CPF after 67

[royalmix]

Learn to read key and important threads, the hack is there!

https://forums.hardwarezone.com.sg/...g-hack-fully-explained.6132953/post-150184962

 

[a4973]

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

Can only invest 40k not 60k

 

[BBCWatcher]

Another indirect option is that he can transfer his OA dollars to a qualified family member's Retirement Account (if the recipient is age 55+) or Special Account. What that recipient does is then up to the recipient, but the recipient could hand the donor a cash gift as a thank you.

The full $60K is available for transfers. Or $40K can be effectively withdrawn via the CPF Investment Account "hack" and the remaining $20K can be transferred, in that sequence. (Transfer only after the CPFIA deduction is made from OA.)

 

[fr33d0m]

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 ?

I did not mention SA at all…

 

[fr33d0m]

Can only invest 40k not 60k

Still need reserve 20K even after 55 and fulfilled FRS in RA?

ETA:
CPF allows you to withdraw all in cash, but not 20K with CPF IS….

What kind of logic is that…

 

[BBCWatcher]

Still need reserve 20K even after 55 and fulfilled FRS in RA?
ETA:
CPF allows you to withdraw all in cash, but not 20K with CPF IS….
What kind of logic is that…

The CPF Board doesn't allow you to withdraw OA funds ahead of SA funds. But it does allow you to direct OA dollars into investments, housing, education, and transfers — within certain boundaries.

This ruleset is logical. That is, it's a reasonable program design. You're then free to operate within these rules in atypical ways that you may prefer. And if you prefer to withdraw all but $20K from your OA when you're age 55+ then there's currently an indirect way to do that without touching your SA dollars.

 

[bbwinnie1]

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

Okay! Got it, thank you so much! This is very helpful!!

Just to be certain, the investments mentioned here does not necessarily has to be T-Bills right? It also applies to all funds such as unit trusts that are CPF-0A approved right? So upon moving these unit trusts to CDP after the closure of CPFIA, he can just simply sell off and receive as cash immediately?

Asking because I read from another thread that most people are investing into T-Bills as a hack to withdraw OA balance after 55. However, my dad does not want to wait 6 months for the maturity!

 

[fr33d0m]

Okay! Got it, thank you so much! This is very helpful!!

Just to be certain, the investments mentioned here does not necessarily has to be T-Bills right? It also applies to all funds such as unit trusts that are CPF-0A approved right? So upon moving these unit trusts to CDP after the closure of CPFIA, he can just simply sell off and receive as cash immediately?

Asking because I read from another thread that most people are investing into T-Bills as a hack to withdraw OA balance after 55. However, my dad does not want to wait 6 months for the maturity!

what's so urgent? unit trust you need check with your CPF agent bank. There could be higher cost to sell unit trust prematurely.

 

[qhong61]

Okay! Got it, thank you so much! This is very helpful!!

Just to be certain, the investments mentioned here does not necessarily has to be T-Bills right? It also applies to all funds such as unit trusts that are CPF-0A approved right? So upon moving these unit trusts to CDP after the closure of CPFIA, he can just simply sell off and receive as cash immediately?

Asking because I read from another thread that most people are investing into T-Bills as a hack to withdraw OA balance after 55. However, my dad does not want to wait 6 months for the maturity!

Why OA money after 55 cannot withdraw.
But don't withdraw if don't need.

 

[wira]

Why OA money after 55 cannot withdraw.
But don't withdraw if don't need.

can withdraw ..but i think if withdraw will withdraw from higher interest SA first then OA.

 

[vsvs24]

Okay! Got it, thank you so much! This is very helpful!!

Just to be certain, the investments mentioned here does not necessarily has to be T-Bills right? It also applies to all funds such as unit trusts that are CPF-0A approved right? So upon moving these unit trusts to CDP after the closure of CPFIA, he can just simply sell off and receive as cash immediately?

Asking because I read from another thread that most people are investing into T-Bills as a hack to withdraw OA balance after 55. However, my dad does not want to wait 6 months for the maturity!

If the intention is to close CPFIA and transfer to CDP, have to get something that CDP can accept. SGX shares and tbills have been tested and no issues.

Not sure if unit trusts can be transferred to CDP.

 

[BBCWatcher]

An exchange-traded fund such as A35 would certainly work for these purposes. There’s going to be some cost and a little risk involved, though.

 

[weng0202]

I have a question on the first 20k in OA that cannot be withdrawn or invested. Can that amount be used for property?

 

[reddevil0728]

I have a question on the first 20k in OA that cannot be withdrawn or invested. Can that amount be used for property?

the CPF used for property isn't considered an investment. hence diff treatment

 

[weng0202]

the CPF used for property isn't considered an investment. hence diff treatment

I was just thinking since cannot withdraw that 20k maybe can just include it into the housing loan so that eventually nothing is left in OA (when loan is paid up) and the shielded money in SA can be like fixed deposit.

 

[reddevil0728]

I was just thinking since cannot withdraw that 20k maybe can just include it into the housing loan so that eventually nothing is left in OA (when loan is paid up) and the shielded money in SA can be like fixed deposit.

What do you mean included it into the housing loan?

I mean you can just drain your OA for property, if that's what you are asking?

 

[weng0202]

What do you mean included it into the housing loan?

I mean you can just drain your OA for property, if that's what you are asking?

Yeah means after 55 years old still have housing loan. Since the first 20k in OA cannot be withdrawn after shielding SA. Might as well include it into the amount left in OA to pay housing loan (but must be bank loan I guess since CPF will wipe out everything for HDB loan)

 

[BBCWatcher]

Might as well include it into the amount left in OA to pay housing loan (but must be bank loan I guess since CPF will wipe out everything for HDB loan)

CPF doesn’t ”wipe out everything” for a HDB loan. You’re allowed to leave up to $20,000 in a CPF Ordinary Account when picking up the keys on a HDB flat financed with a HDB loan.

By the way, in present and similar interest rate conditions it would be unwise to pay a 2.6% HDB loan faster than required.

 

[weng0202]

CPF doesn’t ”wipe out everything” for a HDB loan. You’re allowed to leave up to $20,000 in a CPF Ordinary Account when picking up the keys on a HDB flat financed with a HDB loan.

By the way, in present and similar interest rate conditions it would be unwise to pay a 2.6% HDB loan faster than required.

Yup, just thinking of possible options when I sell off my condo closer to 55 and getting a resale hdb. Might be too much trouble just to clear the first 20k left in OA.

 

[vsvs24]

Yup, just thinking of possible options when I sell off my condo closer to 55 and getting a resale hdb. Might be too much trouble just to clear the first 20k left in OA.

But now have 15 mths waiting period right ?