CPF chats

[lifeafter41]

i think after 55 these additional interest goes into RA

Yes, it goes into RA.
After 55, SA/OA, 4% and 2.5% respectively......no more those plus 1% pattern.

 

[Kaypohji]

I feel reaching ERS is good. Let’s say one doesn’t have other income sources when retirement, just focusing on cpf comparison. So reach ERS vs reach FRS then withdraw as and when from sa

Seems like might as well just go for ERS

 

[crimsontactics]

I feel reaching ERS is good. Let’s say one doesn’t have other income sources when retirement, just focusing on cpf comparison. So reach ERS vs reach FRS then withdraw as and when from sa

Seems like might as well just go for ERS

Really depends on a lot of factors for ERS.

If you can make better returns by yourself, its better to go BRS and invest the rest yourself.

If you are lazy like me, you can aim for ERS.

Sent from . using GAGT

 

[elf108]

Plan to go for ERS and insurance retirement plan. Monthly at least 4k not including other source of passive income.

 

[crimsontactics]

Plan to go for ERS and insurance retirement plan. Monthly at least 4k not including other source of passive income.

You can pump more into CPF and withdraw from OA/SA to supplement your income above ERS.

Sent from . using GAGT

 

[elf108]

You can pump more into CPF and withdraw from OA/SA to supplement your income above ERS.

Sent from . using GAGT

Already FRS at age 36. Pump means VC already, MA max also.

 

[Kaypohji]

VC sounds good too

But if ur insurance annuity can get >2.5% guaranteed, then it is also a good alternative if u don’t mind the liquidity

Already FRS at age 36. Pump means VC already, MA max also.

 

[SBC]

I will also recommend to target for ERS for larger buffet/safety net.

Though CPF interest is not the highest around. But is still pretty reasonable.

 

[elf108]

Not sure via working contribution can hit ERS from FRS or not without top up VC. With yearly ERS increase can catch up or not.
And how many years do I need to work to meet ERS.

 

[crimsontactics]

Already FRS at age 36. Pump means VC already, MA max also.

If MA max, the excess will go into OA.

Sent from . using GAGT

 

[elf108]

Oh I forgot OA will be form into RA as well. ERS not only from SA.

 

[BBCWatcher]

Really depends on a lot of factors for ERS.

If you can make better returns by yourself, its better to go BRS and invest the rest yourself.

If you are lazy like me, you can aim for ERS.

It's a little more nuanced than that, specifically that the bigger your Retirement Account is, the more aggressive the rest of your wealth can be positioned in retirement while maintaining an overall equal portfolio risk profile. This factor can be quite valuable, actually, so you should properly take this factor into account in deciding how big your RA should be.

 

[henrylbh]

I will also recommend to target for ERS for larger buffet/safety net.

Though CPF interest is not the highest around. But is still pretty reasonable.

Instead of 3xBRS in RA, I prefer to self manage with -

2xBRS in SA and 1xBRS in RA, or
3xBRS in SA and zero in RA (not possible)

Of course the higher the amount in SA and RA from 55, the better, assuming there is no better alternative yield than CPF interest rate.

 

[henrylbh]

About 3 weeks ago, I was presented with an opportunity of dumping almost unlimited amount into in OA (not related to any refund of CPF) despite already hitting the annual limit. I was thinking hard but eventually decided against freezing my fund

 

[streetfighter]

Anybody know how to buy SGS T-bills using CPF-SA? Do we need to go to our CPFIS account bank or any bank can buy?

 

[BBCWatcher]

Anybody know how to buy SGS T-bills using CPF-SA? Do we need to go to our CPFIS account bank or any bank can buy?

Any SGS primary dealer (since SA investing doesn’t require a CPF Investment Account — that’s for OA), but you don’t want to do this. It’s too expensive and mechanically difficult. If you’re trying to shield SA dollars it’s way, way better and easier to use a low volatility bond unit trust via a zero fee platform.

 

[elf108]

Can shield SA by subscribing SG bond ?
Of cos the limit is 200k and subject to availability.

 

[streetfighter]

Ok i see. Which are the zero fee platform available & what bond to buy?

Any SGS primary dealer (since SA investing doesn’t require a CPF Investment Account — that’s for OA), but you don’t want to do this. It’s too expensive and mechanically difficult. If you’re trying to shield SA dollars it’s way, way better and easier to use a low volatility bond unit trust via a zero fee platform.

 

[BBCWatcher]

Can shield SA by subscribing SG bond ?
Of cos the limit is 200k and subject to availability.

Singapore Savings Bonds? No, SSBs aren't available from CPF funds. And they wouldn't work too well anyway for these purposes ("shielding") since they're processed only in monthly cycles.

Which are the zero fee platform available & what bond to buy?

POEMS is quite popular for these purposes, but I think FSMOne and DollarDex can also get the job done. If you have an account already with any of these three then I'd check with that platform provider first.

As for which unit trust, for these purposes ("SA shielding") you want something that matches the following parameters:

1. Appears in this list.

2. Marked with "SA" in the "Included under CPFIS-OA/SA" column.

3. For "Risk Class," listed as "Low to Medium Risk - Narrowly Focused - Country - Singapore."

Examples include the United Singapore Bond Fund and the Eastspring Singapore Select Bond Fund.

 

[vsvs24]

Singapore Savings Bonds? No, SSBs aren't available from CPF funds. And they wouldn't work too well anyway for these purposes ("shielding") since they're processed only in monthly cycles.


POEMS is quite popular for these purposes, but I think FSMOne and DollarDex can also get the job done. If you have an account already with any of these three then I'd check with that platform provider first.

As for which unit trust, for these purposes ("SA shielding") you want something that matches the following parameters:

1. Appears in this list.

2. Marked with "SA" in the "Included under CPFIS-OA/SA" column.

3. For "Risk Class," listed as "Low to Medium Risk - Narrowly Focused - Country - Singapore."

Examples include the United Singapore Bond Fund and the Eastspring Singapore Select Bond Fund.

Thanks for sharing. Was interested to do SA shielding but not quite sure how to go about it.

When is a good time to do SA shielding ? A few weeks before turning 55 ? And once we see RA created and funds moved over can put it back immediately ?