Whether to keep or withdraw CPF funds depends a great deal on how much you have in the account and the direction of the exchange rates of your "normal" country. The new Medishield premiums can eat up a lot of any interest you may earn. The exchange rate with the US dollar has been getting consistently worse over time and I see no factors that are going to make that situation change in the near or mid-term. If you don't want the money for other investment/operational objectives and you don't mind Medishield premiums eating into your returns, then sure, keep your money in CPF.BBCWatcher wrote:There is no requirement to withdraw CPF funds upon termination of PR status. Ex-PRs can (and probably should) continue to enjoy CPF's yields. Moreover, if you're going to buy a private leasehold or freehold in Singapore it's better to do that while a PR rather than as an ex-PR since there's a lower stamp duty for PRs.
Only in relation to your total assets in order to determine whether additional diversification is merited.Strong Eagle wrote:Whether to keep or withdraw CPF funds depends a great deal on how much you have in the account...
If you are able to predict future exchange rates with at least some accuracy then you can make practically infinite amounts of money. Most people are not superhuman....and the direction of the exchange rates of your "normal" country.
No, ex-PRs don't owe any MediShield Life premiums.The new Medishield premiums can eat up a lot of any interest you may earn.
No it hasn't. The Singapore dollar is currently much closer to its record high against the U.S. dollar than to its record low.The exchange rate with the US dollar has been getting consistently worse over time...
Ya think?BBCWatcher wrote:No it hasn't. The Singapore dollar is currently much closer to its record high against the U.S. dollar than to its record low.Strong Eagle wrote:The exchange rate with the US dollar has been getting consistently worse over time...
Yes, I do. My statement is factually correct. You're looking only at a 2 year period (why?), a period that includes a near record strong Singapore dollar. Yet even within that two year period the Singapore dollar, today, is approximately at the midpoint of that two year range. (And against a particular currency, the U.S. dollar, which is quite strong against other world currencies.)Strong Eagle wrote:Ya think?BBCWatcher wrote:The Singapore dollar is currently much closer to its record high against the U.S. dollar than to its record low.
http://www.xe.com/currencycharts/?from= ... GD&view=2Y
Because anything that happened in the past is gone and irrelevant and there's no point in me looking at a 20 year window. And while no one has a crystal ball, the forces that caused the SGD to drop against the USD over the last two years remain in place, with no signs of easing, only accelerating.BBCWatcher wrote:Yes, I do. My statement is factually correct. You're looking only at a 2 year period (why?),Strong Eagle wrote:Ya think?BBCWatcher wrote:The Singapore dollar is currently much closer to its record high against the U.S. dollar than to its record low.
http://www.xe.com/currencycharts/?from= ... GD&view=2Y
This discussion would be more at home in an investment thread. That said I question some of the presumptions made.BBCWatcher wrote:Read again what I wrote. Portfolio diversification is an important element of any sensible financial plan for long-term savings and investing (e.g. retirement). That includes some currency diversification, even if you are certain (or near certain) you want to retire to a particular country and currency zone. There's nothing magical about the U.S. dollar or the Singapore dollar. You should most probably have some investments that are correlated with both currencies -- and with other currencies.
I don't think this is particularly complicated, though. There is a global financial market that includes Singapore, with some very smart investors -- much smarter than any of us, probably. Those extremely savvy investors are currently (as I write this) willing to lock in their after-tax money, in Singapore dollars, with the AAA rated Singapore government for 10 years and receive a nominal Singapore tax free yield of about 2% per year with zero inflation adjustment. Considering all risks, that's the current market price for Singapore Government Securities in the open global market.x9200 wrote:Re: CPF. I guess the keyword is optimal. It varies with an individual's skills, knowledge, experience and willingness to take a risk. What may be good solution for the Lynx, BBCW or myslef, is not necessary the same for example for JR8.
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