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hanayorisg 31-12-2018 02:00 PM

Quote:

Originally Posted by JuniorLion (Post 118385641)
It will be refunded, without interest, by Feb 2020.

Thanks. Very helpful information.

xorionn 31-12-2018 03:22 PM

Can I do any other form of topup that will contribute to tax relief besides SRS. Can contribute into my wife account?

JuniorLion 31-12-2018 03:28 PM

Quote:

Originally Posted by xorionn (Post 118387083)
Can I do any other form of topup that will contribute to tax relief besides SRS. Can contribute into my wife account?

You can get tax relief if your wife has less than 4000 income in this year.

In any case, it's a bit too late now. Can try next year.

addict951 31-12-2018 05:34 PM

Quote:

Originally Posted by xorionn (Post 118387083)
Can I do any other form of topup that will contribute to tax relief besides SRS. Can contribute into my wife account?

Top up your ma's RA.

addict951 31-12-2018 05:58 PM

Anybuttie here borrow money to throw into SA/RA/SRS?
More sound & safer than borrow to buy reits/shares right?

Borrow as in take up those 1%-1.68% nett admin fee on principal repayable over the next 6 months. Currently offered by UOB & Maybank.

addict951 31-12-2018 06:05 PM

Quote:

Originally Posted by hanayorisg (Post 118384106)
Thanks.
If I top up 2.7K into MA on Jan.1, 2019, and in 2019 due to bonus increase, my employment compulsory contribution reached annual limit 37,740. What will do to my 2.7K VC to MA? Will it return to my bank account? And when will it be returned?

For bestest tax relief strategy and quoting the above.
Say I know my total cpf contribution 2019 won't exceed $37740.

1. In Jan 2019 (b4 my employer makes the Jan contribution), I faster throw $2700 into my MA. Therefore, MA reaches rooftop liao, rest of the monthly contribution will flow into OA & SA only.

2. Come Dec 2019, throw $7K into self-SA. Throw another $7K into self-RA. Throw yet another $7K into mum-RA. Throw 15.3 into SRS.

My total relief eligible is 2.7K + (7K x 3) + 15.3K.
What else still can throw??

BBCWatcher 31-12-2018 09:00 PM

Quote:

Originally Posted by addict951 (Post 118389727)
2. Come Dec 2019, throw $7K into self-SA. Throw another $7K into self-RA. Throw yet another $7K into mum-RA. Throw 15.3 into SRS.

This part doesn't make sense, in at least the following ways:

1. Why wait until December, 2019, for SA or RA top-ups? Top up about 5 days before the end of January, 2019, and you get 11 more months of high interest on your money, plus compounding thereafter.

2. You cannot top up your own Special Account and Retirement Account. You don't have a Retirement Account until your 55th birthday, and from that point onward the Retirement Sum Topping Up Scheme goes into your RA.

3. You don't qualify for tax relief (and cannot top up your SA) if you have already reached the Full Retirement Sum.

4. If your MA top-up is above/in excess of the CPF Annual Limit, then it will be refunded in February, 2020, without interest. I don't think you should try to swoop in with a $2,700 top up unless you're reasonably confident you will have that much room below the CPF Annual Limit.

Quote:

My total relief eligible is 2.7K + (7K x 3) + 15.3K.
Nope. The maximum SA/RA top-up tax relief available is $14,000: up to $7,000 when you top up your own SA/RA, and up to $7,000 when you top up a qualified family member's SA/RA. (The latter can be split across eligible family member recipients.)

Trader11 31-12-2018 09:18 PM

Quote:

Originally Posted by BBCWatcher (Post 118253789)
I donít really understand that equation. Can you clarify?


Definitely not! As long as youíre reliably earning a higher yield than your mortgage interest rate, you would never rationally accelerate repayment on that mortgage. Thatís a sure loser ó youíre leaving free money on the table, and I donít like that. If and when the interest rates flip, then youíd consider accelerating repayment. But a cheap, more than sustainable mortgage is absolutely wonderful, and you should enjoy that happy and weird interest rate inversion as long as it lasts.


Iím a fan of that move when youíve determined that at least some portion of your Ordinary Account is no longer needed as OA funds, for housing. Personally I transfer all OA dollars to my SA, every month, since I simply donít need OA dollars for housing. Fortunately Iíve got plenty of other resources for housing. So since those dollars have to be in OA or SA, I pick the higher yield, and I still have my housing however I want. Some people are fortunate that way. If youíre also partially or fully that fortunate at this point in your life, sure, transfer some or all of your OA dollars to SA.

Note that once your SA reaches the Full Retirement Sum you cannot transfer OA into SA. Your SA reaches the FRS that much faster when itís fuller sooner. And, after that, your OA dollars start piling up again from compulsory contributions and (if applicable) from MediSave overflow dollars, if your MA is also ďfullĒ (at the Basic Healthcare Sum). So itís not as if youíll never see OA dollars again.

You pay your house by cash?

BBCWatcher 31-12-2018 09:36 PM

Quote:

Originally Posted by Trader11 (Post 118392790)
You pay your house by cash?

I'll try again. ;)

CPF Ordinary Account dollars must stay inside CPF, at least until age 55. So, you have only three choices for those particular dollars: (1) you can keep them in your Ordinary Account where they earn 2.5% interest; (2) you can use them for housing (typically in substitution for borrowed dollars at about 2% interest); (3) you can transfer them to your Special Account, where they earn 4%.

OK, so this first decision is really simple: if you have enough dollars from elsewhere, then you grab the 4% interest, which is choice #3. No brainer!

Where is "from elsewhere"? From other assets and/or from a ~2% interest mortgage. Then you have a second decision to make: whether it makes sense to take out a ~2% interest mortgage even if one can afford purchased housing from assets.... Yes, it does make sense to take that mortgage, generally. A ~2% interest mortgage is a cheap mortgage (in Singapore dollars, at present). If somebody is offering a cheap mortgage, and the dollars you would otherwise use can reliably earn a higher rate on a long-term basis at least, then sure, take the cheap mortgage.

Cheap, sustainable loans are fantastic. They're not often available, but when they are, they're lovely.

JuniorLion 31-12-2018 09:51 PM

Quote:

Originally Posted by BBCWatcher (Post 118393146)
I'll try again. ;)

CPF Ordinary Account dollars must stay inside CPF, at least until age 55. So, you have only three choices for those particular dollars: (1) you can keep them in your Ordinary Account where they earn 2.5% interest; (2) you can use them for housing (typically in substitution for borrowed dollars at about 2% interest); (3) you can transfer them to your Special Account, where they earn 4%.

OK, so this first decision is really simple: if you have enough dollars from elsewhere, then you grab the 4% interest, which is choice #3. No brainer!

Where is "from elsewhere"? From other assets and/or from a ~2% interest mortgage. Then you have a second decision to make: whether it makes sense to take out a ~2% interest mortgage even if one can afford purchased housing from assets.... Yes, it does make sense to take that mortgage, generally. A ~2% interest mortgage is a cheap mortgage (in Singapore dollars, at present). If somebody is offering a cheap mortgage, and the dollars you would otherwise use can reliably earn a higher rate on a long-term basis at least, then sure, take the cheap mortgage.

Cheap, sustainable loans are fantastic. They're not often available, but when they are, they're lovely.

4 choices.

CPFIS-OA

BBCWatcher 31-12-2018 10:09 PM

Quote:

Originally Posted by JuniorLion (Post 118393368)
4 choices.
CPFIS-OA

Good point, but I don't think the CPF Investment Scheme (OA) makes financial sense while OA to SA transfers are available, i.e. while the Special Account is below the Full Retirement Sum. The 4% interest rate is more attractive.

That calculus might change if/when CPF implements the LRIS (Lifetime Retirement Investment Scheme).

BBCWatcher 02-01-2019 08:43 PM

Mini Review of Another Broker: DEGIRO
 
DEGIRO is another online broker that might be a viable choice for some residents of Singapore. There are some major pluses:

* No minimum monthly commission or inactivity fee
* Low commissions, including on the popular London Stock Exchange
* One commission free ETF trade per month, including for the popular IWDA (subject to a minimum amount that's fairly reasonable)
* Automatic currency conversions cost 0.1% (not bad)

But there are some disadvantages. They aren't really catering to residents of Singapore except on an "accidental" basis, and you really need a funding bank account in Europe, preferably in the United Kingdom, to make them work. That also means you need to figure out some reasonable way to get Singapore dollars into DEGIRO. It's hard to beat Interactive Brokers for the convenience of FAST or GIRO fund transfers domestically within Singapore, then very low currency conversion costs. But the potential commission savings at DEGIRO are interesting, so interesting that maybe you can overcome the fund transfer hurdles. I'd welcome any reports.

feralslash 02-01-2019 09:29 PM

Quote:

Originally Posted by BBCWatcher (Post 118427037)
DEGIRO is another online broker that might be a viable choice for some residents of Singapore. There are some major pluses:

* No minimum monthly commission or inactivity fee
* Low commissions, including on the popular London Stock Exchange
* One commission free ETF trade per month, including for the popular IWDA (subject to a minimum amount that's fairly reasonable)
* Automatic currency conversions cost 0.1% (not bad)

But there are some disadvantages. They aren't really catering to residents of Singapore except on an "accidental" basis, and you really need a funding bank account in Europe, preferably in the United Kingdom, to make them work. That also means you need to figure out some reasonable way to get Singapore dollars into DEGIRO. It's hard to beat Interactive Brokers for the convenience of FAST or GIRO fund transfers domestically within Singapore, then very low currency conversion costs. But the potential commission savings at DEGIRO are interesting, so interesting that maybe you can overcome the fund transfer hurdles. I'd welcome any reports.

If you are a HSBC customer here, maybe u can ask them to open a UK account for you? I remember seeing one of their adverts for this. The advert was targeted to parents who have kids studying in the UK.

ftpofmpo 06-01-2019 03:22 PM

How about monese the neo-bank? it accepts non-residents

ftpofmpo 06-01-2019 03:25 PM

As degiro is a european broker, n26, a german bank that accepts non residents is also a possibility. the prospect of no fees below 100k is very attractive. Seems like IB is a safer bet though


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