CPF Easy Info Thread. :)

[lifeafter41]

If RA is created and fully funded, why would you want to invest the money in SA? SA give you 4% p.a. and can be withdrawn since you are already above 55.

It’s more to create a 2nd stream of income.
Drawing down the interest and leaving the principal intact.

Assuming 176k RA and 176k SA at 55
At age 65, RA will go into CPF life mode, assuming Basic Plan, will draw around 1280 to 1320, assuming its 1300 according to CPF Life table.

SA at 65, after compounding till 65, at 4% will be 262k
At age 66, start drawn down of interest, of 10.5k or 875 monthly.

Gives a total of almost 2200.

That’s assuming the goalpost don’t shift.....lol

 

[henrylbh]

If RA is created and fully funded, why would you want to invest the money in SA? SA give you 4% p.a. and can be withdrawn since you are already above 55.

It’s more to create a 2nd stream of income.
Drawing down the interest and leaving the principal intact.

You misunderstood his question. He must have overlooked your post #631.

 

[lifeafter41]

CPFIS-OA and CPFIS-SA rules do not change even after meeting FRS in RA.

This will make the shield not so effective after all.....

 

[henrylbh]

CPFIS-OA and CPFIS-SA rules do not change even after meeting FRS in RA.

This will make the shield not so effective after all.....

Dumb rules

If I have $80k OA earning 2.5%, I am allowed to invest only $28k.

If I also have $80k SA earning 4% +1% (on first $60k), I am allowed to invest $40k.

 

[lifeafter41]

CPFIS-OA and CPFIS-SA rules do not change even after meeting FRS in RA.

Having said that, does the 4% +1% still applies for SA (60k) after the formation of RA?

 

[dork32]

SA at 65, after compounding till 65, at 4% will be 262k
At age 66, start drawn down of interest, of 10.5k or 875 monthly.

very good. another person has mentioned this. if we just withdraw our interest, the withdrawal is perpetual. the bequest is guaranteed.

bbc also mentioned that garmen should not be bearing this cost. can the garmen avoid paying under this situation?

pm is the one that is boasting on the high returns of the cpf. you want to boast, you have to bear the cost.

 

[Value.Matrix]

Having said that, does the 4% +1% still applies for SA (60k) after the formation of RA?

Dun bother with the extra interest, unless you are choosing the CPF LIFE BASIC Plan. (not to be confused with the Basic Retirement Sum Again). This goes to your RA or the Life Long Fund. Dun bother thinking about it (unless your RA drops below 60k, then maybe).

CPF SA is pure 4%, simple as that.

 

[henrylbh]

Dun bother with the extra interest, unless you are choosing the CPF LIFE BASIC Plan. (not to be confused with the Basic Retirement Sum Again). This goes to your RA or the Life Long Fund. Dun bother thinking about it (unless your RA drops below 60k, then maybe).

CPF SA is pure 4%, simple as that.

Not so simple as that.

If RA exhausted and one is alive and still have SA?

 

[romeo88]

!+1% goes to RA. When PEA, stays in RA for Basic plan. For the other 2, goes to the pool. This was discussed recently (in another thread, I think)

Having said that, does the 4% +1% still applies for SA (60k) after the formation of RA?

 

[henrylbh]

Having said that, does the 4% +1% still applies for SA (60k) after the formation of RA?

For those above 55, it's 4% +1% extra interest + 1% additional extra interest.

The priority of the accounts that make up the $60,000 and $30,000 is as follows:

1st: Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE

2nd : Ordinary Account (OA), up to $20,000

3rd : Special Account (SA)

4th: MediSave Account (MA)

 

[dork32]

Not so simple as that.

If RA exhausted and one is alive and still have SA?

if ra is exhausted, sa still earn 4%, so value matrix is correct.

extra 1% interest from (oa or ma or sa) goes into ra which is given back to you via monthly payout.

same as value matrix, i will not consider this interest because it goes into ra. i can say that my sa is earning 4+1 or my ma is earning 4+1 or my oa is earning 4+1.

or easier. my sa is earning 4, oa 2.5, ma 4, ra is getting a bonus of 900

 

[dork32]

For those above 55, it's 4% +1% extra interest + 1% additional extra interest.

The priority of the accounts that make up the $60,000 and $30,000 is as follows:

1st: Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE

2nd : Ordinary Account (OA), up to $20,000

3rd : Special Account (SA)

4th: MediSave Account (MA)

i always tot balances for annuity does not earn interest for ra

 

[henrylbh]

if ra is exhausted, sa still earn 4%, so value matrix is correct.

extra 1% interest from (oa or ma or sa) goes into ra which is given back to you via monthly payout.

same as value matrix, i will not consider this interest because it goes into ra. i can say that my sa is earning 4+1 or my ma is earning 4+1 or my oa is earning 4+1.

or easier. my sa is earning 4, oa 2.5, ma 4, ra is getting a bonus of 900

You cloud the issue by saying where the interest goes to.

 

[henrylbh]

i always tot balances for annuity does not earn interest for ra

So misrepresentation from CPF?

 

[maple96]

You forgot he said not to raise CPF matters in his thread? In fact as good as get lost from it.

No u misinterpret his intention. He cannot stop his fans from posting CPF questions in his thread and they are still posting

 

[henrylbh]

No u misinterpret his intention. He cannot stop his fans from posting CPF questions in his thread and they are still posting

He will tell you to get lost from his thread, but not to others?

 

[maple96]

He will tell you to get lost from his thread, but not to others?

He will tell u to get lost

I never step into his thread to give him the opportunity

 

[henrylbh]

He will tell u to get lost

I never step into his thread to give him the opportunity

Never say never

 

[lifeafter41]

For those above 55, it's 4% +1% extra interest + 1% additional extra interest.

The priority of the accounts that make up the $60,000 and $30,000 is as follows:

1st: Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE

2nd : Ordinary Account (OA), up to $20,000

3rd : Special Account (SA)

4th: MediSave Account (MA)

Another way, age 55 and above.

RA at FRS, 176k: 60k at 5%, 116k at 4%
OA, 60k : 30k at 3.5%, 30k at 2.5%
SA, 176k : 60k at 5%, 116k at 4%
MA, 57.2k : 57.2k at 4%

Is the above assumption correct?

 

[henrylbh]

Another way, age 55 and above.

RA at FRS, 176k: 60k at 5%, 116k at 4%
OA, 60k : 30k at 3.5%, 30k at 2.5%
SA, 176k : 60k at 5%, 116k at 4%
MA, 57.2k : 57.2k at 4%

Is the above assumption correct?

If above 55 and still have above balances in the respective accounts, then your understanding is terribly way off.

Better go read what is written in CPF website.

https://www.cpf.gov.sg/members/FAQ/...s&group=Others&folderid=13726&ajfaqid=2192131

The max interest per year is $900 on the combined balances.