CPF Easy Info Thread. :)

[dork32]

I can easily survive on $10 for food.

Food - $310
Transport - $100
Insurance - $10
Phone - $40

Still got $140 more for misc stuff.

Sent from Samsung SM-N960F using GAGT

exactly like what i said, you are still not independent yet.

you can ask your dad to provide breakfast and dinner.
you can ask your dad to ferry you around.
you can use a supplementary phone line that uses your dad's data and talk time.
My mom used to pay for my insurance as well.
since you gave up your ego, your parents should pay for this as well.

if this is the case, you monthly expenses will be less than 100 a month

 

[crimsontactics]

exactly like what i said, you are still not independent yet.

you can ask your dad to provide breakfast and dinner.
you can ask your dad to ferry you around.
you can use a supplementary phone line that uses your dad's data and talk time.
My mom used to pay for my insurance as well.
since you gave up your ego, your parents should pay for this as well.

if this is the case, you monthly expenses will be less than 100 a month

Seriously, do you have problem reading?

I already said I bear all the cost of the above items. I don't rely on my parents for any of the above mentioned items.

Sent from Samsung SM-N960F using GAGT

 

[celtosaxon]

Scenario:

At age 55 a person has a combined CPF OA+SA balance equal to FRS x 2.

In this situation, is it best to leave 1 x FRS in SA (shield as needed) and let the other 1 x FRS flow to RA?

Or is it better to put 1.5 x FRS (ERS) in RA and leave the rest in SA?

Note that the person will not be significantly dependant on CPF for retirement income, if that matters.

 

[crimsontactics]

Scenario:

At age 55 a person has a combined CPF OA+SA balance equal to FRS x 2.

In this situation, is it best to leave 1 x FRS in SA (shield as needed) and let the other 1 x FRS flow to RA?

Or is it better to put 1.5 x FRS (ERS) in RA and leave the rest in SA?

Note that the person will not be significantly dependant on CPF for retirement income, if that matters.

Actually you can do both shield + ERS since you got so much money.

The purpose of shield is to fill your RA with your OA instead of your SA first.

Sent from . using GAGT

 

[BBCWatcher]

The purpose of shield is to fill your RA with your OA instead of your SA first.

You can shield OA dollars too if you wish. For example:

1. Shortly before your 55th birthday, use the CPF Investment Scheme (SA) to shield all but the minimum ($40,000) that must stay behind in your Special Account.

2. Shortly before your 55th birthday, use the CPF Investment Scheme (OA) to shield all but the minimum ($20,000) that must stay behind in your Ordinary Account.

3. On your 55th birthday, the CPF Board creates your Retirement Account and sweeps $60,000 into it ($40,000 from SA and $20,000 from OA).

4. You then top up your Retirement Account at least to the Full Retirement Sum (presumably), or optionally as high as the Enhanced Retirement Sum.(*)

5. You lower both shields.

Variations are possible, but this is one example. This "double shielding" example results in an even bigger pile of Singapore dollars spread across your Retirement, Special, and Ordinary Accounts. A cautious, conservative saver/investor might rationally execute this maneuver since 2.5% interest earning OA is decent these days, and to enjoy the unique asset protection benefits CPF offers. It's otherwise more difficult to stuff as many dollars so quickly into CPF.

In other words, with this maneuver you're shielding the maximum number of SA+OA dollars you can from the entire sweep into your RA at its creation in order to maximize the RA top up then available just after the sweep.

This maneuver is for fairly well off individuals, of course -- individuals who don't need to raid CPF assets at age 55 and who have spare assets (cash really) lying around that are earning less than 2.5%/year and/or that the individual wants to protect from certain creditors and court judgments.

(*) I think technically you can make a sufficient property pledge or have a sufficient property charge and push your RA only up to the Basic Retirement Sum, leaving the rest of your CPF SA+OA unencumbered for on demand withdrawal. However, that seems a bit silly in these circumstances since the usual default is you'd still have ~$60K available for RA withdrawal any time you wish since that's what got swept in from SA+OA.

 

[celtosaxon]

Actually you can do both shield + ERS since you got so much money.

The purpose of shield is to fill your RA with your OA instead of your SA first.

Sent from . using GAGT

But what should be the greater priority at 55, topping up RA from FRS to ERS... or getting SA balance up to the maximum (after RA minimum has been met)?

I believe keeping the maximum in SA should take the greater priority, because it is both high interest bearing and flexible (both in terms of not being locked up, as well as not having a forced draw down). But I want to hear what others have to say.

 

[crimsontactics]

But what should be the greater priority at 55, topping up RA from FRS to ERS... or getting SA balance up to the maximum (after RA minimum has been met)?

I believe keeping the maximum in SA should take the greater priority, because it is both high interest bearing and flexible (both in terms of not being locked up, as well as not having a forced draw down). But I want to hear what others have to say.

Can do both if your OA is high enough.

Firstly, you shield your SA.

Then, you transfer your OA to RA until ERS.

So win-win for you.

Personally, I'm lazy. So I will just go ERS with my SA.

Sent from . using GAGT

 

[celtosaxon]

Can do both if your OA is high enough.

Firstly, you shield your SA.

Then, you transfer your OA to RA until ERS.

So win-win for you.

Personally, I'm lazy. So I will just go ERS with my SA.

Sent from . using GAGT

Very little in OA, always transfer to SA... need to decide between:

1. FRS and higher SA balance
2. ERS and lower SA balance

Same money, just deployed differently.

Which would you choose?

 

[crimsontactics]

Very little in OA, always transfer to SA... need to decide between:

1. FRS and higher SA balance
2. ERS and lower SA balance

Same money, just deployed differently.

Which would you choose?

Depends on how much money you have outside of CPF.

If a lot, I will go ERS since I don't have to withdraw from CPF

Sent from . using GAGT

 

[celtosaxon]

If have a lot outside, why wouldn’t you prefer FRS and more in RA vs ERS?

CPF LIFE forces you to take out starting at 70... whether you need it or not. At least in SA you can decide how much and when you want to take out... if you don’t need to take it, high interest can keep compounding.

Depends on how much money you have outside of CPF.

If a lot, I will go ERS since I don't have to withdraw from CPF

Sent from . using GAGT

 

[crimsontactics]

If have a lot outside, why wouldn’t you prefer FRS and more in RA vs ERS?

CPF LIFE forces you to take out starting at 70... whether you need it or not. At least in SA you can decide how much and when you want to take out... if you don’t need to take it, high interest can keep compounding.

If a lot outside, I don't need to withdraw from SA, so I don't mind putting ERS to have a higher payout in the future.

Sent from . using GAGT

 

[BBCWatcher]

How do you get more money into SA efficiently and rapidly? You cannot once you either hit the FRS or age 55. For Retirement Accounts, top ups to the current ERS are available every time the ERS is raised. MA top ups to the BHS are available every time your MA falls below the BHS, and assuming you can squeeze the top up within the CPF Annual Limit. Those are your only 4% interest propositions once SA top ups are no longer available.

 

[dork32]

Very little in OA, always transfer to SA... need to decide between:

1. FRS and higher SA balance
2. ERS and lower SA balance

Same money, just deployed differently.

Which would you choose?

two points to note when making this decision.

liquidity + flexibility
If you value this, then SA is the better choice

Belief in CPF life
If you believe the CPF life is much better than the old rss scheme, if you believe money transferred to the pool is worth it, then ra is better.

both give the interest same

 

[cal3135]

Will pick FRS in RA & balance$$ in SA.

Did a calculation via CPF life calculator; 55yo with ERS in CPF OA-SA ..

1)RA: 271500
vs
2)RA: 181000
SA: 90500

1)ERS basic: projected $1828 /mth 65y onwards

2)FRS basic: projected $1259 /mth 65y onwards
*SA : able to draw $712 /mth 65y onwards for
25years till exhausted ... or on-demand draw
Total : $1971 /mth

*assumed SA at 4%, with start fund 0.5xFRS at 55y

Scenario:
Or is it better to put 1.5 x FRS (ERS) in RA and leave the rest in SA?

Note that the person will not be significantly dependant on CPF for retirement income, if that matters.

xs HardwareZone Forums app

 

[qhong61]

How much the minimum cpf contribution for someone working overseas?

 

[reddevil0728]

How much the minimum cpf contribution for someone working overseas?

Not required? Unless it’s an arrangement with your company who post you overseas?

 

[dork32]

Will pick FRS in RA & balance$$ in SA.

Did a calculation via CPF life calculator; 55yo with ERS in CPF OA-SA ..

1)RA: 271500
vs
2)RA: 181000
SA: 90500

1)ERS basic: projected $1828 /mth 65y onwards

2)FRS basic: projected $1259 /mth 65y onwards
*SA : able to draw $712 /mth 65y onwards for
25years till exhausted ... or on-demand draw
Total : $1971 /mth

*assumed SA at 4%, with start fund 0.5xFRS at 55y

xs HardwareZone Forums app

this is one guy that does not believe in cpf life.

the proponents of cpf life will say wat if you survive beyond 25 years. There will be a large drop in payout suddenly at the age of 90

 

[celtosaxon]

this is one guy that does not believe in cpf life.

the proponents of cpf life will say wat if you survive beyond 25 years. There will be a large drop in payout suddenly at the age of 90

I think it depends. If you top up to ERS instead of leaving the extra in SA, you probably fit into these 2 categories:

1. Those who genuinely depend on CPF LIFE payments and need the longevity insurance.

2. Those who do not depend on CPF LIFE and are betting that CPF LIFE will pay off based on their expected longevity.

There is probably an argument for shielding SA and topping up RA in cash up to ERS if you can afford it. After all, it looks like ERS only replaces about half of the average income in Singapore, not extravagant for most.

 

[cal3135]

CPF system works well for me.. Choosing FRS as its giving slight more payout + on-demand from SA. Went thru family trees, non available near to 90yo ...

Choices may change again when there are changes to CPF policies.

xs HardwareZone Forums app

 

[dork32]

there are some people go for frs and more sa.

they then use cash to top up ra to ers.

these people are rich, believe in cpf life and like the flexibility sa offers