CPF after 67

[dork32]

I still got housing to pay/last till my 75. So most likely I will not do the SA Shield.
had been making efforts to rebuild my OA.
Getting close to 140k now.

whether you got housing loan or not, you should do the shield.

 

[dork32]

i myself is expected to have 400k outstanding homeloan at 55. i will do the shield

 

[SBC]

whether you got housing loan or not, you should do the shield.

Can explain why?
Only OA can be used for housing payment.
Is it easy to get exception?

 

[dork32]

Can explain why?
Only OA can be used for housing payment.
Is it easy to get exception?

take a simple example
i have 200k oa, 200k sa, 400k housing withdrawal at age 54.9
take frs = 200k

if i dont shield, at 55,
i have 200k oa, 0 sa,, 200k ra
my oa continues to earn 2.5%
i contiue to use oa for housing installment

if i shield, at 55
i have 0 oa, 200k sa, 200k ra
my sa continues to earn4%
my oa got no money to pay installment, so i withdraw from my sa every month to pay cash for my housing installment

which case looks better

 

[dork32]

sorry if i shield i have 40k, 160k sa and 200k ra

 

[qhong61]

take a simple example
i have 200k oa, 200k sa, 400k housing withdrawal at age 54.9
take frs = 200k

if i dont shield, at 55,
i have 200k oa, 0 sa,, 200k ra
my oa continues to earn 2.5%
i contiue to use oa for housing installment

if i shield, at 55
i have 0 oa, 200k sa, 200k ra
my sa continues to earn4%
my oa got no money to pay installment, so i withdraw from my sa every month to pay cash for my housing installment

which case looks better

If shield at 55, what is the con?

 

[dork32]

If shield at 55, what is the con?

the con is it is very troublesome.
you have to set up cpf investment account, sign up on poems, buy the unit trust, sell the unit trust, every month must remember to withdraw money from sa to pay installment or bank repo house.
dont shield, there is no task to do at all.
you decide if these tasks are worth the 4% interest in sa vs 2.5% in oa

 

[McFadden]

My father just got cpf.600 every month. considered alot or little?

 

[celtosaxon]

My father just got cpf.600 every month. considered alot or little?

The monthly amount is relative to the balance it was generated from. In his case, I would expect the balance to be less than $120k ($600 x 12 = $7,200 / 0.06), probably closer to $100k.

 

[Value.Matrix]

My father just got cpf.600 every month. considered alot or little?

CPF aims to payout about 5.5% to 6% of the total sum at 65. So considering $600 a month, your father should have about $120,00 to $131,000 in his RA. For my mum, she receives about $595 has much less (about near to 100k) as she is 70++ and on CPF LIFE.

You tell me a lot or little? I really do not know how to answer.

An annuity outside assuming 4% payout with no reduction of capital, to give $7,200 a year, needs a lump sum of $180,000 present value.

If its 10 years before, its $121,600 10 years ago lump sum.

This is a weird question to ask actually because if you want more, just TOP UP RA account to get more monthly.
If you think it is little, can you tell me what other investment can give me about that kind of money? and must be risk free.

 

[Value.Matrix]

the con is it is very troublesome.
you have to set up cpf investment account, sign up on poems, buy the unit trust, sell the unit trust, every month must remember to withdraw money from sa to pay installment or bank repo house.
dont shield, there is no task to do at all.
you decide if these tasks are worth the 4% interest in sa vs 2.5% in oa

Actually can do yearly withdrawal, and VC that money in to reduce the admin required instead of monthly. But that aside,

I fully agree with you.

 

[qhong61]

the con is it is very troublesome.
you have to set up cpf investment account, sign up on poems, buy the unit trust, sell the unit trust, every month must remember to withdraw money from sa to pay installment or bank repo house.
dont shield, there is no task to do at all.
you decide if these tasks are worth the 4% interest in sa vs 2.5% in oa

If no more housing loan or investment, need to set up cpf investment account?
Can just leave in SA till u need to draw as and when needed?

 

[dork32]

If no more housing loan or investment, need to set up cpf investment account?
Can just leave in SA till u need to draw as and when needed?

coz you are not reading the thread. i was answering to sbc. he has home loan to pay

 

[dork32]

If no more housing loan or investment, need to set up cpf investment account?
Can just leave in SA till u need to draw as and when needed?

no investment account, how to buy unit trust?

 

[SBC]

the con is it is very troublesome.
you have to set up cpf investment account, sign up on poems, buy the unit trust, sell the unit trust, every month must remember to withdraw money from sa to pay installment or bank repo house.
dont shield, there is no task to do at all.
you decide if these tasks are worth the 4% interest in sa vs 2.5% in oa

What

coz you are not reading the thread. i was answering to sbc. he has home loan to pay

Thanks, Dock32 for your response. End of the day, is the OA$ amount that I am comfortable. Make sense to SA shield.

 

[BBCWatcher]

Dork32: Actually, to clarify, you don't need a CPF Investment Account for SA shielding. All you need is an account with one of the fee free platforms that supports the CPF Investment Scheme (SA), such as a POEMS account.

A CPF Investment Account (at UOB, DBS, or OCBC) is only required for the CPF Investment Scheme (OA).

 

[bbwinnie1]

Hi all, I would like to borrow this thread. Hopefully someone can help me out on some CPF queries!

My dad is 56 years old this year. He managed to set aside the full FRS amount in 2022.

Currently, he has the following balance in CPF:
RA - approx. $200k
SA - approx. $100k
OA - approx. $60k

Understand that he is able to fully withdraw both the remaining SA & OA balances left since he has already met the FRS. However, he only wishes to withdraw the balance of $60k in OA only. Reading the thread, I have just found out that the order of withdrawal comes from SA first then OA .

Is there a possible way we can go around this?

 

[qhong61]

Hi all, I would like to borrow this thread. Hopefully someone can help me out on some CPF queries!

My dad is 56 years old this year. He managed to set aside the full FRS amount in 2022.

Currently, he has the following balance in CPF:
RA - approx. $200k
SA - approx. $100k
OA - approx. $60k

Understand that he is able to fully withdraw both the remaining SA & OA balances left since he has already met the FRS. However, he only wishes to withdraw the balance of $60k in OA only. Reading the thread, I have just found out that the order of withdrawal comes from SA first then OA .

Is there a possible way we can go around this?

No

 

[fr33d0m]

Yes and there is cost and it is not simple.

you need open a CPF Investment account with one of the 3 local banks. Then invest the 60k, and close investments account and pay to transfer the investment to CDP and when the investment matures or you sell it, the money goes to you

 

[wira]

Yes and there is cost and it is not simple.

you need open a CPF Investment account with one of the 3 local banks. Then invest the 60k, and close investments account and pay to transfer the investment to CDP and when the investment matures or you sell it, the money goes to you

wait ...you mean we can continue to 'shield' SA after age 55 when we want to withdraw $ ?

ie if i want to withdraw, 'Shield' SA first by investing in safe funds, do withdrawal from OA, then sell investment to put funds back to SA ?