A cpf sa question

[Broadwalk]

If sa has already hit max, can we empty it out buying sa related financial product or insurance then we TOP up sa for tax rebates? anyone done this before?

 

[terence2112]

Cannot be done. Need to retain at least 40k in SA.
The BRS consist of amount used for investments + cash in SA.

 

[JuniorLion]

If sa has already hit max, can we empty it out buying sa related financial product or insurance then we TOP up sa for tax rebates? anyone done this before?

No you can't.

Unless, of course, if you lose your money is SA-investment, then it might be possible (depending on amount lost).

 

[Broadwalk]

Sorry if I am not clear because I am also confuse. If I have meet FRS (180k) and I used 20-30k of the 180k to get mutual fund or something and park it there I be left with 150-160k in SA, so can I top up to 180k and enjoy the tax rebate?

 

[Broadwalk]

Cannot be done. Need to retain at least 40k in SA.
The BRS consist of amount used for investments + cash in SA.

Sorry if I miss your statement.

So the BRS/FRS/ERS will be total sum of (amount used for investment) and (remaining sum in SA).

 

[terence2112]

No you can't.

Unless, of course, if you lose your money is SA-investment, then it might be possible (depending on amount lost).

Yes, but for this to happen, the investments has to be liquidated back to SA

 

[terence2112]

Sorry if I miss your statement.

So the BRS/FRS/ERS will be total sum of (amount used for investment) and (remaining sum in SA).

Correct. It’s one of the component used to compute the BRS. But there’s a way to overcome this, and that is to do Voluntary Contributions to all 3 accounts (because contributions still flow to SA) or working contributions.

Confuse? Yes I know.. it’s utterly confusing.

 

[Hysteri]

Correct. It’s one of the component used to compute the BRS. But there’s a way to overcome this, and that is to do Voluntary Contributions to all 3 accounts (because contributions still flow to SA) or working contributions.

Confuse? Yes I know.. it’s utterly confusing.

Bet no ministers can explain all the functions of cpf

 

[Broadwalk]

Correct. It’s one of the component used to compute the BRS. But there’s a way to overcome this, and that is to do Voluntary Contributions to all 3 accounts (because contributions still flow to SA) or working contributions.

Confuse? Yes I know.. it’s utterly confusing.

If you do a VC to 3 accounts, I dun think it will flow into SA? It may just flow to OA eventually?

 

[terence2112]

Bet no ministers can explain all the functions of cpf

The main function of CPF is to save for Retirement and I Guess most of the policies are design with that thought in mind.

 

[terence2112]

If you do a VC to 3 accounts, I dun think it will flow into SA? It may just flow to OA eventually?

It flows to all 3, apart from Medisave if it’s full.
If Medisave is full, it will overflow to SA. If SA is full, it overflows to OA.

 

[Broadwalk]

Anyone can share with me what is SA shielding means? How to go about it?

 

[Broadwalk]

It flows to all 3, apart from Medisave if it’s full.
If Medisave is full, it will overflow to SA. If SA is full, it overflows to OA.

Yes this is the case. I am thinking how to maximise CPF.

 

[kelhot2001]

Anyone can share with me what is SA shielding means? How to go about it?

SA shielding is just a hack, not sure how legal it is

Just before you hit 55, you use SA funds to do investment (leaving the minimum of $40K), upon 55, RA is create use the balance $40K(SA) + $141K(OA) to from your FRS. After the RA is completed, refund the SA investment back into SA.

This will use up for OA for RA instead of SA

 

[Thoreldan]

Broadwalk like to ask same question in many places haha

 

[Broadwalk]

Broadwalk like to ask same question in many places haha

Because people may not see or read my question and never answer me.

 

[kelvinloh]

SA shielding is just a hack, not sure how legal it is

Just before you hit 55, you use SA funds to do investment (leaving the minimum of $40K), upon 55, RA is create use the balance $40K(SA) + $141K(OA) to from your FRS. After the RA is completed, refund the SA investment back into SA.

This will use up for OA for RA instead of SA

Interesting theory, may I know what is the benefit or advantages to do so? Both RA & SA account still earns 4% interest p.a.?

 

[kelhot2001]

Interesting theory, may I know what is the benefit or advantages to do so? Both RA & SA account still earns 4% interest p.a.?

Think further, you rather have 100K in SA or 100K in OA after your RA creation?

 

[Broadwalk]

Think further, you rather have 100K in SA or 100K in OA after your RA creation?

I will love to park at SA.

 

[Geeezz]

Interesting theory, may I know what is the benefit or advantages to do so? Both RA & SA account still earns 4% interest p.a.?

fr one money in ra cannot withdraw except abv frs (exclude int earned) but cpf sa can withdraw