CPF Account Value Thread 2024

[sohguanh]

Past few days, I saw a few FB post promoting their service, teach you what to do before 55, at 55, 55-65, 70 etc.
Good to know the basics, but paying them for training I dun think is necessary.

I think is some good insight! eg, why some people prefer not max their RA to ERS, how to use OA/SA before CPF Life Starts, why no need to delay to 70, how to get more payout on top of CPF Life easily, etc. Just google for the info

As always they don't have insights if you predict you short life what you should do becuz it then goes against CPF scheme to use your monies longer. They are hinting if you short life you will know what to do?

 

[rrr2015]

I am looking for good articles that discuss what happens to one's CPF when one turns age 55, and what can happen or can be done from age 55 to 65, or even age 70 .... preferably what preparations should be done, say one year ahead of one's 55th birthday ..... I would think if one's birthday fall on different months of the year, some "strategy" may differ .....

I prefer having examples to show the events, rather than just citing of the various rules and regulations, as I am more of a numbers by example person ...

TIA!

CPF conducts seminars for those approaching 55, u can consider attending those first

 

[royalmix]

CPF conducts seminars for those approaching 55, u can consider attending those first

Such CPF talks will not teach you how to hack nor tell you what you should know! They only tell you what they want you to know, and hide all the important details!

You can attend for basic knowledge and compare notes against others!

 

[RedsYWNA]

Such CPF talks will not teach you how to hack nor tell you what you should know! They only tell you what they want you to know, and hide all the important details!

You can attend for basic knowledge and compare notes against others!

What other hacks are there? I only know of topping up MA in Jan, CPF SA shielding. Not sure if there are other sig hacks

 

[royalmix]

What other hacks are there? I only know of topping up MA in Jan, CPF SA shielding. Not sure if there are other sig hacks

Seek and you shall find. I was inquisitive to find out what hacks this guy has to offer since I already know, so I just click and I learnt new things, I might not necessary follow but it does double confirm I am on the right track on my own choice. He offered his views in his brief intro on his course which to me is good enough for me to know, it was quite detailed already. His course I suspect is to teach you the exact detail steps to take to reach those goals which I believe I already know how.

 

[dork32]

but the downside is the accrued interest that balloons like crazy each month. but if you're not selling then can ignore that.

if your investment is greater than the loan/cpf rate, then the accrued investment interest is going to balloon even more.

 

[RedsYWNA]

Seek and you shall find. I was inquisitive to find out what hacks this guy has to offer since I already know, so I just click and I learnt new things, I might not necessary follow but it does double confirm I am on the right track on my own choice. He offered his views in his brief intro on his course which to me is good enough for me to know, it was quite detailed already. His course I suspect is to teach you the exact detail steps to take to reach those goals which I believe I already know how.

Well, I googled and didnt find much useful hacks. Hopefully these are real hacks and not basic stuff.......

 

[LWZ]

Ordinary Account (OA)
$22,407.97
Special Account (SA)
$210,882.55
MediSave Account (MA)
$60,354.70

Worked almost 10 years, and always transferred OA to SA till I can't anymore.

 

[Nimegen]

What other hacks are there? I only know of topping up MA in Jan, CPF SA shielding. Not sure if there are other sig hacks

Why is topping up MA in Jan a hack?

 

[reddevil0728]

Why is topping up MA in Jan a hack?

In a sense you beat employment contribution to it

 

[royalmix]

Well, I googled and didnt find much useful hacks. Hopefully these are real hacks and not basic stuff.......

Good luck to you!

 

[BBCWatcher]

Own Landed below 40yo already a big milestone.

“Don’t assume.”

You can buy landed property in Italy for 1 euro. True, to retain your 1 euro landed freehold home you’re required to renovate/rehabilitate it within a couple years. That’ll cost more. But there really are 1 euro homes with land available for sale. And yes, Italy does offer a “retirement visa.” It’s called an “Elective Residence“ visa.

Or if the landed property is in Singapore it could hypothetically have 3 years to go on its 99 year lease, for example.

And we also don’t know if it’s a millstone whether or not it’s a milestone. Such situations are certainly possible.

 

[RedsYWNA]

In a sense you beat employment contribution to it

To add on, Cpf contribution in Jan can be quite significant because a lot of companies pay Dec bonuses.

 

[Shion]

work in progress...

 

[DevilPlate]

“Don’t assume.”

You can buy landed property in Italy for 1 euro. True, to retain your 1 euro landed freehold home you’re required to renovate/rehabilitate it within a couple years. That’ll cost more. But there really are 1 euro homes with land available for sale. And yes, Italy does offer a “retirement visa.” It’s called an “Elective Residence“ visa.

Or if the landed property is in Singapore it could hypothetically have 3 years to go on its 99 year lease, for example.

And we also don’t know if it’s a millstone whether or not it’s a milestone. Such situations are certainly possible.

U can easily make a better educated guess if one can utilise OA for purchase of Landed property.

 

[DevilPlate]

It's the time of the year again. Big Fairy Cannons, come show off your CPF Account Value, as well as your age. I recall there are users who like to compare CPF Account Value and how young they are to achieve 500k in CPF Savings.

Showoff away! With pictures.

Strange, not many big fairy cannons this year.

Wah lau….u mentioned Big Fairy Cannons and expect people to humblebrag meh?

”Lai Lai it’s time of the year again…..come GPGT your CPF account value! I’m sure there are many 1M65 campers here!” Should yield better results whahahaha

 

[DevilPlate]

some people will say you should have invest the OA instead to get higher yield than what you pay for the bank loan

like you I also cleared the entire loan instead of paying interest to the bank... but the downside is the accrued interest that balloons like crazy each month. but if you're not selling then can ignore that.

If u sell >55yo and have already set aside FRS….it shdn’t matter right?

 

[BBCWatcher]

work in progress...

Have you thought about transferring some OA dollars to SA? Or using $52K+ of your OA to buy 6 month T-bills at least? (If you're going to use most/all of your OA balance to buy a home within the next 6 months, OK, "never mind.")

U can easily make a better educated guess if one can utilise OA for purchase of Landed property.

But is it a millstone? That's possible.

 

[Shion]

Have you thought about transferring some OA dollars to SA? Or using $52K+ of your OA to buy 6 month T-bills at least? (If you're going to use most/all of your OA balance to buy a home within the next 6 months, OK, "never mind.")

Thank you for the suggestion

 

[BBCWatcher]

Thank you for the suggestion

Here's another possible suggestion, starting with an observation. You're getting fairly close to the Basic Retirement Sum (BRS) which is $102,900 for 2024. Congratulations! You're at $93,567.80 (OA+SA), so you're currently only $9,332.20 away. The BRS increases each year, but 4%/year interest increases even faster.

OK, so why does this observation matter? Well, if you have a spouse who has zero CPF savings, or lower CPF savings than you have, then it can matter. Once your OA+SA reaches the current BRS then OA dollars above that amount are available to transfer to your spouse's SA. And cross-spousal transfers are really powerful when your spouse hasn't maxed out bonus interest yet. It means your household can upgrade your OA dollars earning only 2.5% interest to your spouse's SA dollars earning 5.08% interest (1Q2024 interest rate; floor rate is 5.00% interest). That's an even bigger upgrade.

There's no tax relief for OA to SA transfers (either for self or spouse), but the higher interest is enticing if you don't need all those OA dollars held back as OA (i.e. for housing). Self OA to SA transfers mean you get to the BRS that much faster, unlocking potential cross-spousal OA to SA transfers as soon as 2025. And further compulsory CPF contributions may unlock this cross spousal OA to SA transfer option as soon as this year (2024).

Of course if you're not married then the BRS is not the correct threshold for these purposes (OA to family SA/RA transfer options).