CPF reform

[edwinttt1978]

Whatever the recommendations may be, one thing can never go wrong:
Transferring from OA to SA when young.

 

[tiny]

Whatever the recommendations may be, one thing can never go wrong:
Transferring from OA to SA when young.

You ruled out using OA to buy blue chips to get capital gain and regular dividends?

 

[barnabaskoh]

Whatever the recommendations may be, one thing can never go wrong:
Transferring from OA to SA when young.

transfering to SA is permanant..in future if wana buy house,no balance in ordinary hard to buy unless cash rich..

 

[edwinttt1978]

You ruled out using OA to buy blue chips to get capital gain and regular dividends?

Can only use up to 35% of OA to buy. Balance 65% OA may still go into SA for simply risk-free, worry-free.

 

[edwinttt1978]

transfering to SA is permanant..in future if wana buy house,no balance in ordinary hard to buy unless cash rich..

True. But a simple transfer of $10,000 in OA to SA today will become almost $20,000 in 20 years time, without even doing anything.

Be Swift and Decisive.

 

[dork32]

Can only use up to 35% of OA to buy. Balance 65% OA may still go into SA for simply risk-free, worry-free.

you sure? I used more than 90% of my OA for my home.

Agree SA is quite risk free. But a roof over the head is more important than a risk free SA.

 

[dork32]

True. But a simple transfer of $10,000 in OA to SA today will become almost $20,000 in 20 years time, without even doing anything.

Be Swift and Decisive.

but using OA to buy a home 10 years ago would result in more than double the value today. Not only that, you get the all important roof over your head.

 

[edwinttt1978]

you sure? I used more than 90% of my OA for my home.

Agree SA is quite risk free. But a roof over the head is more important than a risk free SA.

Up to 35% in OA can be used to buy shares. Specifically, CPF-approved shares la.

 

[edwinttt1978]

but using OA to buy a home 10 years ago would result in more than double the value today. Not only that, you get the all important roof over your head.

Better to exclude hindsight and include foresight: 20 years later, my transferred $10k would have safely grown to $20k.

Surely $10k out of OA to SA doesnt destroy that important roof bah.

 

[barnabaskoh]

Better to exclude hindsight and include foresight: 20 years later, my transferred $10k would have safely grown to $20k.

Surely $10k out of OA to SA doesnt destroy that important roof bah.

my apologies if i mistaken what u initially posted, from your post i have the thinking that you want to transfer all your OA to SA since you start working. If you just mean transfering 10k over to SA,that will mean a different story altogether.

 

[havetheveryfun]

my apologies if i mistaken what u initially posted, from your post i have the thinking that you want to transfer all your OA to SA since you start working. If you just mean transfering 10k over to SA,that will mean a different story altogether.

i think he means to transfer as much as possible to hit the cap as soon as possible for the extra 1% interest. 40k I think ? but ofc also can put a bit more just for the 4% interest

so u can use how much of OA to buy house ??? 35% or 90 % ?

 

[highsulphur]

i think he means to transfer as much as possible to hit the cap as soon as possible for the extra 1% interest. 40k I think ? but ofc also can put a bit more just for the 4% interest

so u can use how much of OA to buy house ??? 35% or 90 % ?

You can use 100% of OA to buy property

 

[dork32]

Better to exclude hindsight and include foresight: 20 years later, my transferred $10k would have safely grown to $20k.

Surely $10k out of OA to SA doesnt destroy that important roof bah.

10k does not hurt if you have 300k in your oa. it does hurt if you have only 40k. you are saying young people should transfer oa to sa. most of them do not have much.

my stand is this. you should buy your home first. settle the monthly installment. then you can start to think about transferring from oa to sa.

 

[dork32]

Better to exclude hindsight and include foresight: 20 years later, my transferred $10k would have safely grown to $20k.

Surely $10k out of OA to SA doesnt destroy that important roof bah.

you dont need any hindsight. A new 4room in punggol cost 240k. A resale in 4room in punggol is about 400k. if it is your first home, you will earn 160k just like that.

 

[tiny]

True. But a simple transfer of $10,000 in OA to SA today will become almost $20,000 in 20 years time, without even doing anything.

Be Swift and Decisive.

The assumption is SA interest rate remains as 4% for the next 20 years?

P.S. Let's remove the extra 1% bonus for the first $40k for ease of communication.

 

[havetheveryfun]

The assumption is SA interest rate remains as 4% for the next 20 years?

P.S. Let's remove the extra 1% bonus for the first $40k for ease of communication.

another thing to note is 10k to 20k is only 10k extra... even just working 1 more year in your 60s can get that 10k

but of course if you are talking about putting 100k n turning it into 200k without any effort and not doing anything, then that's a different case

 

[edwinttt1978]

10k does not hurt if you have 300k in your oa. it does hurt if you have only 40k. you are saying young people should transfer oa to sa. most of them do not have much.

my stand is this. you should buy your home first. settle the monthly installment. then you can start to think about transferring from oa to sa.

Having only 40k in OA to buy a home is already hurting, whether or not to transfer 10k to SA.
Once monthly installment is settled, much time is also lost.

 

[edwinttt1978]

you dont need any hindsight. A new 4room in punggol cost 240k. A resale in 4room in punggol is about 400k. if it is your first home, you will earn 160k just like that.

This is an insight to easy money.

 

[edwinttt1978]

my apologies if i mistaken what u initially posted, from your post i have the thinking that you want to transfer all your OA to SA since you start working. If you just mean transfering 10k over to SA,that will mean a different story altogether.

Had transferred a maiden sum $12k to SA in early years of work and never looked back.
Too much worries only serve to delay transfer. 13 years have passed, and SA remains at 4%pa.

 

[kazejin]

the most basic payout would be ~$450 in terms of current dollars. ( assuming ~3% inflation per year, $650/1.03^10 )

low estimates of monthly expenditures,
utilities bill (SP/HP/internet): $100
transport: $25
miscellaneous (haircut/new clothes/replace broken stuff/etc): $100
balance of $225 for food.

pray hard don't get sick.

if the amount does not increase to account for inflation, after 30 years, the real value in terms of today's dollars will be extremely low. not sufficient for even a basic lifestyle.

definitely recommend old folks to go for the 160k or 240k option.