9/03/2014

CPF backed by solid assets


I am just looking at the reasonings given recently that the people have no fear as their CPFs are backed by solid assets of the state. We have land, we have properties, we can also print money, solid like hell. Even if we lose all our CPF money in bad investments, the govt can always find other money to put back or repay the people’s CPF savings. I am not saying that our CPF money has been lost or gambled away. Our CPF money is in SGS bonds, very safe.
 

This issue crops up because of the reasonings used to assuage the people that they have nothing to worry about. The govt is not broke and have a lot of assets to back up the CPF savings in the reserves, land and properties in the whole island in fact.
 

So, is the reasoning or logic acceptable? Hypothetically, if a rogue govt and their talented investment managers were to lose the bulk of the reserves/CPF money in the future, they can say, don’t worry, we have a lot of assets that we can sell, liquidate to put back into the CPF, is this assuring?
 

Money lost is money lost. Taking money from somewhere to cover up the hole means somewhere else has a big hole that needs covering up. If the loss is big, the hole would be just as big. Some big assets must be sold from the pool. This cannot be acceptable.
 

The reserves/CPF money being managed when lost is lost and digging out money from other pockets cannot be acceptable and not comforting. The money must come from somewhere and when everything is accountable and linked, ultimately the people must pay for it somehow. Yes, the govt has a lot of money, reserves and assets, many times more than the CPF savings. So?
 

It is just like the public transport system. If it loses money, or more money needed for capital expenditure, or more fines for delays and breakdowns, eventually the commuters will have to pay for them.

Kopi Level - Blue. Thank you.

28 comments:

Anonymous said...

The CPF is safe and in safe hands. There is doubt about this issue. The government has assured Singaporeans that CPF is solid and well invested. Singaporeans can have no fear of losing their CPF. RB is trying to sow the seeds of fear. Fear not, your CPF is safe. your government has said so. You must trust your government. The PAP has been good to you for 50 years, you must be loyal and trusting. Don't worry, when you get to 65 you can become rich and with the CPF money you can sail into the sunset and enjoy your twilight years.

Anonymous said...

As long as PAP is the govt, CPF is very safe. And it has been proven for nearly 50 years.

But 60% are very scared that this may not be the case when the opposition, which is not ready to be govt, is elected as govt.

That's why 60% will vote PAP again to ensure their CPF continue to be safe. Why take the unnecessary risk by voting for the unproven and not ready opposition, tio bo?



Anonymous said...

/// As long as PAP is the govt, CPF is very safe. ///

How can your money be safe when the PAP government is unable to "honour" its original promise of returning CPF money back to you at 55 years old?

Anonymous said...

Thank you anon 9:25/9:31. Your assurance already makes me feel so good. I sure vote for PAP. But I am a bit uncomfortable because you are an anonymous. How to trust an anonymous? You could be a joker or a snake oil seller then how?

Anonymous said...

Anon 9.31

As the PAP government has told you many many times, things have changed over the years. People are living longer and 55 is too early to take out your CPF. Are you deaf or what? You hear but you do not listen. 65 is a better age to take you CPF. If you don't like it, take your CPF and go live somewhere else.

Anonymous said...

It is true that money lost, is money lost. The fact of the matter is that if CPF monies are also used in investments then there can be no guarantee that there will be all gains, no losses all the time. Even banks can collapse, financial plans also.

But what is your point really, RB? Personally I would be up in arms if they cannot guarantee the safety of the money by using other assets to still support it. But what if they always can? What is your question then?

Anonymous said...

Our CPF money is invested in SGS bonds. The Govt assured us that our CPF money is perfectly safe and guaranteed by them.

The money from the sale of the bonds is largely managed/invested by GIC.

Therefore, indirectly GIC is managing/investing our CPF money, although the Govt tells us our CPF is not managed by GIC. Cannot argue further!

Now, if our CPF money is that safe. via our investments by GIC via the SGS bonds, why is there a need for the warning to participants of one CPF scheme, some time ago, that should that scheme collapse, Singaporeans will loose their CPF money tied to that scheme? As a matter of interest, will the factor affecting the collapse of that scheme also be a factor that will affect other schemes? How telling is that warning?

Isn't the Govt saying that they will guarantee that our CPF will be 100% safe because the bonds are 100% backed by their 100% reputation? So, why should the collapse of one scheme be outside the given guarantee by the Govt?

I am one confused CPF member.

Anonymous said...

The best way is to take the assurance of the PAP as gospel truth. Don't worry and believe in what they tell you. That way you can sleep peacefully at night and also reduce your blood pressure. When you get to 65 you can take your money and enjoy.

PAP is the best.

Anonymous said...

Anon 9:37, according to actuarial statistics, 20% of those age 55 today will not see 65. Please go and tell this 20% that keeping their money till 65 is good.

Or are you that stupid?

Anonymous said...

Fat hope!

Most of my relatives who died over the last two years, not talking about friends, died before 65 years old. Three died even before the age of 60. Only one aunty who died recently was 76 years old. But she did not have any CPF to worry about.

So, what are your chances of living to a ripe old age of 85 as painted by the statistics?

Anonymous said...

The problem of believing gospel truth is best left to the gospel followers, who are the converted majority.

We, the 40% will just continue to believe in the hard truth that hurts.

Anonymous said...

fear not fear not.....

why is there so much unhappiness
about cpf out there.....

cpf is yr money, safe lah.....

the govt can consider to make it
optional at 55 for members to
withdraw any amount up to 100%,
thereafter no more withdrawal
till 65 where members are given
another option again.......

is that simple.....

cheers.............

Anonymous said...

Don't you know we are dealing with people with self interest and they are always telling us half truth so sad isn't it? All we want is our cpf at 55

Anonymous said...

The government should try out Anon 10.28 suggestion of making it optional at 55 and 65 to see how many members actually will make their cpf withdrawals.

You will be SURPRISED!

Anonymous said...

20% died before 65. How many % go to Batam and spend all their money? 1%?

jjgg said...

Actually the basic tenet is that the government cannot keep its promise..you can say all the cock n bull story u want and it still boils down to that. What are government assets..can they sell Istana? Can they sell roads n pipelines n bridges..possibly they can sell temasek..if assets cannot be sold to real ies cash...are they assets?easier to repay cpf holders by printing more money..your money bound to be safe cos printing presses are efficient and printing paper is cheap..by the time the last dollar is repaid to cpf stakeholders the Singapore dollar will be cheaper than confetti...hehe

Chua Chin Leng aka redbean said...

jjgg, your words are so comforting : )

Matilah_Singapura said...

@ RB: >> "CPF backed by solid assets"

Do you know for sure? I dunno. Also people must be made aware of THE LAW on the management of CPF. It is ultra conservative, very kiasu.

Bit is the law being followed? Who the fuck knows?

Matilah_Singapura said...

@ 931:

>> PAP government is unable to "honour" its original promise of returning CPF money back to you at 55 years old?

No such promise was ever made lah. Please lah, get your fucking facts straight! CPF is managed/ administered according to LAW. The law can change according to the needs or whims of the state.

Anonymous said...

U medicine can help u...

Government cannot pay? ??? LMAO

they create money digitally ...

Just like companies issuing warrants, bonds, rights issues etc.... creating money from the air.

Anyway... cpf is old fart pekkim

Leemember... vote 4 papigs

Anonymous said...

MS, you shit. When you first contributed to your CPF, what were the terms about returning? You don't come here everyday anyhow tok cock.

Matilah_Singapura said...

@1228 (talking nonsense):

>> what were the terms about returning

Terms can change, and HAVE CHANGED lah kotek.

Administration of CPF is according to LAW, enshrined in The Constitution. i.e. 100% "legal".

Got lightbulb yet?

Anonymous said...

You want to compare your cpf with your kotek? You are smelly.

Anonymous said...

This discussion is turning into a jihad.

b said...

"Some big assets must be sold from the pool. This cannot be acceptable. "

- it is about power lah. its never about acceptance, assurances, freedom or even justice. those terms are invented for the peasants. take away that power and their rule/law/ whatever crap can change.

Anonymous said...

Hi RB, speed. I see the subject of CPF is very sensitive here in Singapore. It looks like you have stirred up the hornet's nest. Singaporeans are very passionate about their money. The way I see it, your PAP government has already decided that 65 is the withdrawal age. All the protests at HLP ( I have attended 2 ) have only resulted in little tweaks or concessions by the government. It is a move in the right direction. I wish all Singaporeans the very best. May all your dreams come true.

Anonymous said...

The govt either tweaks it well or it would be tweaked in the next GE. The beans are spilt. There is no running away from doing the right thing and the necessary.

Anonymous said...

With the whole island as back up asset, lose never mind. fear not.