CPF Interest

[chopra]

how to maximise ma interest? cannot capture BHS limit in jan of every year right

 

[pcmdan]

That's a critical situation? Seriously?

Is it so difficult to understand that governments (and taxpayers) have a strong public policy interest in making sure that members of society save for their own futures (and their survivors' futures), if able and at least to a minimum degree? I don't think that's a difficult concept to grasp. Sure, many people want to raid their future savings (or not even save at all), for all sorts of reasons. However, from a public policy point of view, they need to be damn good reasons. Example: You're definitely going to be dead in 6 months (terminal illness), and you genuinely cannot afford next month's rent for your modest room sublet without tapping your CPF savings. That's a damn good reason, and that premature CPF withdrawal would get approved.

Pls lah...that's just one e.g. that CPF is not fully controlled by me.

And I don't understand, why the savings or how should it be saved be mandated by the govt. If CPF is contributed by my employers alone I can fully understand (it is a kind of tax to employers). But if I have to put in a further 20% of my own money, then this is not cool.

Why should one be bothered with survivor's future? And just because u have lots does it mean that if someone die Young lets say age 30 with 20k in cpf...the survivor would be awarded a min. Of BRS? If no, den why keep harping on survivor's future.

This whole concept of survivor future is lame in my opinion. This is based on and only on how much the deceased has in his or her CpF...will the $20k be sufficient?

Additionally if my CpF has more than 200k in OA...why can't I cash out the excess like now at age 31? Why do I have to keep contributing? (Let me know if I am able to and I shall retract my statement).

Let's just face it, CPF no doubt is a tool for retirement, it is also a tool for the govt to generate returns to fund for other needs.

 

[BBCWatcher]

how to maximise ma interest? cannot capture BHS limit in jan of every year right

If you expect to have enough room below the CPF Annual Limit of $37,740, you can voluntarily top up your Medisave Account.

Let's suppose for example that you're still expecting your employer's December, 2017, payroll cycle to hit your CPF accounts in January, 2018. And let's suppose that payroll cycle will put $250 into your Medisave Account, so it'll increase from $52,000 to $52,250 sometime this month (January, 2018). If you expect you'll have room below the CPF Annual Limit ($37,740) in 2018, you can voluntarily top up your Medisave Account by $2,250 (up to the $54,500 Basic Healthcare Sum for 2018). Those two contributions combined will raise your MA by $2,500 this month, and that $2,500 will start earning interest on February 1, 2018.

If you don't top up your Medisave Account, then you'll be missing out on interest on $2,250 (your voluntary top-up in this example).

January interest is no longer attainable, and it never was. The BHS increases on January 1, and that's already too late for January interest. Sorry about that, but that's how it works. So you just have to beat the end of month deadline, to make sure CPF credits your MA for any contributions and top-ups you want to make.

If you want to beat your employer's payroll cycle, you might be able to do that -- to swoop in with a $2,500 top-up instead of $2,250 (this example). If you do that, your compulsory MA contribution will spill over into your Special Account. (Unless your Special Account has already reached the Full Retirement Sum. Then the MA spillover will spill again into your Ordinary Account.)

There is one way you can bust through the Basic Healthcare Sum limit: if your employer participates in the Additional Medisave Contribution Scheme (AMCS). AMCS contributions are not BHS limited and are not counted against the CPF Annual Limit. AMCS is the very best you can do in terms of maximizing Medisave interest, but it's up to your employer to offer it.

 

[stjoe1]

CPF interest in already .. just checked mine this morning ..

 

[bazingaman]

Yes. it's in..

 

[BBCWatcher]

Pls lah...that's just one e.g. that CPF is not fully controlled by me.

There are many things you don't "control," including many financial things. "So what?"

And I don't understand, why the savings or how should it be saved be mandated by the govt.

You really don't understand that concept? Seriously?

OK, so if you really don't understand that concept, do you also not understand why a government requires the payment of taxes? It's the same basic concept, the fact that individuals living within a functioning society have certain reasonable obligations to that society. In the case of CPF, the obligation is (insofar as reasonably possible) not to become a burden on society.

Why should one be bothered with survivor's future?

Well, you aren't strictly required to be bothered. You can nominate a charity, or the Prime Minister, or U.S. President Donald Trump to receive any leftover CPF monies if you die before consuming them all. However, if you shouldn't be bothered, here's an even better question: why should Singaporean taxpayers be bothered? Answer: they shouldn't, so to defend society (taxpayers) from your failure to look after your survivors, there's CPF, and the hope you won't be too stupid and nominate Donald Trump as your CPF heir.

I don't know how you can logically argue that individual "rights" are all important, and then explain away the fact that taxpayers are supposed to bail you out because you failed (even when you could afford it) to protect taxpayers from your irresponsibilities. CPF is, if nothing else, society's defense against bad actors and those unlucky in life.

This whole concept of survivor future is lame in my opinion. This is based on and only on how much the deceased has in his or her CpF...will the $20k be sufficient?

Hey, that's $20K less burden for taxpayers to bear! We'll take it (the avoided burden), thank you very much. Nobody is arguing that CPF is a perfect, airtight taxpayer defense.

Additionally if my CpF has more than 200k in OA...why can't I cash out the excess like now at age 31?

For many, many perfectly logical and sensible reasons. How about if you detach from the computer (or tablet or smartphone) a bit, ponder your own question some more, and report back to us after you've thought about it? Try to design an alternative compulsory savings program for Singapore, and see if you can make it better than CPF.

I'll give you some hints. What would happen to labor markets in Singapore if some 31 year olds (and their employers) did not have to contribute to CPF and others did? What would happen to social cohesion? What would happen to income and wealth inequality? What would happen to tax revenues, if some 31 year olds could just launder tax free money through CPF?

....Maybe, just maybe, a government program that started in 1955, and has been tuned, tweaked, and adjusted over the many decades since, has some grounding in sound public policy? Did that possibility ever cross your mind, that the government just might know what it's doing here?

 

[pcmdan]

I think BBC is too fixated with CPF that he only sees from his perspectives...

It is good but not perfect. U are saying it like perfect.. omg

Donald Trump's u think he sucks...but there are people there who think he is good.please do not see think from your perspective. Just like your CPF.

The world doesn't revolve around you . What u think is good or bad doesn't mean the world has to agree with u

 

[Wood41]

BBCplayer rejects any investment local.
Everything overseas is good .

He doesn’t know S$ is up against US$ all the way in 2017.
He doesn’t know many SGX stocks are up
>20-50% .

So sad for him .

 

[pcmdan]

BBCplayer rejects any investment local.
Everything overseas is good .

He doesn’t know S$ is up against US$ all the way in 2017.
He doesn’t know many SGX stocks are up
>20-50% .

So sad for him .

Lol for someone who think cpf returns is so good..I doubt he really invest much..since a good investor will not bother with cpf pathetic 2.5% return

He likes to compare CpF with bank saving account. The problem is one gives u unlimited liquidity while the former is not.

 

[Jazzbie]

Just to confirm we can top up CPF MA now from $52,000 to $54,500 and enjoy tax savings right?

I usually contribute the $7K to CPF SA for the tax savings but will do it near end Jan. So first time trying to top up MA first followed by SA near end Jan.

Thanks.

 

[Wood41]

CPF / SRS / cash can be used for stock trading / housing.
The return is >>>> 2.5-6%.

Just don’t be too kiasi.
I laugh at those who only dare SSB their blood & sweat $.

SGX stocks & S$ have a good 2017.

Lol for someone who think cpf returns is so good..I doubt he really invest much..since a good investor will not bother with cpf pathetic 2.5% return

He likes to compare CpF with bank saving account. The problem is one gives u unlimited liquidity while the former is not.

 

[crimsontactics]

CPF / SRS / cash can be used for stock trading / housing.
The return is >>>> 2.5-6%.

Just don’t be too kiasi.
I laugh at those who only dare SSB their blood & sweat $.

SGX stocks & S$ have a good 2017.

Don't judge lah bro...

Ppl's money let them put where they like...

Sent from . using GAGT

 

[icyflame]

Just to confirm we can top up CPF MA now from $52,000 to $54,500 and enjoy tax savings right?

I usually contribute the $7K to CPF SA for the tax savings but will do it near end Jan. So first time trying to top up MA first followed by SA near end Jan.

Thanks.

Just checked this morning. Can't if you will be maximizing your annual cpf contribution limit

 

[BBCWatcher]

U are saying it like perfect..

The fact is I never wrote that, certainly don't believe that, and repeatedly take great care to explain why CPF isn't perfect.

BBCplayer rejects any investment local.
Everything overseas is good .

The fact is I never wrote that, certainly don't believe that, and repeatedly take great care to explain why I recommend at least reasonable global diversification. Singapore is part of the globe!

since a good investor will not bother with cpf pathetic 2.5%

Why do you assume I "bother" with the 2.5% yielding portion of CPF (the Ordinary Account)? Please go read what I've actually written about my Ordinary Account views, at length.

But fact is we have to live with it.

Exactly. Some people just complain. Others maximize available opportunities as best they can, and I'll tell anybody else how I do it (and why), free of charge here. That's because I keep learning in the process.

I'm not at all in agreement with people who want to argue that they ought have zero responsibilities to civil society. It's a particularly unseemly argument when wealthy people (or trying to be wealthy people) make it. If wealthy people don't have any responsibility to protect and to contribute to civil society -- the very same society that boosts and protects their wealth -- then who does? That "logic" makes no sense whatsoever, and it's especially grating in Singapore where wealthy people are doing extra well.

I'm doing quite well, and I hope that continues. I also firmly believe I have certain obligations to civil society. CPF is such a minor obligation -- and it works really, really well for wealthy people who make it work for them -- that I can't even begin to understand why anybody genuinely wealthy (or headed in that direction) would complain about it.

 

[leoch037]

just revoke your citizenship and don't work in SG forever, then u can also withdraw your cpf, even from MA
when u r no longer the responsibility of the nation, your cpf will become really your "own money"

 

[h.y.o.m]

I'm not at all in agreement with people who want to argue that they ought have zero responsibilities to civil society. It's a particularly unseemly argument when wealthy people (or trying to be wealthy people) make it. If wealthy people don't have any responsibility to protect and to contribute to civil society -- the very same society that boosts and protects their wealth -- then who does? That "logic" makes no sense whatsoever, and it's especially grating in Singapore where wealthy people are doing extra well.

This is the best thing I have read for a long time, particularly coming from someone who is not even Singaporean. Our country is fortunate to have a foreigner like you around. Please continue contributing to this forum and don't be discouraged by nay-sayers.

It is natural for a person to be thinking out only for himself when he is starting out in life and struggling to fulfill his family responsibilities. After he achieves a certain level of wealth, it is also natural that he will start to do free-of-charge altruistic stuff with little self-gain. Like what BBCWatcher is doing sharing his knowledge here. However, most people will not be able to achieve this level of wealth. The least they can do is to not to become so needy as to burden other people. Therefore, I agree with the government stance not to make CPF money too accessible so that innocent tax-payers are not burdened with looking after financially irresponsible citizens. This is a fair system.

Lol for someone who think cpf returns is so good..I doubt he really invest much..since a good investor will not bother with cpf pathetic 2.5% return

There are lots of rich investors who put money into AAA-rated funds with less than 2.5% return. How else do you explain the trillions of dollars in negative-yielding sovereign bonds today? In today's world of negative-yield, AAA-rated 2.5% CPF OA is a godsend. I personally will not touch my CPF and use it for investment even if I have a wonderful investment track record. You never know when disaster hits. For the sake of prudence, I will leave a percentage of my assets in safe funds to generate some income to cover basic expenses. It is my personal responsibility to take care of myself and not burden others.

One reservation I have about CPF is unexpected rule change by the government. It is a risk that all Singaporeans have to put up with but overall, I am happy with CPF so far, particularly in a negative-yielding AAA climate today.

 

[dork32]

If a person who is in his 30s or 40s needs to rely on CPF because he cannot find job, how would the same person be able to find job in his 50s and 60s.

Quite worrying that there are people with such thinking. Time is better spent looking for a job or upgrading yourself instead of bitching about CPF. Understand how the game is played so that you can do well in life.

if a person in his 30s needs the cpf to survive, and nothing is given to him, you dont have to worry about him finding a job in his 50s. He would be dead.

 

[icyflame]

if a person in his 30s needs the cpf to survive, and nothing is given to him, you dont have to worry about him finding a job in his 50s. He would be dead.

The govt has other schemes to help such needy people. CPF is not the designated tool, at least based on current policy

 

[TabascoSauce]

I think BBC is too fixated with CPF that he only sees from his perspectives...

It is good but not perfect. U are saying it like perfect.. omg

Donald Trump's u think he sucks...but there are people there who think he is good.please do not see think from your perspective. Just like your CPF.

The world doesn't revolve around you . What u think is good or bad doesn't mean the world has to agree with u

when it comes to national policy, there's no such thing as perfect. what is perfect for u dosnt mean it is perfect for everyone else.

 

[TabascoSauce]

lol... wtf.. the dragonite 'like' come tgt with my post when i post it... his script jin power.