CPF optimisation for retiree

[dork32]

The bottom line is that her children don't have to tolerate what she's currently (not) doing. They can be generous as they choose to be, or not at all. It's solely their decision, ultimately. However, this parent just might like the idea of a monthly raise on the "front side," so that's one possible way to explain the modification.

i do not deny the logic of this para.

but you do not know how many old people in sg behave.

you dont to as they please, they do equivalent of posting your particulars on social media and how unfilliial you are.

 

[henrylbh]

“Mom, I can afford to give you either $600/month in cash or cpf life gives you $630/month. I recommend $630/month since you get much more.”

you think old lady cannot think?

Where did that come from?

What asking you? What you write too short, can't help. When you write too long, you talking to yourself.

it come from the fact that he just want to hit watever i post.

What makes you think I just want to hit whatever you post You should know better than to post incomplete if not mis information.

BBC anyhow jumped in. That's means he agreed with what you would say to your mum

 

[dork32]

What makes you think I just want to hit whatever you post You should know better than to post incomplete if not mis information.

BBC anyhow jumped in. That's means he agreed with what you would say to your mum

if it is incomplete say why it is incomplete. otherwise stop being a troll.

our post here can never be complete. it is just one small portion of the cpf rules. if it is enough to cover the question it is considered as complete.

 

[dork32]

Got pro and con of putting inside cpf. Yes, there is higher interests. Cons, cannot take out lump sum.
But then again, why want to take out lump sum. The money you put inside cpf should never be your emergency money

very fair statement. you sacrifice liquidity for higher interest rates/ payout. only you can decide if this is worth it.

and henry this is the way to answer, if anything is not right or not complete, correct it. and not post the way like maple do

 

[dork32]

you think old lady cannot think?

well there are many people that cannot think. they are super negative about our garmen and everything that has got to do with them. putting money into cpf is like throwing money into the sea. they can never accept this idea.

it is like housing loan. despite me and bbc saying all the time having a huge housing loan but also a large cpf oa is much better than being debt free. there are still many people that prefers to be debt free, or

if you have cash to pay down your housing loan, dont do it. just pay it back to the cpf oa for the amount that you have withdrawn for housing. this idea is too radical for some to accept.

 

[dork32]

Yes you sacrifice liquidity. But then why would you want to take out 100k if you do not even need it. The only time I can think of if you need 100k is when you buy a house( well, you got OA) or in a health emergency. Hence, putting inside bank for liquidity is meaningless if you have no intention of taking it out at all.

some people do not value liquidity, some people do. there is not right or wrong answer.

i bought my car using cash and 0 car loan. this is one use of my 100k. if i do not have liquidity, i would be hit by a car loan. the effective interest for car loan is more than 5% then.

you are also right that you aspire to own multiple properties, it is good to keep liquidity.

like i said there is no right or wrong answer. it really depends on the individual

but i thought you are the one that is against topping up cpf with cash.

 

[henrylbh]

“Mom, I can afford to give you either $600/month in cash or cpf life gives you $630/month. I recommend $630/month since you get much more.”

you think old lady cannot think?

well there are many people that cannot think.

It's not that the old lady can't think.

Son has been giving the mother monthly allowance of $600 cash in the past. Then he became smarter and turned to his mother.

Son: Mom, I can afford to give you either $600/month in cash or cpf life gives you $630/month. I recommend $630/month since you get much more.

Mum: Sure of not? Where you learn that from?

Son: Oh, I heard from BBC in hardwarezone and I think it’s a good idea. In giving you allowance through CPF, you get more and I get tax relief.

Mum: You mean HWZ also got BBC? Whoa so good I have been skipping the manicure and pedicure downstairs. Now with the extra $30, I can afford to go for that on a regularly basis especially now that I am going on dates.

Son: Sure, you can go for it as long as you live. So you agree to get your monthly allowance through your CPF? Ah, but make sure, I am your sole nominee. Otherwise, what I put into your CPF will be shared with my siblings or go to your date, if you stop going for your manicure and pedicure.

Mum: No worry son. Can I also put extra $600 cash into my CPF so that I will get even more?

Son: Sure. The more you put in, you get more than what you put in and for life.

Mum: Ok, I will trust you son.

Comes next month.

Mum: Hey son, how come no $630 from CPF.

Son: Oh I too kanchiong and forget to explain fully what I meant. …………… Nevermind. Forget what I said. I will continue to give you cash. On second thought, I give up the dumb idea cause I need to deposit a fairly large sum at one go.

Mum: WTF, forget what dumb plan you have. I don’t care to know. Just give me $630 cash from now on. I already booked to start my pedicure and manicure on a special discounted price on the first Saturday of every month for life

For the mother to receive payout of $630 for life, the son need to top up a fairly large sum and let that grow over over years before payout begins. If mother is nearer PEA or already passed PEA, an even bigger sum need to be topped up to get $630 the following month.

 

[dork32]

It's not that the old lady can't think.

Son has been giving the mother monthly allowance of $600 cash in the past. Then he became smarter and turned to his mother.

Son: Mom, I can afford to give you either $600/month in cash or cpf life gives you $630/month. I recommend $630/month since you get much more.

Mum: Sure of not? Where you learn that from?

Son: Oh, I heard from BBC in hardwarezone and I think it’s a good idea. In giving you allowance through CPF, you get more and I get tax relief.

Mum: You mean HWZ also got BBC? Whoa so good I have been skipping the manicure and pedicure downstairs. Now with the extra $30, I can afford to go for that on a regularly basis especially now that I am going on dates.

Son: Sure, you can go for it as long as you live. So you agree to get your monthly allowance through your CPF? Ah, but make sure, I am your sole nominee. Otherwise, what I put into your CPF will be shared with my siblings or go to your date, if you stop going for your manicure and pedicure.

Mum: No worry son. Can I also put extra $600 cash into my CPF so that I will get even more?

Son: Sure. The more you put in, you get more than what you put in and for life.

Mum: Ok, I will trust you son.

Comes next month.

Mum: Hey son, how come no $630 from CPF.

Son: Oh I too kanchiong and forget to explain fully what I meant. …………… Nevermind. Forget what I said. I will continue to give you cash. On second thought, I give up the dumb idea cause I need to deposit a fairly large sum at one go.

Mum: WTF, forget what dumb plan you have. I don’t care to know. Just give me $630 cash from now on. I already booked to start my pedicure and manicure on a special discounted price on the first Saturday of every month for life

For the mother to receive payout of $630 for life, the son need to top up a fairly large sum and let that grow over over years before payout begins. If mother is nearer PEA or already passed PEA, an even bigger sum need to be topped up to get $630 the following month.

must you write so much to drive home a simple idea?

everything is trash except the last para

 

[dork32]

For the mother to receive payout of $630 for life, the son need to top up a fairly large sum and let that grow over over years before payout begins. If mother is nearer PEA or already passed PEA, an even bigger sum need to be topped up to get $630 the following month.

it is like i put 60k into a biscuit tin. every month you draw 500 from it. at the end of 10 years, there will be no money in the biscuit tin.

or i put 60k in cpf ra, at 6% interest, you can draw 666 per month from and it dries up in 10 years

i did not mention this point didnt i? the fact is the son is willing to do this top up, either with his own cpf or cash or mom's cash

 

[lifeafter41]

must you write so much to drive home a simple idea?

everything is trash except the last para

Gotta give Henry thumbs up for the effort......