Any1 explore into optimizing cpf various account at different stage of life?

[henrylbh]

ok my bad. shall rephrase it if died after 10 years.

so in this case, suppose you have a huge sum, and joined CPF LIFE since 65, and assume death on 75.
so after 10 years , the compound interest for 10 years will be refund back to CPF, or refund to your bequest and don't compound for the last single year?

you need to rephrase again.

Your money in RA will remain in RA and continue to earn the declared interest which is credited to RA.

Between 65 and 70, you have to choose the Life plan, either Standard or Basic as either one works differently with respect to interest earn and bequest.

 

[henrylbh]

dun talk rubbish, go read the rules at CPF website!

I may jest but don't talk rubbish. Show the rules or go ask CPF Board. I have double confirmed with the Board on this additional interest, though orally.

 

[maple96]

I may jest but don't talk rubbish. Show the rules or go ask CPF Board. I have double confirmed with the Board on this additional interest, though orally.

It depends on how and what u ask, for which CPF Life Plan. I have posted this many times in threads where u were involved in the discussions. Below proves u talk rubbish!

Q Where will the extra interest be paid to after I join CPF LIFE?
A
If you have chosen the CPF LIFE Standard Plan or CPF LIFE Escalating Plan, the extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled and factored into your monthly CPF LIFE payouts.

If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually.

 

[henrylbh]

His point is probably this: Suppose you have 1 million in your SA accounts. You would be better off taking a little risk and trying to get more than 5-7% interest, instead of letting it earn 4% every year.

Depends on individual risk profile. I would rather leave that million in SA earning the declared interest (with capital and interest guaranteed, for time being) as a perpetual bond than risk capital and return for slightly more interest.

 

[henrylbh]

It depends on how and what u ask, for which CPF Life Plan. I have posted this many times in threads where u were involved in the discussions. Below proves u talk rubbish!

Q Where will the extra interest be paid to after I join CPF LIFE?

If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually.

My question to the Board was, if I have zero OA, MA and SA and 50k in RA and unused premium of 20k, what interest will RA earn? They said unused premium will earn the additional interest and interest on balance of 40k will be credited to RA.

Only I did not question further is what happen to the additional interest earned on unused premium (Noted in above case, it's paid out as monthly Life payout), though I asked how to determine the unused premium. They replied the info on unused premium is given once at end of year only. Hence, I may be wrong in some way.

 

[dork32]

My question to the Board was, if I have zero OA, MA and SA and 50k in RA and unused premium of 20k, what interest will RA earn? They said unused premium will earn the additional interest and interest on balance of 40k will be credited to RA.

it does not matter who is earning the additional interest.

it is important who is getting the additional interest, pool or RA?

 

[oceanicmanta]

My question to the Board was, if I have zero OA, MA and SA and 50k in RA and unused premium of 20k, what interest will RA earn? They said unused premium will earn the additional interest and interest on balance of 40k will be credited to RA.

Only I did not question further is what happen to the additional interest earned on unused premium (Noted in above case, it's paid out as monthly Life payout), though I asked how to determine the unused premium. They replied the info on unused premium is given once at end of year only. Hence, I may be wrong in some way.

hmm ... I would have thought that regardless of the plan chosen, all interests from CPF Life Premium (be it used/un-used) goes into the LIF to be pooled ... hence, upon person's demise, such interest will not be refunded

 

[dork32]

My question to the Board was, if I have zero OA, MA and SA and 50k in RA and unused premium of 20k, what interest will RA earn? They said unused premium will earn the additional interest and interest on balance of 40k will be credited to RA.

Only I did not question further is what happen to the additional interest earned on unused premium (Noted in above case, it's paid out as monthly Life payout), though I asked how to determine the unused premium. They replied the info on unused premium is given once at end of year only. Hence, I may be wrong in some way.

based on what maple has posted. i think he is right.

i told you before. cpf staff is hopeless. they can answer simple questions like 65 years old to get your cpf life payout. When it comes to more complicated stuff, they just anyhow whack, give you some stupid answers. Even if their answers are wrong, you will not find out.

 

[dork32]

hmm ... I would have thought that regardless of the plan chosen, all interests from CPF Life Premium (be it used/un-used) goes into the LIF to be pooled ... hence, upon person's demise, such interest will not be refunded

if premium is used , then where is the interest going to come from?

 

[dork32]

ok my bad. shall rephrase it if died after 10 years.

so in this case, suppose you have a huge sum, and joined CPF LIFE since 65, and assume death on 75.
so after 10 years , the compound interest for 10 years will be refund back to CPF, or refund to your bequest and don't compound for the last single year?

i love the words crafted by our scholars.

If you have chosen the CPF LIFE Standard Plan or CPF LIFE Escalating Plan, the extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled and factored into your monthly CPF LIFE payouts.

It is because the Lifelong Income Fund is receiving the interest that you are able to enjoy stable payout for the rest of your life.

do you buy it?

 

[oceanicmanta]

if premium is used , then where is the interest going to come from?

Did not mean to differentiate "used vs un-used" but simply referring to "ALL CPF Life Premium" interest will go to LIF

 

[Toni90]

i love the words crafted by our scholars.

If you have chosen the CPF LIFE Standard Plan or CPF LIFE Escalating Plan, the extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled and factored into your monthly CPF LIFE payouts.

It is because the Lifelong Income Fund is receiving the interest that you are able to enjoy stable payout for the rest of your life.

do you buy it?

Correct muh. Put in in case live very long still got money.

 

[dork32]

Correct muh. Put in in case live very long still got money.

go ahead and support the lifelong income fund.

i do not buy it. i will put as little as possible into the lifelong income fund. I will keep the rest of it in ra which i can earn interest for myself.

 

[oleyAeon]

go ahead and support the lifelong income fund.

i do not buy it. i will put as little as possible into the lifelong income fund. I will keep the rest of it in ra which i can earn interest for myself.

whether it is beneficial depends on how long u live.
supporting LIF but died only 10 years later, you might not gain as much as if you rely on your own RA, but if died only 30 years later, you would have gained much more than relying on your own RA.

nobody has definite answer on which is better because nobody knows how long you will live. its a decision u need to make when the time comes.

 

[maple96]

whether it is beneficial depends on how long u live.
supporting LIF but died only 10 years later, you might not gain as much as if you rely on your own RA, but if died only 30 years later, you would have gained much more than relying on your own RA.

nobody has definite answer on which is better because nobody knows how long you will live. its a decision u need to make when the time comes.

Even if u have healthy long life genes, u should not bet on long life as there are other causes, so hedge it with Basic Plan, dun think of making more money but think of not losing money

unless u are a PR which gives u a strong choice not to join CPF Life or exit CPF Life

 

[dork32]

whether it is beneficial depends on how long u live.
supporting LIF but died only 10 years later, you might not gain as much as if you rely on your own RA, but if died only 30 years later, you would have gained much more than relying on your own RA.

nobody has definite answer on which is better because nobody knows how long you will live. its a decision u need to make when the time comes.

to me it is not whether it is beneficial or not. it is which is a fairer system.

if i am going to die early, why should i support others that refuse to die? if i refuse to die why should others support me?

yea, yea, yea this is how insurances and annuity works. but i dont buy it and i am forced into it.

 

[havetheveryfun]

if i am going to die early, why should i support others that refuse to die? if i refuse to die why should others support me?

how can you choose whether you want to die or refuse to die apart from committing suicide?

Some in their 80-90s want to die but unable to die, then how ? also cant go for euthanasia

 

[maple96]

how can you choose whether you want to die or refuse to die apart from committing suicide?

Some in their 80-90s want to die but unable to die, then how ? also cant go for euthanasia

my relative got stroke, bedridden, unconscious, vegetable state for more than 10 years, icbc, is a "torture" for the family.

 

[IamLWF]

Had a talk with 1M65 recently.

He mentioned that whatever you can afford to top up, just top up into your SA, after all your basic coverage. After you got safety net, then you got the guts to go into higher risk things.

To each his own uh, but 4% in SA quite good alrdy, considering that you don't really have a risk there.

But drawback is can't take out until you're old lor

 

[dork32]

how can you choose whether you want to die or refuse to die apart from committing suicide?

Some in their 80-90s want to die but unable to die, then how ? also cant go for euthanasia

wah lau. like dat oso dont understand

rephrase:

if i sway sway kena bang by car die at 70, y soot i support others that will not die
if i heng heng live until 120, y soot others support me