20160227 Are you still a CPF idiot?

Do Singaporeans really understand anything about CPF after all the complications introduced by PAP?. Below is a simple ‘Yes’ or ‘No’ self gradable test.

Questions:

1 CPF is for our retirement but GIC invests 100% of our CPF in foreign assets. For your retirement planning, will you invest 100% of your retirement savings in foreign assets?
a) Yes b) No

2 Will you invest 37% (CPF) of your salary every month, at the start of your career, for more than 4 decades, in foreign assets?
a) Yes b) No

3 Since most of your CPF will be converted into local currency at retirement, is it prudent to invest all your CPF and be subjected to huge forex risks?
a) Yes b) No

4 Common sense dictates only a fraction of retirement savings should be invested in overseas assets. Will you subject ALL your retirement savings to extremely high forex risks?
a) Yes b) No

5 GIC’s mandate is to “achieve good long-term returns” and “beat global inflation and preserve the international purchasing power of the reserves …”. But what’s really important is not global inflation but domestic inflation which our CPF returns have always trailed behind. Can ordinary wage earners even dream of retirement with such miserable returns? a) Yes b) No

6 GIC creams off 50% of our returns to supplement the budget which benefits foreigners as well. Did CPF members agree to such an arrangement?
a) Yes b) No

7 Our CPF has been used to conceal the size of our foreigh reserves. Did CPF members agree to such an arrangement?
a) Yes b) No

8 Since 2003, almost $200 billion in CPF has been injected into GIC. Foreigners have no idea that GIC’s ‘phenomenal growth’ is nothing but the forced increase in CPF funds resulting from arbitrary legislative changes. The real performance of GIC is therefore a big question? Should any thinking person invest in a fund manager with questionable/unknown returns?
a) Yes b) No

Answers:
1 No
2 No
3 No
4 No
5 No
6 No
7 No
8 No

How did you fare in the above test?

8 correct answers – You have wasted your time reading this post.
5 to 7 correct answers – You are able to discern facts from propaganda but need to be more critical of mainstream media articles.
Less than 5 correct answers – You are the perfect CPF idiot, easily susceptible to propaganda and devoid of critical thinking. Reading this post may also not help.

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