It is once again the time of the year when I review the good, the bad and the ugly of the year.

Pleasantly surprised when I did the maths on my outstanding HDB loan vs my CPF-OA account. The government gave me a nice gift of $3000 in my CPF-OA and $2000 in my CPF-MA for my outstanding contributions towards defending our nation.

You might remember my stand on HDB loan if you have read my previous posts. I’m not a big fan of voluntary top-ups and OA-to-SA transfers for reasons of my own.

I bought my HDB apartment in 2011 and cleaned out my CPF Ordinary Account. Six and a half years later, I have hoarded enough money in my CPF Ordinary Account to make sure that I have enough in my CPF-OA to service all the remaining monthly payments, even if I stop working now.

I have nothing against debt. I’m the type who would prefer to have $100k cash lying around and a $100k debt rather than a clean slate, if the numbers work in my favour.

Two months ago, I posted this one heck of a tip by Christopher from Providend on retirement planning. In that post, I mentioned that he said the following :

Retirement plans seems like a big and complex subject. If I can reduce it to the irreducible minimum, it means this – that when you retire, you must have three things.

  1. You must have a fully paid house.
  2. You must have a good medical expense insurance.
  3. And of course, you must have a lifelong stream of income.

Just start small, just by buying, say for example, a 4-room HDB BTO, you take a low loan, your CPF is protected and on its own, the system on its own takes care of your retirement and by the time you’re 35 (oh that’s me right now) or 40 years old and you say, I really need to sit down and look at my retirement, you’ll be so glad that you didn’t take up such a big loan because your CPF is actually quite healthy.

Of course, my humble 4-room apartment is neither an expensive half-a-million BTO nor a three-quarter-million-bucks EC.

With my HDB loan catered for in (1), I have moved a tiny step closer towards what I deem as financial security.

For (2), I have an integrated shield plan with riders that was purchased when I was younger which meant there was no exclusions. In addition, I have a simple Death/TPD/CI plan as a buffer for unforeseen circumstances. To reduce costs, I have minimal coverage for early CI and Disability Income via a group insurance plan as icing on the cake.

Well, I guess what’s left is for me to work towards (3) huh? All I want for Christmas is .. a lifelong stream of income. Ha!