CPF Easy Info Thread. :)

[lifeafter41]

My outstanding mortgage is still at $769k while OA/SA is at 103k/200k.
Still another 28 more years to complete my mortgage.

I am servicing this loan alone as I am owning property solely.

769k with 28 years to go?
That’s a very long time....assuming you are 40 years old now, one will be 68.

Seems like you just bought the house not too long ago.

 

[ocs_woodlands]

Got a few kids. No jobs are secure these days. In IT industry. Jin siong.

Property is freehold. Small development. Probably few km from you.
Hope to get enbloc during next wave.

Wife is having a HDB which is rented out. Got decoupled.

when did you get decoupled? one of the last ships to leave the dock?

 

[a4973]

Hi there, I'm going to raise SA shield on 1st working day in December and lower the shield say 1 week before 31 December. How will the 2018 annual interest for SA funds be attributed come 31 December? Thanks

 

[SBC]

769k with 28 years to go?
That’s a very long time....assuming you are 40 years old now, one will be 68.

Seems like you just bought the house not too long ago.

Property was bought 4.5 years ago. Loan was re financed 2 years ago and extended till age 75.

Decoupling was applied only after decision on this property. Decoupling rule was changed about 9 months later. Quite lucky.

Any advice on how to manage this loan?
- need to take care of family commitment like insurance, family expenses and other long-term plan like retirement.

 

[Froggyman]

Hi there, I'm going to raise SA shield on 1st working day in December and lower the shield say 1 week before 31 December. How will the 2018 annual interest for SA funds be attributed come 31 December? Thanks

Hi, wish to know for the SA shielding..
1) still need to leave min $40k balance in SA if intend to shield all SA $?
2) if need to leave $40k in SA after shielding.. then will this $40k move into the RA when it is form or all FRS will come from OA$ ?

Thanks.

 

[ocs_woodlands]

Hi there, I'm going to raise SA shield on 1st working day in December and lower the shield say 1 week before 31 December. How will the 2018 annual interest for SA funds be attributed come 31 December? Thanks

Your experience in shielding will be extremely important to many of us who are counting on that for a regular income stream for retirement OTHER than CPFLife.

 

[kehyi4]

Hi, wish to know for the SA shielding..
1) still need to leave min $40k balance in SA if intend to shield all SA $?
2) if need to leave $40k in SA after shielding.. then will this $40k move into the RA when it is form or all FRS will come from OA$ ?

Thanks.

1) Yes - the rules for using SA for investment remain the same, so first 40k cannot be touched
2) 40k will go to RA - the rules for forming RA also remain the same, so RA will take from SA first, then OA, up to FRS

why would the rules be any different just because you are trying to do shielding?

 

[a4973]

Your experience in shielding will be extremely important to many of us who are counting on that for a regular income stream for retirement OTHER than CPFLife.

Yep I will definitely feedback here however re the 2019 SA interest, would it be getting interest for the full SA for Jan 19 to Nov 19?

 

[SBC]

Yep I will definitely feedback here however re the 2019 SA interest, would it be getting interest for the full SA for Jan 19 to Nov 19?

Yes, you will. CPF tabulates the interest on a monthly basis and payout yearly on early Jan.

The interest is based on the lowest amount in each month.

 

[Froggyman]

1) Yes - the rules for using SA for investment remain the same, so first 40k cannot be touched
2) 40k will go to RA - the rules for forming RA also remain the same, so RA will take from SA first, then OA, up to FRS

why would the rules for any different just because you are trying to do shielding?

Hi, kehyi4, thank for the reply.
Ya .. sound stupid to ask Q1 as shielding is also a investment just that for the sake of shielding

 

[a4973]

Is this a safe UT?

https://www.eastspring.com/sg/funds/fund-prices/all-funds/funddetails?isincode=SG9999007454&fundname=Eastspring%20Investments%20Unit%20Trusts%20-%20Singapore%20Select%20Bond%20Fund%20Class%20-%20A

 

[lifeafter41]

Hi, wish to know for the SA shielding..
1) still need to leave min $40k balance in SA if intend to shield all SA $?
2) if need to leave $40k in SA after shielding.. then will this $40k move into the RA when it is form or all FRS will come from OA$ ?

Thanks.

For Q1 is yes.
For Q2 is 40k from SA, after shield, rest from OA.

 

[lifeafter41]

Hi there, I'm going to raise SA shield on 1st working day in December and lower the shield say 1 week before 31 December. How will the 2018 annual interest for SA funds be attributed come 31 December? Thanks

Do you plan to take out your OA?

 

[a4973]

Do you plan to take out your OA?

Not at all

 

[dork32]

It’s todays money.......

actually. it does not matter.

if all else remains the same, you will require 310k in your sa to have a payout of 2300 a month, regardless which year it is.

all else = interest rate, mortality,

 

[Value.Matrix]

Is this a safe UT?

https://www.eastspring.com/sg/funds/fund-prices/all-funds/funddetails?isincode=SG9999007454&fundname=Eastspring%20Investments%20Unit%20Trusts%20-%20Singapore%20Select%20Bond%20Fund%20Class%20-%20A

Try money market funds instead. A lot more stable.

Or any of the government treasury bonds etc

 

[lifeafter41]

Property was bought 4.5 years ago. Loan was re financed 2 years ago and extended till age 75.

Decoupling was applied only after decision on this property. Decoupling rule was changed about 9 months later. Quite lucky.

Any advice on how to manage this loan?
- need to take care of family commitment like insurance, family expenses and other long-term plan like retirement.

28 years is a very long time and till age 75.
I am surprised that they nowadays allowed loans to stretch till 75.

Anyway, as for loan management, my only thoughts is to refinance with lower interest whenever that’s possible coupled with capital repayment whenever your financial situation allows.

Judging from what you are saying, if I may say so, you have many commitments, kids, aging parents, insurance, university fees......

Btw, what’s the current interest rate you are into right now?

 

[SBC]

28 years is a very long time and till age 75.
I am surprised that they nowadays allowed loans to stretch till 75.

Anyway, as for loan management, my only thoughts is to refinance with lower interest whenever that’s possible coupled with capital repayment whenever your financial situation allows.

Judging from what you are saying, if I may say so, you have many commitments, kids, aging parents, insurance, university fees......

Btw, what’s the current interest rate you are into right now?

Paying mortgage rate at 2.48% now. Waiting for better rate in Oct to re-price.

 

[a4973]

MMF can use CPF SA?

Try money market funds instead. A lot more stable.

Or any of the government treasury bonds etc

 

[lifeafter41]

MMF can use CPF SA?

Check under poems platform where there is a list of CPF SA approved to buy under SA.