CPF chats

[vsvs24]

Reits - Good reits.

Thanks.

...

 

[testingabc]

Thanks.

...

where can buy reits? fsm?

 

[Conor McGregor]

Looks like you are in early to mid 30’s. Congrats to your good pay.

Can do small amount of OA to SA top up yearly, depending on your immediate property needs. If no immediate needs over the next 5 years, top up max of 7k.

Thanks SBC

So it’s not wise to do 7k cash top up to SA yearly?

Only do OA to SA?

 

[pcmdan]

Thanks SBC

So it’s not wise to do 7k cash top up to SA yearly?

Only do OA to SA?

Why not? U save in both tax and earn higher interest

If u are afraid of the cons on unable to draw out, think about this, if u top up 181k, anything above will be from your contribution (employer plus employee), hence u are still able to withdraw.

 

[oceanicmanta]

Thanks SBC

So it’s not wise to do 7k cash top up to SA yearly?

Only do OA to SA?

I would do both

do OA to SA, but leave some room to get in 7k per year, especially if u r in higher tax bracket

can also transfer OA to spouse SA, or top up 7k to spouse (both with conditions)

assuming cash top up does not drain liquid funds

 

[Conor McGregor]

Why not? U save in both tax and earn higher interest

If u are afraid of the cons on unable to draw out, think about this, if u top up 181k, anything above will be from your contribution (employer plus employee), hence u are still able to withdraw.

Thanks

What will you do if you were me?

 

[Conor McGregor]

I would do both

do OA to SA, but leave some room to get in 7k per year, especially if u r in higher tax bracket

can also transfer OA to spouse SA, or top up 7k to spouse (both with conditions)

assuming cash top up does not drain liquid funds

To maximize the higher tax bracket portion

If you were me what will be the exact steps you do

 

[Kaypohji]

Let’s say u have 250k in SA. 50k is by cash top up, the remaining is by cpf contribution from work, oa transfer to sa and interests Then this year u turn 55. 181k will be transfer to RA.

In this case, the 181k u transferred, how much of it comprises of the 50k by cash top up?

 

[pcmdan]

Thanks

What will you do if you were me?

7k definitely continue since ur pay seems high

OA whether to transfer or not depends largely on your goals and future needs.

E.g. do u need to use cpf to buy house
Do u foresee using any part of the OA for Investments or education?

I think I read before if u top up ur SA to FRS..u cant 7k cash top up anymore (cant cfm) so have to play ur cards right. I rather have the 15% tax rebate + 4% interest rather than earning 4% now. But that's me lah..is entirely up to u

 

[Conor McGregor]

7k definitely continue since ur pay seems high

OA whether to transfer or not depends largely on your goals and future needs.

E.g. do u need to use cpf to buy house
Do u foresee using any part of the OA for Investments or education?

I think I read before if u top up ur SA to FRS..u cant 7k cash top up anymore (cant cfm) so have to play ur cards right. I rather have the 15% tax rebate + 4% interest rather than earning 4% now. But that's me lah..is entirely up to u

Yes I am thinking of purchasing a private property by Dec 2021

What’s your advice?

 

[Andrew833]

Can I know which platform? Syfe? FSM? Sorry I noob

I use Poems but there are many others choices.
This kind of questions best to ask in stock threads, here mainly for cpf.

 

[testingabc]

I use Poems but there are many others choices.
This kind of questions best to ask in stock threads, here mainly for cpf.

Okie thank you

 

[Andrew833]

Hi,
I like to know, SA account has any cap or max limit?
Thanks

 

[Utonian]

Hi,
I like to know, SA account has any cap or max limit?
Thanks

If you are asking on SA limit for normal contributions (not top ups), there are no limits

 

[zoneguard]

Hi,
I like to know, SA account has any cap or max limit?
Thanks

Let me attempt to answer this and experts can feel free to correct me so that everybody can learn together.

CPF differentiates between top ups and contributions. Under RSTU, you can do cash top-up to SA, transfers from OA to SA, transfer from spouse/family member -there are rules for both the recipient and transferor on the amount that can be transferred. Current limit for top up to SA for recipient is Current FRS - SA balance - amount used for CPF-IS (SA).

For contributions, there is an annual CPF limit of $37,740 across all accounts. You may receive employment contributions (both employer and employee) or VC as self-employed. There is no limit other than the annual limit and you need to contribute to all 3 accounts based on the contribution rates by age groups. In other words, from contributions alone, it is technically possible for SA balance to exceed FRS.

Now let's hear from the experts. CPF is really complicated to understand...

 

[Utonian]

Yes I am thinking of purchasing a private property by Dec 2021

What’s your advice?

I think depends on how much cash you have and want to use for your property purchase. OA can be used in your purchase.


-Edit : apologies, for VC not tax deductible as corrected by elf108

 

[terence2112]

BRS is half of FRS.

Yes correct. Is the FRS 180k today?

Edit: I should take the trouble to Google. FRS 181k, meaning BRS is 90.5k.
So if the BRS is met in the special account, you can use whatever in the OA to pay for your 2nd property.

 

[Andrew833]

Yes correct. Is the FRS 180k today?

Edit: I should take the trouble to Google. FRS 181k, meaning BRS is 90.5k.
So if the BRS is met in the special account, you can use whatever in the OA to pay for your 2nd property.

Let say you age 55.
BRS + property more than 40years = the rest in OA and SA can be withdrawn.
Yes for your question.

 

[elf108]

I think depends on how much cash you have and want to use for your property purchase. OA can be used in your purchase.

you can still top up 7k for the tax relief if your income is high.
I am assuming you are in the age group of 35-40

The 7k will be allocated as such:
OA - 3973.90
SA - 1323.70
MA - 1702.40 (if BHS met, will flow into SA)

This sounds like VC which is not tax deductible ? Since SA max cannot top up (frs). Top up OA also no relief.

 

[terence2112]

Let say you age 55.
BRS + property more than 40years = the rest in OA and SA can be withdrawn.
Yes for your question.

Not referring to age 55.
Say I’m 35 today. And I want to buy another pte ppty.
As Long as I have the BRS figure in my SA, I can use whatever I have in the OA to fund my 2nd or subsequent ppty, be it mortgage or installments.