CPF Accounts Value thread

[Dividends Warrior]

Nice. You must have been boldly transferring from OA to SA.

Why transfer from OA to SA is a bold move?

 

[THEMIKOS]

What do u mean by this, care to explain as i do not quite understand.

you wrong in the frs and basic are not mutually exclusive

 

[THEMIKOS]

And also thanks to you Dork32, ELKYme, Juniorlion, MikeDirnt78 for explaining and giving examples for me to understand better. Appreciated.

 

[THEMIKOS]

I assume that ur OA has little funds due to you servicing your mortgage?

Ok I can share mine

 

[THEMIKOS]

Bold move because he is only 40 years old. Should anything untoward (touch wood) happen to him/his job, there is no way the SA funds can be transferred to OA to service his mortgage payments. I am guessing this is what was meant by bold move.

Why transfer from OA to SA is a bold move?

 

[JuniorLion]

Bold move because he is only 40 years old. Should anything untoward (touch wood) happen to him/his job, there is no way the SA funds can be transferred to OA to service his mortgage payments. I am guessing this is what was meant by bold move.

At 55, after transferring the FRS to RA, the SA becomes a 'on-demand' 4% deposit savings account. You can withdraw any excess amount (excess of FRS) any time you wish.

Bite the bullet, delay the gratification.

 

[peacefulday]

He could no longer or using cash to service his mortgage. The low OA likely due to his SA met frs and MA maxed at several months ago and thus OA start accumulate from nil.

I assume that ur OA has little funds due to you servicing your mortgage?

 

[peacefulday]

I do transfer OA to my spouse SA till maxed. Do it only if you have confidence to meet the gov yearly adjusted frs figure before 55, earliest the better and let it auto pilot. I would skip top in kid's SA part as I cant predict any changes that could happen in future cpf policy after 30-40 years later.

Why transfer from OA to SA is a bold move?

 

[rerear]

Have been doing the cash to SRS, is it still worth to do the OA to SA, any further tax benefit?

 

[JuniorLion]

Have been doing the cash to SRS, is it still worth to do the OA to SA, any further tax benefit?

OA to SA transfer receives no tax relief.

 

[dork32]

If you opt for ERS, bigger amount will be used for premiums which earn interests but not paid to you if die early. ie referring to the 20% for basic and 100% for the other plans.

if you are on basic, a large ers would mean a larger sum earning higher interest.

 

[dork32]

What do u mean by this, care to explain as i do not quite understand.

i can be on frs and basic at the same time

 

[dork32]

Have been doing the cash to SRS, is it still worth to do the OA to SA, any further tax benefit?

2.5% to 4%

 

[SBC]

2.5% to 4%

2.5% to 4% to optimize the power of compounding. Though the increment is only 1.5%, it’s effects over multi years are significant.

The downside? Unable to service mortgage loan? Be it servicing your own HDB or investment unit, can be challenging or not-comforting without using any CPF.

Missing out property run can be a killer.

I will suggest to keep this OA-to-SA moderate. 1k to 2k each time. Repeat this every year till you know that you are hitting FRS.

I have done this myself. Transferred about 10k plus in late 2016 period, I think.

My OA: 93k,
SA: 196k
MA: 57k

Still have a huge mortgage close to 800k to service.

 

[dork32]

2.5% to 4% to optimize the power of compounding. Though the increment is only 1.5%, it’s effects over multi years are significant.

The downside? Unable to service mortgage loan? Be it servicing your own HDB or investment unit, can be challenging or not-comforting without using any CPF.

Missing out property run can be a killer.

I will suggest to keep this OA-to-SA moderate. 1k to 2k each time. Repeat this every year till you know that you are hitting FRS.

I have done this myself. Transferred about 10k plus in late 2016 period, I think.

My OA: 93k,
SA: 196k
MA: 57k

Still have a huge mortgage close to 800k to service.

good posting. both sides of the coins are discussed.

you chose a position and stated your reason.

let others decide what position they want to take.

 

[SBC]

good posting. both sides of the coins are discussed.

you chose a position and stated your reason.

let others decide what position they want to take.

I am not financially trained, very much self learnt from the days when forums / internet are not prominent. Discussion is definitely not as open as this.

It fits my purpose, not to all. Just noticed many youngsters are garang to transfer all OA to SA.

I had done mine with the awareness of the 2 overflow mechanism.

 

[SKenny]

post 55, can the VC deposits that are split into OA be subsequently withdrawn just like the usual OA monies?

also, will any of the VC go into SA if my SA has an amount exceeding the FRS even after the RA is set up?

Post 55, instead of splitting between OA/SA/MA, you can also to have them all going into MA. That is, same as pre 55.

VC contribution can flow into SA regardless of the amount in your SA. Only top-up is limited by the FRS limit.

 

[SKenny]

At that level, I will follow BBC advice. ERS, defer and escalating.

Any plan is is still a good plan.

I used to share the same plan (ie ERS, Defer and escalating). Now my current plan is just one of the 3 (ie ERS, withdraw at 65, Basic). Let me elaborate.

1. Escalating plan is just too expensive
I was very excited when they first announced the escalating plan. I often felt (and still do) that there isn't enough attention given to the erosion of inflation. We have been living in a period of extremely low inflation, and this could change soon.
Escalating is based on the Standard plan. If you compare the 2 plans, with a DCF analysis, the break even age is 90+! We can do much better on our own but it does need discipline.

2. Defer option
More precisely the opt-out option (the default option is withdrawal at 70). They claimed that for every year of deferment, you will get upto 7% more. When I input my numbers, the increment came up to just 5.7% if i defer from 65 to 66. Again not very impressive especially from a DCF perspective. To be fair, it is not bad either.

So I am now on the ERS, 65 and Basic plan. In order protect ourselves from inflation, we can contribute part of our CPFLife as top up into our RA (up to the prevailing ERS). This excess amount can be used to buy more CPFlife (up to age 80), or just be taken out as part of the AMP (Additional Monthly Payment), which will be paid out till 90.

 

[henrylbh]

post 55, can the VC deposits that are split into OA be subsequently withdrawn just like the usual OA monies?

also, will any of the VC go into SA if my SA has an amount exceeding the FRS even after the RA is set up?

Post 55, all money from VC and MC above FRS can be withdrawn based on default of withdrawal if FRS has been met.

Ratio of VC will continue to flow into SA with no age limit and regardless of how much there is in SA and does not matter whether RA has been set up.

 

[peacefulday]

Agreed. I had chosen the path to clear out my mortgages loan asap during old days where hdb price still cheap. I made the last laugh for escalating OA to SA in the later round.

2.5% to 4% to optimize the power of compounding. Though the increment is only 1.5%, it’s effects over multi years are significant.

The downside? Unable to service mortgage loan? Be it servicing your own HDB or investment unit, can be challenging or not-comforting without using any CPF.

Missing out property run can be a killer.

I will suggest to keep this OA-to-SA moderate. 1k to 2k each time. Repeat this every year till you know that you are hitting FRS.

I have done this myself. Transferred about 10k plus in late 2016 period, I think.

My OA: 93k,
SA: 196k
MA: 57k

Still have a huge mortgage close to 800k to service.