There is no certainty that the rate of 4% on SA, MA and RA will remain. Depends on annual announcement by CPF.
If they follow the set rules, the rate should be lower than 4%.
Can explore SRS too to save on taxation.
I am tax-free till at least 12 years later, due to Parenthood Tax Relief.
Has too many kids. Haha.
Thats right. Doing it also. More plus then minus unless bank is going to give you 3 to 4% interest.
There is no certainty that the rate of 4% on SA, MA and RA will remain. Depends on annual announcement by CPF.
If they follow the set rules, the rate should be lower than 4%.
I have topping up to parent RA every year. Started to draw down $400 plus per month. Still having over 35k.
With 6% interest, every interest is more than 2k.
This old scheme is no longer available. More good years ahead.
So actually open SRS better or just top up 7k better ? and top up 7K is for your example or TS have any calculation formula ?
So actually open SRS better or just top up 7k better ? and top up 7K is for your example or TS have any calculation formula ?
So actually open SRS better or just top up 7k better ? and top up 7K is for your example or TS have any calculation formula ?
See what I top up for my parent without getting any personal tax relief.
With the lastest top-up, his monthly drawdown increased to $1,611
He is getting 6% on first 30k, 5% on next 30k and balance at 4%.
Thanks TS and all for the explanation
oh sorry one more question, if I top up 7k to my wife CPF, does it have tax relief for me ? my wife is not working.
If your tax bracket is high enough, then why not use both?
If it's not that high, then perhaps I would go for cpf first before SRS.
but once your SA has more than minimum sum, then can't topup anymore, right?
yup..unless u change to ERS lo haha