CPF Easy Info Thread. :)

[henrylbh]

I will most likely take up Tangent's suggestion of doing SA shielding, to reduce SA ( thereby RA) before 55. Upon 55, do cash top up to RA before moving back SA shield to SA acct.

Why wait till 55? Return cash to OA now and let it flow to RA next year.

 

[JF123456]

Why wait till 55? Return cash to OA now and let it flow to RA next year.

Return cash to OA due to housing ? Possible, but I don't really hv much ready cash right now... my bond is earning more than 5% & my FD is not due till early next year. Moreover, I hv just VC 37K , so I will wait till early next yr to do another VC, before hitting 55.

Hence, prefer to do housing refund, after 55 , and only if I m sure I can't get better interest elsewhere. My current sgp bonds will be generating more than 2% next year onwards , and it is increasing

 

[rrr2015]

Thanks that's something new for me! so effectively we can only withdraw accrued interest from jan~nov & request needs to be completed before start of new year?

can't remember where i saw, but i thought there was option in CPF to withdraw interest only

It appears not possible to make request Jan to withdraw total interest earned in the previous year as it will be credited on 31 Dec and become principal sum on 1 Jan.

 

[henrylbh]

Return cash to OA due to housing ? Possible, but I don't really hv much ready cash right now... my bond is earning more than 5% & my FD is not due till early next year. Moreover, I hv just VC 37K , so I will wait till early next yr to do another VC, before hitting 55.

Hence, prefer to do housing refund, after 55 , and only if I m sure I can't get better interest elsewhere. My current sgp bonds will be generating more than 2% next year onwards , and it is increasing

I only took into account that you have FD of 200k and CPF used for housing.

You need to consider the interest gain (2.5% to the time of it being transferred to RA to meet FRS) and the loss (in the premature withdrawal of 'part of' FD) by refunding housing CPF to OA.

Besides cash top-up to RA after 55 cannot be pledged for withdrawal above BRS.

 

[henrylbh]

Thanks that's something new for me! so effectively we can only withdraw accrued interest from jan~nov & request needs to be completed before start of new year?

can't remember where i saw, but i thought there was option in CPF to withdraw interest only

If wish to withdraw interest only, go CPFB personally in early Dec and ask them the approximate amount of interest that can be withdrawn without touching the principal amount. Then complete the application on the spot and wait for your money

 

[Alandavidson]

Thank u for the clear explanation.

If wish to withdraw interest only, go CPFB personally in early Dec and ask them the approximate amount of interest that can be withdrawn without touching the principal amount. Then complete the application on the spot and wait for your money

 

[a4973]

If wish to withdraw interest only, go CPFB personally in early Dec and ask them the approximate amount of interest that can be withdrawn without touching the principal amount. Then complete the application on the spot and wait for your money

Actually there's an easier way to know the accrued OA and SA interest. login to cpf online, go to My Messages, scroll all the way down to Withdrawal. Your estimated withdrawal amount from OA and SA $xx will show more than the OA and SA in your account's homepage. That difference is the accrued interest earned in your OA and SA that has not been credited to the OA and SA principal amounts.

 

[candy crush]

anyone try to transfer money from ur OA account to parent account? and when they die, do u get all amount in cash?

is this method viable and you can get in cash?

 

[henrylbh]

Actually there's an easier way to know the accrued OA and SA interest. login to cpf online, go to My Messages, scroll all the way down to Withdrawal. Your estimated withdrawal amount from OA and SA $xx will show more than the OA and SA in your account's homepage. That difference is the accrued interest earned in your OA and SA that has not been credited to the OA and SA principal amounts.

That's the way to know the accrued monthly interest when logging in to My Message for those eligible to withdraw amount outside RA.

 

[henrylbh]

anyone try to transfer money from ur OA account to parent account? and when they die, do u get all amount in cash?

is this method viable and you can get in cash?

If you are the sole nominee, CPFB will inform the nominee (nominee no need to inform CPFB) within weeks to make application to withdraw of all of the deceased's CPF money by cheque or credit to the nominee's bank account. Then it's up to the nominee to decide whether to withdraw or let it continue to earn interest at 2.5% (as all accounts will be consolidated into OA) for 6 or 7 years only. Thereafter no more interest will be paid.

Edit - if you transfer OA to parent's RA, the principal sum will be returned to your OA the following day upon the recipient's demise. The balance in deceased's CPF will go to the nominee as described above.

 

[lifeislonggamma]

anyone try to transfer money from ur OA account to parent account? and when they die, do u get all amount in cash?

is this method viable and you can get in cash?

This might answer your question.

https://www.cpf.gov.sg/members/FAQ/...ping-Up+Scheme&ajfaqid=2188598&folderid=12543

 

[oppoguy]

anyone try to transfer money from ur OA account to parent account? and when they die, do u get all amount in cash?

is this method viable and you can get in cash?

even if it goes back to my oa, i will still transfer to my parents.

the reason is this: maybe my parents last for much longer that i expected. in this way, they would have drawn out my contribution to their ra. it is like converting to my oa to real cash.

for the cpf fans out there, you will say that why would anyone get cash out of their oa when it is earning 2.5%. to me, i can put cash into my oa ( i withdraw a lot for housing), but i cannot take cash out of oa.

 

[crimsontactics]

even if it goes back to my oa, i will still transfer to my parents.

the reason is this: maybe my parents last for much longer that i expected. in this way, they would have drawn out my contribution to their ra. it is like converting to my oa to real cash.

for the cpf fans out there, you will say that why would anyone get cash out of their oa when it is earning 2.5%. to me, i can put cash into my oa ( i withdraw a lot for housing), but i cannot take cash out of oa.

Depends on your investing abilities Bro oppoguy...

If you can earn more than 4/5/6% that CPF offers, maybe its better to use your OA to play stocks...

Sent from Samsung SM-N960F using GAGT

 

[oppoguy]

Depends on your investing abilities Bro oppoguy...

If you can earn more than 4/5/6% that CPF offers, maybe its better to use your OA to play stocks...

Sent from Samsung SM-N960F using GAGT

of course, if you have instruments that consistently earns you 5%, cpf is a waste of time.

 

[candy crush]

If you are the sole nominee, CPFB will inform the nominee (nominee no need to inform CPFB) within weeks to make application to withdraw of all of the deceased's CPF money by cheque or credit to the nominee's bank account. Then it's up to the nominee to decide whether to withdraw or let it continue to earn interest at 2.5% (as all accounts will be consolidated into OA) for 6 or 7 years only. Thereafter no more interest will be paid.

Edit - if you transfer OA to parent's RA, the principal sum will be returned to your OA the following day upon the recipient's demise. The balance in deceased's CPF will go to the nominee as described above.

Thanks you, thank for the explain

I think Cash transfer is still better

 

[candy crush]

of course, if you have instruments that consistently earns you 5%, cpf is a waste of time.

In term of capital guarantee, bao jiak interest

there is no rival bond or stock in the market that give 5% interest

if have do correct me

 

[henrylbh]

I think Cash transfer is still better

If you don't really need the cash, dump in as much as possible and you will also get tax savings in the process.

Has your father started CPF drawndown?

 

[oppoguy]

In term of capital guarantee, bao jiak interest

there is no rival bond or stock in the market that give 5% interest

if have do correct me

there are bonds out there that give higher than 5%, but their credit rating may not be so good.

also 5% is only for the first 60k. if your parents already have 60k, then your top ups and transfer only earns 4%

 

[candy crush]

If you don't really need the cash, dump in as much as possible and you will also get tax savings in the process.

Has your father started CPF drawndown?

My father is 73

started lor

but his monthly payout use to pay his housing loan

$395 per month

so basically is no payout, after deduct

any advise for me?

 

[henrylbh]

there are bonds out there that give higher than 5%, but their credit rating may not be so good.

also 5% is only for the first 60k. if your parents already have 60k, then your top ups and transfer only earns 4%

It's almost risk free for a min of 4% compare to bonds paying slightly more with risk of total capital loss.

I transfer my OA to my father's RA and he drawdown his RA. I recycle his payout into my OA and SA and then top up his RA all over again