Dear readers, it was reported just last month that Singapore has 333,204 millionaires. This number forms 0.6% of the world’s millionaires. Are you one of the 333,204 millionaires here?
A millionaire is one with a net worth of at least US $1 million and yes, a million in US dollars and not Singapore dollars.
And net worth is none other than Assets minus Liability.
I believe when it comes to how much cash one has in terms of cash liquidity and investments, one can compute the figures clearly. But when it comes to one’s Assets, it may be less clear-cut to compute, especially on the common question that many will sure have: do I consider CPF as my assets?
The above question is common given that the bulk of many Singaporeans’ savings are in CPF.
The question of whether one should include one’s CPF as one part of the computation of asset will not only determine how much net worth an individual has, but also whether one is a millionaire (since an individual’s CPF savings accrued over the years of his career may be significant).
Based on DBS’s financial planning webpage , one’s assets should include Cash, CPF Savings, Investments as well as Properties. On the other side of the spectrum, liabilities will include the different forms of loans and short-term credits.
So, yes, a CPF should be in one’s asset computation and with this, it may not be as surprising that such a large number of millionaires exist in Singapore given that CPF is a compulsory form of savings that could have been accrued to a large amount by employees who have worked for many years and retirees.