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Agree in general. When inflation is 4-5% and CPF interest rate is 2.5-3.5% (for OA), then it makes sense to borrow. Which is in fact the situation today.
http://www.mas.gov.sg/en/News-and-Public...ments.aspx
One way I'm using to fight inflation is to use my CPF-OA to buy REITs giving 6% yield. Unfortunately the dilutive rights issues during 09 period got in the way. SPH was also one of my "anchors" still giving me 6% without stupid rights issues. But the print business also on decline IMO.
http://www.mas.gov.sg/en/News-and-Public...ments.aspx
(14-12-2010, 09:39 PM)d.o.g. Wrote: Add this all up, and we get $516,442 at age 65. Assuming the CPF interest matches inflation, you have $516,442 of real spending power. Life expectancy is probably about 80, so on average you get 15 years to spend $516k or $34k per year.So actually, the assumption that CPF matches inflation is not true. Which makes it all the worse to rely only on CPF.
One way I'm using to fight inflation is to use my CPF-OA to buy REITs giving 6% yield. Unfortunately the dilutive rights issues during 09 period got in the way. SPH was also one of my "anchors" still giving me 6% without stupid rights issues. But the print business also on decline IMO.