Does this man make sense?

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An honorable member of the Coffee Shop Has Just Posted the Following:

TrustNoPig:
June 15, 2014 at 2:21 pm TrustNoPig(Quote)
Did some basic sum.

Assume PAP locked up $200,000 of my SA when I hit 55.

At 4% per annum for 10 years, PAP easily have $280,000 of my money locked away (with interest on interest, let’s round it to $300,000).

Now when I hit 65, PAP pays me (assume $1,500 a month) yearly amount of $18,000.

That to PAP is an astronomical amount and is doing us a BIG favor.

However, if you look at the numbers closely, you will be shocked that PAP did not actually come out with any money, just giving us the interest that our capital earns.

If our $300,000 continues to earn 4% to 8% a year, the interest amount would be between $12,000 and $24,000 a year. So an average rate of returns of 6% from our capitals would mean PAP get to keep all our capitals and only returning interest to us on a yearly basis.

So even if it is a lifelong annuity, PAP just have to secure a 5% to 6% on our Special Account balance over the years and that would imply PAP get to keep our capital for good when we die. If we CONK OFF earlier, PAP will be most appreciative.

Now you know why PAP has a mathematical genius called LHL as a PM?

If you still don’t know and is prepared to hand your hard earn money (accumulated over 40 – 50 years) to LHL for him to spend at his discretion, please continue to vote for PAP.

It’s bad enough our OA is emptied by PAP through their over price HDB flats and our Medisave is locked forever, never to be emptied until we die or until there is insufficient fund in there to pay for upcoming increase in premiums under the guise of MediLife.

There’s no reason why anyone with a bit of brain cells left would want to surrender their last Retirement Fund to PAP, or would there really be 6 out of 10 Singaporeans who are that STUPID?


http://www.tremeritus.com/2014/06/15...omment-1278655


I have made this assumption before.

If you invest $100,000 in shares in a company. This is the capital you put in. The yearly dividend payout is say 6% and you received $6,000

Leave this $6k to rollover and in 10 years this interest earned $ (compounded) should made a tidy sum of say $80K.

You draw out this capital and leave the interest earned which then become your capital. In another 10 years draw out this capital and leave the interest earned and the cycle repeat which even your children can inherit them.

Why cant the CPF don't allow you to do that?

Who is LHL trying to kid?


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