CPF Accounts Value thread

[SKenny]

good info thanks!

about "Interest earned in the same year", does that means interests earned in previous year?

are we allow to withdraw monthly?

Only for interest earned in the same year, up to the month before the withdrawal.

You are now allowed to make as many withdrawals as you like (previously I think it was only once a year). In reality I think making 1 or 2 withdrawals per year would be sufficient for most people.

 

[rrr2015]

thanks! good to hear that. been thinking monthly may curb overspending

You are allowed to withdraw monthly.

thanks moi not so bright so still a bit confused
e.g for 2018 interest earned but was credited only in jan 2019, can i withdraw that portion?

Only for interest earned in the same year, up to the month before the withdrawal.

You are now allowed to make as many withdrawals as you like (previously I think it was only once a year). In reality I think making 1 or 2 withdrawals per year would be sufficient for most people.

 

[crimsontactics]

thanks! good to hear that. been thinking monthly may curb overspending


thanks moi not so bright so still a bit confused
e.g for 2018 interest earned but was credited only in jan 2019, can i withdraw that portion?

Why you say you not so bright?

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[iMac]

Not really true. Property prices not guaranteed to rise all the way, unlike CPF.

Not saying that using CPF to invest in property is wrong, but it is not for everyone. Depends on your risk profile.

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Hahaha....agreed with you that everyone risk profile is different.

For me and most of my buddies, if we can take out all our CPF monies now, we will go MBS casino to double it within one night....No point buying property and wait for 30 years...

Luckily the government set rules that prevent ppl like me from doing such high risk "investment".

 

[JuniorLion]

You are on the right track buddy!
No worries .. because if you are going to lock up CPF for 30yrs, it's better to just locked it up in property for 30yrs.

Property gives you better capital gain thru leverage and real cash (controlled by you) thru rental income after loan is paid off.

During that 30yrs, you could be able to cash out and downgrade your home and many other options . Your money, Your idea, Your Rules!

What an excellent idea!

 

[peacefulday]

What an excellent idea!

Every sinkie should take advantage to get a bto if you are eligible. Up/downgrade to a second bto if possible. Your saving is always hard to catch up or in par with property price raise. Lastly do OA to SA, make them continue work since they start to get idle again.
It is only an excellent idea when you started early!

 

[tangent314]

Funny how some conspiracy theorists say we should take all money out of CPF to buy housing and other conspiracy theorists say there's a housing bubble looming.

 

[JuniorLion]

Every sinkie should take advantage to get a bto if you are eligible. Up/downgrade to a second bto if possible. Your saving is always hard to catch up or in par with property price raise. Lastly do OA to SA, make them continue work since they start to get idle again.
It is only an excellent idea when you started early!

Fantastic idea!

 

[blue_line]

I am currently holding my downpayment for future house in high yield savings account/SSB. My SA and MA are already maxed out. Is it wise to VC the difference of $37,740 minus my annual contribution to CPF? Intent is to earn the 2.5% of OA interest while preparing for my future property purchase.

 

[JuniorLion]

I am currently holding my downpayment for future house in high yield savings account/SSB. My SA and MA are already maxed out. Is it wise to VC the difference of $37,740 minus my annual contribution to CPF? Intent is to earn the 2.5% of OA interest while preparing for my future property purchase.

If you can predict your mandatory contribution.

 

[OngHuatHuat]

My advice is to go for freehold condo if possible or centralized location HDB such as those at red hill or Tiong Bahru.

That's my plan!
Going to wipe out my OA for property

 

[OngHuatHuat]

Net loss around 100 k after 5 years of holding.

 

[crimsontactics]

Net loss around 100 k after 5 years of holding.

God Bless You Bro yyhwin...

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[SBC]

Net loss around 100 k after 5 years of holding.

Assuming LTV 80% for purchase purchase of 300k, 1-year accursed interest is about 6k. 5-year is 30k.

Thus, loss of 100k is a combi of value drop and accursed interest.

 

[JuniorLion]

There are already multiple property threads.

Let's keep this thread to only CPF values, if possible, please.

Otherwise will definitely attract the property trolls in, like the infamous "I have an imbecilic husband" and "CCR FH" trolls.

 

[OngHuatHuat]

Not really, he sold for 195 k, bought at 300 k.
Simple maths.

Assuming LTV 80% for purchase purchase of 300k, 1-year accursed interest is about 6k. 5-year is 30k.

Thus, loss of 100k is a combi of value drop and accursed interest.

 

[BBCWatcher]

I am currently holding my downpayment for future house in high yield savings account/SSB. My SA and MA are already maxed out. Is it wise to VC the difference of $37,740 minus my annual contribution to CPF? Intent is to earn the 2.5% of OA interest while preparing for my future property purchase.

Some of your voluntary contribution will still flow into your Special Account, about 19% of it if you're within the age 35 to 45 range (for example; the percentage is different in other age brackets). That flow into your SA will boost your age 55+ and retirement savings, of course.

 

[cal3135]

Bro to VC is for immediate tax saving then intend on the 2.5% interest

I am currently holding my downpayment for future house in high yield savings account/SSB. My SA and MA are already maxed out. Is it wise to VC the difference of $37,740 minus my annual contribution to CPF? Intent is to earn the 2.5% of OA interest while preparing for my future property purchase.

 

[BBCWatcher]

Bro to VC is for immediate tax saving then intend on the 2.5% interest

There's no tax relief for "all three" voluntary contributions, with the exception of self-employed individuals (not blue_line's situation).

 

[cal3135]

My bad, bro u high earner, already ceiling on SA/MA.
My take is for the CPF OA 2.5% interest; better to hold as cash.
flexibility for usage as cash then as CPF which will attribute as accrued interest
Yes accrued CPF interest is still payable to yourself.

There's no tax relief for "all three" voluntary contributions, with the exception of self-employed individuals (not blue_line's situation).