CPF Accounts Value Thread 2020

[iMac]

My total interest for the year 2019 is 25,511.35. Next year should be above 32k

Wahhh...$25.5K( and growing) of passive income every years....envy...

 

[cal3135]

Power of financial knowledge

Wahhh...$25.5K( and growing) of passive income every years....envy...

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[limster]

only car loan have interest refund. housing loan dont have interest refund.

his 2nd sentence is more accurate, early repayment (if allowed) of housing loan will reduce the total interest/principal payable.

I took a housing loan with no lock-in, 0.98%+SOR. Whenever STI was above 3,000, instead of buying shares, I would pay back some of the housing loan.... finally repaid my housing loan in 2016, just in time for STI to go under 3,000

but yeah, car loan really not worth it to repay early, but most dealers give you discount if you take a car loan...

 

[KnyghtRyder]

only car loan have interest refund. housing loan dont have interest refund.

I know for a fact that HDB loan there is.. because that's what I received when I did early repayments progressively on my HDB loan.

 

[decibel.]

My total interest for the year 2019 is 25,511.35. Next year should be above 32k

Can share your current age and OA/SA/MA balance?

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[JuniorLion]

Can share your current age and OA/SA/MA balance?

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Yes, please share. Those who had posted, please share your age so others have a benchmark.

 

[hwarzoner]

mine

total 543K in cpf combined

 

[Newmaxi]

Need some advise fm sifu here and hope my query is relevant to this topics. No more hdb loan

Age 53
OA used for hdb Loan : 300k round down for simplicity
Accrued interest for abv : 70k

Noticed my monthly accrued interest is going up by $700 per month

Question : shd I repay my OA used + accrued interest

If I pay up OA used + accrued interest, beside the growing accrued interest stop. Do I earn interest on this 370k paid up?

 

[cal3135]

Hi, HDB loan accrued interest will be paid back to your cpf account after HDB sale. Not important for u to do the repayment now.

Yes, if u paid up HDB loan principle + accrued interest. These $$ will start to attract 2.5% in OA annually.

Need some advise fm sifu here and hope my query is relevant to this topics. No more hdb loan

Age 53
OA used for hdb Loan : 300k round down for simplicity
Accrued interest for abv : 70k

Noticed my monthly accrued interest is going up by $700 per month

Question : shd I repay my OA used + accrued interest

If I pay up OA used + accrued interest, beside the growing accrued interest stop. Do I earn interest on this 370k paid up?

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[Gitaro]

The short answer is a resounding YES. Interests range from 2.5-4% depending on which account the housing refunds got into.

 

[badsector]

The short answer is a resounding YES. Interests range from 2.5-4% depending on which account the housing refunds got into.

what's the long answer?
housing refund only to OA. u got new hack?

 

[henrylbh]

The short answer is a resounding YES. Interests range from 2.5-4% depending on which account the housing refunds got into.

All housing refunds will go back to OA or OA and SA depending on whether SA was used in the past, regardless of whether member is below or above 55.

For those above 55 and did not meet cohort's FRS, part of the money returned will be transferred to RA.

If one is closer to 55 and quite certain that cash wouldn't be needed and earning pittance, it may be better to refund the CPF amount used in housing.

 

[henrylbh]

Need some advise fm sifu here and hope my query is relevant to this topics. No more hdb loan

Age 53
OA used for hdb Loan : 300k round down for simplicity
Accrued interest for abv : 70k

Noticed my monthly accrued interest is going up by $700 per month

Question : shd I repay my OA used + accrued interest

If I pay up OA used + accrued interest, beside the growing accrued interest stop. Do I earn interest on this 370k paid up?

The accrued interest will keep accumulating (at rate of 2.5% on principal sum and accrued interest) as long as principal sum plus interest is not refunded.

Whether to repay depends on whether the cash is needed in the next few years and whether the cash is earning more than the interest accruing. Some value cash, whether rationally or not, over money in CPF. Cash in hand earning less is safest, without restriction

Since you are close to 55, some of the refund or all of it can be at your disposal when you turn 55, like ATM machine Do your own calculation to determine whether you are comfortable with the refund, cause part of the refund will be frozen to meet CPF Life, if you still do not have FRS at this point of time.

 

[henrylbh]

what's the long answer?
housing refund only to OA. u got new hack?

Want long long answer, must ask BBC.

 

[SkyNinja]

Those rich parents jitao deposit 181k into the baby's SA account. The baby grow up Jin Song leh.

 

[henrylbh]

Those rich parents jitao deposit 181k into the baby's SA account. The baby grow up Jin Song leh.

Rich parents got better avenues than to deposit and freeze funds into baby's SA account. Otherwise, you think how they become rich.

 

[romeo88]

Firstly, any one who has this dilemma is a good situation. Secondly, to ask it here and be provided with a good answer and advice is a even better situation.

This is all about opportunity costs, including the accrued interests that CPFB is imposing on all monies withdrawn for investment purposes (including property).

All positive balances in all the accounts earn respective interests. Negative balance (i.e. outstanding loan) attracts accrued interest (negative).

To keep it short, if the excess cash money you have does not generate more than 2.5% (both tangible and intangible), than it's a good idea to redeem your CPF loan.

With 2 more years to 55 yo, some people wrongly mentioned to take the redemption as a 2-year FD is not completely correct unless these guys already factored in some tricks that they didn't mention. Withdrawal of OA money is last in line. Look up for withdrawal sequence (or priority) post 55.

Redemption (both the principle and accrued interest) can be partial. It may be worthwhile to redeem a little for a start and rest for a while to access if you should continue to redeem the rest.

Also, interest earned and accrued interest are two different things and should not be used interchangeably.

Need some advise fm sifu here and hope my query is relevant to this topics. No more hdb loan

Age 53
OA used for hdb Loan : 300k round down for simplicity
Accrued interest for abv : 70k

Noticed my monthly accrued interest is going up by $700 per month

Question : shd I repay my OA used + accrued interest

If I pay up OA used + accrued interest, beside the growing accrued interest stop. Do I earn interest on this 370k paid up?

 

[KnyghtRyder]

With 2 more years to 55 yo, some people wrongly mentioned to take the redemption as a 2-year FD is not completely correct unless these guys already factored in some tricks that they didn't mention. Withdrawal of OA money is last in line. Look up for withdrawal sequence (or priority) post 55..

I've never seen anyone propose this and I wonder if it is possible:

What if you invested CPF SA funds using CPF IS after 55.. does this mean that that you can tap the OA funds (minus the minimum 40k your have to keep in SA before doing CPFIS-SA, assuming it still applies after 55) while shielding some SA funds?

Similar to the shielding hack to ensure that more funds from OA are used to create the RA than SA funds.

 

[Thoreldan]

I've never seen anyone propose this and I wonder if it is possible:

What if you invested CPF SA funds using CPF IS after 55.. does this mean that that you can tap the OA funds (minus the minimum 40k your have to keep in SA before doing CPFIS-SA, assuming it still applies after 55) while shielding some SA funds?

Similar to the shielding hack to ensure that more funds from OA are used to create the RA than SA funds.

I guess you can. But how long are u going to hold your sa investment ? What if the sa investment goes into negative territory ?

Compared to shielding hack, you sell off sa investment once ra is form with bulk from oa fund.

 

[BBCWatcher]

But how long are u going to hold your sa investment ?

Mere days.

What if the sa investment goes into negative territory ?

You're not going to pick something prone to falling much, and you're really not allowed to with the CPF Investment Scheme (SA). If there is a minor loss over the few days of holding, you'll claw it back soon enough with higher SA interest.