CPF Easy Info Thread. :)

[pcmdan]

He mentioned that 'She has the min sun in place and is age 55 this year'.

He wants to contribute but not clear whether he wants to top up or make voluntary contribution, though former is more obvious.

To be exact, if passed 55th birthday, can still top up RA to ERS, but no tax relief.

He can make VC (to all 3 accounts) with no tax relief and these contributions can be withdrawn anytime as the mum is 55 and has min sum in place.

If there is no tax relief, might as well just give her cash rather than going thru the hassle right?

 

[kevinkoh1992]

If there is no tax relief, might as well just give her cash rather than going thru the hassle right?

There is 4% interest for her if she isn't going to use the cash immediately right

 

[heymee]

Why do you want to return the housing loan.?

Does it matter (to you) whether it goes to OA and all 3 accounts?

Yes, it matters...because I do not want the return to go into the Medisave Account....

Go back to OA is Ok ...but if can push to SA account...will be even better....want to earn more interest...so can have more $$$ to retire...but Medisave Account , I already hit more than 50k...

 

[elnewbie]

Then the simple solution is capital repayment back to OA, followed by OA to SA transfer.

Yes, it matters...because I do not want the return to go into the Medisave Account....

Go back to OA is Ok ...but if can push to SA account...will be even better....want to earn more interest...so can have more $$$ to retire...but Medisave Account , I already hit more than 50k...

 

[highsulphur]

Then the simple solution is capital repayment back to OA, followed by OA to SA transfer.

unless he max out SA already.

which is usually the case for people refunding housing payments

 

[heymee]

unless he max out SA already.

which is usually the case for people refunding housing payments

Yes , I have hit SA limit...cannot transfer OA to SA ....
So can only try to put in more $$$ into OA....

So far I think I owe CPF around 200k including interest used for Housing Loan...

So must keep working....

 

[highsulphur]

Yes , I have hit SA limit...cannot transfer OA to SA ....
So can only try to put in more $$$ into OA....

So far I think I owe CPF around 200k including interest used for Housing Loan...

So must keep working....

how old are you? I repaid my CPF already. doesn't make sense for me to look for the best FD when OA beats them hands down

 

[henrylbh]

Yes, it matters...because I do not want the return to go into the Medisave Account....

Go back to OA is Ok ...but if can push to SA account...will be even better....want to earn more interest...so can have more $$$ to retire...but Medisave Account , I already hit more than 50k...

how old are you? I repaid my CPF already. doesn't make sense for me to look for the best FD when OA beats them hands down

If you have not hit the CPF annual limit, wouldn't it be better to make VC first before repaying the CPF used for housing loan with cash?

The former would go into OA, SA and MA while the latter goes to OA only, that is assuming your MA will hit the limit with your mandatory contributions over a period of time.

 

[bladez87]

Just to check. When buying property, to preserve oa account, I have to use all my funds above 20k to buy stocks via cpfis, then upon the flushing of my cpf by hdb, I sell all my stocks to get back the funds?

Is that right? Thanks

 

[dork32]

Just to check. When buying property, to preserve oa account, I have to use all my funds above 20k to buy stocks via cpfis, then upon the flushing of my cpf by hdb, I sell all my stocks to get back the funds?

Is that right? Thanks

if you are able to do that, it means that you have quite a lot of cash.

you can use bank loan. you can keep as much as you like in your cpf. bank loan interest has been lower than hdb loan for the past 9 years.

you know why hdb loan is called subsidized loan? it is because the citizens are subsidizing the garmen.

 

[dork32]

If you have not hit the CPF annual limit, wouldn't it be better to make VC first before repaying the CPF used for housing loan with cash?

The former would go into OA, SA and MA while the latter goes to OA only, that is assuming your MA will hit the limit with your mandatory contributions over a period of time.

for me, it makes sense to return the money for the housing first.

if i lose my job today, the full amount + interest can still be used to pay my installments.

 

[antonpoh]

Just to check. When buying property, to preserve oa account, I have to use all my funds above 20k to buy stocks via cpfis, then upon the flushing of my cpf by hdb, I sell all my stocks to get back the funds?

Is that right? Thanks

Those amount above 20k in your OA, can invest in Professionally Managed Products but not stocks. For stocks you are only allow to use 35% of your OA.

If you're taking Bank loan, you can set whatever CPF OA amount you wish to use. Don't need to transfer it out and back again.

My CPF Online Services - Important Information Before Investing

Before you invest your CPF savings, here is some information you should know :

You can use your Ordinary Account savings for CPFIS - OA investments and your Special Account savings for CPFIS - SA investments.

You cannot invest the first $20,000 in your Ordinary Account and the first $40,000 in your Special Account. However, you can continue to service your regular premium insurance policies bought before 1 January 2001 (but not recurring single premium insurance policies or regular savings plans for unit trusts) and agent bank fees even if your Ordinary Account balance falls below $20,000.

The stock and gold limits are updated monthly on the 11th (or 12th if 10th is a Sunday/Public Holiday) using your CPF balances at the end of the previous month.

Any investment in Stocks or Gold may reduce the amount available for Professionally Managed Products and vice versa.

Please take into account your next housing instalment (if any) and investment trades pending settlement. The total amount that you intend to use for investment and other CPF Schemes cannot exceed the balances in your Ordinary, Investment (if any) and Special Accounts.

Professionally Managed Products refer to:
Fixed Deposits
Insurance Policies*
Unit Trusts*
Singapore Government Bonds
Singapore Government Treasury Bills
Statutory Board Bonds
Bonds Guaranteed by Singapore Government
Fund Management Accounts (you cannot invest your Special Account savings in this)
Exchange Traded Funds*

(* Please refer to the Frequently Asked Questions on CPF Investment Scheme for the risk classification tables for unit trusts, investment-linked insurance products and exchange-traded funds which Special Account savings can be invested in.)

Stocks refer to:
Shares
Property Funds
Corporate Bonds
Loan stocks

 

[henrylbh]

for me, it makes sense to return the money for the housing first.

if i lose my job today, the full amount + interest can still be used to pay my installments.

Then better not to refund money used or make VC if one is thinking that the money may be needed if one loses his job.

 

[dork32]

Then better not to refund money used or make VC if one is thinking that the money may be needed if one loses his job.

if i lose my, i will need to pay my installment. the bank does not care if this money is coming from my oa or my cash reserve. so there is nothing wrong with putting my reserve that is meant to service my home loan into the oa.

 

[PC-User]

Hi all, I have a doubt:

When I reach 55, I'll set aside 88,000 in RA as basic retirement sum. The remaining will be in OA and SA accounts. The next year the interest earned by the RA will accumulate in RA or overflow to SA?

I mean does the basic retirement sum remain at 88,000 from 55 to 65 or it will keep on increasing but remains in RA?

 

[apatheticme]

Hi all, I have a doubt:

When I reach 55, I'll set aside 88,000 in RA as basic retirement sum. The remaining will be in OA and SA accounts. The next year the interest earned by the RA will accumulate in RA or overflow to SA?

I mean does the basic retirement sum remain at 88,000 from 55 to 65 or it will keep on increasing but remains in RA?

Why would it overflow to SA? I think it remains in RA, and the extra interests that used to go to SA will go to RA from 55 onward. The BRS for your cohort doesn't change, but that doesn't mean it's a cap on the RA amount.

 

[PC-User]

Why would it overflow to SA? I think it remains in RA, and the extra interests that used to go to SA will go to RA from 55 onward. The BRS for your cohort doesn't change, but that doesn't mean it's a cap on the RA amount.

Meaning we're actually setting aside a minimum of $130,000 to get $600+ payout monthly starting 65.

 

[henrylbh]

Hi all, I have a doubt:

When I reach 55, I'll set aside 88,000 in RA as basic retirement sum. The remaining will be in OA and SA accounts. The next year the interest earned by the RA will accumulate in RA or overflow to SA?

I mean does the basic retirement sum remain at 88,000 from 55 to 65 or it will keep on increasing but remains in RA?

At 55 your SA and OA will move to RA to meet FRS and any excess above FRS will remain where they are. It's from the RA that you decide whether you wish to maintain BRS or FRS.

Interest earned in the respective accounts will remain where it accrues.

 

[elnewbie]

No, the monthly payout amount will be adjusted for inflation till you hit 65. Thereafter, no further increase in the monthly amount, unless you sign up for that new inflation adjusted plan.

Meaning we're actually setting aside a minimum of $130,000 to get $600+ payout monthly starting 65.

 

[PC-User]

At 55 your SA and OA will move to RA to meet FRS and any excess above FRS will remain where they are. It's from the RA that you decide whether you wish to maintain BRS or FRS.

Interest earned in the respective accounts will remain where it accrues.

Oh, if I choose to set aside only BRS (with property pledge) also, still savings from OA+SA will be transferred to RA up to the FRS amount at 55?

Let say if I stop working at 55 and withdraw from RA at 60, still I need to set aside only 88,000? Or I set aside 88,000 at 55, and the interest from that 88,000 will be kept accumulate until 65 payout and can't be withdrawn?

Still not clear...