Dec 31 2011, 08:37 AM
QUOTE(ronnie @ Apr 4 2011, 02:57 PM)
It's TAX RELIEF lah.... 
It used to be 4% evey year ;-)
http://senseofmoney.blogspot.com/2009/09/s...idend-rate.html
The dividends drop because MOST PTPTN loans are not being paid back....
Assume your tax rate = 26% and tie your fund in SSPN for 10 years It used to be 4% evey year ;-)
http://senseofmoney.blogspot.com/2009/09/s...idend-rate.html
The dividends drop because MOST PTPTN loans are not being paid back....
=> 26%/10 years
=> 2.6% dividend earn per year.
Therefore, the average total return per year (base on historical data) is as follow:-
Year 2003 3%+2.6% = 5.6%
Year 2004 4%+2.6% = 6.6%
Year 2005 4%+2.6% = 6.6%
Year 2006 4%+2.6% = 6.6%
Year 2007 4%+2.6% = 6.6%
Year 2008 4%+2.6% = 6.6%
Year 2009 2.5%+2.6% = 5.1%
Year 2010 3.25%+2.6%=5.85%
Year 2011 ?% + 2.6% = ?.??%
Year 2012
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Worth to do SSPN saving?
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