As u mention, "Government tries to reduce the impact on business
costs, thus workfare" And that is why sg is run like a business
that cater to the need of the rich at the expense of the poor whom
are being left out! It is ok that the poor earn $5 10 yrs back and
now so long as it doesnt affect we the consumer or the rich? That
is why the poor are always left behind and condem to provety till
they cant make end needs. Which bring us back to why NTUC need to
force 100k low wage worker to take up CPF regradless if they can or
not.
"On the subject of CPF return, seriously 2.5-3.5% may not cover
inflation" - so does that mean it is ok to park away ur money and
only get it back after 40yrs for less than what is was worth?
"Come to think about it, if CPF pays better or are on par with
some of these instruments and at the same time, is risk-free
because it is backed by government, who would want to invest their
CPF funds ?"
- i assume there is a error, u mean "who
wouldn't want to invest their CPF funds?" rite?.
anyway, to asnwer that, why dun u ask this instead? Why should we
invest in CPF when ww can invest in something else that give better
return and yet back by gov? It dun have to be local gov, can be any
other gov. Say buying other sercurites with better return or bonds
or asset back insurrance, etc. Why arent we doing that? Coz we
arent given the choice, period. U can invest in ur cpf but the
choice is limited and u cant withdraw it till at certain age. If
CPF is a golden horse, does the gov need to force anyone onto
it?
"As u mention, "Government tries to reduce the impact on
business costs, thus workfare" And that is why sg is run like a
business that cater to the need of the rich at the expense of the
poor whom are being left out!"
Earl, it is a two-way relationship rather than "cater to
the needs of the rich at the expense of the poor". If a
business finds it viable to exist here, it will give you a job.
Else, it wouldn't exist and you wouldn't have a job.
"It is ok that the poor earn $5 10 yrs back and now so
long as it doesnt affect we the consumer or the rich? That is why
the poor are always left behind and condem to provety till they
cant make end needs."
As a student, I worked as a waiter as well and after a year my
remuneration went up to $6.50 from $5.50 not taking tips into
consideration. I think I was a good worker myself and would be
promoted along the years with pay increment to boot. However my
ambitions lay elsewhere and I didnt stick to that line. If someone
tells me that he earn $5.00 then and after 10 years that same
person is earning the same amount then something is terribly wrong
with him. Then again perhaps that person is unlucky or born with a
deficiency and we cannot leave these people too far behind. Thus I
think Workfare is a positive step. Else comcare or various
charitable organisations.
"Which bring us back to why NTUC need to force 100k low
wage worker to take up CPF regradless if they can or
not."
Why do you keep insisting that NTUC is forcing people when it is
clearly stated that they are trying to convince ?
"so does that mean it is ok to park away ur money and
only get it back after 40yrs for less than what is was
worth?"
You are free to invest it, buy property with it. 100% on unit
trusts, government securities, Insurance products and 35% on
shares. 10% on gold traded funds.
"- i assume there is a error, u mean "who wouldn't want
to invest their CPF funds?" rite?"
No error. If CPF gives returns that are comparable to riskier
alternatives in the market, I would choose to keep my money in CPF
and not invest it anywhere else.
"why dun u ask this instead? Why should we invest in CPF
when ww can invest in something else that give better return and
yet back by gov? It dun have to be local gov, can be any other
gov."
That would be foreign govt securities ? The more the interest
the higher the risk. Just check the ratings and history of
Sovereign debt securities. Indonesia, Russia, Argentina, Brazil
etc. Anyway I don't think the government is pretty much interested
in the flight of capital from Singapore, especially when the amount
is so huge.
"U can invest in ur cpf but the choice is limited and u
cant withdraw it till at certain age. If CPF is a golden horse,
does the gov need to force anyone onto it?"
Because people don't like saving at all. Ultimately if one keeps
thinking about CPF money and would wish to get it out then one has
a use for it. Alright perhaps we can think that we will save it and
keep it somewhere with better returns for equal risk (if that
exists) but what about those that can't ? What if people spend the
money before they retire ? Lose their money to conmen out of greed
or finance their credit card debt ? What happens then ?
