CPF Accounts Value thread

[Summer78]

I lagi seow

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

Jsm Henry Kor Kor....

 

[Summer78]

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

I paid $10k using cpf OA for my home. Just to set it up just in case next time need to use it.

 

[chiokcc]

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

If your current HDB location has
1. good transport connectivity, eg. MRT, buses, etc. within walking distance
2. affordable and ample food choices
3. supermarkets, or shops nearby that meet your daily necessities

I would opined that you should stay put. When you get older, you may not wish to have additional pressure of driving on the roads. Coupled with parking, petrol and insurance, all these cost $$

 

[tangent314]

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?

It's not necessarily a loss to max out your SA early and deny yourself the chance for RSTU reliefs. You lose the tax reliefs for one year, but you gain on compounding interest difference.

 

[peacefulday]

Maxed SA FRS years ago, and concurrently transferred my OA to spouse SA and now hers also just crossed FRS. Do VC $2.7k to both our MA last week. Never give a chance for my cpf in idle mode.

Since you are getting less years reaching 55, the RA's FRS will be set and stamped soon.

But not always a brilliant idea to do early OA SA transfering for those who still far reach 55, unless you have confidence to catch up the yearly raising FRS, and the RA 55 and retirement 65 pay out will not change in future.

Check with u guys.
I'm near 50 years now (time really flies before u know it).
OA 103k
SA 213k
MA 57k

HDB fully paid, no investment done from cpf money and no debt.

Wife is asking if we could upgrade and buy a condo.
I'm thinking it may not be wise to go back into debt when this time should focus on building up the reserves for retirement.
She's not working since over 10 years ago.

What's your opinion?

 

[Midlifecrisis]

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.

I gave half of my pay to her every month. I told her this thing called CPF Life but she prefer to hold it in bonds, FD and etc in her "personal savings". She then asked "why dont you VC into my account" on top of the 50% I gave her every month. I keep quiet.... They are smarter than you when it comes to savings. haha...

 

[havetheveryfun]

I gave half of my pay to her every month. I told her this thing called CPF Life but she prefer to hold it in bonds, FD and etc in her "personal savings". She then asked "why dont you VC into my account" on top of the 50% I gave her every month. I keep quiet.... They are smarter than you when it comes to savings. haha...

now can understand why you used such a username

 

[Dividends Warrior]

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

Is accrued interest a bad thing? Always been confused about this.
I see some people complain about it, but some people said it's fine.

 

[dork32]

I am the seow kia.

I use cash for mortgage payment.

no. using cash for mortgage payment is not seow.

you have to pay back the bank every month of they will repo your home. if you are cash rich, you may want to use cash for this.

what i am saying is people that are cash rich and choose to do partial repayment with cash. these people are seow. if they dont do partial repayment bank will do nothing to you. so why bother?

 

[dork32]

I lagi seow

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

this one could be seow.

it is depends on whether you have withdrawn from your cpf for your previous properties.

if you have not, paying by cash may not be seow. it really depends if you are able to get better returns on your cash. so people just dont want to take risk.

but if you still owe cpf money, and you are paying by cash, yes, you are seow.
eg
you withdrew 200k + accrued interest from cpf.
you have 440k cash
you buy hdb for 440k.

you can use your cash to pay up everything such that you do not have anything left and still owe cpf 200k
or
you can take a loan of 200k, and pay the rest of the 240k with cash.
your remaining cash is paid back to cpf.
which is better?

then again, this is a hdb. so you would not have any property other than this. you would not have withdrawn anything. so you are not seow.

 

[dork32]

Is accrued interest a bad thing? Always been confused about this.
I see some people complain about it, but some people said it's fine.

accrued interest is bad if you want sell your home and pay ah long. it reduces the cash portion of your sales.

accrued interest is not bad if you want to buy another home because it can be use to offset the cost.

accrued interest is not bad if you have frs and is close to or over 55. it can be withdrawn at 55.

 

[dork32]

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

dont see any logic in this

 

[dork32]

I gave half of my pay to her every month. I told her this thing called CPF Life but she prefer to hold it in bonds, FD and etc in her "personal savings". She then asked "why dont you VC into my account" on top of the 50% I gave her every month. I keep quiet.... They are smarter than you when it comes to savings. haha...

your problem is that there is a line between what is yours and what is hers. there is none between me and my wife.

my wife has access to 100% of my salary. she has the discipline not to just whack it. if vc to her cpf, it is like using her own cash to do vc.

If you give her 20% and vc the 30%, it is likely that she will not agree. many people will not vc with their own money.

 

[Dividends Warrior]

accrued interest is bad if you want sell your home and pay ah long. it reduces the cash portion of your sales.

accrued interest is not bad if you want to buy another home because it can be use to offset the cost.

accrued interest is not bad if you have frs and is close to or over 55. it can be withdrawn at 55.

Thanks for the explanation

Another question, some people advice paying off housing loan fully ASAP (wipe out as much of our OA as possible), but some people say should go for the longest tenure loan. Which one is a better option if we want to make good use of the CPF system?

 

[limster]

I took housing loan with no lock in. When sti below 3000, I bought sti ETF. When sti went above 3000, I did regular partial repayment of my housing loan instead of investing my cash.

 

[SBC]

Thanks for the explanation

Another question, some people advice paying off housing loan fully ASAP (wipe out as much of our OA as possible), but some people say should go for the longest tenure loan. Which one is a better option if we want to make good use of the CPF system?

You should opt for the later as you are very disciplined with your investment.

Getting your BTO soon?

 

[Dividends Warrior]

You should opt for the later as you are very disciplined with your investment.

Getting your BTO soon?

Thanks for the advice.
Yup, got a queue no. for the Nov 2018 bto launch.

 

[peacefulday]

accrued interest is bad if you want sell your home and pay ah long. it reduces the cash portion of your sales.

accrued interest is not bad if you want to buy another home because it can be use to offset the cost.

accrued interest is not bad if you have frs and is close to or over 55. it can be withdrawn at 55.

totally agreed

Thanks for the explanation

Another question, some people advice paying off housing loan fully ASAP (wipe out as much of our OA as possible), but some people say should go for the longest tenure loan. Which one is a better option if we want to make good use of the CPF system?

there are different styles in swimming, be it a free/frog/doggie/butterfly, etc and the one can help you reached your destination and don't get drown is the best.

I clear off my first bto asap in the early days, sale cash proceed dump into 2nd upgraded bto and get my accrued interest reset again (which don't really bother me), and started escalating transferred OA to SA mine and later spouse to FRS Maxed. Stop here as I would not do top up for my kids acc yet as they still far reach 55.
Well, I am not a high income earner, I still can continue do stock and 2nd property investment with my 'doggie' swim style to further ground

 

[THEMIKOS]

I dont think its a bad thing. Its ur own money anyway.

Lets say if u buy a property worth 300k and use cpf to pay, when u sell, u needa put back into ur own cpf the accrued interest (pay ur ownself the interest since govt dont pay u).

Scenario 1: Lets say u sell your house for 350k and accrued interest is 20k, u refund into ur cpf 320k (lets negate all the loans and interest etc for this maths). U get cash profit of 30k.

Scenario 2: u sell your house for 320k. 320k goes into your CPF and u get $0 cash proceeds.

Scenario 3: you sell your house for 270k. 270k goes into your cpf (you lose 30k out of the 300k initial house price.) you also lose out on the interest the govt would have paid u which is the "accrued interest" which is 20k.

Now some might argue that in scenario 3 you lose only 30k and not 50k so depends on how u see it.

BUT lets say u finance your house with just cash. You buy at 300k and sell at 350k. U get a profit of 50k PLUS your cpf is in ur account which generated another 20k (this the interest the govt paid u that we call accrued interest if u had used cpf to finance your house). So in my opinion u have made 70k (50+20k cpf interest).

Hopefully u understand better

Is accrued interest a bad thing? Always been confused about this.
I see some people complain about it, but some people said it's fine.

 

[THEMIKOS]

No logic la, too much free time at work so just wanted to kachiau him.

dont see any logic in this