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12-03-2015, 12:30 AM
An honorable member of the Coffee Shop Has Just Posted the Following:
To put it bluntly, the minister is talking nonsense. A comment at the top put it well.
Vivus Loh Just like how we should stay healthy to avoid going/staying at hospitals right? Brilliant.
I shouldn't be blogging right now. I ought to be look at interest rates options this very moment for my work. But this has to go out.
I can take apart his story as reported in the ST in many ways but I would just choose what I consider the most important which will take down his house of cards.
TCJ case makes no sense. This is completely surreal. The subject is highly complex and uncertain and he reduces it to bite size but lost all of its essence. In short, his example is too far removed from real life to be useful. Not even good enough for a computer simulation game!
For simplicity the minister assumes the poly grad pay remain static. For the case to work everyone's pay must also remain static. In fact, all things mustn't change too much which we know is impossible. Life is full of surprises. The first part which the poly grad pay held static looks "reasonable" and helpfully conservative to build a robust case, but what about everyone's pay also do not move in order to make it realistic as we must have a relatively stable environment? What sort of world is that? What will happen to consumer prices? Every year this hypothetical poly grad will see his standard of living fall. Who will accept that?
Over a lifetime interest rates always look volatile. The assumptions for compounding makes no sense except taken at extremely low rates. Yes, the math he says is simple but it is the wrong numbers. All the time he conveniently forgets that Singapore is the ultimate price taker. That is short hand for we don't what tomorrow is like because we don't even know what prices we have to pay. Yes, we also need to pay for healthcare as Vivus Loh pointed out.
As the country must remain relevant and useful to others ALL THE TIME to survive, so must its people. Aim to retire but be prepared that it may not be possible. We are better off rejecting the minister's bad advice. If we take him up on that, one day this will be an impossible nightmare task a future minister cannot deliver on. Talk about thinking log term eh. He is trying to make his job doable by kicking the can down the road for his successor to deal with.
Twenty years ago, a minister offering such advice would be welcome. But a new generation of more thoughtful people have grown up but our leaders have not kept pace with the new savvy out there.
Try harder minister. Don't insult us with kindergarten stories.
http://blogging4myself.blogspot.sg/2...-can-save.html (http://blogging4myself.blogspot.sg/2015/03/tan-chuan-jin-younger-workers-can-save.html)
Click here to view the whole thread at www.sammyboy.com (http://www.singsupplies.com/showthread.php?202446-Tan-Chuan-Jin-s-really-idiotic-example-of-Poly-grad-and-his-CPF&goto=newpost).
To put it bluntly, the minister is talking nonsense. A comment at the top put it well.
Vivus Loh Just like how we should stay healthy to avoid going/staying at hospitals right? Brilliant.
I shouldn't be blogging right now. I ought to be look at interest rates options this very moment for my work. But this has to go out.
I can take apart his story as reported in the ST in many ways but I would just choose what I consider the most important which will take down his house of cards.
TCJ case makes no sense. This is completely surreal. The subject is highly complex and uncertain and he reduces it to bite size but lost all of its essence. In short, his example is too far removed from real life to be useful. Not even good enough for a computer simulation game!
For simplicity the minister assumes the poly grad pay remain static. For the case to work everyone's pay must also remain static. In fact, all things mustn't change too much which we know is impossible. Life is full of surprises. The first part which the poly grad pay held static looks "reasonable" and helpfully conservative to build a robust case, but what about everyone's pay also do not move in order to make it realistic as we must have a relatively stable environment? What sort of world is that? What will happen to consumer prices? Every year this hypothetical poly grad will see his standard of living fall. Who will accept that?
Over a lifetime interest rates always look volatile. The assumptions for compounding makes no sense except taken at extremely low rates. Yes, the math he says is simple but it is the wrong numbers. All the time he conveniently forgets that Singapore is the ultimate price taker. That is short hand for we don't what tomorrow is like because we don't even know what prices we have to pay. Yes, we also need to pay for healthcare as Vivus Loh pointed out.
As the country must remain relevant and useful to others ALL THE TIME to survive, so must its people. Aim to retire but be prepared that it may not be possible. We are better off rejecting the minister's bad advice. If we take him up on that, one day this will be an impossible nightmare task a future minister cannot deliver on. Talk about thinking log term eh. He is trying to make his job doable by kicking the can down the road for his successor to deal with.
Twenty years ago, a minister offering such advice would be welcome. But a new generation of more thoughtful people have grown up but our leaders have not kept pace with the new savvy out there.
Try harder minister. Don't insult us with kindergarten stories.
http://blogging4myself.blogspot.sg/2...-can-save.html (http://blogging4myself.blogspot.sg/2015/03/tan-chuan-jin-younger-workers-can-save.html)
Click here to view the whole thread at www.sammyboy.com (http://www.singsupplies.com/showthread.php?202446-Tan-Chuan-Jin-s-really-idiotic-example-of-Poly-grad-and-his-CPF&goto=newpost).