CPF Easy Info Thread. :)

[henrylbh]

monthlyinterestrate:	0.04/12=	0.003333333
VC-MA	months	$$
432.83	4	5.771066667
401.69	3	4.0169
419.8	2	2.798666667
1096.68	0	0

1 cent off for AUG amount, but close enough for me. I wonder how is overflow handled in case of refund though...

edit: also, since refund is done in feb, what happened to the january interests? such a ridiculous way of doing this. I don't even.

I am also wondering if kehyi topped up in these funny numbers just to be able to reverse engineer the calculations

Ha ha. I thought you going to ask me how I got 4, 3 & 2 months.

 

[henrylbh]

Today I damn happy. Last nite I queque to sell 10,000 fischer tech at 2.82. But all done at 2.99. How come like that

 

[culture_counter]

another trick i heard of, pre-requisite, your OA must hit FRS or above.

before 55, build up your FRS and let it grow till fat fat, then use all of it buy an investment product, FD, or whatever

on 55, CPF deduct all OA to fill into RA because SA is empty. sell your SA-purchased investment/FD/whatever, funds refund back to SA.. it will earn 4.5% yearly... do note: 55 and above, we can no longer top up SA or whatever, normal VC still can but too small amount to see a difference.

assume 166k back to SA. every month u get 1.xK from CPF life + 622.5 (4.5% interest
in monthly basis.) .. roughly can get 2k per month for spending.. and 166k in SA still sitting there

Checked with All 3 local banks, DBS, OCBC, even UOB, but NONE offers FD from CPFIS-SA ! Only Investment Instruments which 'promises' >4% interest without tenure but HIGHLY RISKY, which incur upfront about 3% service charge, and there is risk of the unit price going reverse way depending on market forces, unless you have the holding power to wait long long...

The other available instrument for CPFIS-SA is insurance product which has a long tenure of 5 to 10 years to gain some profit. Not suitable if you are intending to do the 'hacking' game i.e. to pull SA out temporarily for a short period to avoid being locked in RA, and returning it to SA by liquidating after 55. Too many holes have been plugged, very hard to take advantage of 'hacking'.

 

[crimsontactics]

Today I damn happy. Last nite I queque to sell 10,000 fischer tech at 2.82. But all done at 2.99. How come like that

Gong Xi Gong Xi!

Use profit top up CPF?

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[crimsontactics]

Checked with All 3 local banks, DBS, OCBC, even UOB, but NONE offers FD from CPFIS-SA ! Only Investment Instruments which 'promises' >4% interest without tenure but HIGHLY RISKY, which incur upfront about 3% service charge, and there is risk of the unit price going reverse way depending on market forces, unless you have the holding power to wait long long...

The other available instrument for CPFIS-SA is insurance product which has a long tenure of 5 to 10 years to gain some profit. Not suitable if you are intending to do the 'hacking' game i.e. to pull SA out temporarily for a short period to avoid being locked in RA, and returning it to SA by liquidating after 55. Too many holes have been plugged, very hard to take advantage of 'hacking'.

I see...

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[henrylbh]

Gong Xi Gong Xi!

Use profit top up CPF?

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Last week I already topped up and left $740 gap

That 10,000 shares yield a net gain of 23,798.

 

[crimsontactics]

Last week I already topped up and left $740 gap

That 10,000 shares yield a net gain of 23,798.

How much profit per share?

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[henrylbh]

How much profit per share?

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Wah your maths lagi poor

Just because I didn't put $ in front of 23,798?

 

[crimsontactics]

Wah your maths lagi poor

Just because I didn't put $ in front of 23,798?

I lazy count...

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[elnewbie]

Called them again...

FRS balance at age 55 is based on cold hard cash. It doesn't care how much you have in property, investments using OA or SA.

If after RA is created and your RA balance is below the FRS, then when you liquidate your SA investment, it will first go to SA and CPF will then take out however much is necessary from there to top up your RA to FRS.

Same process happens at the age 64 observation point. If still your RA balance at age 64.25 is less than FRS, when you liquidate, CPF will then take out whatever is needed to top up RA to FRS.

There will only be a total of 2 observation points. And there will be no forced liquidation of investments.

Your q&a above with CPF Board did not address CPFIS/SA investment?

How is SA balance determined at 55? SA account balance plus CPFIS/SA balance?

CPF uses SA account balance plus CPFIS SA balance to determine how much u can transfer from OA to SA before 55. So I guess (u should ask CPF to confirm) at 55, FRS is determined using the same formula.

If SA plus CPFIS/SA is more than FRS, will CPF take it as insufficient FRS for transfer to RA at 55, then wait till 65 when u liquidate your CPFIS/SA to do the transfer. If at 65 u still do not liquidate your CPFIS/SA, then CPF will ask u to liquidate to join CPF Life?

Current CPF rules are ambiguous when it state CPFIS/SA liquidated after 55 will return to CPF Accounts, it did not say return to SA, so CPF can interpret as they think when it comes?

 

[elnewbie]

So when are you buying us a round of kopi ?

Today I damn happy. Last nite I queque to sell 10,000 fischer tech at 2.82. But all done at 2.99. How come like that

 

[elnewbie]

What about T bills ? Those are 1 year tenor. No sales charge . Can even buy from ATM. But not too sure about yield.

For unit trusts, there are ways to avoid the 3% sales charge depending on the platform you are using.

For me, I'm definitely intending to use this hack as I have spare OA funds.

Checked with All 3 local banks, DBS, OCBC, even UOB, but NONE offers FD from CPFIS-SA ! Only Investment Instruments which 'promises' >4% interest without tenure but HIGHLY RISKY, which incur upfront about 3% service charge, and there is risk of the unit price going reverse way depending on market forces, unless you have the holding power to wait long long...

The other available instrument for CPFIS-SA is insurance product which has a long tenure of 5 to 10 years to gain some profit. Not suitable if you are intending to do the 'hacking' game i.e. to pull SA out temporarily for a short period to avoid being locked in RA, and returning it to SA by liquidating after 55. Too many holes have been plugged, very hard to take advantage of 'hacking'.

 

[RoLanTo]

Checked with All 3 local banks, DBS, OCBC, even UOB, but NONE offers FD from CPFIS-SA ! Only Investment Instruments which 'promises' >4% interest without tenure but HIGHLY RISKY, which incur upfront about 3% service charge, and there is risk of the unit price going reverse way depending on market forces, unless you have the holding power to wait long long...

The other available instrument for CPFIS-SA is insurance product which has a long tenure of 5 to 10 years to gain some profit. Not suitable if you are intending to do the 'hacking' game i.e. to pull SA out temporarily for a short period to avoid being locked in RA, and returning it to SA by liquidating after 55. Too many holes have been plugged, very hard to take advantage of 'hacking'.

Ya.. when i wrote FD above, i didnt verify if there are any FD product for SA.
i run thru a quick list.. then think the most low risk n low charges approved SA product should be this fellow:

NIKKO AM SHENTON SHORTTERM BOND(S$)

i just search thru FSM and filter based on lowest charges..
take note, i didnt consider whatever performance of individual product, i just trying to find a lowest risk to the principal amount and lowest sales charge so that majority of the capital are more or less intact for the "hack"

 

[bladez87]

Last week I already topped up and left $740 gap

That 10,000 shares yield a net gain of 23,798.

That's more than my 6 months salary...

 

[bladez87]

monthlyinterestrate:	0.04/12=	0.003333333
VC-MA	months	$$
432.83	4	5.771066667
401.69	3	4.0169
419.8	2	2.798666667
1096.68	0	0

1 cent off for AUG amount, but close enough for me. I wonder how is overflow handled in case of refund though...

edit: also, since refund is done in feb, what happened to the january interests? such a ridiculous way of doing this. I don't even.

I am also wondering if kehyi topped up in these funny numbers just to be able to reverse engineer the calculations

Yup. Your findings are as I suspected. But I wonder why Nov no refund but Dec 1k refund.

And based on this findings... My idea works! The idea of pumping in Jan to bring up the whole year monthly lowest point will allow us to generate 1k interest!

For Aug refund, sep Oct Nov Dec claw back.
For sep refund, Oct Nov Dec claw back.
So if I top up in Jan, they will only claw back the Feb to Dec portion for the excess as at Jan.

They did not interest claw back the lump sum of 37k at Jan. Or Aug in the above case. As shown by the monthly interest claw back of that month's refund

 

[crimsontactics]

That's more than my 6 months salary...

I thought you last year uni?

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[kehyi4]

edit: also, since refund is done in feb, what happened to the january interests? such a ridiculous way of doing this. I don't even.

No interest earned for Jan, afaik. They ain't kidding when they said "Any excess voluntary contribution made above the CPF AL will be refunded without interest". Why should CPF reward you with interest when you are not eligible in the first place due to exceeding CPF AL?

I am also wondering if kehyi topped up in these funny numbers just to be able to reverse engineer the calculations

The funny amounts is because my MA was at BHS, but i was using it to pay some medical bills. So whenever there was a deduction, I topped up in cash to bring it back to BHS. Thus the funny numbers

Yup. Your findings are as I suspected. But I wonder why Nov no refund but Dec 1k refund.

coz I didn't do any VC-MA in Nov mah

 

[bladez87]

No interest earned for Jan, afaik. They ain't kidding when they said "Any excess voluntary contribution made above the CPF AL will be refunded without interest". Why should CPF reward you with interest when you are not eligible in the first place due to exceeding CPF AL?


The funny amounts is because my MA was at BHS, but i was using it to pay some medical bills. So whenever there was a deduction, I topped up in cash to bring it back to BHS. Thus the funny numbers


coz I didn't do any VC-MA in Nov mah

Bro, read my last post. I think you were still provided interest on your vc...
Eh wait, you mean you top up monthly for your vc? Not a lump sum top up in Jan?
If you did the latter, then my analysis is wrong. I thought you did lump sum top up in Jan.

 

[bladez87]

I thought you last year uni?

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That's not me. I 30 yo working for a long time liao

 

[zuppeur]

Ya.. when i wrote FD above, i didnt verify if there are any FD product for SA.
i run thru a quick list.. then think the most low risk n low charges approved SA product should be this fellow:

NIKKO AM SHENTON SHORTTERM BOND(S$)

i just search thru FSM and filter based on lowest charges..
take note, i didnt consider whatever performance of individual product, i just trying to find a lowest risk to the principal amount and lowest sales charge so that majority of the capital are more or less intact for the "hack"

Dollardex. sales charges is 0% and no platform fee.