CPF after 55

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Andrew833

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2021 FRS is $186,000
Your SA should cap at $186,000 (correct me if I'm wrong)
$40,000 is lock so able to shield is $146,000.

Let pick Nikko AM Shenton Short Term Bond SGD
Current price $1.5957
Total fee is 0.4% annually (no sale charge) (I'm using FSM1 as a example, correct me if you know the correct answer)

So when you first invest $146,000
The broker/ FSM1 will charge the fee 0.4% first, so the fee is $584.00
So you left $145,416.00/ $1.5957 = you get 91,129.91..... unit.

So your shielding is loss with $584.00 in day 1.
I don't know if there is a bid/offer spread. This will increase the loss.

Hopefully someone really know about unit trust can advise me and other people in this tread. We can learn together to shield our CPF just before 55. Thanks :)
 
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polyglob

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Andrew833 said:
2021 FRS is $186,000
Your SA should cap at $186,000 (correct me if I'm wrong)
$40,000 is lock so able to shield is $146,000.
Click to expand...

SA has no cap. It is possible to have 200k, 300k or more in SA. Say you have 200k in SA. For shielding you invest 160k.
 
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zoneguard

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Andrew833 said:
The broker/ FSM1 will charge the fee 0.4% first, so the fee is $584.00
So you left $145,416.00/ $1.5957 = you get 91,129.91..... unit.
Click to expand...

Only bid price for this particular UT - click on price history. For UT, the expense ratio is priced into the NAV and not charged separately.
 
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hwmook

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Andrew833 said:
2021 FRS is $186,000
Your SA should cap at $186,000 (correct me if I'm wrong)
$40,000 is lock so able to shield is $146,000.

Let pick Nikko AM Shenton Short Term Bond SGD
Current price $1.5957
Total fee is 0.4% annually (no sale charge) (I'm using FSM1 as a example, correct me if you know the correct answer)

So when you first invest $146,000
The broker/ FSM1 will charge the fee 0.4% first, so the fee is $584.00
So you left $145,416.00/ $1.5957 = you get 91,129.91..... unit.

So your shielding is loss with $584.00 in day 1.
I don't know if there is a bid/offer spread. This will increase the loss.

Hopefully someone really know about unit trust can advise me and other people in this tread. We can learn together to shield our CPF just before 55. Thanks :)
Click to expand...

Doesn't work like that, fees are baked into NAV, you don't pay separately.
 
aeng

aeng

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homedriver said:
Yeah, no one know when we will die. Just want to understand each plan pro and con. For CPF LIFE PLAN, we have to live long enough to enjoy the benefit. For example 83. So if based on family history, the possibilities is low, it seems wiser to placed lesser money in the CPF LIFE PLAN but keep more in the RA, SA and OA which still enjoy interest after 65. And the remaining will be pass to my beneficiary.
Click to expand...

This Providend video has the info you need:

The others in this CPF series are good too.
 
iMac

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zoneguard said:
Only bid price for this particular UT - click on price history. For UT, the expense ratio is priced into the NAV and not charged separately.
Click to expand...
So for short term (1-2 months) shielding...it is better to get low expense-ratio bonds like the Nikko AM Shenton Short Term Bond SGD ? invest thru FSMOne platform?
 
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zoneguard

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a4973

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Just wondering for the following scenario, cpf member > 55, has 2xxk in OA, 2xxk in SA (did shielding) , 2xxk in RA (did rstu to ERS) but say very little in MA (eg 20k). If this person encounters a major medical event that will drain the MA and still has unpaid medical bills. Will this person be required to raid his OA, SA or even RA funds (down to FRS level) before even being considered for those various government aid packages through means testing?
Thanks
 
BBCWatcher

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a4973 said:
Just wondering for the following scenario, cpf member > 55, has 2xxk in OA, 2xxk in SA (did shielding) , 2xxk in RA (did rstu to ERS) but say very little in MA (eg 20k). If this person encounters a major medical event that will drain the MA and still has unpaid medical bills. Will this person be required to raid his OA, SA or even RA funds (down to FRS level) before even being considered for those various government aid packages through means testing?
Click to expand...
The short answer is yes. Means tested programs are means tested, and those CPF dollars are real dollars.
 
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Strikk

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Some questions. My dad turned 55 a few yrs ago and went down to cpf board.

He has enough to meet BRS but not enough for FRS so cpf say can do property pledge which he did.

Fast forward, he quit his job after 55 and been withdrawing cpf for as and when he like. I was shocked that goondu was depleting his retirement sum before 65. Why isnt the RA locked at 55? He ***** blur cock keep withdrawing and messing up his retirement plan.
 
BBCWatcher

BBCWatcher

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a4973 said:
What about the point about CPF funds being afforded protection against creditors and judgement?
Click to expand...
They are. But that doesn't mean you get either free iPhones or free heart bypass surgery. If you want to buy medical services you can, but nobody else (including the government) is required to buy them for you.
Strikk said:
Some questions. My dad turned 55 a few yrs ago and went down to cpf board.
He has enough to meet BRS but not enough for FRS so cpf say can do property pledge which he did.
Fast forward, he quit his job after 55 and been withdrawing cpf for as and when he like. I was shocked that goondu was depleting his retirement sum before 65. Why isnt the RA locked at 55? He ***** blur cock keep withdrawing and messing up his retirement plan.
Click to expand...
Since he made a property pledge he's allowed to withdraw funds above the Basic Retirement Sum, plus a little more ($5,000). It might be/probably is foolish for him to make these withdrawals, but the CPF Board allows him to be foolish with his own money, to a degree.

If his loved ones (such as you) would like to support him financially but don't like his spendthrift ways, no problem. If you make a Voluntary Contribution to his MediSave Account then he can only spend those dollars on qualified medical expenses in Singapore including MediShield Life, CareShield Life, and Integrated Shield base plan premiums. If you top up his Retirement Account then those extra dollars will only stream out as CPF LIFE monthly payouts no earlier than age 65, and for the rest of his life. You might be able to transfer dollars in your Ordinary Account to his Retirement Account (depending on your situation).
 
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Strikk

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Thanks for the reply.

He is aiming for >2k/mth monthly income after 65. Privately he has some retirement plans that will payout 1,3k monthly after 65. So I have reminded him and reeducated him on how cpf life works and hopefully once he turn 65, his cpf life payout can be 800-1k range.

What are the drawback of property pledge ? In the event that he passed on ? any impact on its value ?
 
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