CPF Life - Standard Plan

[game goondu]

I wanna ask the sexperts again. What do you do with the surplus CPF OA $$ that's not funneled into CPF life?

Do you keep it in OA to earn 2+% interest p.a.?
Do you pump it into RA to increase RA until ERS from FRS?
Do you take everything out and do your own investment?
Or a mixture of the above or something else?

I learning option trading now... started 1st July last month...

If this works...
I will put frs and take every cents out next year at 55 and use as account for my option trading...

 

[bruiser69]

i think i will withdraw that $5k to use it (flight and logistic) for moving to Thailand for retirement

$5k can hang flower many times

 

[game goondu]

Okay, a lot of questions on the part that is left in the RA. This is the 20% that you can take back. I've read some stuff, did some maths and this is the answer.

This amount is calculated as follows.

(RA - topups) * 0.2 - 5000.

Let's put in my numbers.

(253011.18 - 10000) * 0.2 - 5000
= 43602.24.

So it is correct.
I assume sometime in the future, it will be transferred to OA. Again, will update when that happens.

Did u opt for 20% ... if not, then why they never use full amt for cpf life premium

 

[d3n]

$5k can hang flower many times

no time leh, i will migrate with my 3 furkids and stuffs to Thailand when I 55.

 

[yokine3a]

no time leh, i will migrate with my 3 furkids and stuffs to Thailand when I 55.

What long term visa are you using, non-immigrant visa?

 

[lousydk]

The 20% RA withdrawal amount will be transferred to the OA on the month of starting cpf life payouts.

When applying to start the cpf life payouts, there’s one part of the online application that will ask whether would you like to increase your cpf life payout monthly amount using your withdrawable CPF, which is using from your 20% RA withdrawal amount plus OA balance. If you choose not to increase payouts, it will remain withdrawable as a lump sum anytime.
Also anytime afterwards you can of course still apply to transfer that amount to RA to top up your cpf life payouts. It’s flexible.

 

[d3n]

What long term visa are you using, non-immigrant visa?

i will apply for retirement visa.

 

[enimen]

no time leh, i will migrate with my 3 furkids and stuffs to Thailand when I 55.

U got any real kids?

 

[eggie011]

The 20% RA withdrawal amount will be transferred to the OA on the month of starting cpf life payouts.

When applying to start the cpf life payouts, there’s one part of the online application that will ask whether would you like to increase your cpf life payout monthly amount using your withdrawable CPF, which is using from your 20% RA withdrawal amount plus OA balance. If you choose not to increase payouts, it will remain withdrawable as a lump sum anytime.
Also anytime afterwards you can of course still apply to transfer that amount to RA to top up your cpf life payouts. It’s flexible.

Yes, there was such an option. I had no idea what it meant, so I said no, haha. Thanks for the clarification.

Anyway, like you said, we can always add it back to RA later to increase our premium for more payout, so it's not a big deal.

 

[enimen]

I learning option trading now... started 1st July last month...

If this works...
I will put frs and take every cents out next year at 55 and use as account for my option trading...

My advice is use paper trading to learn for at least a year or more before u commit. Options can get burn easily. Only play with what u can afford to lose

 

[dev_stg_prd]

I learning option trading now... started 1st July last month...

If this works...
I will put frs and take every cents out next year at 55 and use as account for my option trading...

Note can make money also can lose $

 

[NintendoSwitch]

It was just a one minute humble brag lah. Nao I go hide my face liao

Hokey.

 

[dilphinus]

My SA has less than $100k. Won't grow anymore cos I'm not living/working in Singapore.

My OA and SA combined now, is more than the projected FRS when I turn 55.

My question is. Should I transfer my OA to SA now to earn a higher interest?

I'm not looking at getting a property in Singapore in the near future. May after a decade later or so when I qualify for the elderly 2 room BTO. If I'll be doing this, I have more than sufficient in my OA now to pay for it. Again, the question is, after buffering the BTO amount, shall I transfer the excess to my SA account?

If it matters or is relevant, I will be eligible to receive pension (in Australia) when the time comes.

Not looking to do any cash top-up at the moment cos we need the cash to buy a property in Australia.

 

[game goondu]

My advice is use paper trading to learn for at least a year or more before u commit. Options can get burn easily. Only play with what u can afford to lose

Thank you..
But I jump straight away to real trade after 2 months of YouTube watching/learning and asking gemini...

I dont want to paper trade becos later paper trade earn and real trade lose is a very demoralising thing..

N really paper trade 1 year... really got ppl do that?

But I totally agree with playing with what u can afford to lose and not borrow money to play....

 

[game goondu]

Note can make money also can lose $

Of course, there are no free money at the world largest casino.....

 

[game goondu]

My SA has less than $100k. Won't grow anymore cos I'm not living/working in Singapore.

My OA and SA combined now, is more than the projected FRS when I turn 55.

My question is. Should I transfer my OA to SA now to earn a higher interest?

I'm not looking at getting a property in Singapore in the near future. May after a decade later or so when I qualify for the elderly 2 room BTO. If I'll be doing this, I have more than sufficient in my OA now to pay for it. Again, the question is, after buffering the BTO amount, shall I transfer the excess to my SA account?

If it matters or is relevant, I will be eligible to receive pension (in Australia) when the time comes.

Not looking to do any cash top-up at the moment cos we need the cash to buy a property in Australia.

Are you going to touch the OA anytime soon... near 55? U want to take out and put in the no brain snp 500 or all world index investing?

If no, then u just put everything to RA and earn extra 1.5%...

N can take out 20% at 65.. or even say bye bye to sg and take out everything...

 

[bruiser69]

Yes, there was such an option. I had no idea what it meant, so I said no, haha. Thanks for the clarification.

Anyway, like you said, we can always add it back to RA later to increase our premium for more payout, so it's not a big deal.

That’s the thing about CPF. So unclear or ambiguous

 

[a4973]

TS should also post this in the Money Mind forum for more participation. Just saying.

 

[KnyghtRyder]

The 20% RA withdrawal amount will be transferred to the OA on the month of starting cpf life payouts.

When applying to start the cpf life payouts, there’s one part of the online application that will ask whether would you like to increase your cpf life payout monthly amount using your withdrawable CPF, which is using from your 20% RA withdrawal amount plus OA balance. If you choose not to increase payouts, it will remain withdrawable as a lump sum anytime.
Also anytime afterwards you can of course still apply to transfer that amount to RA to top up your cpf life payouts. It’s flexible.

That sounds clear enough.

 

[KnyghtRyder]

My SA has less than $100k. Won't grow anymore cos I'm not living/working in Singapore.

My OA and SA combined now, is more than the projected FRS when I turn 55.

My question is. Should I transfer my OA to SA now to earn a higher interest?

I'm not looking at getting a property in Singapore in the near future. May after a decade later or so when I qualify for the elderly 2 room BTO. If I'll be doing this, I have more than sufficient in my OA now to pay for it. Again, the question is, after buffering the BTO amount, shall I transfer the excess to my SA account?

If it matters or is relevant, I will be eligible to receive pension (in Australia) when the time comes.

Not looking to do any cash top-up at the moment cos we need the cash to buy a property in Australia.

Since you don't need the money. Just transfer oa to sa. By the time you are eligible for elderly 2 room your SA would have been closed and the RA created. Then anything left over would go back to your OA anyway.

So you might as well take advantage of the higher interest while you can.