CPF SA Shielding hack - RIP (Obsolete)

[DevilPlate]

Actually govt tries to be too clever to save the 1% spread vs LT bond rates, but may have the inadvertent effect of lowering its investible amounts when many old folks pull money away from SA.

Maybe now scammers are celebrating.
Potentially more sheeps out there next yr?

 

[fr33d0m]

What happen to the plan for the garmen to introduce some kind of low cost garmen managed fund that people can subscribe to using CPF monies.. Can't remember if this was part of Forward SG or another earlier initiative. Reckon this would be a good time to implement it if there is truly an intention to do so.

of course the government can choose to do what Japan does now.

Buy STI ETFs to drive STI sky high with CPF money instead of printing money to buy ETFs,

Do you think our leaders are bold enough to implement this?

 

[fr33d0m]

So can I top up to Ers at 55 but elect to use frs equivalent for cpf life at 65 and withdraw from balance one lump sum?

of course you can. you can withdraw as frequent as CPF allows you before CPF LIFE payout starts.

However, I think CPF will tighten RA withdrawal very soon given that permitting RA withdraw is similar to SA shielding. You got high interest rate and liquidity via withdrawal from RA.

 

[fr33d0m]

You can withdraw 20% of your RA at 65, that rule has not changed as of now, so yes.

80% of your ERS RA at 65 might or might not be FRS equivalent.

can cite the exact CPF rules?

From what I read, 65 is another addition of 20% on top of what you can withdraw from RA, not just 20%.

It means if I have ERS in RA, I can effectively withdraw everything above FRS, then another 20% of FRS.

please correct me if I am wrong.

 

[highsulphur]

of course you can. you can withdraw as frequent as CPF allows you before CPF LIFE payout starts.

However, I think CPF will tighten RA withdrawal very soon given that permitting RA withdraw is similar to SA shielding. You got high interest rate and liquidity via withdrawal from RA.

Don't think you can withdraw from RA anytime you want

 

[fr33d0m]

Don't bother. It's been more than 7 years already. There is already a low cost index solution with endowus just that they charge a recurring fee for their services.

If cpf doesn't want to be seen directly responsible for recommending an investment solution that their own advisory board endorses, then the minimum is that they get people to look at platforms like endowus. But of course, they don't want to be seen as siding any commercial entity.

Basically they are not doing the difficult things. Poor cpf members who don't know better.

why is it the government's job for people to invest their money?

Is there already private financial advisor business? Or you prefer the government taking these private jobs out?

 

[fr33d0m]

Don't think you can withdraw from RA anytime you want

who says so? please cite CPF rules.

From what I read, I can withdraw any amount above FRS from my RA at any time before CPF LIFE starts, interests, top-up to retirement account and government grants aside.

 

[QinWei]

pls NOTE that not all in the forum can afford FRS by then
some cannot even fulfil BRS decades /yrs down his retirement

Please alwys note that

 

[s0crates]

why is it the government's job for people to invest their money?

Is there already private financial advisor business? Or you prefer the government taking these private jobs out?

I am fine either way. Just don't waste our time getting a cpf advisory board, run surveys and small group discussions on LRIS, then in the end chicken out and lose to a startup in implementing it. It's embarrassing and a waste of taxpayers money.

https://www.straitstimes.com/singap...new-cpf-lifetime-retirement-investment-scheme

 

[fr33d0m]

I am fine either way. Just don't waste our time getting a cpf advisory board, run surveys and small group discussions on LRIS, then in the end chicken out and lose to a startup in implementing it. It's embarrassing and a waste of taxpayers money.

https://www.straitstimes.com/singap...new-cpf-lifetime-retirement-investment-scheme

how much did it cost tax payers exactly for the advisory board? as far as I am aware, CPF runs on very lean budgets. It does not have a highly-paid board. And exactly the reason anything to be done with CPF is very slow as it does not operate like a full functional business.

 

[sohguanh]

who says so? please cite CPF rules.

From what I read, I can withdraw any amount above FRS from my RA at any time before CPF LIFE starts, interests, top-up to retirement account and government grants aside.

Going by your understanding it means from age 55 to before 65 any amount above FRS can be taken out correct? RA interest is given once a year like existing CPF OA SA correct? But this interest cannot take out. Then I wonder the extra amount of monies above FRS you put inside is to get the 4% interest which cannot be taken out?

Hmmm why bother then may as well that monies take and ownself try invest to see can get above 4%. After all your RA already have FRS so confirm when cpf life starts you got monthly income

 

[s0crates]

how much did it cost tax payers exactly for the advisory board? as far as I am aware, CPF runs on very lean budgets. It does not have a highly-paid board. And exactly the reason anything to be done with CPF is very slow as it does not operate like a full functional business.

I am not finance minister leh. You have not been hit by CPF ads before ah, or gone to CPF centre? They have so many people and so much money.

You got to be kidding if you think cpf has less resources than a startup

 

[PhantomOpera]

Not if this has been asked before- anyone knows if I were to choose Basic plan for CPF Life, how much is the monthly payout? Assuming at 1) FRS and 2) BRS (with pledged ppty)?

 

[royalmix]

can cite the exact CPF rules?

From what I read, 65 is another addition of 20% on top of what you can withdraw from RA, not just 20%.

It means if I have ERS in RA, I can effectively withdraw everything above FRS, then another 20% of FRS.

please correct me if I am wrong.

Every of your subsequent posts about withdrawal from RA after 55 before CPF Life starts is "Fake News"!

Pls cite the exact CPF rules to support your understanding from what you read!

 

[royalmix]

In general, what are you allowed to withdraw from RA after 55:

If you meet FRS at 55, you are allowed to withdraw at PEA (65) 20% of your RA (your FRS with interest), nothing more.

If you decide to pledge property to withdraw down to BRS, you can only withdraw 50% of your FRS at 55 excluding any topup monies if your FRS is formed using topup monies (ie not entirely from SA/OA).

All other means of withdrawal from RA are exceptions, like giving up your citizenship, terminal illness, etc as defined in CPFB website.

Monies in RA are reserved for your retirement, to fund your CPF Life if you opt to start payout from age 65 onwards and to be streamed out as payout from CPF Life! Any RA topups after CPF Life starts will automatically be swept into CPF LIfe as premium.

 

[Guojing88]

can cite the exact CPF rules?

From what I read, 65 is another addition of 20% on top of what you can withdraw from RA, not just 20%.

It means if I have ERS in RA, I can effectively withdraw everything above FRS, then another 20% of FRS.

please correct me if I am wrong.

Once you decide to have ERS in RA at 55, you cannot withdraw anything from that for 10 years.

At 65, you then have a one-off option of withdrawing 20% of your RA.

https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

 

[fr33d0m]

I am not finance minister leh. You have not been hit by CPF ads before ah, or gone to CPF centre? They have so many people and so much money.

You got to be kidding if you think cpf has less resources than a startup

That’s only on customer service level. They have no executive roles. Not so much difference than an offshore call centres.

 

[highsulphur]

Once you decide to have ERS in RA at 55, you cannot withdraw anything from that for 10 years.

At 65, you then have a one-off option of withdrawing 20% of your RA.

https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

The page isn't written very clearly

It seems to suggest that I can have Ers at the 55 in my RA, earns 10Y interest of 4% and then pledge my property to maintain BRS in my RA and withdraw the balance at 65

 

[fr33d0m]

Once you decide to have ERS in RA at 55, you cannot withdraw anything from that for 10 years.

At 65, you then have a one-off option of withdrawing 20% of your RA.

https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

Please highlight the “can’t withdraw anything from that for 10 years”. at minimum, I should be able to pledge my property and draw down to BRS. Please explain.

 

[royalmix]

Once you decide to have ERS in RA at 55, you cannot withdraw anything from that for 10 years.

At 65, you then have a one-off option of withdrawing 20% of your RA.

https://www.cpf.gov.sg/member/faq/r...thdrawals/how-much-cpf-savings-can-i-withdraw

Excluding topups, ERS above FRS!