CPF Easy Info Thread. :)

[mp4005 help]

Yes.

Spent so much on property?

how much is so much? haha

i made the mistake of transferring my OA to SA then realise after a few years i cannot top up my CPF because i don't get any tax rebate as hit the FRS already.

 

[Value.Matrix]

how much is so much? haha

i made the mistake of transferring my OA to SA then realise after a few years i cannot top up my CPF because i don't get any tax rebate as hit the FRS already.

Time to start investing your CPF OA then.

 

[henrylbh]

how much is so much? haha

i made the mistake of transferring my OA to SA then realise after a few years i cannot top up my CPF because i don't get any tax rebate as hit the FRS already.

You compare the interest gained on the transfer from OA to SA against the tax relief on top up forgone?

 

[dork32]

Ok I guess as much, u will change your plans if at 65/70 u no longer have dependents.

For me, it will always be Basic Plan.

I know how to enjoy the refund before I die, we are different

yes, if my kids and wife die before i do and before i hit 65, i will probably choose standard.

 

[mp4005 help]

You compare the interest gained on the transfer from OA to SA against the tax relief on top up forgone?

didn't know of this back then .. now too late.

but i just realised that there is a CPF relief cap of 37% x $102k which i hit yearly.

so i guess doesn't matter. whatever i contribute is considered as excess and no tax relief is accorded.

 

[mp4005 help]

Time to start investing your CPF OA then.

OA still used to pay for house - OA interest still pays slightly more than home loan interest.

but any recommendations what to buy using the OA? My SRS also don't know what to invest in .... sitting in bank .. still deciding.

 

[Value.Matrix]

OA still used to pay for house - OA interest still pays slightly more than home loan interest.

but any recommendations what to buy using the OA? My SRS also don't know what to invest in .... sitting in bank .. still deciding.

If I am a licensed FA, i cannot do it like this.

If i am unlicensed, i have no fiduciary duty.

Try not to ask your questions in this way. I am not earning any commission, but your profits and loss also not my problem if you had.

I answer your question in this way though. Other than CPF, what other low risk instrument can you buy which can nett you 4%?
Mostly bonds that have lower risk if default. Bigger names and diversify through bond funds imho. Or buy individual smaller bond units.

If you want higher risk, ETFs/unit trust.

But it still depends on the following:
(1) your risk appetite (how much risk you want to take
(2) your risk situation (how much risk you can take)
(3) your risk mindset (how much risk do you think you can take)

Many here wouldd just tell you IWDA or something similar.

All instruments that give higher than savings account have slightly higher risk

 

[SBC]

how much is so much? haha

i made the mistake of transferring my OA to SA then realise after a few years i cannot top up my CPF because i don't get any tax rebate as hit the FRS already.

Oic. Looks like you are late 30s or early 40s. Not bad a move.

I did not transfer OA to SA too much as I need OA for property.

 

[cal3135]

while still undecided with your SRS, u may consider just take up the SSB.. not high yield but is higher than idle in SRS & while u do ur research. Oso the transaction fee on SSB is v minimum of just $2 / Xact

U may also consider using cash to service your house loan instead.

OA still used to pay for house - OA interest still pays slightly more than home loan interest.

but any recommendations what to buy using the OA? My SRS also don't know what to invest in .... sitting in bank .. still deciding.

🍎xsmax HardwareZone Forums app

 

[shin89]

didn't know of this back then .. now too late.

but i just realised that there is a CPF relief cap of 37% x $102k which i hit yearly.

so i guess doesn't matter. whatever i contribute is considered as excess and no tax relief is accorded.

There are 2 schemes I believe:

1) Top up MA - Which is part of the yearly cap of $37740 cpf contribution limit

2) Top up Retirement sum scheme (SA or RA) - tax relief of up to 14k (7k self, 7k family member), this is apart from the annual cpf contribution limit, but will be limited by your SA's FRS.

 

[shin89]

There are 2 schemes I believe:

1) Top up MA - Which is part of the yearly cap of $37740 cpf contribution limit

2) Top up Retirement sum scheme (SA or RA) - tax relief of up to 14k (7k self, 7k family member), this is apart from the annual cpf contribution limit, but will be limited by your SA's FRS.

I guess you already hit both haha

 

[s0crates]

OA still used to pay for house - OA interest still pays slightly more than home loan interest.

but any recommendations what to buy using the OA? My SRS also don't know what to invest in .... sitting in bank .. still deciding.

I heard Endowus is the lowest cost distributor for CPF funds. Trying to understand more...

They have an event next Wednesday at SGX, I will go there see see look look.

 

[polyglob]

OA still used to pay for house - OA interest still pays slightly more than home loan interest.

but any recommendations what to buy using the OA?

Unless you can make guaranteed > OA interest investing the cash freed up by servicing mortgage with OA, shouldn't you switch to cash to service your mortgage?

 

[kelvinloh]

I have a question that I am not sure if it make sense. I have used my OA for HDB and fully paid, and the interest is building up each year. When I reach 55, and I have set side BRS without pledging my HDB. Can I withdraw my balance of OA + SA out in cash and repay my HDB loan + interest to CPFB?

 

[dork32]

I have a question that I am not sure if it make sense. I have used my OA for HDB and fully paid, and the interest is building up each year. When I reach 55, and I have set side BRS without pledging my HDB. Can I withdraw my balance of OA + SA out in cash and repay my HDB loan + interest to CPFB?

i tot your loan is fully paid. why do you need to pay your loan again.

if you are thinking about paying back the portion of the cpf oa that is withdrawn for your property with your oa and sa withdrawal that would be the stupidest thing to do.

first you do not have to pay back this portion unless sell the house. many people are worried that you will not be able to get money back if the accrued interest is very high. but if you are past 55, this portion that is paid back to the cpf can be withdrawn immediately. you just need to wait a few days. in this case there is no difference whether you pay back cpf or not.

second and more important. take this example i have 200k in my oa and i have withdrawn 200k (including interest) for my property.
case1
i withdraw my 200k cash from oa and i pay back the home withdrawal.
i will have 0 withdrawn for my property and
200k in my oa.

case 2.
i do nothing.
i continue to have 200k in the oa
i have withdrawn 200k for my property.

for case 2, i am allowed to pay back up to 200k into my oa if i have cash. cpf thus becomes my savings account.

case 1, i wipe out this option

 

[lifeafter41]

i tot your loan is fully paid. why do you need to pay your loan again.

if you are thinking about paying back the portion of the cpf oa that is withdrawn for your property with your oa and sa withdrawal that would be the stupidest thing to do.

first you do not have to pay back this portion unless sell the house. many people are worried that you will not be able to get money back if the accrued interest is very high. but if you are past 55, this portion that is paid back to the cpf can be withdrawn immediately. you just need to wait a few days. in this case there is no difference whether you pay back cpf or not.

second and more important. take this example i have 200k in my oa and i have withdrawn 200k (including interest) for my property.
case1
i withdraw my 200k cash from oa and i pay back the home withdrawal.
i will have 0 withdrawn for my property and
200k in my oa.

case 2.
i do nothing.
i continue to have 200k in the oa
i have withdrawn 200k for my property.

for case 2, i am allowed to pay back up to 200k into my oa if i have cash. cpf thus becomes my savings account.

case 1, i wipe out this option

Hi dork, we have to be careful here.
If it’s after 55, and IF, TS did the SA hack, then the monies in SA will be withdrawn first (SA interest, OA interest, SA principal, lastly OA principal)

Do correct me if the above assumption is wrong....

 

[mp4005 help]

I guess you already hit both haha

Haha. Yes.

 

[mp4005 help]

Unless you can make guaranteed > OA interest investing the cash freed up by servicing mortgage with OA, shouldn't you switch to cash to service your mortgage?

Yeah .. was contemplating this just yesterday.

 

[dork32]

Hi dork, we have to be careful here.
If it’s after 55, and IF, TS did the SA hack, then the monies in SA will be withdrawn first (SA interest, OA interest, SA principal, lastly OA principal)

Do correct me if the above assumption is wrong....

you are right in the sequence of withdrawal.

only money that you are sure that you will not withdraw should go into repayment for home withdrawal.

you are also right that continuous deposits and withdrawal is going to deplete your SA account.

 

[dork32]

Hi dork, we have to be careful here.
If it’s after 55, and IF, TS did the SA hack, then the monies in SA will be withdrawn first (SA interest, OA interest, SA principal, lastly OA principal)

Do correct me if the above assumption is wrong....

what i am trying to say is that there is no incentive to withdraw from you sa then oa, to pay for your cpf home withdrawal.

if you do that, your sa will hit 0 even more quickly