CPF Accounts Value thread

[SKenny]

I am only wondering if there're benefits to top up to get AMP if it's not earning any interest, and the interest also not streaming out to you as payouts.

Why are saying that there is no interest?

All top up in RA will earn 4% (subjected to future changes).

 

[iMac]

Wahhhh...lim peh very layman leh...dont understand so much argument here...

The more I read, the more I get confused..

Maybe, it is the purposed of CPF...set up so much rules and get all the layman confused.

 

[dork32]

dork32, refer to your statement "your ra would be 250k at 65 if you are at frs at 55."
may i know how do we calculate this?
ie if FRS is $176k at 55. this $176K that is transferred to RA will become how much at 65?

it is an agar agar number. it is more that 250k but i am a 2 significant figure guy.
=FV(0.04,10,0,176000,0) = 260 522.99

10 years of compound interest at 4% on a principal of 176k is 260k.

so i missed the number by 10k lah.

 

[dork32]

Maybe, it is the purposed of CPF...set up so much rules and get all the layman confused.

dont blame cpf. blame idiots like me.

because idiots like me dont like this dont like that. complain here, complain there. they have to set up systems of try to please more people. but different people have different needs. so they have to give us more options. this is where the system become more complex.

 

[verilyverily]

it is an agar agar number. it is more that 250k but i am a 2 significant figure guy.
=FV(0.04,10,0,176000,0) = 260 522.99

10 years of compound interest at 4% on a principal of 176k is 260k.

so i missed the number by 10k lah.

Throwing in the additional max 1%+1% of bonus interest on eligible balances yearly appears to give approx $271K + compounded by age 65. Agar agar lah.

 

[havetheveryfun]

Wahhhh...lim peh very layman leh...dont understand so much argument here...

The more I read, the more I get confused..

Maybe, it is the purposed of CPF...set up so much rules and get all the layman confused.

if u cant meet FRS, no need to understand, choose whatever is almost the same

 

[trevallyo]

100% SPOT ON!

the last point makes me "thaw hway"

over use of complex terminologies and trying too hard to sound sophisticated

 

[JuniorLion]

Why are saying that there is no interest?

All top up in RA will earn 4% (subjected to future changes).

Because henrylbl said "You will get back the money you put into AMP, no more no less."

 

[JuniorLion]

Dun try to deceive yourself or mislead others. My statement is 100% perfectly correct as I am talking about RA, u are talking about the CPF Life Pool where interest belong to the pool, not your money except if u live long enough

And dun quote old info!

Read this from current CPF website:


Q Where will the extra interest be paid to after I join CPF LIFE?

A If you have chosen the CPF LIFE Standard Plan or CPF LIFE Escalating Plan, the extra interest will be paid into the Lifelong Income Fund. By paying the extra interest into the Lifelong Income Fund, you will be able to enjoy a more stable payout for the rest of your life. The extra interest will be pooled and factored into your monthly CPF LIFE payouts.

If you have chosen the CPF LIFE Basic Plan, we will pay the extra interest earned into your Retirement Account and pay it to you in the year it is earned as part of your monthly CPF LIFE payout. When your combined balances fall below $60,000, the extra interest will reduce. This reduces your monthly CPF LIFE payouts gradually.

The BIG difference is if u die earlier than expected, your bene gets the extra 2% interest credited to RA (up to 900 pa) if u choose Basic Plan and continue to topup after payout starts!

Your bene will not get the extra 2% interest credited to the CPF Life Pool if u choose Standard or Escalating Plans! and continue to topup after payout starts!

CPF basic plan is the way to go. I think BBCW can go choose the escalating plan so he can subsidize other =)

 

[The_Davis]

CPF basic plan is the way to go. I think BBCW can go choose the escalating plan so he can subsidize other =)

are you going to opt for pay out start at 65 or remain at 70 yo?

 

[JuniorLion]

are you going to opt for pay out start at 65 or remain at 70 yo?

Definitely 65.

 

[a4973]

Asking all the CPF experts here.
When there comes a time after 55 I have decided that whatever is in my OA , SA , MA & RA is to be my bequest as I do not need to drawdown any CPF monies is there any specific strategy I should adopt or just leave the accounts as they are? RA would have at least FRS. MA would be paying for my child's & my ISP but I could also top back up with cash. Thank you for reading.

Sent from Nextbit ROBIN using GAGT

 

[JuniorLion]

Asking all the CPF experts here.
When there comes a time after 55 I have decided that whatever is in my OA , SA , MA & RA is to be my bequest as I do not need to drawdown any CPF monies is there any specific strategy I should adopt or just leave the accounts as they are? RA would have at least FRS. MA would be paying for my child's & my ISP but I could also top back up with cash. Thank you for reading.

Sent from Nextbit ROBIN using GAGT

If you leave it in there, you'll get good interest and it can function as some sort of 'bond' fund for you to withdraw anytime you wish, and also act as a 'bequest'.

Alternatively you can invest your CPF monies..

 

[a4973]

If you leave it in there, you'll get good interest and it can function as some sort of 'bond' fund for you to withdraw anytime you wish, and also act as a 'bequest'.

Alternatively you can invest your CPF monies..

Thanks. I won't be investing for sure. Just wondering is there any benefits in transferring OA or SA to RA in this case? Or it would be a bad idea?

Sent from Nextbit ROBIN using GAGT

 

[SKenny]

Thanks. I won't be investing for sure. Just wondering is there any benefits in transferring OA or SA to RA in this case? Or it would be a bad idea?

Sent from Nextbit ROBIN using GAGT

In your case, transfer from OA to RA make sense. From SA to RA does not.

 

[bobobob]

Thanks. I won't be investing for sure. Just wondering is there any benefits in transferring OA or SA to RA in this case? Or it would be a bad idea?

Sent from Nextbit ROBIN using GAGT

I think after 55 you can't transfer from OA to SA anymore, only OA to RA. If you transfer to RA, then it will become part of your CPF premium, or it will be paid back to you monthly, if you've already started CPF payouts.

But please confirm with CPF before making decisions.

 

[Toni90]

CPF basic plan is the way to go. I think BBCW can go choose the escalating plan so he can subsidize other =)

Or got subsidized if he lives very long. He wants to take his chance.

 

[JuniorLion]

Or got subsidized if he lives very long. He wants to take his chance.

He thinks he's one in a million or that he'll take health supplements and be alive and healthy and running marathon at 110 years old.

 

[dork32]

if u cant meet FRS, no need to understand, choose whatever is almost the same

there is a lot of difference if you have frs

 

[dork32]

CPF basic plan is the way to go. I think BBCW can go choose the escalating plan so he can subsidize other =)

i do not mind if bbc likes to do community service.

but if he tells everyone to go escalating, and he secretly goes basic....