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

[dork32]

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

yes 4% in sa is quite good.

but sa will become ra and ra will become lifelong income fund. lifelong income fund gives 0% which is very bad

 

[havetheveryfun]

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

ya i dont understand. cos if by that logic then why should the rich pay more tax than the poor ? you poor is your own problem, i rich is my own problem and i worked hard for it

why should people who sway sway kena born with disabilities deserve help from the more fortunate? It is their own unluckiness that they are born like that right ?

 

[maple96]

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

we are not talking SA, we are talking RA and the choice u should make thereafter

 

[maple96]

ya i dont understand. cos if by that logic then why should the rich pay more tax than the poor ? you poor is your own problem, i rich is my own problem and i worked hard for it

why should people who sway sway kena born with disabilities deserve help from the more fortunate? It is their own unluckiness that they are born like that right ?

wahlau, we are talking CPF LIfe Plan, u still dun understand what dork32 is trying to explain

just focus on CPF Life Plan

 

[dork32]

ya i dont understand. cos if by that logic then why should the rich pay more tax than the poor ? you poor is your own problem, i rich is my own problem and i worked hard for it

why should people who sway sway kena born with disabilities deserve help from the more fortunate? It is their own unluckiness that they are born like that right ?

the logic is this
i want to have lunch, who will pay for it? myself
i want to buy iphone, who will pay for it? myself
i want to buy car, who will pay for it? myself
you want to pay for me? if yes, ok loh, you are very noble. dont be a hypocrite. you will not do this for people.

the kid next door have no arms (or legs or brain). who bears the burden? you everyday go over and take care of the kid and pay for the kid's special education? dont joke. the parents will do it on their own.

 

[jasonlim1988]

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.

u think well out of the box.

we can have RA & CPF LIFE together?

since it's compulsory to have CPF LIFE when i have property + RA $85,500 (BRS) .

"There is no minimum amount for joining CPF LIFE. However, the amount of retirement sum which you have set aside in your Retirement Account for CPF LIFE would affect your monthly payout amount."

it means i can choose to allocate any where between $1 - $85,500 to join CPF LIFE?
the balance can be kept in my RA?

 

[BBCWatcher]

it means i can choose to allocate any where between $1 - $85,500 to join CPF LIFE?
the balance can be kept in my RA?

Not generally, no.

There are certain rules requiring most CPF members to carry at least minimum longevity insurance, whether it's CPF LIFE or an acceptable substitute private longevity insurance policy (life annuity). If you have the Basic Retirement Sum (or more) in your Retirement Account, then the BRS will be your minimum participation level.

The government is trying to cut down on the number and extent of Singaporeans becoming destitute at some point in their elder years and passing the risk (and cost) of that destitution onto the public at large (onto taxpayers at large). So, with only a few exceptions, you must structure your wealth such that you have at least some assured retirement income for life, whether via CPF LIFE or via an alternative acceptable private life annuity.

There are four insurance carriers in Singapore that sell life annuities. Two of the carriers sell fully SRS qualified life annuities.

 

[maple96]

u think well out of the box.

we can have RA & CPF LIFE together?

Yes

since it's compulsory to have CPF LIFE when i have property + RA $85,500 (BRS) .

"There is no minimum amount for joining CPF LIFE. However, the amount of retirement sum which you have set aside in your Retirement Account for CPF LIFE would affect your monthly payout amount."

it means i can choose to allocate any where between $1 - $85,500 to join CPF LIFE?
the balance can be kept in my RA?

From what u write above, it seems u dun understand how CPF Life works, u should go CPF website to read up.

At 55, FRS amount from your SA+OA will be transferred to RA. At 65, u can choose to start payout and join CPF Life, or defer till latest 70.

If u opt for BRS by pledging property, u do it before 65, so only half of FRS ie now 85.5k will be used to join CPF Life.

Then u have to choose the CPF Life Plan u want to join, ie Basic, Standard or Escalating. For standard and escalating, all 85.5k will go to CPF LIfe pool as premium, leaving zero in RA.

For Basic, only 10-20% goes to CPF Life pool - so u have both RA balance (80%) and CPF Life premium (10-20%)

That's a brief summary or overview, there are more details

 

[Dividends Warrior]

I treat my CPF like a 30-year govt bond.
Aiming to max out my MA first.

 

[jasonlim1988]

From what u write above, it seems u dun understand how CPF Life works, u should go CPF website to read up.

At 55, FRS amount from your SA+OA will be transferred to RA. At 65, u can choose to start payout and join CPF Life, or defer till latest 70.

If u opt for BRS by pledging property, u do it before 65, so only half of FRS ie now 85.5k will be used to join CPF Life.

Then u have to choose the CPF Life Plan u want to join, ie Basic, Standard or Escalating. For standard and escalating, all 85.5k will go to CPF LIfe pool as premium, leaving zero in RA.

For Basic, only 10-20% goes to CPF Life pool - so u have both RA balance (80%) and CPF Life premium (10-20%)

That's a brief summary or overview, there are more details

oh. so only basic plan user gets to have CPF LIFE basic + RA.
should he died early, there's a bigger portion pass on to bequest.

 

[kent07]

For the record, I don't generally recommend topping up a newborn's Special Account to the FRS, although I can think of a couple rare exceptions.

BBCW, can you elaborate on your above mentioned statement? it seems to me that topping up a newborn's SA, even if its a small amount will allow compounding to work at 5% for about 15-20 years, which will be quite a tidy sum before the child starts work, no?

 

[JuniorLion]

I treat my CPF like a 30-year govt bond.
Aiming to max out my MA first.

Wow so rich.

 

[ocs_woodlands]

I treat my CPF like a 30-year govt bond.
Aiming to max out my MA first.

I did it differently..

MA is actually more than a 30 yr bond. It's a lifetime bond..

SA is the real bond that matures at 55 yo and SA has no cap.... let your money work for you in SA rather than MA. More optimal..

 

[BBCWatcher]

BBCW, can you elaborate on your above mentioned statement? it seems to me that topping up a newborn's SA, even if its a small amount will allow compounding to work at 5% for about 15-20 years, which will be quite a tidy sum before the child starts work, no?

Sure, but SA is for retirement. A newborn has the longest possible retirement investing time horizon (for that same individual) and should be able to beat SA reliably over that long time horizon using prudent, well diversified, low cost investments.

I did it differently..
MA is actually more than a 30 yr bond. It's a lifetime bond..

However, once your MA hits the BHS the portion of your compulsory CPF contributions that would ordinarily flow into MA will instead spill over into SA. And since MA funds are useful at any age, and it’s tougher to squeeze in MA top-ups for tax relief as you progress in your career (and hit the CPF Annual Limit), I’d give MA “first love.” Moreover, once your MA has reached the BHS the interest credited to MA will actually spill over into your SA, too.

SA is the real bond that matures at 55 yo and SA has no cap.... let your money work for you in SA rather than MA. More optimal..

SA over OA. You should only keep OA funds hanging around if you really need all those OA funds for housing. If some or all of those OA funds aren’t needed for housing, then transfer those OA dollars into your SA. You can transfer OA to SA as long as your SA is below the Full Retirement Sum.

 

[Dividends Warrior]

Wow so rich.

Mine is just average
This is the one considered rich

http://singaporeanstocksinvestor.blogspot.com/2016/08/1m-in-cpf-by-age-65-what-about-12m.html

 

[dork32]

we can have RA & CPF LIFE together?

yes. it is call cpf life basic. you use 20% of your ra to buy annuity. this is to protect you from not dying. the other 80% will continue to earn interest at 4-6%

 

[dork32]

BBCW, can you elaborate on your above mentioned statement? it seems to me that topping up a newborn's SA, even if its a small amount will allow compounding to work at 5% for about 15-20 years, which will be quite a tidy sum before the child starts work, no?

to me 15 to 20 years is nice. you are right that the cpf sa will have a tidy sum.

but the problem is your kid cannot use the sa in 20 years. this cpf sa can only be used when your kid is 55. if your kid is a newborn, you have to wait another 55 years before he can use it. we are only at sg53. even when we are at sg100, your kid still cannot use it.

i rather use put my money in some stupid insurance scheme that matures in 20 years such that the kid have a some to kick off his working life.

 

[alt2015]

yes. it is call cpf life basic. you use 20% of your ra to buy annuity. this is to protect you from not dying. the other 80% will continue to earn interest at 4-6%

Tat 80% in Ra, earning 4-6%, when then can take out huh?

 

[dork32]

Wow so rich.

cpf sum is reflects how old you are.

my three accounts add up to more than 450k. but i am much older than dw. ocs is close to my age. his cpf account will be close to mine

 

[dork32]

Tat 80% in Ra, earning 4-6%, when then can take out huh?

you withdraw it monthly when you reach 65.
if you die before you exhaust your ra, your kids gets what is left
if you exhaust the 80% and you still dont want to die, the other 20% will kick in and pay till you die.