CPF Accounts Value Thread 2021

[chiokcc]

CPF is a risk-free asset with zero correlation to the market. BUT accessible only from 55 onwards with many caveats.

OK, found this https://www.cpf.gov.sg/members/tools/calculators

 

[polyglob]

Some people say "CPF is bond component" maybe more like CPF is anchor of their portfolio, meaning stocks and other investments may see big swings but CPF is capital guaranteed with solid interest rates almost guaranteed.

Your #2 point is good.

For those that have subscribe to this point of "CPF is bond" perspective, my points for consideration.... Keke

1. High grade bond funds/ETFs have exploded in value because of interest rate drops. Your cpf still earns 2.5%/4.0%p.a.. Cpf does not act like a bond. It does not help overall portfolio performance like a bond.

2. You probably did not "rebalance" your portfolio when the market tank, rotating out of CPF into equities market

 

[zoneguard]

Interesting perspective today in ST about going for BRS and then top up with cash to FRS or ERS using cash. But the timing of the top up matters right since it will affect the amount of RA at 65 and consequently the payout from CPF Life thereafter?

I don't think you can generalize which option is better. Need a spreadsheet to model the various scenarios, compute IRR, compute cash flow etc.

You also have to consider your non-CPF assets and whether the cash top-up to CPF makes any sense as your assets may be earning above 4% returns. If those are risky assets, you may want to go CPF route nevertheless for safety reason.

 

[SBC]

Cannot load my screen shot due to my min no of posting
Anyway, just post for the fun of it
OA 75K
SA 243K
MA 60K
Housing plus int accrued 600K

Of this 600k, how much had used using below?
- cash
- CPF
- accrued interest

 

[highsulphur]

I don't think you can generalize which option is better. Need a spreadsheet to model the various scenarios, compute IRR, compute cash flow etc.

You also have to consider your non-CPF assets and whether the cash top-up to CPF makes any sense as your assets may be earning above 4% returns. If those are risky assets, you may want to go CPF route nevertheless for safety reason.

Just saying it provides the option of safe alternative to bank deposit and fixed deposit of many PG and MG who are adverse to investing

 

[zoneguard]

Just saying it provides the option of safe alternative to bank deposit and fixed deposit of many PG and MG who are adverse to investing

Most folks in MM already know how to invest in equities/properties/crypto etc

PG/MG who are adverse to investing won't be coming to MM - they might read ST so that way they will be helped.

 

[DevilPlate]

Spare money fully invested Liao.... Lol whacked cpf monies in march and haven't look back since then.

For those that have subscribe to this point of "CPF is bond" perspective, my points for consideration.... Keke

1. High grade bond funds/ETFs have exploded in value because of interest rate drops. Your cpf still earns 2.5%/4.0%p.a.. Cpf does not act like a bond. It does not help overall portfolio performance like a bond.

2. You probably did not "rebalance" your portfolio when the market tank, rotating out of CPF into equities market

Valid points. I just let my cpf rot (grow) there. Perhaps our age and portfolio size matters as well in totality.

I am looking to rotate more local bond etf to equities moving forward.

 

[DevilPlate]

Most folks in MM already know how to invest in equities/properties/crypto etc

PG/MG who are adverse to investing won't be coming to MM - they might read ST so that way they will be helped.

Imo, crypto is speculation.

Local private real estate market is dead.
Private properties no longer "private". Good old days are gone.

 

[zoneguard]

Imo, crypto is speculation.

Local private real estate market is dead.
Private properties no longer "private". Good old days are gone.

There are many HNWIs in MM as evident from the various threads that pop up asking for advice how to manage their monies every now and then. The AI thread also.

In fact, somebody is currently asking how to encash his 6-figure crypto stash and investing into SG REITs....

 

[hwmook]

Spare money fully invested Liao.... Lol whacked cpf monies in march and haven't look back since then.

For those that have subscribe to this point of "CPF is bond" perspective, my points for consideration.... Keke

1. High grade bond funds/ETFs have exploded in value because of interest rate drops. Your cpf still earns 2.5%/4.0%p.a.. Cpf does not act like a bond. It does not help overall portfolio performance like a bond.

2. You probably did not "rebalance" your portfolio when the market tank, rotating out of CPF into equities market

I have invested my CPF OA since 10 years ago. Its so easy to earn more than 4% PA, not going to top up a single cent into SA.

 

[minamikaze]

I have invested my CPF OA since 10 years ago. Its so easy to earn more than 4% PA, not going to top up a single cent into SA.

How? Can you advise?

 

[havetheveryfun]

I have invested my CPF OA since 10 years ago. Its so easy to earn more than 4% PA, not going to top up a single cent into SA.

just look at all the screenshots here.. those who are willing to top up into SA are probably the higher income earners. and it is maybe more worth it for them to get down to the next lower tax bracket for tax savings.

e.g. 4% of 7000 is only $280. So if by topping up they can save 500-1000 in tax savings. why not. They then not just saved 500+ only but also gained the 280 in CPF interest.

 

[highsulphur]

just look at all the screenshots here.. those who are willing to top up into SA are probably the higher income earners. and it is maybe more worth it for them to get down to the next lower tax bracket for tax savings.

e.g. 4% of 7000 is only $280. So if by topping up they can save 500-1000 in tax savings. why not. They then not just saved 500+ only but also gained the 280 in CPF interest.

I topped up from OA to SA very early in my career despite in the lower income tax bracket. The idea back then was to ride on the compounding of 4% over 3 decades. I might have been too hasty back then as when I was in my 30s and moved up the tax brackets, I can't top up anymore and enjoy any tax relief

 

[czycius]

Hi

I topped up teh $3k on 01 Jan 2021 but till now no update of this $3k addition on CPF app or website, may I know the date that u topped up, thks.

Housing used about 18k so far

 

[limster]

I have invested my CPF OA since 10 years ago. Its so easy to earn more than 4% PA, not going to top up a single cent into SA.

those that treat CPF as bond component should still top up SA in order to rebalance the gains from equity/unit trust investment in CPF-OA.

 

[DevilPlate]

There are many HNWIs in MM as evident from the various threads that pop up asking for advice how to manage their monies every now and then. The AI thread also.

In fact, somebody is currently asking how to encash his 6-figure crypto stash and investing into SG REITs....

Good for them and I assumed they went in when BTC cost few Ks or less.

I am still figuring out the best way to buy BTC and store them in hard wallet (if BTC ever crash down below 10k)

Yes, BTC is pure speculation still to me but i am looking to join in the fun....LOL

 

[sg_lancelot]

Hi

I topped up teh $3k on 01 Jan 2021 but till now no update of this $3k addition on CPF app or website, may I know the date that u topped up, thks.

Showed up within 5 minutes on my app.

 

[SBC]

Is there an online calculator so that I can see what sort of options and distribution of my various CPF money when I hit age 55 in 10 years' time? I prefer to be able to enter my exact amount to see the results rather than having generic examples given in the various websites and examples.

Can use DBS NAV Planner.

 

[yongsaver]

Hi

I topped up teh $3k on 01 Jan 2021 but till now no update of this $3k addition on CPF app or website, may I know the date that u topped up, thks.

me did VC into 3 accounts this morning via PAYNOW. near instant update.
if do e-nets, will take a while.

 

[czycius]

Was it through paynow or enets?

Which date did u top up?

Showed up within 5 minutes on my app.