CPF SA Shielding hack - RIP (Obsolete)

[Value.Matrix]

I believe we should continue to shield the SA after 55 if we have substantial savings in SA and OA by reinvesting the SA if we want to leave the SA intact so we can eithdraw from OA else we would need to reduce our SA savings,right?

But each time you unshielded, 40k have to die die be inside due to the hard rule. So each shielding you do 40k is still in SA. So the best way is to draw your OA first, then contribute back through VC3A. If you have so much excess cash, then that is the difficult part.

So unless you are telling me to forgo the 4%? Which doesn't make sense too, as you must unshield to get 4% interest.

 

[micheritan]

But each time you unshielded, 40k have to die die be inside due to the hard rule. So each shielding you do 40k is still in SA. So the best way is to draw your OA first, then contribute back through VC3A. If you have so much excess cash, then that is the difficult part.

So unless you are telling me to forgo the 4%? Which doesn't make sense too, as you must unshield to get 4% interest.

Thanks.. why gov still need us to maintain $40K in SA and $20K in OA if we want to invest after 55 when we are able to withdraw all out if we want to!!! Defy logic.

 

[a4973]

You want to invest all then withdraw all out and invest.

You want to earn the attractive 4% on SA then have to follow their rules.

Govt did give you the option

Yep!! Totally agree. Suppose you can think of it as keeping the minimum balance in your favorite Bank account that for some reason you just cannot give up.

 

[micheritan]

I got also a substantial CPFIS-OA investments. SHOULD i withdraw the CPFIS-OA after 55 and transfer all to my CDP account? Will it affect my CPF SA. Following the CPFIS withdrawal, I think CPF will close my CPFIS ac count and I can no.longer invest using CPFIS.

 

[closeCPFIAopenCPFIA]

I got also a substantial CPFIS-OA investments. SHOULD i withdraw the CPFIS-OA after 55 and transfer all to my CDP account? Will it affect my CPF SA. Following the CPFIS withdrawal, I think CPF will close my CPFIS ac count and I can no.longer invest using CPFIS.

I had close and open again my CPFIA many times last years.

 

[jywy2005]

I got also a substantial CPFIS-OA investments. SHOULD i withdraw the CPFIS-OA after 55 and transfer all to my CDP account? Will it affect my CPF SA. Following the CPFIS withdrawal, I think CPF will close my CPFIS ac count and I can no.longer invest using CPFIS.

After 55, If you transfer all to your CDP account and sell the shares later on, the sales proceed will not be able to return to CPF-OA. Correct me if I am wrong.

 

[henrylbh]

I got also a substantial CPFIS-OA investments. SHOULD i withdraw the CPFIS-OA after 55 and transfer all to my CDP account? Will it affect my CPF SA. Following the CPFIS withdrawal, I think CPF will close my CPFIS ac count and I can no.longer invest using CPFIS.

If you want, you can close your CPFIS-OA and all investments will be transferred to your personal CDP and at your disposal. If you still have OA after closure, you can still re-apply CPFIS account and invest your OA above 20k subject to 35% limit.

 

[henrylbh]

After 55, If you transfer all to your CDP account and sell the shares later on, the sales proceed will not be able to return to CPF-OA. Correct me if I am wrong.

Correct. But you can still make VC to OA, MA and SA from your sale proceeds, subject to CPF annual limit.

 

[henrylbh]

I had close and open again my CPFIA many times last years.

You must be 55 and above and you must have substantial uninvestible OA due to investible limit to keep doing that. Or you need to withdraw OA balances without touching SA first. By closing and opening and closing there will come a time when the limit of 35% or 20k of OA that cannot be invested.

 

[henrylbh]

I believe we should continue to shield the SA after 55 if we have substantial savings in SA and OA by reinvesting the SA if we want to leave the SA intact so we can eithdraw from OA else we would need to reduce our SA savings,right?

If you need to withdraw CPF money, no matter how you shield SA, there will be 40k left. Any withdrawal will be from the 40k SA first. The only way is to invest your OA and then close the investment account and encash the the investment.

 

[BBCWatcher]

There's yet another potential way to get OA dollars out before SA dollars. But it's exceptional. It works like this:

1. You transfer OA dollars to your 54 year old spouse's SA. This assumes your spouse's SA hasn't reached the Full Retirement Sum yet.

2. Your spouse presumably "shields" his/her SA and funds his/her new Retirement Account primarily from OA dollars and/or cash. ("Business as usual.")

3. Your spouse withdraws the same number of SA dollars that you transferred to him/her and hands them to you. Or better yet hands you spare OA dollars (withdrawn while the SA shield is in place), although that's unusual if a 54 year old spouse has a SA balance below the FRS.

A variation on this basic idea is that you transfer OA dollars to an elder's RA who has nominated you as his/her CPF nominee. This elder is ready to pass on imminently or soon. When the elder does pass on his/her remaining CPF balances (including the OA dollars you transferred) are paid to you, his/her CPF nominee.

 

[micheritan]

The Tbills good for OA but not SA shielding bcos the cutoff yield cannot hit the breakeven point of 4.67%. The value proposition then is to bite the bullet n go for one-two weeks of short term nikko or other funds. Any other good proposals for shielding at this time?

 

[reddevil0728]

The Tbills good for OA but not SA shielding bcos the cutoff yield cannot hit the breakeven point of 4.67%. The value proposition then is to bite the bullet n go for one-two weeks of short term nikko or other funds. Any other good proposals for shielding at this time?

For ppl who wants “almost” certainty over capital, t-bill is a very compelling option

 

[reddevil0728]

Quite silly to insist on tbills if it is certain to lose money. Nikki short term bond fluctuation is much better now compared to Jan 2022 when I shield

The problem is you will only know after the fact.

so it’s all depends on risk appetite.

I guess you wouldn’t call someone silly if they just do happen to face with a black swan event but got t-bill instead of short term bond fund, will you?

 

[closeCPFIAopenCPFIA]

To shield, should buy T-bills that are going to mature soon from the secondary market through your CPFIA agent bank. Heard DBS has the most T bills. I have bought T-bill BS22114E @99.485 with OA from DBS early Dec 2022 and it matures and paid on 25th Jan 2023.

 

[reddevil0728]

To shield, should buy T-bills that are going to mature soon from the secondary market through your CPFIA agent bank. Heard DBS has the most T bills. I have bought T-bill BS22124E @99.485 with OA from DBS early Dec 2022 and it matures and paid on 25th Jan 2023.

but with SA is not with CPF IA.

is a different thing no?

 

[vsvs24]

To shield, should buy T-bills that are going to mature soon from the secondary market through your CPFIA agent bank. Heard DBS has the most T bills. I have bought T-bill BS22124E @99.485 with OA from DBS early Dec 2022 and it matures and paid on 25th Jan 2023.

Interesting ! Do you know the price when you buy ?

 

[a4973]

To shield, should buy T-bills that are going to mature soon from the secondary market through your CPFIA agent bank. Heard DBS has the most T bills. I have bought T-bill BS22124E @99.485 with OA from DBS early Dec 2022 and it matures and paid on 25th Jan 2023.

Interesting!! I believe you are the first to feedback Tbills secondary market experience. So may I know why you chose to buy via the secondary market route instead of auction? Did you earn more returns? Really keen to hear more about your total experience. Thanks.

 

[closeCPFIAopenCPFIA]

I needed money fast so bought from dbs with cpfoa through the secondary market.
I asked dbs to quote BS22121?, dbs replied no have.
I asked dbs to quote BS22122?, dbs replied not enough qty.
I asked dbs to quote BS22123?, dbs replied no have.
I asked dbs to quote BS22124?, dbs replied had sufficient qty. And quote 99.485 per 100 after their treasury dept replied few hours later
So if you u need to shield use cpf sa.

cpf oa was my atm until it dropped below 20k.

 

[reddevil0728]

I needed money fast so bought from dbs with cpfoa through the secondary market.
I asked dbs to quote BS22121?, dbs replied no have.
I asked dbs to quote BS22122?, dbs replied not enough qty.
I asked dbs to quote BS22123?, dbs replied no have.
I asked dbs to quote BS22124?, dbs replied had sufficient qty. And quote 99.485 per 100 after their treasury dept replied few hours later
So if you u need to shield use cpf sa.

cpf oa was my atm until it dropped below 20k.

If you need money fast how does buying t-bill help solve that problem?