CPF Accounts Value Thread 2020

[ProfessorMH]

Eh guys, noob to all tis stuff.

But say hor you CPF SA and MA max liao and no more can transfer, and your OA build up until enough to clear your house bank loan,

Ish it good idea to pay off one lump sum from OA and clear mortgage? Reason hor, it's to avoid the bank interest and pay yourself interest instead like how you do monthly mortgage payment?

Dont trust to do investment with CPF money so think of other way to utilize the money and max out the overall loh.

Kym?

 

[crimsontactics]

Eh guys, noob to all tis stuff.

But say hor you CPF SA and MA max liao and no more can transfer, and your OA build up until enough to clear your house bank loan,

Ish it good idea to pay off one lump sum from OA and clear mortgage? Reason hor, it's to avoid the bank interest and pay yourself interest instead like how you do monthly mortgage payment?

Dont trust to do investment with CPF money so think of other way to utilize the money and max out the overall loh.

Kym?

Most ppl won't cos in case you up lorry can claim insurance to cover your remaining mortgage...

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[pcmdan]

There are people who exceed the cap for BTO and can't buy HDB but only private condo. In this case, better to put in SA.

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Condo also can use cpf wor

 

[ProfessorMH]

Eh that is good point hor, I forget got insurance and now I remember I listen people say this b4.

But then hor I just check and if I compare the term insurance versus the mortgage rate of the interest from the bank, isn't it the term insurance is cheaper? For same same amount?

Berry berry confused

Most ppl won't cos in case you up lorry can claim insurance to cover your remaining mortgage...

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[Thoreldan]

Eh that is good point hor, I forget got insurance and now I remember I listen people say this b4.

But then hor I just check and if I compare the term insurance versus the mortgage rate of the interest from the bank, isn't it the term insurance is cheaper? For same same amount?

Berry berry confused

I think he's talking abt something like home protection scheme, not term insurance

 

[decibel.]

Condo also can use cpf wor

I think where possible it's still recommended to get property with more cash than CPF? Then we can have more CPF for retirement? I see my friends all use CPF to purchase flat, their balance is low despite in mid career and when selling the flat, have to pay back accrued interest on top of loan amount.

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[henrylbh]

Eh that is good point hor, I forget got insurance and now I remember I listen people say this b4.

But then hor I just check and if I compare the term insurance versus the mortgage rate of the interest from the bank, isn't it the term insurance is cheaper? For same same amount?

Berry berry confused

If you use CPF to pay for HDB flat, it is compulsory to buy HPS and it only covers the outstanding mortgage.

 

[hwmook]

I think where possible it's still recommended to get property with more cash than CPF? Then we can have more CPF for retirement? I see my friends all use CPF to purchase flat, their balance is low despite in mid career and when selling the flat, have to pay back accrued interest on top of loan amount.

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So? If you don't know how yo invest your cash then just use it for mortgage. If you know how to invest then use OA.

 

[hwmook]

My SA is about 78% of current ERS. Hope to cross 80% by year end.

My SA is only 42% of FRS, way lower than yours.

 

[pcmdan]

So? If you don't know how yo invest your cash then just use it for mortgage. If you know how to invest then use OA.

Totally agree. What's wrong with using cpf to buy house if u know how to invest.

I also use my cpf to pay my house and my cash for investment. I got 0 investment using cpf.

 

[pcmdan]

My SA is only 42% of FRS, way lower than yours.

I got 50% haha.. anyway doesnt matter. Must depend on age and other factors also. Such as if u yearly got contribute $7k for tax relief and ur career progression.

 

[pcmdan]

I think where possible it's still recommended to get property with more cash than CPF? Then we can have more CPF for retirement? I see my friends all use CPF to purchase flat, their balance is low despite in mid career and when selling the flat, have to pay back accrued interest on top of loan amount.

Sent from HUAWEI VOG-L29 using GAGT

Pay accrued interest is back to your own account. Once u sell your house, ur cpf balance becomes rich again (OA+ Accrued).

What's wrong? Interest goes to your cpf account not govt.

I also use CPF pay for house. My AI also keeps growing. But I dont really care since my cash generating higher interest than cpf 2.5%

 

[pcmdan]

Eh that is good point hor, I forget got insurance and now I remember I listen people say this b4.

But then hor I just check and if I compare the term insurance versus the mortgage rate of the interest from the bank, isn't it the term insurance is cheaper? For same same amount?

Berry berry confused

Depends ba..if u are old the insurance come in handy. If you are young, u drag your loan end up u nv up lorry, u end up paying way more for your house

500k, 30yr loan, interest approx 200k.total house cost 700k

 

[Mecisteus]

I think where possible it's still recommended to get property with more cash than CPF? Then we can have more CPF for retirement? I see my friends all use CPF to purchase flat, their balance is low despite in mid career and when selling the flat, have to pay back accrued interest on top of loan amount.

That means your friends got a lot of cash.

Those who use cash to pay for housing loan, will have more CPF but less cash.

 

[hwarzoner]

Finaally transfer OA to sa to reach 181k yesterday. Working almost 20 years still cannot reach sa ceiling, need to top up. Wtf

 

[highsulphur]

I think where possible it's still recommended to get property with more cash than CPF? Then we can have more CPF for retirement? I see my friends all use CPF to purchase flat, their balance is low despite in mid career and when selling the flat, have to pay back accrued interest on top of loan amount.

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Depends. At the early stage of one's career, its difficult to have the liquidity to pay for the mortgage using 100% cash but it might be possible later with salary increase. Some even pay back the cpf used for housing after they finished their loan at a later stage of their career

 

[highsulphur]

Finaally transfer OA to sa to reach 181k yesterday. Working almost 20 years still cannot reach sa ceiling, need to top up. Wtf

That's a good move if you are not using your OA for mortgage and no need to top up SA for tax reduction

 

[pcmdan]

That's a good move if you are not using your OA for mortgage and no need to top up SA for tax reduction

many times, i also want to move since i not using OA any more.

But the tax relief savings prevent me from doing so.

Earning 4% compared with tax savings, tax savings seems to outweigh it more haha

 

[highsulphur]

many times, i also want to move since i not using OA any more.

But the tax relief savings prevent me from doing so.

Earning 4% compared with tax savings, tax savings seems to outweigh it more haha

Depends on your tax rate. If its not high, better to enjoy the 4% compounding

 

[pcmdan]

Depends on your tax rate. If its not high, better to enjoy the 4% compounding

To me i classify myself as high (disclaimer not those 20-22% HNW individuals)