Interest earned from CPF can pay for my condo

[Seannie]

I believe you can make voluntary contributions to your CPF too subject to limits and have tax deduction too.

U mean pump cash into my SA account now to earn 4% interest at the same time use it for mortgage repayment?

 

[Seannie]

actually sa got use. if your sa hit minimum sum, all ma contribution + interest will go into oa, which can be used to pay for your house.

You mean all MA go into oa or all SA go into OA?

 

[mummy1234]

U mean pump cash into my SA account now to earn 4% interest at the same time use it for mortgage repayment?

Yes but it depends if you have enough cash for that and if it will result in any tax savings and how much you trust that the CPF will not keep delaying the drawdown age....

 

[dork32]

You mean all MA go into oa or all SA go into OA?

oa go oa
sa go sa
ma go oa

 

[mummy1234]

oa go oa
sa go sa
ma go oa

So SA can still receive employer contribution after enhanced minimum sum reached?

 

[highsulphur]

So SA can still receive employer contribution after enhanced minimum sum reached?

You will always receive employer's contribution

 

[Seannie]

Chanced upon this interesting read.
http://www.investmentmoats.com/uncategorized/6-reasons-top-cpf-special-account-cash-cpf-ordinary-account/

 

[Seannie]

Yes but it depends if you have enough cash for that and if it will result in any tax savings and how much you trust that the CPF will not keep delaying the drawdown age....

Oh.. pretty high risk returns then. Cos $ gone into SA is non reversible. And 4% interest is not fixed permanently. I think i keep cash better more liquidity.

 

[Seannie]

Any amount in excess of minimum sum can be withdrawn. If I just stop contributing, at 55 years old, I will have roughly 400 k
Tt is is the beauty of compile interest.

$400k will be from your SA? You transferred all your OA to SA to earn that 4% interest? Then wait for 55 yrs old to take out the excess and balance will be monthly payout from age 65?

 

[Broadwalk]

I am confuse with this. Please explain to me how putting into SA help me in retirement? Thanks.

 

[Seannie]

I am confuse with this. Please explain to me how putting into SA help me in retirement? Thanks.

When reach 55yrs old your OA + SA cpf monies go into RA account. But 65yrs old then can take monies. Every month take $1,200 if inside gotch at least $160k. If lesser than $160k then got to pledge the house and only take $600 monthly. Balance can withdraw at 55 yrs old.

So die die must hit $160k in RA else house gets pledged.

 

[Seannie]

Can Google CPF life . Money is kept from 55 to 65 years old when payout starts.

How much do I need to refund to my CPF upon the sale of my private property?

If you have used your CPF savings to finance your private property, you will have to refund to your CPF:

the principal CPF amount (P) which you have withdrawn for the private property; andthe accrued interest (I) which you would have earned if the savings were not taken out from your CPF account.

If you are 55 years old and above, and have pledged your property to withdraw your Retirement Account (RA) savings in cash, you will need to refund the pledged amount on top of the P and I. The amount refunded will be used to set aside:

your*Full Retirement Sum (FRS)*in your RA;

Afterwhich, you can withdraw the balances in cash.*

 

[Broadwalk]

When reach 55yrs old your OA + SA cpf monies go into RA account. But 65yrs old then can take monies. Every month take $1,200 if inside gotch at least $160k. If lesser than $160k then got to pledge the house and only take $600 monthly. Balance can withdraw at 55 yrs old.

So die die must hit $160k in RA else house gets pledged.

Thanks! Very clear and concise.

 

[Seannie]

Use cash to pay for the downpayment, then use cash to repay mortgage. Use cpf for pure retirement purpose

Bro u very steady. Transferred all your monies into your cpf SA get high interest. Then pay cash for mortgage. And you dont even use your cpf interest to help pay mortgage like mummy1234. You roll on your interest in your SA for compounded interest. Jin steady. 高手。

Even though your debt almost $1mil now but when you sell your condo + noble shares in future you damn rich alry. The interest you are paying on your loans are low and when the next boom cycle comes you make it liao while i still struggling to meet my minimum sum.

 

[dork32]

Bro u very steady. Transferred all your monies into your cpf SA get high interest. Then pay cash for mortgage. And you dont even use your cpf interest to help pay mortgage like mummy1234. You roll on your interest in your SA for compounded interest. Jin steady. 高手。

Even though your debt almost $1mil now but when you sell your condo + noble shares in future you damn rich alry. The interest you are paying on your loans are low and when the next boom cycle comes you make it liao while i still struggling to meet my minimum sum.

i have done the other way around. i never transfer my oa to sa. in case i lose my job, my oa can take care of the installments for 5 years.

also, if i want to buy my next property, oa can help to reduce the load.

despite that my sa is also full.

 

[OngHuatHuat]

2013 and 2014 interest was low and I rented out my condo at quite a high price, around 3400 sgd per month.

My cpf sa + ma account was at around 110 k at 2011, this few years received around 20 plus k close to 30 k of interest(my self employed contribution mainly used for medical insurance repayment of my parents and myself).

It is up to you to decide whether it make sense or not, but for me, I have already accumulated close to 30 k interest which is around 27 % of my initial capital.

Bro u very steady. Transferred all your monies into your cpf SA get high interest. Then pay cash for mortgage. And you dont even use your cpf interest to help pay mortgage like mummy1234. You roll on your interest in your SA for compounded interest. Jin steady. 高手。

Even though your debt almost $1mil now but when you sell your condo + noble shares in future you damn rich alry. The interest you are paying on your loans are low and when the next boom cycle comes you make it liao while i still struggling to meet my minimum sum.

 

[OngHuatHuat]

I always actively looking for clients. Sometimes I am quite worried no one wanna engage my serive, but so far still all right. Perhaps it is better to just focus on seeking employment rather than worried about unemployemnt.

i have done the other way around. i never transfer my oa to sa. in case i lose my job, my oa can take care of the installments for 5 years.

also, if i want to buy my next property, oa can help to reduce the load.

despite that my sa is also full.

 

[OngHuatHuat]

I used total amount.
If based on sa alone, the amount will be 355 k sgd. you can try to calculate using 1.04 ^ 25x amount in sa, this excludes any additional 1 % on first 60 k. If this 600 recurring is included every year, the figure will be roughly 600 x 25 = 15000, which also means I can have around 370 k in my sa account alone when I hit 55 years old.

I din plan to take out any money at 55 years old though, I plan to just let it roll until I reach 65 years old, then take out and invest in low risk corporate bond and use the interest to cover my daily expenses.

You can say I have already covered fully my retirement plan for moi and wife now.
Retirement spending mainly come from 3 sources:
Cpf life, excess amount took out from cpf and reinvest into high yield corporate bond, my life insurance of 100 k(which can be taken out at age 65).

This explains why I dare to take so much higher risk than normal people when come to stock and property investment.

$400k will be from your SA? You transferred all your OA to SA to earn that 4% interest? Then wait for 55 yrs old to take out the excess and balance will be monthly payout from age 65?

 

[Seannie]

It is up to you to decide whether it make sense or not, but for me, I have already accumulated close to 30 k interest which is around 27 % of my initial capital.

Jin steady. Interest alone 30k. Risk free returns somemore go where find so good. Thats why i say u are 高手. For me my SA still long way to go to meet the minimum sum.

 

[Seannie]

I used total amount.
If based on sa alone, the amount will be 355 k sgd. you can try to calculate using 1.04 ^ 25x amount in sa, this excludes any additional 1 % on first 60 k. If this 600 recurring is included every year, the figure will be roughly 600 x 25 = 15000, which also means I can have around 370 k in my sa account alone when I hit 55 years old.

I din plan to take out any money at 55 years old though, I plan to just let it roll until I reach 65 years old, then take out and invest in low risk corporate bond and use the interest to cover my daily expenses.

You can say I have already covered fully my retirement plan for moi and wife now.
Retirement spending mainly come from 3 sources:
Cpf life, excess amount took out from cpf and reinvest into high yield corporate bond, my life insurance of 100 k(which can be taken out at age 65).

This explains why I dare to take so much higher risk than normal people when come to stock and property investment.

Learn from 高手。Yar 4% compounded interest will get you ard 350k in 25 yrs time. No wonder u throw all into SA. But how u manage get so much in SA? U top up with cash? Any limit how much you can top up with cash? At 55 your SA ard 370k roll on another 10yrs also at 4% interest right? By time 65 accumulate to 550k liao. Monthly payout of $4500. Retire comfortably.