CPF SA Shielding hack - RIP (Obsolete)

[lyndonmaxewell]

https://toc.net/2019/10/20/cpf-sa-shielding-before-ra-is-formed-at-age-55/


Elaborating on the SA shielding trick, to use more of OA monies instead of SA monies to form RA before turning 55, by using SA to purchase of low-risk investment instrument.

 

[highsulphur]

https://toc.net/2019/10/20/cpf-sa-sh...med-at-age-55/


Elaborating on the SA shielding trick, to use more of OA monies instead of SA monies to form RA before turning 55, by using SA to purchase of low-risk investment instrument.

Thanks for killing the loophole

 

[Guojing88]

Lorna Tan even talked about this CPF SA shield today in the Sunday Times. So the government is already aware there are people doing it.

https://www.straitstimes.com/business/invest/four-ways-to-optimise-your-cpf-savings

 

[Opps-gal]

https://toc.net/2019/10/20/cpf-sa-shielding-before-ra-is-formed-at-age-55/


Elaborating on the SA shielding trick, to use more of OA monies instead of SA monies to form RA before turning 55, by using SA to purchase of low-risk investment instrument.

what are low risk investments that can use SA?

 

[BBCWatcher]

 

[lyndonmaxewell]

Lorna Tan even talked about this CPF SA shield today in the Sunday Times. So the government is already aware there are people doing it.

https://www.straitstimes.com/business/invest/four-ways-to-optimise-your-cpf-savings

Wow, we actually had the same thinking when we decided to write about it.

 

[lyndonmaxewell]

Thanks for killing the loophole

It is publicly out even in today's Straits Times.

 

[ocs_woodlands]

https://toc.net/2019/10/20/cpf-sa-shielding-before-ra-is-formed-at-age-55/


Elaborating on the SA shielding trick, to use more of OA monies instead of SA monies to form RA before turning 55, by using SA to purchase of low-risk investment instrument.

started a thread just now. didnt realise you already started.

Really loud mouth Lorna!!!

cross the 55 bridge and then dismantle it so that those behind will NOT be able to enjoy it......

like HDB decoupling, this loophole will be closed because it costs the govt money.......

figurative blood on her hands.

its idiots like this that makes singapore uninhabitable

she is 55 and she is no virgin so dobt tell me she is naive

 

[iduncheckmail]

With today’s property prices , I won’t be surprised if many have 0 in their OA . Those that can do this is prolly public housing and nvr upgrade to private.

 

[highsulphur]

started a thread just now. didnt realise you already started.

Really loud mouth Lorna!!!


cross the 55 bridge and then dismantle it so that those behind will NOT be able to enjoy it......


like HDB decoupling, this loophole will be closed because it costs the govt money.......

figurative blood on her hands.


its idiots like this that makes singapore uninhabitable


she is 55 and she is no virgin so dobt tell me she is naive

Sigh.. What to do? Still have a decade for me so probably will be closed anyway. Pity to those approaching 55

 

[oceanicmanta]

did not read article ... did she shielded herself ?

 

[highsulphur]

did not read article ... did she shielded herself ?

She probably did and felt really smart about it. Enough to share on national papers

 

[maple96]

CPFB, MOF and of course the Govt is fully aware of the loophole created by these group of CPFB policy makers, first to benefit themselves and their family as they are the first to know

Then somehow the loophole got leaked out.

Then Lorna Tan was aware and have been waiting till she past 55 to benefit from it before she decides to share with the public, self interest comes first of course

Will the Govt remove the loophole?

Should they remove the loophole which they now finally think is wrong, they should claw back all the interest paid to people who exploited the loophole and move their SA monies back to OA

Do u think they will do it?

No, because these CPFB policy makers do not think it is wrong to do it, there is nothing wrong with their policies created with loophole to make the rich richer, to benefit the rich and not all Singaporeans!

 

[maple96]

This article need to be amended liao, cause Lorna Tan already published it in Sundays Times today!

How to Stop CPFB from transferring SA to RA at 55

Consolidate discussing in this thread

 

[Guojing88]

One positive way to view this official revelation is that, over the next few years, cpf act may be amended such that a choice is now given to those turning 55.

You can opt for the ra to be formed using your oa first. This will obviously not appeal to those who are still paying their housing mortgage at 55.

But for some of us, it will make sense. Right now, this shield technique is unnecessarily troublesome for those of us in this category.

 

[HWZ1973]

Don’t understand this? RA also 4%, so it’s good to transfer OA to RA first when turn age 55

 

[lyndonmaxewell]

Don’t understand this? RA also 4%, so it’s good to transfer OA to RA first when turn age 55

Say a person has 100K in OA and 100K in SA. FRS is $176,000.

Normal scenario. 100k from SA and 76K from OA is taken to form RA. Therefore, balance becomes this after age 55:

OA: 24K (2.5%), SA: 0 (4%), RA: 176K (4%)

SA Shielding scenario. 40K from SA
and 100K from OA is taken to form RA. Therefore, balance becomes this after age 55:

OA: 0 (2.5%), SA: 60K (4%), RA: 140K (4%)

Of course, scenario 2 is better since the full 200k earns 4%

 

[lyndonmaxewell]

One positive way to view this official revelation is that, over the next few years, cpf act may be amended such that a choice is now given to those turning 55.

You can opt for the ra to be formed using your oa first. This will obviously not appeal to those who are still paying their housing mortgage at 55.

But for some of us, it will make sense. Right now, this shield technique is unnecessarily troublesome for those of us in this category.

Possible, though the thing is that more interests is saved by the govt if it doesn't happen.

 

[lyndonmaxewell]

With today’s property prices , I won’t be surprised if many have 0 in their OA . Those that can do this is prolly public housing and nvr upgrade to private.

There are people who shield their OA as well.

 

[maple96]

One positive way to view this official revelation is that, over the next few years, cpf act may be amended such that a choice is now given to those turning 55.

You can opt for the ra to be formed using your oa first. This will obviously not appeal to those who are still paying their housing mortgage at 55.

But for some of us, it will make sense. Right now, this shield technique is unnecessarily troublesome for those of us in this category.

CPFB should amend the policy to transfer from OA then SA to benefit all CPFB MEMBERS! The current policy is bias, how can PAP and Opposition party agree to such a policy which only benefits the rich!

Everyone will be happy, even those who still need to pay housing loan, as thy can withdraw from SA n put back to OA to service their loan, or just withdraw from SA standing instruction, after 55 no more restrictipns