CPF Accounts Value thread

[dork32]

300k cash 10 years earn nothing. Sound about right for all those silly people hoarding cash in their bank accounts.

you are so right. 300k earning 0.05%? you another seow kia

 

[hwmook]

you are so right. 300k earning 0.05%? you another seow kia

That's his assumption mah, not mine.

 

[dork32]

THEMIKOS was just stating arbitrary figures to explain why he thinks the incurred interest (from using CPF to by house) equates to 'loss of interest', and that you will stand to profit more if you use cash (due to govt paying you interest in ur CPF simply).

You were the one who started drifting off course by stating Case 1 & Case 2 with different principal. And since you think you are right, where do you infer from his post that he was comparing between different scenarios with different principal? I simply used my own sets of arbitrary figures to further reinforce his views on the incurred interest resulting in a loss of interest by correcting on your flawed assumption of comparing 2 cases with different principal.

Although I used different figures, but so what? As long as it illustrate the point fairly and correctly, anything goes. This is not an exam. There's no model answer, it is not the case where there is only 1 right answer.

your argument is totally flawed in that your 300k cash is earning 0 interest.

 

[dork32]

That's his assumption mah, not mine.

i not whacking you mah. i whacking the madguy.

i agree with you mah.

 

[dork32]

Although I used different figures, but so what? As long as it illustrate the point fairly and correctly, anything goes. This is not an exam. There's no model answer, it is not the case where there is only 1 right answer.

why do you want to use different numbers? why cant you use his numbers since we are trying to discuss that point?

 

[dork32]

Accured interest exclude compounding would be 2.5% x 300k x 10 = 75k.

and how could you exclude the effects of compounding.

2.5% compounding for 10 years is significant. it amounts to 84k, much higher than the 75k you did.

your 75k is meaningless, same as the 20k used by thermikos. since they are all meaningless, why cant you use 20k instead

 

[Summer78]

Chill bro.....

 

[The_Davis]

why keep talking about àccrued interest?

 

[THEMIKOS]

Chill guys madtari and dork32. My figures were indeed anyhow plucked one, i didnt do any proper calculations on the interest like the "20k"-just an imaginary accrued interest number.

My main point was to show this statement as explained by madtari

THEMIKOS was just stating arbitrary figures to explain why he thinks the incurred interest (from using CPF to by house) equates to 'loss of interest', and that you will stand to profit more if you use cash (due to govt paying you interest in ur CPF simply).

Cheers and have a great week ahead.

THEMIKOS was just stating arbitrary figures to explain why he thinks the incurred interest (from using CPF to by house) equates to 'loss of interest', and that you will stand to profit more if you use cash (due to govt paying you interest in ur CPF simply).

You were the one who started drifting off course by stating Case 1 & Case 2 with different principal. And since you think you are right, where do you infer from his post that he was comparing between different scenarios with different principal? I simply used my own sets of arbitrary figures to further reinforce his views on the incurred interest resulting in a loss of interest by correcting on your flawed assumption of comparing 2 cases with different principal.

Although I used different figures, but so what? As long as it illustrate the point fairly and correctly, anything goes. This is not an exam. There's no model answer, it is not the case where there is only 1 right answer.

 

[madtari]

Pls grow up and get a life.... I don't think u fully understand the real meaning of assumption. Assumptions are to make things simpler. I've already made my point very clear - the examples we gave, are trying to prove our stand on incurred interest.

Thanks for taking the effort to calculate the compounded interest. U sure the total interest is $85,000 only? Whole figure so nice? Since u keep harping about the small details, why not just put in the exact amount to make things complete?

Ok, I'm done bickering with you over this... I feel so immature now. Thanks for making me feel young again! bye.....

and how could you exclude the effects of compounding.

2.5% compounding for 10 years is significant. it amounts to 84k, much higher than the 75k you did.

your 75k is meaningless, same as the 20k used by thermikos. since they are all meaningless, why cant you use 20k instead

 

[dork32]

Pls grow up and get a life.... I don't think u fully understand the real meaning of assumption. Assumptions are to make things simpler. I've already made my point very clear - the examples we gave, are trying to prove our stand on incurred interest.

Thanks for taking the effort to calculate the compounded interest. U sure the total interest is $85,000 only? Whole figure so nice? Since u keep harping about the small details, why not just put in the exact amount to make things complete?

Ok, I'm done bickering with you over this... I feel so immature now. Thanks for making me feel young again! bye.....

Pls grow up and get a life.... I don't think u fully understand the real meaning of assumption. Assumptions are to make things simpler.

the guy has already made an assumption that interest is 20k. you must do a 2.5%*300000*10 = 75k. which is simpler?

you totally dont understand the concept of assumption. you made things more complicated, and the worst thing is that your assumption is off. since it is off, why do you bother to make it in the first place. why not use the assumption that is already taken?

it is like 300k. this 300k is just an assumption made by that guy. why dont you say that the flat is bought at 302 123.48 because of agent fees, lawyer fees, stamp duties. yes 300k is more simple than that crazy number. same thing 20k is more simple than 2.5%*300000*10

at least i know how to get out a number for compound interest. I do not have ocd. i go for 2 significant figures. the fact that you can only make totally inaccurate assumption. It probably means that you do not even know how to calculate interest at 2.5% compounded annually for 10 years.

 

[dork32]

Chill guys madtari and dork32. My figures were indeed anyhow plucked one, i didnt do any proper calculations on the interest like the "20k"-just an imaginary accrued interest number.

My main point was to show this statement as explained by madtari

THEMIKOS was just stating arbitrary figures to explain why he thinks the incurred interest (from using CPF to by house) equates to 'loss of interest', and that you will stand to profit more if you use cash (due to govt paying you interest in ur CPF simply).

Cheers and have a great week ahead.

i did not do any calculations as well. i just used your numbers to illustrate your point.

i just want to state your scenario 1 vs 3 is not realistic.
it is either that your 300k cash is not earning 0 interest/returns
or
you are comparing returns on different principals.

 

[SkyNinja]

If you say as long as don't sell the house, the accrued interest is not a problem. May I clarify what happens after the house owner passed away? The accrued interests also get write off?

You all stop arguing la. Who can answer the above question then is considered CPF expert.

 

[madtari]

From what I know, if u sell after 55yo and ur RA already hit FRS, u can write in to waive off the incurred interest. I believe if the owner passed away, his or her cpf will be disbursed out according to nominations. As such, incurred interest will be automatically invalidated (since cpf accounts already empty and disbursed out, y need to repay?)

You all stop arguing la. Who can answer the above question then is considered CPF expert.

 

[dork32]

THEMIKOS was just stating arbitrary figures to explain why he thinks the incurred interest (from using CPF to by house) equates to 'loss of interest', and that you will stand to profit more if you use cash (due to govt paying you interest in ur CPF simply).

dork states that using cpf instead of paying cash, will make you cash rich. this cash can be put into relative safe instruments and earn interest close to that of oa.

eg dork has 2 uob1 account (150k at 2.4%), 3 dbs multiplier (150k at 2.3%) and one maybank saveup (60k at 3%). all these amounts to 360k, more than the 300k you have stated. the average returns is close to 2.5% from oa.

other options include ocbc360, citi maxigain, scb bonus saver and boc smartsaver

instead of garmen paying you interest, it is the banks that are paying you interest.

cash can be used to purchase anything. cpf can only be used to purchase property. i rather have 300k cash than 300k oa

 

[Prof. Utonium]

You all stop arguing la. Who can answer the above question then is considered CPF expert.

Yes.

The accrued interest is you paying back your future self of the opportunity cost for using your OA to pay for HDB, instead of letting it grow for retirement.

If you are dead, doesn't make sense for the estate to pay it back.

Whatever outstanding loan you have will be paid by your mortgage insurance.

 

[henrylbh]

You all stop arguing la. Who can answer the above question then is considered CPF expert.

No need expert. Most should be able to answer your question, but no one bother. Since you asked the second time, let me give the answer.

When a person uses his CPF for purchase of property, he needs to return the amount used plus accrued interest when his sell his property, regardless of his age. At 70yo, he still need to return the amount used plus accrued interest even if he has FRS at 55.

But if he dies, the property will vest with the Executor or Administrator who will then dispose the property and payoff any outstanding loan (if not covered by insurance), then distribute the proceed without need to return any amount to the deceased's CPF. Upon death, deceased's CPF cannot used to pay off any outstanding loan.

In addition, if the deceased has used his CPF for investment, the investment or sale of it, will go to the deceased's estate and not back to his CPF.

 

[madtari]

Dork.... stop it... don't be a cock and make urself sound stupid. Read the T&Cs... u can't have multiple accounts for UOB ONE, OCBC 360 etc. And assuming you can have so many accounts, to hit those max interest rates, u need to be spending like crazy on your credit cards.

Gosh... you have gone too far to compare risk free, care free interest of 2.5% in cpf with those savings accounts which requires conditions to be met and they r always subjected to changes every now and then... ur suggestions are really getting from bad to worse...

dork states that using cpf instead of paying cash, will make you cash rich. this cash can be put into relative safe instruments and earn interest close to that of oa.

eg dork has 2 uob1 account (150k at 2.4%), 3 dbs multiplier (150k at 2.3%) and one maybank saveup (60k at 3%). all these amounts to 360k, more than the 300k you have stated. the average returns is close to 2.5% from oa.

other options include ocbc360, citi maxigain, scb bonus saver and boc smartsaver

instead of garmen paying you interest, it is the banks that are paying you interest.

cash can be used to purchase anything. cpf can only be used to purchase property. i rather have 300k cash than 300k oa

 

[dork32]

Dork.... stop it... don't be a cock and make urself sound stupid. Read the T&Cs... u can't have multiple accounts for UOB ONE, OCBC 360 etc. And assuming you can have so many accounts, to hit those max interest rates, u need to be spending like crazy on your credit cards.

Gosh... you have gone too far to compare risk free, care free interest of 2.5% in cpf with those savings accounts which requires conditions to be met and they r always subjected to changes every now and then... ur suggestions are really getting from bad to worse...

madguy .... stop it... don't be a cock and make urself sound stupid. you do not live in this world on your own. i have father, mother, grandfather, grandmother, brother, sister, son, daughter, grandson, granddaughter. i can use any of their names to get another account. i dont have to just use my own name.

gosh... most of the conditions are so easy to achieve to me that it is almost risk free.

my month expenditure is more than 2k on cards.2 uob1 and 1 maybank only gives me 1.5k. i still have to find another card to settle my 500 extra. on months that me expenditure are low, i buy vouchers.

at dbs, i just need to spend $1 on credit card and i have dividends for 10 out of the 12 months. my salary goes there.

at maybank, i have my home loan and giro to pay my uob card.

at uob, i giro in my maybank card, income tax, property tax....

please lah, these account way superior to cpf oa. it is when all these accounts are full that i pump money into my oa. i take uob and dbs to be as safe as cpf. some people may look down on maybank, but my home loan is with them. if they go bust, the deposits can be offset by the home loan.

the next account that i am targeting is citi maxigain

you seriously have a one track mind. you must learn how to think out of the box. the numbers that i quote is for my case. it is up to you whether to believe or not

 

[JuniorLion]

This thread is supposed to be sharing your CPF accounts value.