372 00:17:49,650 --> 00:17:50,440 Speaker 1: back on. 373 00:17:50,450 --> 00:17:53,859 Speaker 2: I think that's always useful, I think because money is 374 00:17:53,859 --> 00:17:55,980 Speaker 2: a part of our life, Money isn't everything, but it 375 00:17:55,990 --> 00:17:58,220 Speaker 2: really is a part of a life and it's one 376 00:17:58,220 --> 00:17:59,179 Speaker 2: of the life skills that 377 00:17:59,460 --> 00:18:01,570 Speaker 2: It's important to pick up. You don't have to be 378 00:18:01,570 --> 00:18:04,439 Speaker 2: like the best investor in the world or someone who 379 00:18:04,440 --> 00:18:08,190 Speaker 2: makes billions of dollars in that sense. But knowing basic 380 00:18:08,190 --> 00:18:10,580 Speaker 2: things like budgeting, how do I spend my money when 381 00:18:10,580 --> 00:18:13,060 Speaker 2: I park my money? If I have $10,000 today, what 382 00:18:13,060 --> 00:18:16,070 Speaker 2: do I do with it? Those are things that everyone 383 00:18:16,070 --> 00:18:18,790 Speaker 2: through the adult life will go through and they need 384 00:18:18,790 --> 00:18:20,920 Speaker 2: to know what to do with it, because if you 385 00:18:20,920 --> 00:18:21,780 Speaker 2: don't then 386 00:18:22,330 --> 00:18:24,810 Speaker 2: you could really put your money in places that they 387 00:18:24,810 --> 00:18:28,620 Speaker 2: shouldn't be put into and you have scams very dubious 388 00:18:28,619 --> 00:18:30,950 Speaker 2: investment schemes and you hear all these stories of people 389 00:18:30,950 --> 00:18:31,929 Speaker 2: losing money every day 390 00:18:32,270 --> 00:18:34,070 Speaker 2: and you don't want that to happen to you. So 391 00:18:34,070 --> 00:18:36,340 Speaker 2: this is stuff that everyone should learn. 392 00:18:36,350 --> 00:18:39,580 Speaker 1: Do you think we are maximizing this option for us, 393 00:18:39,580 --> 00:18:42,780 Speaker 1: the CPF and all the different types of accounts that 394 00:18:42,790 --> 00:18:44,250 Speaker 1: it comes with, I think 395 00:18:44,250 --> 00:18:46,580 Speaker 2: that really depends on the individual. So people like Mr 396 00:18:46,580 --> 00:18:48,830 Speaker 2: liu like of the one M 65 movement, he does 397 00:18:48,830 --> 00:18:52,830 Speaker 2: his best to maximize his use of the CPF. Some 398 00:18:52,830 --> 00:18:56,149 Speaker 2: people don't, they feel that it's just not a consideration 399 00:18:56,150 --> 00:18:58,700 Speaker 2: for them maybe because they've made so much money elsewhere 400 00:18:58,880 --> 00:19:01,440 Speaker 2: and they have their money and property or something like that, 401 00:19:01,440 --> 00:19:04,540 Speaker 2: It really depends on the individual as well. 402 00:19:04,550 --> 00:19:07,389 Speaker 1: What about those who feel like it's too late for 403 00:19:07,390 --> 00:19:12,639 Speaker 1: them to care about their retirement funds and investing, What 404 00:19:12,640 --> 00:19:14,420 Speaker 1: do you think they should do now? 405 00:19:14,430 --> 00:19:16,719 Speaker 2: I don't think it's too late. I mean even if 406 00:19:16,720 --> 00:19:21,560 Speaker 2: you're 60, the life expectancy in Singapore is about 80-20 407 00:19:21,560 --> 00:19:23,770 Speaker 2: more years to go. It's a long time 408 00:19:24,130 --> 00:19:26,770 Speaker 2: Wherever you are now. You still have to make the 409 00:19:26,770 --> 00:19:28,770 Speaker 2: best use of the time you have with the resources 410 00:19:28,770 --> 00:19:31,230 Speaker 2: you have and you want to make the best decisions 411 00:19:31,230 --> 00:19:34,250 Speaker 2: for you in the amount of time that you have left. 412 00:19:34,260 --> 00:19:36,420 Speaker 2: So even if you're not in the best position right now, 413 00:19:36,420 --> 00:19:39,780 Speaker 2: it still makes sense to make the right decisions moving forward. 414 00:19:39,780 --> 00:19:42,960 Speaker 2: So five years from now, you're better off than where 415 00:19:42,960 --> 00:19:44,820 Speaker 2: you are today. 10 years from now, you're even better 416 00:19:44,820 --> 00:19:48,129 Speaker 2: off than we are today. So this is Chinese proverb. 417 00:19:48,130 --> 00:19:50,290 Speaker 2: The best time to plant a tree was 10 years ago. 418 00:19:50,580 --> 00:19:52,170 Speaker 2: The next best time is today. 419 00:19:52,180 --> 00:19:55,110 Speaker 1: You know, there are different accounts for CPF. How do 420 00:19:55,109 --> 00:19:59,350 Speaker 1: you think young people should use those different accounts and 421 00:19:59,350 --> 00:20:00,400 Speaker 1: maximize them. 422 00:20:00,410 --> 00:20:04,000 Speaker 2: So there are three accounts so that ordinary account special-account medicine. 423 00:20:04,050 --> 00:20:06,600 Speaker 2: So many safe. Let's put that aside for your medical 424 00:20:06,600 --> 00:20:08,910 Speaker 2: expenses when anything happens to you. You can use part 425 00:20:08,910 --> 00:20:11,220 Speaker 2: of that. The two main accounts that most people look 426 00:20:11,220 --> 00:20:13,080 Speaker 2: at will be their ordinary account and special account. So 427 00:20:13,080 --> 00:20:15,430 Speaker 2: the special account is meant for your retirement. So this 428 00:20:15,430 --> 00:20:18,359 Speaker 2: account earns 4% up to 5% interest. 429 00:20:18,640 --> 00:20:21,370 Speaker 2: So you have nothing else to do. The best place 430 00:20:21,369 --> 00:20:22,980 Speaker 2: of course is to put it in a special account 431 00:20:22,990 --> 00:20:26,090 Speaker 2: at 4% interest into the highest interest. But of course 432 00:20:26,090 --> 00:20:28,810 Speaker 2: you have other considerations to think about. So your ordinary 433 00:20:28,810 --> 00:20:31,350 Speaker 2: account that money put there can be used for your housing. 434 00:20:31,359 --> 00:20:34,190 Speaker 2: So housing is going to be a key purchase consideration 435 00:20:34,190 --> 00:20:36,990 Speaker 2: for almost everyone in Singapore. So if you're going to 436 00:20:36,990 --> 00:20:41,160 Speaker 2: plan about buying a home sometime soon and you plan 437 00:20:41,160 --> 00:20:44,520 Speaker 2: to use your CPF ordinary account money there to fund 438 00:20:44,520 --> 00:20:46,590 Speaker 2: part of that then of course you need to plan 439 00:20:46,820 --> 00:20:49,200 Speaker 2: your finances in a way that your CPF can take 440 00:20:49,210 --> 00:20:52,419 Speaker 2: care of that portion. But if you're really about your home, 441 00:20:52,420 --> 00:20:54,629 Speaker 2: you don't plan on moving anytime soon. You've got like 442 00:20:54,630 --> 00:20:57,080 Speaker 2: your finances planned out and you feel that yes I 443 00:20:57,080 --> 00:20:59,290 Speaker 2: can put more money into the CPF special account then 444 00:20:59,300 --> 00:21:00,770 Speaker 2: obviously you want to put it there because you're in 445 00:21:00,770 --> 00:21:03,990 Speaker 2: a higher interest rate. Of course as always the restriction 446 00:21:03,990 --> 00:21:05,060 Speaker 2: is you can only 447 00:21:05,280 --> 00:21:07,860 Speaker 2: Take out your money at 55 and of course there's 448 00:21:07,859 --> 00:21:10,090 Speaker 2: the frs at that point in time. Whatever the prevailing 449 00:21:10,090 --> 00:21:13,119 Speaker 2: rate is, that's what has to be kept inside for 450 00:21:13,119 --> 00:21:15,730 Speaker 2: your annuity till the end of your life. 451 00:21:15,740 --> 00:21:18,760 Speaker 1: Do you think it's wise to use your CPF monies 452 00:21:18,760 --> 00:21:22,200 Speaker 1: to invest in stocks in E. T. F. S and 453 00:21:22,200 --> 00:21:24,010 Speaker 1: all that because that is an option to write, 454 00:21:24,020 --> 00:21:27,780 Speaker 2: it is an option and like with any investment it's 455 00:21:27,780 --> 00:21:29,860 Speaker 2: good to know what you're doing. So if you go 456 00:21:29,859 --> 00:21:32,850 Speaker 2: to like the SGX website, there's a list of CPF 457 00:21:32,850 --> 00:21:34,340 Speaker 2: approved stocks, 458 00:21:34,500 --> 00:21:36,720 Speaker 2: so that means these are stocks or E T F 459 00:21:36,720 --> 00:21:39,910 Speaker 2: s that you can use your CPF monies to go by. 460 00:21:39,920 --> 00:21:44,580 Speaker 2: But CPF approved doesn't mean it's a good stock to buy, 461 00:21:44,590 --> 00:21:48,390 Speaker 2: It's just approved for CPF use so you still have 462 00:21:48,390 --> 00:21:50,630 Speaker 2: to understand what you're buying what you're investing in if 463 00:21:50,630 --> 00:21:53,889 Speaker 2: you make the wrong decisions or you're just trying to 464 00:21:53,890 --> 00:21:56,240 Speaker 2: get lucky, you're not going to make money if you 465 00:21:56,240 --> 00:21:57,350 Speaker 2: don't know what you're doing, just put it in the 466 00:21:57,350 --> 00:21:59,510 Speaker 2: CPF leave it there, you know, you're going to make 467 00:21:59,510 --> 00:22:01,590 Speaker 2: that guarantee 2.5% or 4%. 468 00:22:01,910 --> 00:22:04,080 Speaker 2: But if you do know what you're doing and you 469 00:22:04,080 --> 00:22:07,580 Speaker 2: understand your investments and you feel that you can earn 470 00:22:07,590 --> 00:22:11,810 Speaker 2: a higher return with a little bit more risk. I 471 00:22:11,810 --> 00:22:13,939 Speaker 2: would take excessive risk with my CPF money because this 472 00:22:13,940 --> 00:22:16,290 Speaker 2: is for my retirement, but a little bit more risk 473 00:22:16,290 --> 00:22:18,109 Speaker 2: and I invest in something that's very stable in the 474 00:22:18,109 --> 00:22:20,990 Speaker 2: market is available out there? Yeah, I would consider doing 475 00:22:20,990 --> 00:22:21,800 Speaker 2: that as well. 476 00:22:21,810 --> 00:22:25,100 Speaker 1: Now if you have extra money adam, do you think 477 00:22:25,100 --> 00:22:28,340 Speaker 1: you should park it in the CPF transfer to your 478 00:22:28,340 --> 00:22:30,229 Speaker 1: SRS or medicine, save 479 00:22:30,920 --> 00:22:34,820 Speaker 2: extra money again. It really depends on what your goals are. 480 00:22:34,830 --> 00:22:36,699 Speaker 2: So it doesn't mean by default, I'm going to put 481 00:22:36,700 --> 00:22:38,080 Speaker 2: in my CV F if you know what to do 482 00:22:38,080 --> 00:22:40,500 Speaker 2: with that money, please go ahead and do something that 483 00:22:40,500 --> 00:22:42,530 Speaker 2: you think it makes most sense for you. 484 00:22:42,850 --> 00:22:46,390 Speaker 2: If not, yeah, if it's my investment goal financial goal 485 00:22:46,390 --> 00:22:49,359 Speaker 2: to have a 4% instrument that earns me that interest, 486 00:22:49,369 --> 00:22:52,710 Speaker 2: then yeah, you consider CPF as an option for yourself. 487 00:22:52,720 --> 00:22:55,600 Speaker 2: Many save, it's a supplement. You should have insurance as 488 00:22:55,600 --> 00:22:58,550 Speaker 2: well to take care of certain things as beyond medicine safe. 489 00:22:58,560 --> 00:23:00,760 Speaker 2: But yes, you should have something medicine as 490 00:23:00,760 --> 00:23:01,390 Speaker 1: well. 491 00:23:01,400 --> 00:23:03,570 Speaker 1: So it really depends on your investment, really 492 00:23:03,570 --> 00:23:04,600 Speaker 2: depends on who you risk 493 00:23:04,600 --> 00:23:05,550 Speaker 1: profile. Right? 494 00:23:05,560 --> 00:23:06,399 Speaker 2: That's true. Yes. 495 00:23:06,410 --> 00:23:10,360 Speaker 1: Before I let you go, there are different opinions about CPF, 496 00:23:10,380 --> 00:23:14,450 Speaker 1: but how would you compare CPF to other pension systems 497 00:23:14,450 --> 00:23:16,170 Speaker 1: in different parts of the world? 498 00:23:16,180 --> 00:23:19,210 Speaker 2: I wouldn't say I'm qualified to compare because I understand 499 00:23:19,210 --> 00:23:23,440 Speaker 2: CPF more than other pension systems, but what I can share, 500 00:23:23,440 --> 00:23:25,379 Speaker 2: for example, like the four oh one K in the U. S. 501 00:23:25,380 --> 00:23:26,159 Speaker 2: Is linked 502 00:23:26,530 --> 00:23:30,090 Speaker 2: to the stock market. So if the stock market isn't 503 00:23:30,090 --> 00:23:33,459 Speaker 2: doing well and the year you're retiring, everything comes to 504 00:23:33,460 --> 00:23:34,410 Speaker 2: a crash, 505 00:23:34,650 --> 00:23:37,270 Speaker 2: that's going to be really, really painful and something you 506 00:23:37,270 --> 00:23:40,200 Speaker 2: don't see happening as well. So I wouldn't know about 507 00:23:40,200 --> 00:23:43,440 Speaker 2: any other pension systems in the world, but for Singapore. 508 00:23:43,450 --> 00:23:45,970 Speaker 2: I think it's something that we can make use of 509 00:23:45,980 --> 00:23:48,170 Speaker 2: and might not make the most use out of it. 510 00:23:48,180 --> 00:23:51,330 Speaker 1: That's a good point about how CPF is here to 511 00:23:51,330 --> 00:23:54,710 Speaker 1: stay and we should include it in our financial planning 512 00:23:54,720 --> 00:23:58,640 Speaker 1: and we should also maximize its benefits. Thanks so much 513 00:23:58,640 --> 00:23:59,930 Speaker 1: for your insights adam. 514 00:23:59,940 --> 00:24:01,350 Speaker 2: Thank you for having me, 515 00:24:03,530 --> 00:24:05,859 Speaker 1: Thanks to my guest adam and thanks to all of 516 00:24:05,859 --> 00:24:08,640 Speaker 1: you for tuning in. We hope you enjoyed this episode. 517 00:24:08,650 --> 00:24:11,220 Speaker 1: Do you remember to like this podcast? So you know 518 00:24:11,220 --> 00:24:14,410 Speaker 1: when a new episode drops, you can find Ciena's business 519 00:24:14,410 --> 00:24:18,240 Speaker 1: and financial coverage online at sienna dot asia. The team 520 00:24:18,240 --> 00:24:22,150 Speaker 1: behind this podcast is Audrey one, Danieli, Jacqueline chan and 521 00:24:22,150 --> 00:24:24,290 Speaker 1: Christina robert. I'm sarah called E.