CPF contribution after Specical Account hits min sum

[thesingingbard]

when medisave hits 45k, contribution goes to special account.

when special account hit 148k, what happens to medisave and special account contribution?

checked out cpf website. nothing there to address this.

by that time, the min sum would be increased. so dun worry

seriously... i dunno.

 

[dork32]

There is one dbs 4.7% perp otc current prices at ard 104. First call 3rd June 2019.
CK 5.125% perp currently is ard 99.80
Genting perp 5.125% currently is ard 99.55
Ascott 5% perp currently is ard 102
Ascott 4.68% perp currently is ard 100

the numbers you have quoted are for the institutional tranche. you need 250k to buy. my sa + oa + ma add together still not enuf to buy 1 lot.

you should compare it with the retail branch tranche.

furthermore, when i hit 65, i cannot withdraw bit by bit for my expenses. i must sell the whole thing.

also every cent in my sa is earning 4%. if i have 300k, 250k will be earning 5+%. the other 50k where do i want to put?

 

[dork32]

by that time, the min sum would be increased. so dun worry

seriously... i dunno.

like i said, min sum increase, i confident i can hit it again in a few months.

 

[bazingaman]

IMHO, CPF is still the king when we see risk-reward. Perps are good, same with some Bonds or ETF or Blue Chip Div play stocks. But there is some risk and nobody knows how things turn out in next 10-20-30 years. This is where CPF wins. Individual views, approaches are so different it doesnt matter which path we take, as long as we have sufficient money in future. So for me, its CPF + some others..

EDIT: BTW, one of the 'bookmark' thread in recent months. Thx to all contributors

 

[wts2013]

Those who have CPF are lucky, contributions from employer and govt, that "extra" salary from your employer.

There is always a need to diversify your investments/assets. Your money in CPF helps in retirement.

Got extra cash/funds and want to take some risk, can invest lor.

Today, I have monies in CPF OA/SA/MA, in insurance (with surrender value), cash in bank and other investments to see me thru retirement.

Those who dun have CPF, no need to try influence others lor. U have your cash/assets in other places, I also have lor, hahaha

 

[doody_]

Seems like perps are not risk free. There is no guarantee they will continue paying the coupon.

http://ifonlysingaporeans.blogspot.sg/2012/05/note-key-risks-in-perpetual-securities.html?m=1

 

[havetheveryfun]

Those who have CPF are lucky, contributions from employer and govt, that "extra" salary from your employer.

"lucky"? I think not.. though CPF is something good to have.

On paper it may seems like its "extra" salary and contributions from your employer.. but actually it's not really "extra". Its your own money. They put it this way since its easier to get people to accept that 20% of that pay is going to be deducted to CPF than to tell them 37% of their pay is going to be deducted from their salary.

When I see a few of my friends who earn a lot but can't save any money at all.. I wonder what would be of them if there wasn't CPF when they reach the retirement age.. CPF does has its place just that it may not be perfect

 

[wts2013]

"lucky"? I think not.. though CPF is something good to have.

On paper it may seems like its "extra" salary and contributions from your employer.. but actually it's not really "extra". Its your own money. They put it this way since its easier to get people to accept that 20% of that pay is going to be deducted to CPF than to tell them 37% of their pay is going to be deducted from their salary.

When I see a few of my friends who earn a lot but can't save any money at all.. I wonder what would be of them if there wasn't CPF when they reach the retirement age.. CPF does has its place just that it may not be perfect

hahaha, funny mentality u have, when I negotiate salary, never factor CPF in, it is extra leh, hahaha

But your last para correct, that's why govt put CPF in place, force savings, hahaha

Do u know if u work hard, your CPF can hit 1million? For the "older" generation when CPF rates were higher, they are all laughing, those who work hard.

 

[Perisher]

hahaha, funny mentality u have, when I negotiate salary, never factor CPF in, it is extra leh, hahaha

But your last para correct, that's why govt put CPF in place, force savings, hahaha

Do u know if u work hard, your CPF can hit 1million? For the "older" generation when CPF rates were higher, they are all laughing, those who work hard.

Yes, but be rest assured your employer takes that into account.

And you are proving what havetheveryfun says about 'easier to get people to accept that 20% of that pay is going to be deducted to CPF than to tell them 37% of their pay is going to be deducted from their salary.'
because 'when I negotiate salary, never factor CPF in, it is extra leh'

 

[wts2013]

Yes, but be rest assured your employer takes that into account.

And you are proving what havetheveryfun says about 'easier to get people to accept that 20% of that pay is going to be deducted to CPF than to tell them 37% of their pay is going to be deducted from their salary.'
because 'when I negotiate salary, never factor CPF in, it is extra leh'

hahaha, who cares if the employer factored it in, so long I negotiate the annual package and they are willing to pay, CPF is extra, I negotiate gross and not net, hahaha

 

[kage]

hahaha, who cares if the employer factored it in, so long I negotiate the annual package and they are willing to pay, CPF is extra, I negotiate gross and not net, hahaha

Daft dafter daftest

 

[doody_]

Since CPF is always there, it doesn't make a difference whether you negotiate based on gross or nett. Gross=5k means nett=4k. If you are looking for a new job with 1k increment, you would ask for 6k (gross) or 5k(nett)

 

[havetheveryfun]

hahaha, funny mentality u have, when I negotiate salary, never factor CPF in, it is extra leh, hahaha

But your last para correct, that's why govt put CPF in place, force savings, hahaha

Do u know if u work hard, your CPF can hit 1million? For the "older" generation when CPF rates were higher, they are all laughing, those who work hard.

actually if CPF was not allowed to be use for housing purposes a lot of people would have no problems hitting the minimum sum. Or if they were only allowed to buy houses with prices within their means.. I see some ppl not earning much but their first house already trying to go for 5-room..

hahaha, who cares if the employer factored it in, so long I negotiate the annual package and they are willing to pay, CPF is extra, I negotiate gross and not net, hahaha

What Perisher and me is trying to say that is that the employer contribution part is not really extra.. just that we have been taught to accept it (or think) that way

 

[wts2013]

Since CPF is always there, it doesn't make a difference whether you negotiate based on gross or nett. Gross=5k means nett=4k. If you are looking for a new job with 1k increment, you would ask for 6k (gross) or 5k(nett)

ya, always there why factor it in? it does make a difference if u go for net, hahaha, something not within your control, and gahmen can cut, dun shortchange yourself lor, hahaha

and u all shld learn how to think positive, its the law lah, hahaha

 

[dexboi]

Companies factor in employer CPF to determine "total annual package" for that headcount. And they strip it down to determine gross salary range for candidates.

Which is why i am hearing over-budget more frequently nowadays. Are people asking for more $$ nowadays? or we are too expensive to hire?

k, not related to thread. just ranting about my mini pay. =(

 

[SCG8866T]

Here is how I see it. At age 55, If you’re “lucky” enough to have less than $5000 in your RA, you get to withdraw it all. If you have between $5000 and $166,000 in your RA, then you get to withdraw $5000. If you have more than $166,000*, you get to withdraw $5000 and whatever excess you have(got this info from moneysmart)

This MS is the principal that you may never get back in full. The problem now is, we do not know whether the MS or monthly withdrawal age will increase further(most likely to beat inflation) in the future. I dont like to not have control over my funds. People think it is a AAA bond that gives 4%, but the truth is, the SA account fluctuates in coupon yield annually(can check the past yield till now) and it is not a bond or a fix D because your MS gets sucked into an irreversible hole only to be treated as an annuality when you reach 65(or older?). So its more like an irreversible version of a long tenor unsellable bond that converts into an annuity only when you reach 65(or older depending on future stipulations.)

The coupon yield, the withdrawl age, the minimum sum are three variables that can change over time. Too much variables for me. Im sure many of you here can beat 4% yield with no lock ups. If you can, you will end up with more flexibility and control over your own funds.

My view

 

[havetheveryfun]

Here is how I see it. At age 55, If you’re “lucky” enough to have less than $5000 in your RA, you get to withdraw it all. If you have between $5000 and $166,000 in your RA, then you get to withdraw $5000. If you have more than $166,000*, you get to withdraw $5000 and whatever excess you have(got this info from moneysmart)

This MS is the principal that you may never get back in full. The problem now is, we do not know whether the MS or monthly withdrawal age will increase further(most likely to beat inflation) in the future. I dont like to not have control over my funds. People think it is a AAA bond that gives 4%, but the truth is, the SA account fluctuates in coupon yield annually(can check the past yield till now) and it is not a bond or a fix D because your MS gets sucked into an irreversible hole only to be treated as an annuality when you reach 65(or older?). So its more like an irreversible version of a long tenor unsellable bond that converts into an annuity only when you reach 65(or older depending on future stipulations.)

The coupon yield, the withdrawl age, the minimum sum are three variables that can change over time. Too much variables for me. Im sure many of you here can beat 4% yield with no lock ups. If you can, you will end up with more flexibility and control over your own funds.

My view

yep.. what you say makes sense.. but to the people who are not self employed like you.. they have to contribute to their own CPF anyway.. so they might as well try to take full advantage of it in any way they possibly can..

for ppl who are self employed.. they would have a lot more options to choose from

 

[peacefulday]

Just confirmed, SA CPF minimum is $161k today ~

Just nice to top up SA to $161k today.

Mine not so ideal..they don't allow overshot or by 15 cents..

since the CPF is out of our control, just transfer to SA if not using. The compound interest 4~5% will always help you to strike goal even the government keeps shifting the goal post

Cash investment is a totally different topic here
and most of those that had already hit max SA $161k, do their cash investment too

 

[henrylbh]

Im sure many of you here can beat 4% yield with no lock ups. If you can, you will end up with more flexibility and control over your own funds.

My view

If you refer to ST report of 15 Jun "Only 15% made profits larger than 2.5% and 40% made losses".

 

[Perisher]

If you refer to ST report of 15 Jun "Only 15% made profits larger than 2.5% and 40% made losses".

Technically, it's not hard. Just buying a index or holding a diversified basket of blue chips should have done the job. The hard part is everyone trying to outsmart the market and most fail through a variety of reasons...