CPF chats

[peppermint7]

Continue from chats spin out from latest $ deposits updates thread.

About using cpf as short term FD.

so far i don't rem topping up SA with cash. i have transferred regularly from OA to SA till FRS reached when i was working last time. after i stopped working, i just do VC into medisave or the 3 accounts.

din realise top up to SA with cash can only come out 65 onwards via CPF life.

only if those cash topups to SA get transferred to RA.

cash topups to RA are also locked.

Yong, if we (at below 55) top up to SA via OA or cash now, when come 55, OA + SA will combine to form RA. But if I'm not wrong, it'll only take out up to FRS to form?

As what i understand previously from henry is that irregardless of what we top up. Anything exceed FRS can be withdrawn from CPF.

Also be aware that anything that goes to RA will be use to form CPF life. We can never cash out from RA. Unless 1 pledges property with it. Something liddat

 

[peppermint7]

Based on the CPF LIFE Estimator, my take-away is:

The main difference between Standard and Basic Plan appears to be at the Bequest amount (i.e. what's left for your nominee upon your death), this amount is highest for the basic plan, and is significantly higher for Basic Plan, yet the monthly payout between the two plan is not a huge difference, so if you have reason to believe you are not likely to have a lifespan beyond age 90, it really makes more sense to opt for the Basic Plan. Even if you were to live beyond age 90, it also makes sense to opt for the Basic Plan, unless you really want to squeeze that little more monthly payout between the 2 plan and is not concerned about any bequest since you have no one to leave behind any money to.

Is there anywhere to see the bequest amount? How do we know exactly how much our leave behind is?

 

[peppermint7]

I forgot to mention, another important consideration why I will choose Basic CPF Life Plan: I can convert it into a "CI policy" which gives me more payout anytime I want, for treatment, enjoy my last days, etc, upon confirmation of terminal illness or tpd. Standard/Escalating - no way, just compare the bequest to be given to bene, in this case will be yourself.

How to convert to CI policy? U mean we can easily adjust our payout upon situations?

 

[peppermint7]

I just did a test scenario. I had read about what you described but never used the calculator for myself as it does not allow for my age.

What i did is

I use a compound interest calculator to estimate my amount in SA by 55yo

Eg. Of compound interest calculator

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Then key in the estimated amt i would have by 55. For year of birth i keyed in 1965 (test scenario) In order to guage my CPF life payout.

https://www.cpf.gov.sg/eSvc/Web/Schemes/LifeEstimator/LifeEstimator

 

[zoneguard]

doody did a CPF calculator before: https://forums.hardwarezone.com.sg/money-mind-210/cpf-calculator-5589081.html

Need to change the FRS and BHS values for 2020.

You can also do a quick check with Excel's FV formula assuming no further contributions for OA/SA if you don't want to use that spreadsheet.

 

[yongsaver]

Continue from chats spin out from latest $ deposits updates thread.

About using cpf as short term FD.





Yong, if we (at below 55) top up to SA via OA or cash now, when come 55, OA + SA will combine to form RA. But if I'm not wrong, it'll only take out up to FRS to form?

As what i understand previously from henry is that irregardless of what we top up. Anything exceed FRS can be withdrawn from CPF.

Also be aware that anything that goes to RA will be use to form CPF life. We can never cash out from RA. Unless 1 pledges property with it. Something liddat

yes. thats my understanding also. OA+SA becomes RA. anything more than the FRS in RA can be withdrawn. that said, with the shitty interest rates going forward, most people will just leave the money inside.

 

[huitay]

Need some advice

Hi need some advice for a 40+.
I have around 90K in my OA/120K in SA and 60K MA.


I'm using my OA mainly for housing since my wife is a SAHM looking after 2 kids. I was thinking of topping up my wife CPF since i have some spare cash now. Is it advisable to do that or should i use my cash to pay off some of my HDB loan first? Or should i transfer my OA to SA first then pay fully the HDB by cash?

 

[peppermint7]

doody did a CPF calculator before: https://forums.hardwarezone.com.sg/money-mind-210/cpf-calculator-5589081.html

Need to change the FRS and BHS values for 2020.

You can also do a quick check with Excel's FV formula assuming no further contributions for OA/SA if you don't want to use that spreadsheet.

Thanks for the useful link

 

[peppermint7]

yes. thats my understanding also. OA+SA becomes RA. anything more than the FRS in RA can be withdrawn.

Anything into RA CANNOT be withdrawn. Except pledging of property.

I suppose u mean the left behind amount that isn't scooped into RA when we hit 55

 

[dork32]

yes. thats my understanding also. OA+SA becomes RA. anything more than the FRS in RA can be withdrawn. that said, with the shitty interest rates going forward, most people will just leave the money inside.

This is a bit wrong but the effects are about the same

ra is formed first using sa, not enuf then oa will make up the shortfall for frs.

the rest of the money will remain where they are, whether it is in oa or sa. this amount can be withdrawn.

 

[yongsaver]

This is a bit wrong but the effects are about the same

ra is formed first using sa, not enuf then oa will make up the shortfall for frs.

the rest of the money will remain where they are, whether it is in oa or sa. this amount can be withdrawn.

yep. this is right.

 

[dork32]

Is there anywhere to see the bequest amount? How do we know exactly how much our leave behind is?

use the cpf life estimator. the graph provided is quite good.

you will not an exact amount, only an estimate.

 

[peppermint7]

Hi need some advice for a 40+.
I have around 90K in my OA/120K in SA and 60K MA.


I'm using my OA mainly for housing since my wife is a SAHM looking after 2 kids. I was thinking of topping up my wife CPF since i have some spare cash now. Is it advisable to do that or should i use my cash to pay off some of my HDB loan first? Or should i transfer my OA to SA first then pay fully the HDB by cash?

If I'm u and I can afford to pay off my loan by cash, I will go for it.

My priority will be make sure my SA meet FRS 1st

 

[yongsaver]

Hi need some advice for a 40+.
I have around 90K in my OA/120K in SA and 60K MA.


I'm using my OA mainly for housing since my wife is a SAHM looking after 2 kids. I was thinking of topping up my wife CPF since i have some spare cash now. Is it advisable to do that or should i use my cash to pay off some of my HDB loan first? Or should i transfer my OA to SA first then pay fully the HDB by cash?

if me in your situation, me will trans from OA to SA and max SA. use cash to pay monthly HDB mortgage, no real need to pay off some of the loan with cash unless can reduce loan by a lot or even fully pay it off. the remaining OA for backup just in case income affected. also some cash on hand is better these days.

 

[peppermint7]

This is a bit wrong but the effects are about the same

ra is formed first using sa, not enuf then oa will make up the shortfall for frs.

the rest of the money will remain where they are, whether it is in oa or sa. this amount can be withdrawn.

Thanks for the clear explanation

 

[zoneguard]

A lot of useful information in this thread but quite long so only read when you have the time:
https://forums.hardwarezone.com.sg/...dard-basic-escalating-one-better-5943806.html.

 

[peppermint7]

use the cpf life estimator. the graph provided is quite good.

you will not an exact amount, only an estimate.

Sorry I am blur on this

Am I right to say i have to take the difference between basic and standard to make up the bequest?

For eg. If the diff is $200

If I pass on at 90

My bequest will be 90-65yo
25 years x 12 mth x $200
= 60k

 

[huitay]

if me in your situation, me will trans from OA to SA and max SA. use cash to pay monthly HDB mortgage, no real need to pay off some of the loan with cash unless can reduce loan by a lot or even fully pay it off. the remaining OA for backup just in case income affected. also some cash on hand is better these days.

Thanks....got what you mean. So I will transfer some of my OA to meet the $181K FRS. Remaining will slowly pay by cash. Do agree that keeping some remaining money in OA for backup since now job economy is not good.

 

[oceanicmanta]

iirc, using the CPF Tool, there are different buttons to choose to show Payout or Bequests for the graph

 

[zoneguard]

Sorry I am blur on this

At top right corner of graph, there's buttons to select to view total payout or bequests instead of default payouts.