Just glad our big daddy is on the Earn More camp!
Imagine one day if they ran out of ideas on how to Earn More, and all they do is focus on redistribution of the shrinking pie I think that would be the time for regime change!
I mean austerity, as in Save More, can only work for so long until the people are fed up and begin to revolt!
Socialism and communism can be so seductive, especially if you are spending other people's money!
The problem is whether our Opposition parties have the competence to help Singapore Earn More?
This is something I hope to hear more from them in future elections.
Look, anyone and everyone can also propose policies if all we need is just spend other people's money!
Hello!
Government can do 4% safe withdrawal from reserve and investment and give me more
ReplyDeleteHow about minimum household income supplemented by govt to narrow down inequality gap? LoL!
Uncle8888,
Delete4% rule got 2-sigma tail risk of failure i.e. 1 in 50 years.
And this is for normal distribution.
Old birds like us know that bad stuff often clump together & occur near each other. Trouble comes in 3s; waiting for other shoe to drop etc.
We all remember the minister who parroted his scholar civil servants on that famous statistic phrase. Lol.
When it rains it pours. Double lol.
CW,
DeleteThe 4% withdrawal is "safe" for us old fogeys until our 90s.
Which means we don't care there's nothing left for our children and grandchildren in 30 years' time...
Hey! I got no dependents.
If you guys got children and grandchildren don't mind...
I won't complain!
Smol, Uncle8888,
ReplyDeleteWell, back in 2009, govt already changed the reserves rules to allow usage of 50% of projected long term capital gains. Previously only 50% of actual dividends, coupons, and interests can be used.
Together it's the net investment return contribution, and forms 1/5 of Singapore's entire annual budget. It's the biggest govt revenue source, followed by corporate income tax & then personal income tax.
Without this NIRC, we would be -$24B in the red for 2022. Even with this we are projected to be -$3B in the red & need to borrow to meet the spending budget. The budget will only get bigger every year due to healthcare costs & defense costs.
S'pore has been running -ve budget since 2020 i.e. we spend more than we earn. 2020 was the worst due to covid with -$51B, which we kapok from reserves main portfolios.
Now you know why govt die die must increase GST lol.
And the push for people to work longer & don't shake leg so early. ;)
Reading between lines, it's also an admission that GIC, Temasek, and MAS cannot generate big enough returns (NIRC) to meet the increasing budgets.
Spur,
DeleteThat's why I am not complaining the increase in GST.
Big daddy won't go the lockdown mode anymore - let's learn to live with the virus; the alternative is to bankrupt our reserves.
Sweden's very brave and contrarian go it alone no lock-down approach has proven right in the end.
I'll be very concerned if in next few years, the new generation big daddy can't get back to our Earn More days.
Then again, I'm less affected as I didn't join that bandwagon...
But it may give some in our community cause for pause, "Wait a minute! Savers will get thrown under the bus again!"
I've seen what they do to pensioners during the Greek crisis. Pensions can get cut in half one!