Losing money investing CPF money

In a ministerial dialogue session, or is it pre election dialogue, a Mr Goh claimed that he lost $350k from his CPF account! This is the strangest thing I have heard so far. I always read glowing reports about CPF members making money from investing in the stock market. And since the stock market always go up in the long run, and the return, as was used to justified in the liberation of the CPF investment scheme then, would always be much more than bank savings. I remember some figures quoted then was something like 25% to 30% in the long run. The scheme started in 1986, revised to include an Enhanced Scheme in 1993. Now it is 2010, average about 20 years since it started, should be long run enough to make money, not 25% but should be at least 10%! Why got people lost so much one? This is really the first time such a big number in losses is reported, and only when a loser admitted it himself. How many more losers out there who have lost their life savings in the hundreds of thousands since the scheme started? Oh, the scheme was revised to downwards in 1997 to protect the CPF members from losing more of their life savings. Talking about smart Alecs.


Anonymous said...

Do let this old man made a confession; oh no, jus a disclosure of his foolishness in believing the sales talks of some leaders. In the early days when CPF was liberalized, some leaders kept telling the people that it will be very worthwhile to invest ones' CPF in the Stock Market. They even told the people that they were so kind as to ensure minimum risk to CPF Investors by listing certain companies as 'trustee stocks'.

Me and many other family members, friends and colleagus eagerly put our CPFs to good use.

And You know what ? When i got my CPF few years back, it was about 40% less. BUT, please allow me to make a confession that it was me faulty and my fault of greediness that caused the loss AND NOT THE PRODDINGS OF OUR LEADERS. THEY MEANT WELL THEN AND THEY MEANT WELL NOW, BY WARNING YOU, that there is always risks in investments. Different words for different occasions, sometimes my congratulations and sometimes my condolences. Pick one that suits.

Wally Buffet said...

Investing with CPF funds or your own funds, the outcome depends on what you invested, when you invested and when you divested.

So please don't blame the system. Blame one's lack of investment finesse. Don't, repeat don't get into anything you do not understand nor have the time to watch carefully like a hawk.

It never fails to surprise me why people can sit at mahjong or casino gaming tables for hours and are so concentrated on what they do that they are oblivious to what is going on around them but when it comes to stock investing, they are so clueless. Don't, repeat don't leave it to the dealers or the remisiers to feed you with information. Sometimes, they know as much as you do. Do your own due diligence. Get the facts, dig deeper and then make your move.

Take the above advice from a Buffet. It's well worth your attention.


Chua Chin Leng aka redbean said...

Wally, You should hold talks on successful stock investment. $200 per participant. Good money.

Anonymous said...

Out of a few hundreds or thousands, there will always be some who made money and some who lose.

The funny thing in every case is that the winners will advertise loudly their good luck and fortune, while the losers just fade away quietly, without a whimper. It does not matter whether it is one winner out of a thousand losers, the result is the same.

You believe what you want to believe.

Anonymous said...

Maybe this is to tell those with CPF money not to dabble, but leave them with CPF board. CPF really needs all the money to remain locked up there.

That is why they are now obviously looking at changing the CPF laws, to even make sure that any profit from sale of HDB flats will not be allowed to be taken out.

Signs of desperation.