CPF chats

[maple96]

Hi all!

I have been regularly doing $7,000 topup to my SA since I started working. I have done some calculations and know that my CPF SA will hit the estimated FRS at the age of 39. Subsequently, my salary contributions and interest for SA should then be able to keep up with the yearly increase of FRS. That would mean that I am unable to do $7,000 topup yearly for tax relief.

My question is: Should I invest my CPF SA so that I free up some space for me to continue my yearly $7,000 topup for tax relief? Assuming my tax bracket stay at around 11.5% to 15%. I have also been topping up $15,300 to my SRS every year.

Thanks in advance for all the help!

Hypothetically you could invest Special Account dollars in something dreadful that loses a lot of money, at least temporarily, and then you'd have more room for top ups with tax relief.

I don't think you should do that.

Now u see, worst than primary school level logic

It's a joke. Obviously.

Ok cannot resist sharing this joke:

Donald Trump made a comment, something like this:

if disinfectant is effective in killing COVID, then drink disinfectant to give u immunity. Then many of his followers listened and drank. They end up suffering from poisoning drinking disinfectant.

Then many people scolded DT. Later he came out to comment again, something like this:

It's a joke!

 

[peppermint7]

Many has talked about SA shielding. But i suppose the amount top up via cash into SA and the interest generated from it CANNOT be shield as they are meant to b strictly set aside for RA?

 

[epigram]

hello. a member is on Retirement Sum Scheme. monthly payments made until account went to zero. If top-up is done, will monthly payments resume automatically (until balnace run out again) or must an application be made?

 

[maple96]

Many has talked about SA shielding. But i suppose the amount top up via cash into SA and the interest generated from it CANNOT be shield as they are meant to b strictly set aside for RA?

I recall juniorlion was the only one who shared years ago.

I dun have cash topups. If u have, I know u have, login to CPF, according to juniorlion, u can see the topups+ stated as reserved.

Someone here, I think is valuematrix, said he wrote in to CPFB and will share the replies here, that was more than a year ago I think (me old liao, cannot recall so clearly). Anyone seen his sharing?

 

[rrr2015]

i guess u can check under investment : professionally managed products to determine amount you can shield?

Many has talked about SA shielding. But i suppose the amount top up via cash into SA and the interest generated from it CANNOT be shield as they are meant to b strictly set aside for RA?

 

[peppermint7]

I recall juniorlion was the only one who shared years ago.

I dun have cash topups. If u have, I know u have, login to CPF, according to juniorlion, u can see the topups+ stated as reserved.

Someone here, I think is valuematrix, said he wrote in to CPFB and will share the replies here, that was more than a year ago I think (me old liao, cannot recall so clearly). Anyone seen his sharing?

Under "my statement"
below the blue box last sentence.

It states "Part of your account has been reserved. View link"

Click in can see

You have $xxx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55.

So i am correct to say whatever we top to Special account will NOT be available for use for those who are thinking of SA shielding

 

[pcmdan]

Under "my statement"
below the blue box last sentence.

It states "Part of your account has been reserved. View link"

Click in can see

You have $xxx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55.

So i am correct to say whatever we top to Special account will NOT be available for use for those who are thinking of SA shielding

Omg, i learnt something new again. CPF needs to improve their UI.

Kudous.

Agree, from my understanding of CPF, those $$ that we topped up into SA cant be used for anything.

 

[peppermint7]

Omg, i learnt something new again. CPF needs to improve their UI.

Kudous.

i guess u can check under investment : professionally managed products to determine amount you can shield?

What rrr2015 says is also correct I think his is the most straight forward way

 

[oceanicmanta]

Under "my statement"
below the blue box last sentence.

It states "Part of your account has been reserved. View link"

Click in can see

You have $xxx in your Special Account under the Retirement Sum Topping Up Scheme. This comprises the top-up amount and any interest earned, and has been reserved to be transferred to your Retirement Account when you turn 55.

So i am correct to say whatever we top to Special account will NOT be available for use for those who are thinking of SA shielding

hmm ... I am not too sure about that and dont recall this being discussed/mentioned

from CPF stmt, u shld also be able to see that SA Amount Available for Investment includes the Reserved Amount. Just cannot invest the first 40k in SA

the question is if SA investment is subsequently liquidated after shielding, whether the RSTU amount is still tagged as Reserved Amount ?

I hope/thought it would follow that if FRS in RA is met (without property pledge), any excess above FRS can be withdrawn ?

 

[peppermint7]

hmm ... I am not too sure about that and dont recall this being discussed/mentioned

from CPF stmt, u shld also be able to see that SA Amount Available for Investment includes the Reserved Amount. Just cannot invest the first 40k in SA

the question is if SA investment is subsequently liquidated after shielding, whether the RSTU amount is still tagged as Reserved Amount ?

I hope/thought it would follow that if FRS in RA is met (without property pledge), any excess above FRS can be withdrawn ?

The fact is. I have just checked my acc. and confirm that. For eg. I have 180k in SA

The amount that is reserved is 100k
Amount available for investment is only 80k

So to say. Whatever I top up including it's interest cannot be used for investment at all. It is being set aside.

 

[oceanicmanta]

The fact is. I have just checked my acc. and confirm that. For eg. I have 180k in SA

The amount that is reserved is 100k
Amount available for investment is only 80k

So to say. Whatever I top up including it's interest cannot be used for investment at all. It is being set aside.

strange ... my wife's shows the same as what u described

but mine shows Investible = 180 - 40 = 140k

so what's in the RSTU matters ?? ... but dont recall mine differs from wife's

need to look back to see ...

 

[maple96]

The fact is. I have just checked my acc. and confirm that. For eg. I have 180k in SA

The amount that is reserved is 100k
Amount available for investment is only 80k

So to say. Whatever I top up including it's interest cannot be used for investment at all. It is being set aside.

At this stage, pls share facts, no more u think, I think, he think, "DT" say, etc

I trust u, cos I know u have alot of SA topups, just check your CPF account, how much of your SA can be invested = answer

If your SA topup+interest is less than 40k, of course is 180k less 40k

 

[peppermint7]

At this stage, pls share facts, no more u think, I think, he think, "DT" say, etc

I trust u, cos I know u have alot of SA topups, just check your CPF account, how much of your SA can be invested = answer

Yup correct. Cos the reserved amount is the amount i top up include interest

So for those who RSTU. Got to take note

 

[yongsaver]

yep. i tot we settled this few posts back already?

if u do direct cash top up into SA, that sum plus its interest cannot be invested and cannot be taken out at age 55. can only be slowly milked via CPF life from age 65.

OA transfer to SA, normal contribution from work into SA, voluntary cash contribution into 3 A/Cs no such restriction.

 

[peppermint7]

yep. i tot we settled this few posts back already?

if u do direct cash top up into SA, that sum plus its interest cannot be invested and cannot be taken out at age 55. can only be slowly milked via CPF life from age 65.

OA transfer to SA, normal contribution from work into SA, voluntary cash contribution into 3 A/Cs no such restriction.

Im slow in catching up
Finally I'm same level as u

Only on this chapter though. Lol

 

[maple96]

Im slow in catching up
Finally I'm same level as u

Only on this chapter though. Lol

It is good u confirm with facts from your CPF statement, doing your own due diligence, to confirm what others tell u are correct.

 

[yongsaver]

Im slow in catching up
Finally I'm same level as u

Only on this chapter though. Lol

i tot u finished the race liao. me still running.

 

[luvpraline]

Anyone knows if lease buyback is allowed for those who already have FRS? From what I read, the proceeds from the sale of remaining lease to HDB will go into RA to be streamed out via CPF Life. Just curious what happens for those who already meet FRS?

 

[Utonian]

Anyone knows if lease buyback is allowed for those who already have FRS? From what I read, the proceeds from the sale of remaining lease to HDB will go into RA to be streamed out via CPF Life. Just curious what happens for those who already meet FRS?

believe if you have FRS in your RA, then any additional you can withdraw unless you going for ERS

 

[zoneguard]

Anyone knows if lease buyback is allowed for those who already have FRS? From what I read, the proceeds from the sale of remaining lease to HDB will go into RA to be streamed out via CPF Life. Just curious what happens for those who already meet FRS?

https://askhdb.hdb.gov.sg/Themes/HDB/Answers.aspx?MesId=23011699&From=Show&TOPV=YES&VMesID=6829165

Q:
If I already have enough money for retirement in my CPF account, will HDB allow me to withdraw all my LBS proceeds as a lump sum?

A:
After you have topped up the Retirement Account (RA) to the specified top-up requirement, you may retain the proceeds in cash, up to a maximum of $100,000 per household. If there is any remaining proceeds (after the top-up and setting aside of $100,000 cash), owners will have to use their share of remaining proceeds to further top up their respective RAs to the current Full Retirement Sum (FRS), before they can retain any balance in cash as well.

If all your CPF RAs are at current FRS, without room for top-up, you can withdraw the net proceeds in cash, but will not receive any LBS bonus. You will still have to use your full RA savings to buy a CPF LIFE plan, unless you are 80 years old and above.

No LBS bonus.