CPF SA Shielding hack - RIP (Obsolete)

[KeytoFreedom]

Does anyone shield their OA as well? And then top up the RA by cash?

do they allow top up of RA by cash , do we do this after the birthday? can top up to the highest tier 200k?


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[dork32]

since when is the highest tier of ra 200k?

 

[KeytoFreedom]

There are talks about shielding OA, but whether worth the effort is another matter.

enhanced retirement account is about 300k


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[reddevil0728]

enhanced retirement account is about 300k


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you quote wrong post?

 

[jeffong]

Thought nowadays you can't withdraw OA interest without fully drawing down on your SA account. If this is correct, what's the point of doing OA shielding.

 

[polyglob]

Thought nowadays you can't withdraw OA interest without fully drawing down on your SA account. If this is correct, what's the point of doing OA shielding.

Yes, no withdrawal of interests only. Must draw down SA fully, then start on OA.

I would also like to understand the reasoning behind shielding OA

 

[jeffong]

Yes, no withdrawal of interests only. Must draw down SA fully, then start on OA.

I would also like to understand the reasoning behind shielding OA

In the past, you are allowed to withdraw both SA and OA interest before touching the principle. That loophole got crimped sometime back. Hence, leaving money in OA makes no sense unless you are using it for housing payments. Otherwise, only your kids will ever get to see money in OA.

 

[polyglob]

Not entirely correct that you cannot withdraw OA, this is also expressly allowed. Just google hardwarezone for the answer or wait for some kind sole to explain to u.

If you mean thru CPFIS, I consider this a loophole more than SA shielding is. I think it will be closed if more people do it

 

[sellbuyboy]

what is the low risk instrument to do CPF SA shielding?

 

[reddevil0728]

what is the low risk instrument to do CPF SA shielding?

t-bill

 

[sellbuyboy]

t-bill

Thank you once again.

 

[BrandonnC]

Once SA is shielded and OA sum (FRS) is transferred to RA, I will have a sizeable amount remaining in OA (even having accounted for some to move to RA as ERS).

I understand that before funds are unshielded and returned to SA, I will need to utilise the amount in OA, else if SA comes back, I may not be able to utilise the OA before SA.

Would like to seek advice, what would be a good and safe investment to maximise the ROI of OA (instead of the 2.5%) before unshielding?
I will unlikely touch both the OA and SA for another 10 years, so the intention is to max out the ROI in a safe manner.

 

[reddevil0728]

Once SA is shielded and OA sum (FRS) is transferred to RA, I will have a sizeable amount remaining in OA (even having accounted for some to move to RA as ERS).

I understand that before funds are unshielded and returned to SA, I will need to utilise the amount in OA, else if SA comes back, I may not be able to utilise the OA before SA.

Would like to seek advice, what would be a good and safe investment to maximise the ROI of OA (instead of the 2.5%) before unshielding?
I will unlikely touch both the OA and SA for another 10 years, so the intention is to max out the ROI in a safe manner.

t-bill?

 

[BrandonnC]

t-bill?

T-bills are for a period of 6months.
Is it technically possible to buy T-bills using OA even after the SA has been un-shielded?
Sorry, but I seem to think that OA can be used only after amount in SA is exhausted?

 

[Okenba]

T-bills are for a period of 6months.
Is it technically possible to buy T-bills using OA even after the SA has been un-shielded?
Sorry, but I seem to think that OA can be used only after amount in SA is exhausted?

You can withdraw from OA and use it to buy whatever you want.

 

[BBCWatcher]

Yes, Okenba has a good question. Why not withdraw the remaining OA dollars and invest them however you want? Another option (available now!) is to transfer OA dollars to a family member’s SA or RA.

 

[polyglob]

Is it technically possible to buy T-bills using OA even after the SA has been un-shielded?
Sorry, but I seem to think that OA can be used only after amount in SA is exhausted?

I have RA already. I'm buying t-bills using OA under CPFIS

The SA before OA rule is for the scenario of withdrawing excess cash from SA/OA after RA formed

 

[sellbuyboy]

When are you turning 55 ?

next year.

 

[Listopad]

Yes, no withdrawal of interests only. Must draw down SA fully, then start on OA.

I would also like to understand the reasoning behind shielding OA

Assuming SA is vested in Tbills, how does withdrawal work? Would the withdrawal come from OA instead ?

 

[a4973]

Assuming SA is vested in Tbills, how does withdrawal work? Would the withdrawal come from OA instead ?

You would still have left 40k uninvestable in SA so withdrawal will still come from SA first.