CPF after 55

[BBCWatcher]

I understand it now, as said in the earlier post. Thanks.
UT don't link to CDP. CDP only stocks.

Well, there are a couple exchange-traded funds in the CPFIS universe. However, unit trust transfers don't seem to be excluded even if CDP isn't in the loop. But this (age 55+ transferring out of CPFIA) seems to be a fairly esoteric corner of the CPF-related world, so direct reports of individual experiences would be helpful.

How about choosing an almost ripe T-Bill as your "exit" vehicle? That looks like it could work. There should be a T-Bill maturing in any given month. As far as I know you can deploy CPFIS(OA) dollars to T-Bills without any unique sublimits.

 

[a4973]

Well, there are a couple exchange-traded funds in the CPFIS universe. However, unit trust transfers don't seem to be excluded even if CDP isn't in the loop. But this (age 55+ transferring out of CPFIA) seems to be a fairly esoteric corner of the CPF-related world, so direct reports of individual experiences would be helpful.

How about choosing an almost ripe T-Bill as your "exit" vehicle? That looks like it could work. There should be a T-Bill maturing in any given month. As far as I know you can deploy CPFIS(OA) dollars to T-Bills without any unique sublimits.

Hmm I remember from discussions much earlier on, investing in T-Bills using CPF funds is very difficult as in not many bank staff know how to process it.

 

[Andrew833]

Hi, so we're not sure where the UT can be transferred to post closing of the CPFIS OA account?
Are there stocks that are as safe as those UT recommended for shielding? Thank you.

Hi, stock and UT are different investment tools. So to find out, either email to CPF or wait till you near to 55 then email them for the latest information.
For shielding, people in HWZ recommend UT (income UT) which has very low risk. So we don't lose money while shielding.
Stocks has higher risk so no body recommend it.

 

[zoneguard]

https://www.sgx.com/securities/stocks-under-cpf-investment-scheme
Both A35 (ABF SPORE BOND INDEX FUND ETF) and MBH (NIKKOAM SGD IG CORP BOND) are ETFs traded on SGX and cleared for CPFIS-OA.

The former holds SG gov bonds and the later holds SGD investment grade corporate bonds.

 

[Andrew833]

Well, there are a couple exchange-traded funds in the CPFIS universe. However, unit trust transfers don't seem to be excluded even if CDP isn't in the loop. But this (age 55+ transferring out of CPFIA) seems to be a fairly esoteric corner of the CPF-related world, so direct reports of individual experiences would be helpful.

How about choosing an almost ripe T-Bill as your "exit" vehicle? That looks like it could work. There should be a T-Bill maturing in any given month. As far as I know you can deploy CPFIS(OA) dollars to T-Bills without any unique sublimits.

Yes, this is the first time I heard about it, very well hidden within CPF website.
I think it's better to be safe then going into some thing new, end result may not be good. This is our hard earn money, don't want to mess with it.

 

[Andrew833]

For CPFIS- OA
Once your application is approved, CPF will inform your agent bank to close your CPF Investment Account.

If you have SGX-traded securities (e.g. shares) or cash balance in your CPF Investment Account, your agent bank will contact you regarding your Central Depository (CDP) securities account, CDP transfer fee and payment of your cash balance.

If you only have non-SGX-traded securities (e.g. insurance, unit trusts) and no cash balance in your CPF Investment Account, your agent bank will inform your product provider(s) to transfer your investment to your own name and you may thereafter liquidate them as you wish and have the sale proceeds paid to you directly.

Just dug out old news from CPF (2017)

 

[BBCWatcher]

Hmm I remember from discussions much earlier on, investing in T-Bills using CPF funds is very difficult as in not many bank staff know how to process it.

That's for the CPFIS(SA) — yes, difficult. Hence the unit trust path is much more appropriate for SA shielding. For the CPFIS(OA) it's much easier since you should be able to use your favorite (and hopefully low cost) broker to handle this, and with a few clicks or taps.

For example, there's a 2 year Singapore Government Security listed as maturing on April 1, 2022, issue code N517100F and SGX trading symbol BZKS. So hypothetically you could buy that bond on March 1, 2022, at basically par, ask the CPF Board to close your CPF Investment Account, then just let it mature if you want. The proceeds will be paid automatically by CDP to your bank account that you have linked to CDP, and they should be ready to spend about April 4. And you're not going to take any real principal risk in that since that's the very safest place to park Singapore dollars. The SGX lot size is 10, so this path would be for ~S$10,000 OA withdrawals.

 

[a4973]

That's for the CPFIS(SA) — yes, difficult. Hence the unit trust path is much more appropriate for SA shielding. For the CPFIS(OA) it's much easier since you should be able to use your favorite (and hopefully low cost) broker to handle this, and with a few clicks or taps.

For example, there's a 2 year Singapore Government Security listed as maturing on April 1, 2022, issue code N517100F and SGX trading symbol BZKS. So hypothetically you could buy that bond on March 1, 2022, at basically par, ask the CPF Board to close your CPF Investment Account, then just let it mature if you want. The proceeds will be paid automatically by CDP to your bank account that you have linked to CDP, and they should be ready to spend about April 4. And you're not going to take any real principal risk in that since that's the very safest place to park Singapore dollars. The SGX lot size is 10, so this path would be for ~S$10,000 OA withdrawals.

Thank you BBC Watcher. If this is done on a zero fee platform there's essentially no cost except for the quarterly CPFIS OA account fee levied by the bank?

 

[BBCWatcher]

Thank you BBC Watcher. If this is done on a zero fee platform there's essentially no cost except for the quarterly CPFIS OA account fee levied by the bank?

Well, if you're buying something on the SGX there'd be a brokerage fee of some kind, plus the tiny exchange fees. And CPF Investment Accounts have more than their quarterly fee as I understand it.

 

[a4973]

Anyway I've delved in the poems platform am able to locate N517100F and SGX trading symbol BZKS however the payment interface though it shows Cash , CPF , SRS, there's no further drop down for the CPF tab to select OA or SA. I've also read on the MAS site and all matters relating to T Bill are to approach the 3 dealer banks. Not sure if other trading platforms are able to select CPF OA for T Bill.

 

[Andrew833]

Anyway I've delved in the poems platform am able to locate N517100F and SGX trading symbol BZKS however the payment interface though it shows Cash , CPF , SRS, there's no further drop down for the CPF tab to select OA or SA. I've also read on the MAS site and all matters relating to T Bill are to approach the 3 dealer banks. Not sure if other trading platforms are able to select CPF OA for T Bill.

SGX trading only for CPF OA account.

 

[vsvs24]

https://www.cpf.gov.sg/member/faq/r...that-special-account-savings-will-be-paid-fir

What is the reason that Special Account savings will be paid first, followed by Ordinary Account savings?​

Strictly speaking, the funds in the Special Account (SA) should attract a higher interest rate of 4% only if the monies are locked-in for the long term. This is analogous to market practice, where fixed deposits which are locked-in for the long term attract higher interest rates than savings deposits which are withdrawable at any time.

Accordingly, the funds in members’ SA that are actually withdrawable at any time should not be earning the higher interest rate of 4%. As a concession, we currently allow the withdrawable funds to remain in SA, but will require any withdrawals to be taken from SA first before Ordinary Account (OA).

****"
Anyone knows if this FAQ is new or wordings changed recently ? The words "As a concession" gives me the creep.

 

[item2sell]

https://www.cpf.gov.sg/member/faq/r...that-special-account-savings-will-be-paid-fir

What is the reason that Special Account savings will be paid first, followed by Ordinary Account savings?​

Strictly speaking, the funds in the Special Account (SA) should attract a higher interest rate of 4% only if the monies are locked-in for the long term. This is analogous to market practice, where fixed deposits which are locked-in for the long term attract higher interest rates than savings deposits which are withdrawable at any time.

Accordingly, the funds in members’ SA that are actually withdrawable at any time should not be earning the higher interest rate of 4%. As a concession, we currently allow the withdrawable funds to remain in SA, but will require any withdrawals to be taken from SA first before Ordinary Account (OA).

****"
Anyone knows if this FAQ is new or wordings changed recently ? The words "As a concession" gives me the creep.

you have no say when in comes to CPF. It’s scary when people are blindly topping up because all others are doing same. Lemmings syndrome

 

[Andrew833]

you have no say when in comes to CPF. It’s scary when people are blindly topping up because all others are doing same. Lemmings syndrome

I think the worst is those people keep few hundreds K in the CPF, without managing it.
I almost become one of them, heng......

 

[lzydata]

https://www.cpf.gov.sg/member/faq/r...that-special-account-savings-will-be-paid-fir

What is the reason that Special Account savings will be paid first, followed by Ordinary Account savings?​

Strictly speaking, the funds in the Special Account (SA) should attract a higher interest rate of 4% only if the monies are locked-in for the long term. This is analogous to market practice, where fixed deposits which are locked-in for the long term attract higher interest rates than savings deposits which are withdrawable at any time.

Accordingly, the funds in members’ SA that are actually withdrawable at any time should not be earning the higher interest rate of 4%. As a concession, we currently allow the withdrawable funds to remain in SA, but will require any withdrawals to be taken from SA first before Ordinary Account (OA).

****"
Anyone knows if this FAQ is new or wordings changed recently ? The words "As a concession" gives me the creep.

This is referring to monies in SA above the FRS, the kind that people put in after age 55?

Sorry, too many details, haven't been following

 

[vsvs24]

This is referring to monies in SA above the FRS, the kind that people put in after age 55?

Sorry, too many details, haven't been following

Referring to those above 55 with RA already formed with at least FRS or BRS with property pledge.

They are free to withdraw remaining balance in SA and OA but withdrawal sequence is SA first then OA.

 

[vsvs24]

I think the worst is those people keep few hundreds K in the CPF, without managing it.
I almost become one of them, heng......

This is not the worst. The worst is people take out the CPF money and invest and lost it all. Like the Hyflux victims.

 

[Andrew833]

This is not the worst. The worst is people take out the CPF money and invest and lost it all. Like the Hyflux victims.

They invest but never monitor the company and financial statement is their own problem. From the report I dig out, the dividend is deceasing but revenue is increasing since 2012 to 2016, these already signal red flag to dig out more information of the company.

 

[vsvs24]

They invest but never monitor the company and financial statement is their own problem. From the report I dig out, the dividend is deceasing but revenue is increasing since 2012 to 2016, these already signal red flag to dig out more information of the company.

That's what I mean. If not familiar with investing, better off leaving it in CPF.

Btw don't be so unkind. I also did not expect a company producing water to collapse (without looking at financials).

 

[Andrew833]

That's what I mean. If not familiar with investing, better off leaving it in CPF.

Btw don't be so unkind. I also did not expect a company producing water to collapse (without looking at financials).

It's a good lesson for them. If they learn it, next time they will be more careful right?
Investing journey is never smooth, there is always gain and loss.