CPF Accounts Value thread

[badsector]

Rental at Hougang is still quite good. Believed is much better than SK/PG.

3 bus stops from interchange.

a little bit better only

 

[THEMIKOS]

Age: 37

OA: 12K
SA: 176k (moved OA to SA to max it)
MA: 54k

Amount put into 3rm Pigeon hole - 140k
In debt of 230k for the next 28 years

Made a mistake of not keeping at least 20k in my OA. Miscalculated so if any of u are gonna do a OA to SA transfer, dont make the same mistake as me.

nothing to haolian about, my humble CPF stats:

OA: 152.8k
SA: 101.5k
MA: 54.5k

Capital used for pigeon hole: 42.5k
Accrued interest: 11.1k
remainder of hdb loan paid up liaoz

32.8k used to buy equities

 

[THEMIKOS]

My humble opinion is that for those who have their other halves as a non working housewife, the best thing would be to VC into their SA to try to meet retirement sum. This is the best thing we can do for our loved ones (provided we can la). For now i cant but i hope in future i can.

 

[BBCWatcher]

She wants to own a condo lah. Not only living in one.

And the answer is no, sorry, that's not financially viable unless she'd like to enter the labor force, and probably not even then. However, if she'd like to live in a private condo, that's viable.

 

[ocs_woodlands]

In my whole life, I have been most afraid to have a non working spouse, someone I jokingly call a HouseFly

Houseflies aka Housewives have a detached sense of reality from the world.

One type is all about children's academic achievements. My mother in law (non working housewife) still gives me a rendition of her son's academic achievements from PSLE to A levels when I see her for meals. I have been married 18 years and his son's PSLE was > 25 years ago!

Another type is follow the Joneses type. When the neighbours' underwear changes (they can see whats hanging on the bamboos ), its also time for the family to change the underwear...

In short, I think that people who have never worked or haven't worked a long time has a detached sense of reality and the working spouse needs to be the anchor and pull back the house wife a bit...

My 2 cents...

* Sorry derail this into a Mother in Law thread LoL

 

[Calthron]

Something silly to admit. Had been paying loan mortgage from CPF OA for years, interest from loan is always at <2%. Reason to do so is to build up more cash reserve. Now, think already have enough cash for rainy days, or for investment. So, will change to deduction for cash. Monthly instalment is 3k (1.5k split with spouse), interest 1.85%. 15 years to go. Age is early 40s. Property is EC with about 470k loan left. OA has about 167k.
Asking - you think make sense to use cash to pay? Shd we use cash to make partial payment?

 

[cal3135]

Indeed, working on having both to reach FRS with top ups...

My humble opinion is that for those who have their other halves as a non working housewife, the best thing would be to VC into their SA to try to meet retirement sum. This is the best thing we can do for our loved ones (provided we can la). For now i cant but i hope in future i can.

Posted with xsmax HardwareZone Forums app

 

[BBCWatcher]

Something silly to admit. Had been paying loan mortgage from CPF OA for years, interest from loan is always at <2%. Reason to do so is to build up more cash reserve. Now, think already have enough cash for rainy days, or for investment. So, will change to deduction for cash. Monthly instalment is 3k (1.5k split with spouse), interest 1.85%. 15 years to go. Age is early 40s. Property is EC with about 470k loan left. OA has about 167k.
Asking - you think make sense to use cash to pay? Shd we use cash to make partial payment?

Probably not.

First of all, I hope we can agree that you should not accelerate repayment of a 1.85% interest rate mortgage when your Ordinary Account dollars are earning 2.5% interest. That would not be smart.

OK, so you then you're asking which dollars ought to be used to service a (low cost) mortgage at standard pace. And you've got a choice between unrestricted cash and restricted Ordinary Account funds. That decision will depend on how and where you invest unrestricted cash if it's not being used to service a mortgage, but generally speaking you should be able to save and invest unrestricted cash in an age and risk appropriate way for a long-term total return net of costs that exceeds 2.5%. So OA is generally a cheaper source of funds to service a mortgage, and therefore you'd lean toward using OA....

....With a caveat or two. First, OA is also a gateway into SA. So if your SA has not yet reached the Full Retirement Sum, and you've got lots of OA dollars piling up (which seems to be the case), then consider transferring some OA dollars into SA and continuing to service the mortgage with OA funds. Second, some people just don't do a good job saving unless they've got a mortgage or some other hard-to-negotiate bill hanging over their heads. If that's you -- if your household is inclined to spend every cent on present day goods and services -- then maybe you should use unrestricted cash to service a mortgage, because the forced payroll savings flow into CPF is all the saving that you're capable of doing otherwise.

 

[dork32]

S Shd we use cash to make partial payment?

seow kia then use cash to make partial payment.

i got extra cash, dont know where to throw, i throw it back to the oa also dont make partial payment.

then again, there are lots of seow kias out there.

 

[dork32]

Probably not.

....With a caveat or two. First, OA is also a gateway into SA. So if your SA has not yet reached the Full Retirement Sum, and you've got lots of OA dollars piling up (which seems to be the case), then consider transferring some OA dollars into SA and continuing to service the mortgage with OA funds. Second, some people just don't do a good job saving unless they've got a mortgage or some other hard-to-negotiate bill hanging over their heads. If that's you -- if your household is inclined to spend every cent on present day goods and services -- then maybe you should use unrestricted cash to service a mortgage, because the forced payroll savings flow into CPF is all the saving that you're capable of doing otherwise.

i will never do oa to sa transfer, especially in this rising rate environment.

rates are rising fast. should the rate rise to a unbearable number, you can use your oa to do partial payment.

i would like to see you use the sa to save you from high interest.

 

[addict951]

Age: 37

OA: 12K
SA: 176k (moved OA to SA to max it)
MA: 54k

Amount put into 3rm Pigeon hole - 140k
In debt of 230k for the next 28 years

Made a mistake of not keeping at least 20k in my OA. Miscalculated so if any of u are gonna do a OA to SA transfer, dont make the same mistake as me.

You so fast fill up your SA, no chance of topping up RSTU SA $7K and claim it leh, you dun need this relief har? Are you BBFA?

 

[BBCWatcher]

You so fast fill up your SA, no chance of topping up RSTU SA $7K and claim it leh....

That chance remains to some extent, for up to $7,000/year of tax relief for topping up a qualified family member's Special Account or Retirement Account. There is also Supplementary Retirement Scheme tax relief that's available.

 

[THEMIKOS]

No chance to top up la thats why i trans all using cpf funds. Some family issues so wont be able to have cash savings for next 2 years.

Btw what is BBFA?

You so fast fill up your SA, no chance of topping up RSTU SA $7K and claim it leh, you dun need this relief har? Are you BBFA?

 

[THEMIKOS]

Btw i dont understand how much can 7k RSTU top up save me? When maxed SA, it gives me about $7k interest. If hit the over 60k tax bracket i prob pay about 3k plus a year. Wont it be better to max out SA in this case?

 

[Summer78]

seow kia then use cash to make partial payment.

i got extra cash, dont know where to throw, i throw it back to the oa also dont make partial payment.

then again, there are lots of seow kias out there.

I am the seow kia.

I use cash for mortgage payment.

 

[SBC]

I am the seow kia.

I use cash for mortgage payment.

100% cash?

My monthly is > 4k. Cannot afford to use solely cash. Haha

 

[henrylbh]

I lagi seow

I am going to pay in full in cash of $440k on completion this 25 Jan. CPF untouched

 

[THEMIKOS]

Why not pay 439k and use 1k in cpf? So that govt can hound u for the accrued interest one day?

I lagi seow

I am going to pay in full in cash of $440k on completion this 25 Jan. CPF untouched

 

[Summer78]

Got 300k inside?

Sent from . using GAGT

About 400k at the end of last year.

 

[Summer78]

Got 300k inside?

Sent from . using GAGT

100% cash?

My monthly is > 4k. Cannot afford to use solely cash. Haha

Yeah. 100% cash. Save the money in cpf OA for the rainy days if I need it to pay my mortgage.