Financial Freedom

Why Topping Up Your CPF Might Actually Make Sense

Topping up one's CPF might actually make sense. I am talking about the act of actually making voluntary contributions over and above what you are ordinarily required to contribute either as an employed person or self-employed person. Here are some reasons why it might just be worthwhile.

1. You get tax breaks

Okay, this might not be a big deal to most people. But one actually gets a certain amount of tax relief (capped at a certain limit each year). So if your income is just slightly over a certain tax bracket, it might actually be worthwhile to make a voluntary top-up to pay less in income taxes. Yeah, it is nothing exciting. But if you have spare cash lying around, it might be something worth considering.

2. Higher Returns

For those who are not too savvy with investments, the CPF accounts might actually provide a higher interest than your normal savings account. Yes, some banks are now offering promotional interest rates of slightly above 2% but that is still lower than the 2.5% and 4% interest rate for the Ordinary.Account and Special/Medisave Account respectively. In addition, the first $60,000 in your CPF earns an additional 1% interest. So do the math and it might actually be attractive compared to the paltry interest rates of a normal bank account. Of course, there is no guarantee that the rates will stay that way since these might be subject to changes in the future.

Considering that some people might not be confident of getting a 2.5% or 4% returns on their investment, it might be worth allocating some of that to top up one's account.

Of course, there are some drawbacks in making voluntary contributions. Firstly, the money is locked up until you are allowed to withdraw your money at a certain age. So you need to be very certain that you will not need this money till retirement. Secondly, if you are topping up under the minimum sum scheme, it means you cannot get apply for future exemptions. All these disclaimers can be found on the CPF website.

I know this post is likely to draw some controversy since most people will never think about making voluntary contributions to their CPF. For others though, it might just be one idea that might make their retirement planning a whole lot easier.

Disclaimer: This post is not an investment advice. The author neither encourages or discourages his readers to make top ups to their accounts.

Chinese Scientist Joe Wong Makes Americans Laugh at Radio and Television Correspondents' Association Dinner

This is a really funny video of Joe Wong who cracks up the crowd at the RTCA dinner that was broadcasted on C-SPAN channel in the United States a few years back. I still find it pretty funny. Love his deadpan face when he tells his jokes. Think I have watched the video at least 5 times now. Just sharing it with all to chase the Monday blues away. Enjoy!

Krisflyer American Express Credit Card

Recently applied for the Krisflyer Ascend American Express credit card. The main reason I signed up for it was because of the additional 5,000 bonus Krisflyer miles that first time applicants would enjoy. It is given when one makes a first charge to the card.

In addition, one gets to enjoy bonus krisflyer miles in the first 3 months of usage. Of course, one thing to note is that the annual fee is waived for the first year. It is $256.80. The first two supplementary card fees are also waived.

The earn rate is 1 Krisflyer mile for every S$1.20 spent. It is not a lot. But the bonus miles do help.

Anyone cares to share the best way to earn Krisflyer points or airmiles?

Disclaimer: Credit cards are meant to be used responsibly. This article serves as a sharing piece. The reader is advised to check up on the relevant facts and figures for themselves.

Tisdale Merlot - Cheap and Good?

Bought a bottle of Tisdale Merlot and drank it over the week. The Californian wine was on offer at Cold Storage and was selling at slightly less than $14. So I grabbed it without hesitating though I know that those in the U.S. can probably get their hands on this Merlot for probably less than US$10.

Overall, I think the wine is a good everyday table wine. Taste of spices and some berry taste. It isn't particularly sweet but it is overall a good value wine for under $15. Seriously, I am no sommelier, so any wine under $15 is probably a steal for me.

Cold Storage is having some offers right now. So I bought another few bottles to try. Looks like I will have lots of wine to drink over the next few weeks.

In vino veritas.

More Money, Less Stress

Lately, I have taken a more laid back approach to my investing. I have been focused on funds/ETFs that give dividends and have taken the approach of just buying regular amounts each month. There is less impetus to check the stock market, so very much less stress involved. Some of these funds also give monthly dividends and thus, I get the benefit of having some passive income. In short, more money and less stress.

This is just a short post to let everyone know that I am fine. I hope to go back to regular posting soon. This blog is still marching its way slowly towards 600,000 pageviews without me doing anything.

Life is simple. I eat 3 meals a day. Enjoy my time at home. Been reading. Sleeping early and waking up early. I feel totally blessed. Savouring each moment of the day.

Two words in my mind: Blessed and Passion.

I feel so blessed to be where I am, living the life that I want to. All the comforts that I enjoy today were probably not around 100 years ago. In fact, these comforts are not available to many people in different parts of the world today. So I do feel supremely and amazingly blessed with everything that I have. A bed to sleep in, food to eat, water to drink and a beautiful/peaceful country to live in. Our generation in Singapore is perhaps so blessed that we forget to give thanks for it.

Passion. What is my passion? This is the thought that has been bugging me. Can I live off my passion?

One Question That Will Change Your Life

If there is one question that can change your life, it will probably be whether you are passionate about whatever you are doing in life. Steve Jobs sums it up real nicely in this short video. People who succeed are those who are passionate in what they are doing. Why else would they be able to keep doing things at their peak level on a sustained basis? And therein lies the secret of success.

As he also sums up nicely in this quote:

"For the past 33 years, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something..almost everything - all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to dies is the best way I know to avoid the trap of thinking you have something to lose."

For the past few days, I have been asking myself what am I really passionate about in life. And I think I have drilled it down to three things : Travelling, reading and writing.

Travelling because this is the activity that makes me feel alive. My sense are keener and more aware of my surroundings. I feel excited about every single sight and sound that I experience. It is only during my travels that I truly feel alive and living.

Reading because through reading, I get to experience the viewpoints of others. I get lost in their world. I learn from the experience of others. I share their joy, mistakes, pain, etc. Things that I will never have been able to experience for myself.

Writing because it is the only creative expression of myself. I am not talented musically or with any other kind of handicraft. Yet, I have always viewed myself as someone who likes to create things. And writing is something that I enjoy doing. It allows me to consolidate my thoughts, reflect on my innermost fears and desires. And to express them into words concretises whatever I am thinking.