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To transfer CPF to homemaker wife, or not?

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Old 13-03-2017, 03:53 PM   #16
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bbc is right in that i will not withdraw at 55. the interest in cpf is higher than most savings and fd. however, i want to retain the flexibility of being able to withdraw anytime i want to.
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Old 13-03-2017, 04:02 PM   #17
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my wife has stopped working to look after the kids. i have about 400k in my three cpf accounts total. i am not transferring one cent to her account.

at 55, i will transfer 83k in cpflife and 50k into ma. i can withdraw 200k anytime i want to after that.

at 55, my wife will not be able to withdraw anything
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Old 13-03-2017, 04:07 PM   #18
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and since, i am not withdrawing my 200k, if i die, my wife will get something, the 200k and whatever that is left of the 83k transferred to the cpf life
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Old 13-03-2017, 04:54 PM   #19
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my wife has stopped working to look after the kids. i have about 400k in my three cpf accounts total. i am not transferring one cent to her account.

at 55, i will transfer 83k in cpflife and 50k into ma. i can withdraw 200k anytime i want to after that.

at 55, my wife will not be able to withdraw anything
why not doing this?

Keep 0 QA Max FRS/MA, at 55 opt BRS and the remaining still keep at SA or withdraw.
OA/cash top up ->spouse SA will max eventually, at her 55 opt FRS or not sure can opt BRS also.
All future bequest go to kids account and their rolling cycles go on.
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Old 13-03-2017, 05:20 PM   #20
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for your info, bbc mentioned that he is the brs type of person.
If eligible for BRS level CPF LIFE, I'd probably make that choice and leave every other dollar in CPF to keep growing with attractive interest. That approach requires significant discipline and a pile of other assets (beyond a home) to pull off well. That's not most people. Plus there's the fact that CPF LIFE won't be the only lifetime annuity I will receive, so I'm in a fundamentally different situation than most.

I'm telling everybody exactly what I would do in particular, different situations, with full recognition that my personal situation is rather unusual.
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Old 13-03-2017, 05:26 PM   #21
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The money that is locked up forever.
Forever is a long time, and forever isn't the truth.

Newsflash: life doesn't end at age 55 for most people reading my words. Why is anyone pretending it does? It's reasonable to provide for lifetimes (and dependents) both before and after age 55. If the government is tossing you a great deal of free money for the after 55 part, I say "grab some." (We can quibble about how much to grab, but zero is the wrong answer unless you've got a terminal illness diagnosis.) That doesn't mean you can't also have some fun before age 55.

I must be missing all the fun "going out of business at 55" CPF cash out parties. Anybody having one soon? Pour me a glass of champagne.
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Old 13-03-2017, 05:29 PM   #22
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you think everyone so powerful can top up 7k a year?
"Everyone," no. Many people, yes. For those that cannot afford $7K, how about $3K? Or $1K? Or 200 bucks? If it's a good idea, it's a good idea at whatever level you can afford.
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Old 13-03-2017, 05:57 PM   #23
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Is it possible to transfer just 83k (BRS) into RA and leave the rest in OA/SA?

CPF Retirement Booklet (Jan 2017) gives this example:

"Mr Raviís Ordinary Account savings at age 55 : $100,000
Mr Raviís Special Account savings at age 55 : $180,000

Mr Ravi has a total of $280,000 in his Ordinary Account and Special Account.

The Full Retirement Sum of $166,000 will be set aside in his Retirement Account which will provide him with a monthly payout of $1,380 from age 65 for life. He can withdraw the remaining amount of $114,000 in his Ordinary and Special Accounts.

If he owns a property with sufficient property charge/pledge, he can also choose to set aside his Basic Retirement Sum of $83,000 in his Retirement Account and receive a correspondingly lower monthly payout of $750 from age 65 for life. In this case, he can withdraw $114,000 from his Ordinary and Special Accounts, and an additional $83,000 from his Retirement Account."

Note that after choosing BRS, the 83k has to be withdrawn from RA because the full FRS was already transferred into RA. I don't think he can choose to transfer just 83k into RA and leave the other 83k in OA/SA to earn interest
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Old 13-03-2017, 09:29 PM   #24
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Is it possible to transfer just 83k (BRS) into RA and leave the rest in OA/SA?

CPF Retirement Booklet (Jan 2017) gives this example:

"Mr Raviís Ordinary Account savings at age 55 : $100,000
Mr Raviís Special Account savings at age 55 : $180,000

Mr Ravi has a total of $280,000 in his Ordinary Account and Special Account.

The Full Retirement Sum of $166,000 will be set aside in his Retirement Account which will provide him with a monthly payout of $1,380 from age 65 for life. He can withdraw the remaining amount of $114,000 in his Ordinary and Special Accounts.

If he owns a property with sufficient property charge/pledge, he can also choose to set aside his Basic Retirement Sum of $83,000 in his Retirement Account and receive a correspondingly lower monthly payout of $750 from age 65 for life. In this case, he can withdraw $114,000 from his Ordinary and Special Accounts, and an additional $83,000 from his Retirement Account."

Note that after choosing BRS, the 83k has to be withdrawn from RA because the full FRS was already transferred into RA. I don't think he can choose to transfer just 83k into RA and leave the other 83k in OA/SA to earn interest
If that's the case, one way is to slowly put back via VC?
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Old 14-03-2017, 12:28 AM   #25
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Wow, came back surprised to see so many replies today..
I'll have to re-read some of the posts later though, to be able to understand what it means. But for sure one thing new I learnt from these, is that even if I have FRS amount, apparently I can choose to just set aside BRS (+property pledge) to be able to withdraw $83K more upfront.

Thanks for all the comments, really appreciate it ; and btw, please be nice with one another, ok..
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Old 14-03-2017, 07:41 AM   #26
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But for sure one thing new I learnt from these, is that even if I have FRS amount, apparently I can choose to just set aside BRS (+property pledge) to be able to withdraw $83K more upfront.
Not always. It depends on the source(s) of the funds. Per CPF: "...excluding interest earned, any government grants received, and top-ups made under the Retirement Sum Topping-up scheme."

I am recommending Retirement Sum Topping-Up Scheme top-ups of $7K/year for you and $7K/year for your wife, or whatever you can afford, with the assumption that you pay income taxes and would qualify for $14K of tax relief (or tax relief in whatever amount you can contribute). However, these top-ups (and interest) will be withdrawn as CPF LIFE guaranteed lifetime annuities, not to throw a champagne party (or whatever) at age 55. Neither you nor your wife currently have much if any guaranteed retirement income for life, so (in my view, and in the government's view) this restriction is no problem at all, and you'd be getting a nice, immediate tax cut for your troubles. Great deal, I say. But if you both want to throw big(ger) parties at age 55 and both drop dead at 55 1/2, maybe you would disagree.
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Old 14-03-2017, 09:16 AM   #27
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just to rephrase his grandma story.

if you top up 20k, then your brs becomes 83 + 20 = 103k
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Old 14-03-2017, 10:46 AM   #28
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Not always. It depends on the source(s) of the funds. Per CPF: "...excluding interest earned, any government grants received, and top-ups made under the Retirement Sum Topping-up scheme.
Wow, came back surprised to see so many replies today..
I'll have to re-read some of the posts later though, to be able to understand what it means. But for sure one thing new I learnt from these, is that even if I have FRS amount, apparently I can choose to just set aside BRS (+property pledge) to be able to withdraw $83K more upfront.

Thanks for all the comments, really appreciate it ; and btw, please be nice with one another, ok..
Just need to take note of those that cannot be withdrawn in bold.
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Old 14-03-2017, 11:17 AM   #29
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Just need to take note of those that cannot be withdrawn in bold.
i think if you leave frs in your ra, you can take everything else out, regardless if you have topped up or not.
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Old 14-03-2017, 11:34 AM   #30
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Forever is a long time, and forever isn't the truth.

Newsflash: life doesn't end at age 55 for most people reading my words. Why is anyone pretending it does? It's reasonable to provide for lifetimes (and dependents) both before and after age 55. If the government is tossing you a great deal of free money for the after 55 part, I say "grab some." (We can quibble about how much to grab, but zero is the wrong answer unless you've got a terminal illness diagnosis.) That doesn't mean you can't also have some fun before age 55.

I must be missing all the fun "going out of business at 55" CPF cash out parties. Anybody having one soon? Pour me a glass of champagne.
forever is a figure of speech. if you are 28 now, 88 seems like forever. that is how long your money will be stuck until if you leave it in your ra
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