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Old 21-06-2020, 10:11 AM   #2416
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Yes. By the time she's 82 I would be ~56 so would likely be able to fund any sizable bills myself (not ideal but works in a pinch) assuming we hold the term insurance, otherwise the savings invested should provide a "medical savings sum" that lasts beyond the term insurance.
Yes, S$8,600/year (plus returns) buys a lot of self defense and fairly quickly, too. It also doesn’t automatically expire at age 82.

I assume this isn’t an all or nothing deal, that hypothetically she could reduce the term age and/or sum(s) assured to reduce the premium. For example, by the same logic she could reduce the term to age 70 when you’d be well into your 40s, and she’d have more accumulated cash (and/or have defended against unclaimable incidents up to that point with the premium savings). The term to age 82 roughly corresponds to when you’ll probably have some CPF assets to draw from, so perhaps there’s some logic in that, but sums assured can be adjusted if desired.

I think you’re asking good questions here.

She has the Eldershield 400 + GE's Eldershield comprehensive 3 ADLs (10 years) which is $300. So she gets $700 per month for 6 years, then $300 per month for 4 years after that if satisfy the unable to perform 3 daily living activities criteria. Both are paid out of her CPF-MA with ~$30 cash topup per year.
Next year she should have the option to switch to CareShield Life. She probably should (it’s highly likely to be a better deal), but obviously she should evaluate whether it works for her. At that point she could look at whether there’s a viable, reasonably priced way to improve the definition of disability — to make it 2 out of 6 for example. CSL is so new that I don’t think there’s clear information yet about whether and how that’ll be possible, but within the next 12 months it should become clearer.
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Old 21-06-2020, 02:22 PM   #2417
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Yes, S$8,600/year (plus returns) buys a lot of self defense and fairly quickly, too. It also doesn’t automatically expire at age 82.

I assume this isn’t an all or nothing deal, that hypothetically she could reduce the term age and/or sum(s) assured to reduce the premium. For example, by the same logic she could reduce the term to age 70 when you’d be well into your 40s, and she’d have more accumulated cash (and/or have defended against unclaimable incidents up to that point with the premium savings). The term to age 82 roughly corresponds to when you’ll probably have some CPF assets to draw from, so perhaps there’s some logic in that, but sums assured can be adjusted if desired.

I think you’re asking good questions here.
8,600 at 3-4% will return 300k around the 23 - 25 year mark.

She could reduce the term age or sum assured; but I suspect would involve cancelling this current plan and rebuying effectively the same plan with different term age / sum assured next year.

It seems that a more accurate decision could be made by modelling different sum assured (e.g. 100, 200, 300k) and term age (e.g. 10, 20, 30 years) and compare to the "savings" invested at 3% (to be prudent) rate? Thus giving the effective total cover + savings invested lines.

Does that approach make sense? Given that Medishield implies a 13.15k cash payment on a 100k bill (deductible of 3.5k + 10% of sum above deductible); it would seem that as long as total cover + savings invested sum is > 100 - 150k, that would suffice for any major medical bills.


Next year she should have the option to switch to CareShield Life. She probably should (it’s highly likely to be a better deal), but obviously she should evaluate whether it works for her. At that point she could look at whether there’s a viable, reasonably priced way to improve the definition of disability — to make it 2 out of 6 for example. CSL is so new that I don’t think there’s clear information yet about whether and how that’ll be possible, but within the next 12 months it should become clearer.
Will have to take a look at whether it makes sense vs the current Eldershield 400 + supplement; did quite googling and you're right there's not much information about it yet.

However, in general I agree that this is good "peace of mind" cover for severe post-treatment care.
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Old 21-06-2020, 08:36 PM   #2418
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It seems that a more accurate decision could be made by modelling different sum assured (e.g. 100, 200, 300k) and term age (e.g. 10, 20, 30 years) and compare to the "savings" invested at 3% (to be prudent) rate? Thus giving the effective total cover + savings invested lines.

Does that approach make sense? Given that Medishield implies a 13.15k cash payment on a 100k bill (deductible of 3.5k + 10% of sum above deductible); it would seem that as long as total cover + savings invested sum is > 100 - 150k, that would suffice for any major medical bills.
Yes, that’s logical. You’d probably also toss in zero to see what that looks like.
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Old 22-06-2020, 10:49 AM   #2419
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Anyone kind enough to explain me in simple english what Offer to Bid and Bid to Bid mean in the fund performance in FSM?

I googled and read about it but still I can't make a clear idea of what it mean in practise.
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Old 22-06-2020, 11:22 AM   #2420
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Anyone kind enough to explain me in simple english what Offer to Bid and Bid to Bid mean in the fund performance in FSM?

I googled and read about it but still I can't make a clear idea of what it mean in practise.
OK, as background, in pretty much any market involving buyers and sellers there are essentially two prices at any/every moment: the bid price and the ask(ing) (or offer) price. The bid price is the highest price any buyer is offering for at least one unit. The offer price is the lowest price any seller is offering for at least one unit.

If you're measuring the performance of a fund, you have to pick one of these price types (or perhaps something in between) in order to determine how prices have changed over time and thus how the fund has performed with one or more purchases and dividend reinvesting.

For highly liquid securities with tight bid-ask spreads, this difference doesn't matter too much. However, there's a quirk in how these different figures get reported in Singapore, as FSMOne explains. The "offer to bid" performance figures typically are reported inclusive of usual/customary sales charges (sales loads) which can be as high as 5%. FSMOne doesn't levy sales charges, so "offer to bid" figures are unrealistic on FSMOne (and on other zero fee platforms) specifically. However, "bid to bid" might be a little too optimistic albeit closer to reality on the zero fee platforms.

And, as always, please remember that past performance is not indicative of future results.
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Old 23-06-2020, 11:30 AM   #2421
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So the offer to bid return is the difference between the buying price and the selling price in a time interval

while the bid to bid return is the difference between the selling prices in a time interval

did I understand correctly?

Since a unit trust is not supposed to have spread between asking and selling price the first one should be equivalent to the second one to me..


OK, as background, in pretty much any market involving buyers and sellers there are essentially two prices at any/every moment: the bid price and the ask(ing) (or offer) price. The bid price is the highest price any buyer is offering for at least one unit. The offer price is the lowest price any seller is offering for at least one unit.
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Old 23-06-2020, 09:22 PM   #2422
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I might be vaccinated since i was born in 1994 but am not sure - NS medicals had no issues though. I think getting vaccinated (if I haven't) shouldn't be a problem though?

I feared a chicken-and-egg problem where if I check up and discover any issues then can't be medically underwritten before settling my insurance. However, I intend to go for a full body checkup this year (whenever the COVID-19 situation subsides a bit).
Regarding Hep B, the vaccination doesn't work on everybody. A quite sizable portion of the population can never get immune no matter how many time they take the shot. BTW, even if you do get the antibody, it may disappear after 5 or so years so better check it periodically.

BTW, Hep B can be inherited and in some cases it passes to the newborn. So definitely worth to check out if you don't know whether you have it or not. But my guess is that if you had it in the family, you should have been checked thoroughly when you were born.
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Old 23-06-2020, 09:26 PM   #2423
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Since a unit trust is not supposed to have spread between asking and selling price the first one should be equivalent to the second one to me..
Yes, but there's a hefty sales charge through traditional channels. The offer to bid measurement includes those sales charges.
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Old 25-06-2020, 05:06 PM   #2424
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Hi BBCW,

Can I check what is the best way to maximize the cpf payout for my mom who is a widow and will turn 65 next year? She currently has about 700$ in her OA and 470$ in SA. Her RA is only 29K. She is on yearly withdrawal service. Thank you!
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Old 25-06-2020, 07:37 PM   #2425
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Hi bbcw out of curiosity, what is your day job? Hahaha
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Old 25-06-2020, 10:17 PM   #2426
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Can I check what is the best way to maximize the cpf payout for my mom who is a widow and will turn 65 next year? She currently has about 700$ in her OA and 470$ in SA. Her RA is only 29K. She is on yearly withdrawal service.
Getting the $700 OA into RA would help (higher interest), but fundamentally she needs a capital injection. In addition to possible cash deposits from family members (with some possible tax relief to them), she could look into government incentives such as the Silver Housing Bonus, Matched Retirement Savings Scheme (starting in 2021), and HDB Lease Buyback Scheme (examples).
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Old 25-06-2020, 11:13 PM   #2427
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Getting the $700 OA into RA would help (higher interest), but fundamentally she needs a capital injection. In addition to possible cash deposits from family members (with some possible tax relief to them), she could look into government incentives such as the Silver Housing Bonus, Matched Retirement Savings Scheme (starting in 2021), and HDB Lease Buyback Scheme (examples).
Thanks BBCW! Am I right to say the best time to trf the 700$ to RA is at the end of every month, for this instance, it will be 30 june? Not sure how the payout works when she turns 65 next year as her RA is less than the BRS. As advised, I will inject some capital by topping up her RA but it will be hard for me to top up that much. May I ask how much can she withdraw at the age of 65? Looking at the government incentive mentioned, the matched retirement saving scheme seems more appropriate and I will enjoy tax relief if I help to top up too.
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Old 25-06-2020, 11:41 PM   #2428
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Am I right to say the best time to trf the 700$ to RA is at the end of every month, for this instance, it will be 30 june?
If you’re going for maximum tax reliefs then it’s $7,000 this month (CPF e-Cashier PayNow QR on June 29 I suggest just to give the CPF Board a little buffer, although June 30 should work too), then $7,000 every January 30 (PayNow QR again, allowing one day of buffer again). If a sibling or two can do the same, even better. The tax relief maximum isn’t the contribution limit, though. You’re allowed to push in more, up to the Enhanced Retirement Sum. She’s a long way from the ERS. Just make sure you’re maintaining adequate liquidity after these top ups.

Not sure how the payout works when she turns 65 next year as her RA is less than the BRS.
If she’s turning 65 next year then she was born in 1956. One thing to check is whether her RA is so low because she already joined CPF LIFE and had that premium deducted already. That’d be wonderful news if so, wouldn’t it? But if not then she has a choice of remaining with the classic Retirement Sum Scheme or choosing CPF LIFE. Either way she can also choose to start monthly payouts at 65 or at any time up to age 70. The longer she waits the higher her monthly payout will be. Unless she needs the income she ought to wait, and unless she’s in poor health CPF LIFE is probably the better choice to protect her. (RSS payouts may end before she does.)

As advised, I will inject some capital by topping up her RA but it will be hard for me to top up that much. May I ask how much can she withdraw at the age of 65?
Well, that’ll depend on whether and how much she has withdrawn previously. But she probably doesn’t want to be going down from her current low balances if she can avoid it.

Looking at the government incentive mentioned, the matched retirement saving scheme seems more appropriate and I will enjoy tax relief if I help to top up too.
If she qualifies that will be a good program. That doesn’t mean you should wait for it, though. This year’s tax relief is still presumably available.

Silly/“stupid“ question: has she received her deceased spouse’s CPF savings already, either via nomination or via the public trustee if there was no nomination?

I should also point out that you and/or other family members who have sufficiently well funded Special Accounts may be able to transfer Ordinary Account funds to her Retirement Account. There’s no tax relief for such transfers, but it could be a viable option.

Last edited by BBCWatcher; 25-06-2020 at 11:45 PM..
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Old 26-06-2020, 11:21 AM   #2429
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Hi BBC,

Re Interactive Brokers

Are you familiar with Family Account?
Is my understanding of Family Account correct?
- Each family member opens an individual account. Say, 4 family members open 4 individual accounts. Each account has its own amount of $60k exemption of estate duty (ie $240k total for the 4 accounts for non-resident). One person is nominated to manage and do trading for their accounts.

- When the nominated person trades, does he open 4 separate TWS on his computer or is there a consolidated TWS for the accounts?

- If a non US citizen (Singaporean) but living in US opens an account, is he treated any difference from another Singaporean living in Singapore – as far as the tax is concerned?


Also, can i buy HK stocks in IB?

Thank you.
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Old 26-06-2020, 12:06 PM   #2430
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Also, can i buy HK stocks in IB?
Yes, you can.
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