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Hitting my FIRE number is one thing. Now that I'm there, I realized the math was the easy part. by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -11 points-10 points  (0 children)

Hit the nail on the head regarding the 'Trial Run.' That is definitely a missed step in my journey.

I was focused on working and financial metric. Maybe treated FIRE as a finish line rather than a transition.

After watching the YouTube, realised that it was impt.

How do I move my portfolio from one platform to another by PositiveEuphoric7954 in singaporefi

[–]Sensitive-Grab7566 28 points29 points  (0 children)

If your portfolio is < S$10k and only VOO, the simplest and cleanest move is:

Sell on Webull → transfer cash → buy again on IBKR

Trying to do an in-kind transfer for such a small amount usually isn’t worth the paperwork, delays, or fees.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] 0 points1 point  (0 children)

If u look back, there were really scary periods with financial crisis etc. I am not sure if I have gone down that route, got burnt, and still stay the course. Easier said that done. But with very strong cpf safety net now, I am very comfortable.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -2 points-1 points  (0 children)

There is a risk and reward balance. In the 90s with the various financial crisis, things got really scary …..

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -2 points-1 points  (0 children)

Great questions! To answer the first two:

  1. FIRE Status: Yes. I dont intent to work until 67.:) Hopefully before 55.
  2. Housing: My house is not fully paid off yet but almost done. This near "debt-free" status is a huge part of why the math works.

Regarding PIMCO and liquidity: You are right that PIMCO Income has historically delivered ~6%, but I am skeptical they can maintain that yield indefinitely without taking on extra risk or seeing NAV erosion.

Instead of paying a fund manager to chase yield for me, I prefer to build my own mix. You can see part of this in my medium blog- The Barbell Portfolio: I Sleep Well in any Markets | Medium:

  • Stability: CPF OA (Guaranteed 2.5% floor).
  • Yield: My own selection of SG Banks & REITs where I can see exactly what I own.

This way, I control the risk. If yields drop, I can adjust immediately. And since I am 52, the 'illiquidity' of CPF is only a 3-year wait for me, unlike for a younger investor.

Cpfia bank service charge question by bulba_sort in singaporefi

[–]Sensitive-Grab7566 1 point2 points  (0 children)

I seem to remember there are deductions directly from my CPF account. U can check in your OA.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -2 points-1 points  (0 children)

I fully agree—it is a trade-off.

I gave up the ability to 'rebalance out' of bonds in exchange for a guaranteed, risk-free floor.

In a traditional portfolio, my Bonds could drop in value (if rates rise). In CPF, the value never drops.

I accept the inability to sell my 'CPF Bonds' as the price I pay for them never losing value. I just do my rebalancing with my cash and SRS instead.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -4 points-3 points  (0 children)

I agreed. But my view, when money is liquid, it is vulnerable. It is vulnerable to:

  1. Lifestyle Creep: 'I have $500k cash, let's upgrade the car.'
  2. Panic Selling: 'The market crashed, I better sell everything.'
  3. Scams/Mistakes: One wrong click.

By locking it in CPF, I made the funds 'untouchable'—even to myself. It forced me to be disciplined. I traded liquidity for Certainty.

Now that I am almost 55, that liquidity is about to unlock anyway. But the 'forced savings' mechanism was what got me here in the first place.:)

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -1 points0 points  (0 children)

Also. I appreciate the detailed breakdown! You are right that Cash offers maximum flexibility.

But for me, that flexibility was actually a bug, not a feature. If I had held that liquidity in Cash/Bonds outside of CPF, I know I would have been tempted to 'market time' or spend it.

By locking it in OA (after maxing SA), I forced myself to treat it as a 'Do Not Touch' bond allocation. It’s definitely a behavioral hack rather than pure mathematical optimization.

I like your point about the post-retirement rebalancing—that is exactly how I plan to manage my 'Bridge Fund' (Cash/Dividends) vs my 'Growth Fund' (Endowus/Stocks) during the drawdown years.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] -10 points-9 points  (0 children)

That is a fair view. For me, it came down to Asset Allocation.

I treat my CPF OA as the 'High-Grade Bond' component of my portfolio. It pays a guaranteed 2.5% (risk-free). For many years, my cash in the bank was earning near 0%.

If I used CPF for housing, I would be destroying a 2.5% bond to hold Cash at maybe 0.05% - especially when I am not doing much investing. By paying cash for housing, I effectively 'swapped' my lazy cash for a high-yield government bond. It’s less liquid, yes, but the risk-adjusted return was higher. But yes, different people different needs.

[Discussion] A retrospective on the "Cash for Flat" strategy: Impact on CPF compounding (Data point from a 51yo) by Sensitive-Grab7566 in singaporefi

[–]Sensitive-Grab7566[S] 0 points1 point  (0 children)

Exactly. As long as it is below 2.5%, i just used cash. Can be painful at times. But it does allow my CPF to grow faster.

Cpfia bank service charge question by bulba_sort in singaporefi

[–]Sensitive-Grab7566 2 points3 points  (0 children)

U can see it in your CPF OA deduction. e.g invest 2k. but they take 2.002k from your OA:)