5.8% - The carrot that keep the horse walking. A Provoking Thought.
WARNING:Information below challenges the status quo of "go to school, get a job, invest for the long run into diversified portfolio of paper assets, retire at golden age - which they say is 55+" idea, as it looks at retirement from a different angle - RETIRE YOUNG RETIRE RICH!
"Go to School, Get A Job, Retire at 55" VS "Retire Young Retire Rich", what will you choose?
1. Just numbers
You are not getting in NOW. It is just a number. You get a paper printed with numbers. If you are 35 today, means you only get the money 20 years later, when you retire at 55 - IF you are healthy enough to live till then.
2. Inflation
If you have 100,000 in the retirement account last year, and you cash out TODAY, you need to pay 120,000 for what you can get with 100,000 last year, when inflation for NECESSITIES is at 20%. Which means, even with CAPITAL GUARANTEE (btw, do they?), your retirement money may not be sufficient as what you thought it could be.
3. The Largest, LEGAL Money Game of All Time
Look at what is happening in the US (mother of the retirement plan concept) today:
While soon-to-be pensioners look a bit better on paper, as we know, both corporate and state-run pensions are woefully underfunded. Lots of adjustments to be made in the coming years.
http://www.wealthwire.com/news/economy/788
And as we all know, many people "suddenly" realized that they can't retire at 55 "as planned" due to uncertainties in economic condition. The question is, how many 30 years you have to save in a retirement plan? How many times can you "come again" if things go wrong when the time frame is >20 years?
Taxes,debt,inflation, and not needing a retirement plan can make you richer if you use different rules of money.
实物资产保障财富，可带来现金流的资产则让你自由。
p/s:
I am not opposing to the dollar cost averaging and long term investment thing (after all, businesses bear fruits at least 6 months+ after operation, and it may take months, days and minutes to that ultimate second). Rather, it is always better to have multiple streams of passive income than to rely on a single income source - when YOU are the golden goose!
Why let the bank pay you 1% for your hard-earned money when you can manage your own wealth by spending less than 30 minutes/day?
It is always better to receive your TRUE EARNINGS NOW, not something based on promises or a few pieces of papers with numbers printed on it, which you may only know the real result after quite some time, to which, you may not be able to start over again if things go wrong. How many 30 years you have to bet on a "long term investment" fund?
Read the last 3 paragraph, it is a blatant lie that the inflation rate in 2010 was only 1.8% to 1.9%. They think the people buy 52" LCD TV, latest iPhone everyday besides everyday food like rice,vegetables,milk etc.... so the numbers had been even up (intentionally adjusted)...
If you believe "With inflation at about 1.8% to 1.9% in 2010 and the EPF declaring 5.8%, than contributors would be receiving real returns of about 4%", I wonder what you are smoking...
EPF advised to diversify investments
http://biz.thestar.com.my/news/story.asp?file=/2011/2/22/business/8109250&sec=business
"The Whole Government is a Ponzi Scheme" Madoff Says
“I realized from a very early stage that the market is a whole rigged job. There’s no chance that investors have in this market,” Bernard Madoff admitted from prison.
http://www.wealthwire.com/news/economy/814
The Biggest Scam Ever
