CPF Accounts Value thread

[Calthron]

Still at early 40, but good to find out. Was reading on CPF site. Above 55 and after setting BRS/FRS/ERS, we can withdraw from OA and SA anytime? But can we put back to OA and SA? Thanks...

Thanks, kind soul!
This is to push OA into RA to earn 4%

 

[kehyi4]

I think at age 55 is half of FRS amount is deducted to created RA

erm, and where does the other half of FRS come from? Santa Claus? Cai Shen Ye?

Even if you are thinking about BRS, the action sequence is:
1. At 55yo, RA is created
2. FULL FRS is transferred into RA from SA, then OA if necessary
3. Then, if you opt for BRS, amt above BRS is withdrawn in cash from RA. It does not go back to OA or SA

So whatever you choose, the FULL FRS is deducted from your SA/OA first

afaik...

 

[Nofear40]

erm, and where does the other half of FRS come from? Santa Claus? Cai Shen Ye?

Even if you are thinking about BRS, the action sequence is:
1. At 55yo, RA is created
2. FULL FRS is transferred into RA from SA, then OA if necessary
3. Then, if you opt for BRS, amt above BRS is withdrawn in cash from RA. It does not go back to OA or SA

So whatever you choose, the FULL FRS is deducted from your SA/OA first

afaik...

Is it better to opt for BRS or FRS? Nice to know if you can withdraw some cash for emergency use
And what happen if you can't meet FRS?

 

[JuniorLion]

Is it better to opt for BRS or FRS? Nice to know if you can withdraw some cash for emergency use
And what happen if you can't meet FRS?

Read this. It answers your question.

http://thefinance.sg/2016/07/05/what-if-i-cant-meet-the-brsfrs/

 

[crimsontactics]

Is it better to opt for BRS or FRS? Nice to know if you can withdraw some cash for emergency use
And what happen if you can't meet FRS?

Depends on your financial situation from 55 onwards.

If you have some savings and no financial problems, opt FRS.

If you have financial difficulties, opt BRS.

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[Nofear40]

Read this. It answers your question.

http://thefinance.sg/2016/07/05/what-if-i-cant-meet-the-brsfrs/

Thanks
Looks like one can still receive the same monthly payout as the others with a RA which is less than FRS

 

[lls0101]

Bro lls0101, why you lose money from SMRT shares? I thought price quite constant.

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Like how all investors lost money. Buy high sell low. Lol.



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[crimsontactics]

Like how all investors lost money. Buy high sell low. Lol.



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I see...

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[iMac]

Advise Pls:

An insurance agent advise me this during a finance roadshow at TPY Hub:-

He said when I reach 55,

- just keep FRS amount in the RA, never top up till ERS even i have enough money. (because you cannot take out this money until you kick the bucket)

- withdrawn the balance CPF money to buy a private annuity plan.(private plan can stop anytime and take out the remaining lump sum)

- Private Annuity plan have projected-rate is similar to the rate in CPF-RA. So technically, you won't loose out much money.

What you guys think?

 

[BBCWatcher]

Also a partial analysis. You're not earning 0% interest on the $21000, unless you put it under your pillow.

You’re not earning 4% interest either.

Say, for example, you put that into a Citi Maxigain account earning 2.5% interest right now.

Not on $21,000. You need $70,000 in Maxigain to get that (variable) rate. This part just changed on January 2, 2019.

Or, you could also be putting that into some FDs or other alternatives.

Right, and those aren’t paying 4% either.

There’s a cost. How you calculate the cost is situational, but there is some lost opportunity cost.

 

[crimsontactics]

Advise Pls:

An insurance agent advise me this during a finance roadshow at TPY Hub:-

He said when I reach 55,

- just keep FRS amount in the RA, never top up till ERS even i have enough money. (because you cannot take out this money until you kick the bucket)

- withdrawn the balance CPF money to buy a private annuity plan.(private plan can stop anytime and take out the remaining lump sum)

- Private Annuity plan have projected-rate is similar to the rate in CPF-RA. So technically, you won't loose out much money.

What you guys think?

Nope. I won't ever take money out of CPF to invest in insurance product.

CPF is the best annuity product available in SG.

You can, however, buy insurance products once you max out your CPF contributions to further increase your retirement payouts.

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[dork32]

Advise Pls:

An insurance agent advise me this during a finance roadshow at TPY Hub:-

He said when I reach 55,

- just keep FRS amount in the RA, never top up till ERS even i have enough money. (because you cannot take out this money until you kick the bucket)

- withdrawn the balance CPF money to buy a private annuity plan.(private plan can stop anytime and take out the remaining lump sum)

- Private Annuity plan have projected-rate is similar to the rate in CPF-RA. So technically, you won't loose out much money.

What you guys think?

the question is how much interest is the private annuity plan giving.

if it is giving less than 2.5%, might as well as use the oa. you decide what your payout is after 55.

 

[dork32]

Not on $21,000. You need $70,000 in Maxigain to get that (variable) rate. This part just changed on January 2, 2019.

but if you already have 70k in maxigain, the additional 21k will get that rate. lion is just using maxi gain as an example. it could ocbc260, uob2, dbs multiplier or any example.

 

[tangent314]

Advise Pls:

An insurance agent advise me this during a finance roadshow at TPY Hub:-

He said when I reach 55,

- just keep FRS amount in the RA, never top up till ERS even i have enough money. (because you cannot take out this money until you kick the bucket)

- withdrawn the balance CPF money to buy a private annuity plan.(private plan can stop anytime and take out the remaining lump sum)

- Private Annuity plan have projected-rate is similar to the rate in CPF-RA. So technically, you won't loose out much money.

What you guys think?

First thing that you need to know, insurance agents will naturally make recommendations that provide them with commissions from the plans you buy from them.

1. Obviously it's not true that you "cannot take the money out until you kick the bucket", since you are getting a monthly payout from your CPF Life plan. By topping up your RA towards the ERS you are simply increasing this monthly payout. This payout is guaranteed for the rest of your life, even if you live beyond 100+ years.

2. The private annuity plans I have seen provided are not drawdown plans. They provide you a lifetime income by simply paying you the interest earned from your principle, and growing the principle if the PAR fund performs well. As a result, while your principle remains untouched, and probably grows, by the time you die, in a drawdown plan like CPF Life, there's not much left or nothing left (if you survive beyond a certain age). Of course, your monthly income will be significantly higher with CPF Life than with the private annuity plan.

3. The projected rate for the annuity plans are about 4% if the PAR fund performs at 4.75%. Guess where the 0.75% difference goes? Now imagine if you can self-invest in the same stuff the PAR funds invest in... Don't forget that 4% in MSRA is lowest risk investment available. If you want to sell me a plan that has more risk than MSRA, I would expect better returns.

 

[iMac]

As mentioned previously, lost contact. He jumped ship to another insurance company.

In fact, when I liquidate the policy, he already left. Not able to get him to do it. In the end, the insurance company assign another agent to me and help me surrender the policy (at a loss).

As such, did not scold him or should I said, no chance to scold.

Actually seen this happened a few times... Buy insurance policies to support friends or loan them money, in the end, they play radio silent and ignore my messages or act blur. Normally I chase for a few times then I just give up. Take it as paying a small fee to learn more about their personality.

Now not so trusting like previously. Treat friends to a meal or coffee is ok. Loan money, insurance, mlm or business opportunities, I just say "sorry, no money".

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Most of the insurance agent I know are all scumbags...

 

[Thoreldan]

Can this be made sticky ?

Good informative thread on cpf.

 

[LexusIS]

Nope. I won't ever take money out of CPF to invest in insurance product.

CPF is the best annuity product available in SG.

You can, however, buy insurance products once you max out your CPF contributions to further increase your retirement payouts.

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CPF is really the best annuity plan especially SA. No other annuity plans can give this type of return with capital guarantee from SG govt

 

[limster]

I just saw blogger uncle8888 got post 2/1/19 that he got $1m in CPFOA as well. same person?

 

[Summer78]

So if you have enough money in OA and SA to qualify for ERS, they automatically sweep them to ERS at 55?

 

[Tiger9119]

So if you have enough money in OA and SA to qualify for ERS, they automatically sweep them to ERS at 55?

No, up to FRS only.