CPF SA Shielding hack - RIP (Obsolete)

[dao]

Call up DBS, they told me that i need to visit the physical branch to buy Unit trust with CPF SA, online is only applicable to CPF OA account. Is there any ways to buy unit trust using CPF SA online? by opening some trading accounts? I did google, but seems not much info. TIA.

I have done with Phillip securities poems.

 

[sohguanh]

Call up DBS, they told me that i need to visit the physical branch to buy Unit trust with CPF SA, online is only applicable to CPF OA account. Is there any ways to buy unit trust using CPF SA online? by opening some trading accounts? I did google, but seems not much info. TIA.

I buy via fundsupermart aka FSMOne

 

[~sabaisabai~]

Yes. You can shield all but $20K of OA and all but $40K(*) of SA. Your new RA will then be funded with this $60K when both OA and SA are maximally shielded. You can then boost your new RA up as high as the Enhanced Retirement Sum using cash and/or OA to RA transfers from qualified family members.
(*) This figure will be higher if you topped up your SA with cash and the top ups (plus accrued interest on the top ups) exceeds $40K.

hi. is there any age limit to continue top up RA if SA is shield successfully

 

[reddevil0728]

hi. is there any age limit to continue top up RA if SA is shield successfully

No age limit but got a $ limit.

ERS.

but anything about FRS no tax relief

 

[BBCWatcher]

is there any age limit to continue top up RA if SA is shield successfully

With or without SA "shielding" the only age limit for RA top ups is the member's age at death.

 

[royalmix]

hi. is there any age limit to continue top up RA if SA is shield successfully

You can topup RA so long you have not hit the current ERS limit, even after your death (there is a small window of "opportunity" for your nok, if there is any benefit to exploit)

Any topup above current FRS limit will not earn you tax relief.

All topups to RA after CPF life start will go into the CPF Life Pool, depending on which plan you chose.

Assess your own pros and cons to topup opportunities!

 

[kelvinloh]

I read somewhere - OCBC mobile apps allows you to buy T-Bills using SA, while DBS and UOB required you to physical visit to their Branch to perform the transaction. However, my CPFIS is not OCBC, anyone has done this route to apply T-Bills via OCBC for SA, any other restrictions applies for this ? Thank you.

 

[~sabaisabai~]

No age limit but got a $ limit.

ERS.

but anything about FRS no tax relief

With or without SA "shielding" the only age limit for RA top ups is the member's age at death.

You can topup RA so long you have not hit the current ERS limit, even after your death (there is a small window of "opportunity" for your nok, if there is any benefit to exploit)

Any topup above current FRS limit will earn you tax relief.

All topups to RA after CPF life start will go into the CPF Life Pool, depending on which plan you chose.

Assess your own pros and cons to topup opportunities!

thank you

 

[highsulphur]

So even if my cpfia account isn't with ocbc, I can buy tbill using ocbc app as long as I'm a customer?

 

[dork32]

Any topup above current FRS limit will earn you tax relief.

fake news

 

[KeytoFreedom]

I have exhausted my OA funds to buy T-bills and left a balance of around $23k.
I have more than $300k in SA.
So if I shield my SA sans the $40k, I should be able to top up my RA in cash to FRS.
So what happens to my T-bill purchased using OA? Upon maturity, can this be returned to my OA acc to earn 2.5% as well as the SA funds from say UT after RA is formed?
I will be 55 yo next year.

what is the rationale for shielding the OA since it earns only 2.5%?


Read HWZ Forum Rules!

 

[KeytoFreedom]

After shielding the SA sans the 40k min, do we still need to top up the SA if the OA already exceed the FRS?


Read HWZ Forum Rules!

 

[Value.Matrix]

After shielding the SA sans the 40k min, do we still need to top up the SA if the OA already exceed the FRS?


Read HWZ Forum Rules!

Up to you to value OA. I would not keep OA monies actually especially now, since even fixed D have higher rates.

I would cycle contribute back to cpf through the voluntary contribution up to limit since SA still get money (although less compared to direct).

Money invested from SA is still counted towards FRS

 

[HoGnix]

Help to check if this SA Hack is workable.
Someone is already above 55 years old and has settled the full retirement amount in RA. he still has both 100K in OA and SA and all amounts is withdrawable. Based on current CPF rule, if he want to withdraw 100K, then it will comes from SA account first, so leave the OA 100K in CPF and earn 2.5%.
If he subscribe full SA amount to 6 Month T-bill and deplete it, then he withdraw 100k from CPF which only comes from OA right? after 6 Month, the T-billed SA will return to SA to earn 4%.

 

[edmwing]

For SA $40k cannot be invested. So if buy tbills can only buy $60k. And lose more interest using SA.

Since he is above 55 with RA at FRS, use the second hack - CPFIA. Need to have CDP account.

Buy 6 mths tbills with OA. $20k cannot be invested. So if bal is 100k can buy $80k. Do in one lump sum if want to save on charges.

Then apply to CPF Board to close CPFIA. They will inform the CPFIA bank who will ask you to fill up form to indicate CDP account number and bank account for charges (if CPFIA bal is zero). There is transfer fees of $10 + GST per security.

Once the tbill is transferred to CDP, upon maturity the $80k will be paid to the bank account linked to CDP.

Then can use the OA money freely while keeping SA intact at CPF to earn higher interest

Clap clap clap

 

[s0crates]

Then apply to CPF Board to close CPFIA. They will inform the CPFIA bank who will ask you to fill up form to indicate CDP account number and bank account for charges (if CPFIA bal is zero). There is transfer fees of $10 + GST per security.

Wow thanks for sharing. Never know there is a transfer fee. It's not extravagant but imagine the cost it you have a portfolio of sgx listed stocks

 

[HoGnix]

For SA $40k cannot be invested. So if buy tbills can only buy $60k. And lose more interest using SA.

Since he is above 55 with RA at FRS, use the second hack - CPFIA. Need to have CDP account.

Buy 6 mths tbills with OA. $20k cannot be invested. So if bal is 100k can buy $80k. Do in one lump sum if want to save on charges.

Then apply to CPF Board to close CPFIA. They will inform the CPFIA bank who will ask you to fill up form to indicate CDP account number and bank account for charges (if CPFIA bal is zero). There is transfer fees of $10 + GST per security.

Once the tbill is transferred to CDP, upon maturity the $80k will be paid to the bank account linked to CDP.

Then can use the OA money freely while keeping SA intact at CPF to earn higher interest

Does this trick works for one below 55 years? If can, Ppl can use this to take out CPF OA Money.

 

[vsvs24]

Good move to prevent scams.

https://www.cpf.gov.sg/member/infoh...ption-to-further-limit-online-cpf-withdrawals

 

[sleep200am]

Then apply to CPF Board to close CPFIA. They will inform the CPFIA bank who will ask you to fill up form to indicate CDP account number and bank account for charges (if CPFIA bal is zero). There is transfer fees of $10 + GST per security.

Once the tbill is transferred to CDP, upon maturity the $80k will be paid to the bank account linked to CDP.

Then can use the OA money freely while keeping SA intact at CPF to earn higher interest

Hope to clarify whether this works:

Invest SA $60k into fund.
Withdraw SA $40k and OA $100k.
Sell the fund and return the $60k into SA one week later.

The purpose is to withdraw $100k from OA earning low 2.5% interest but try to keep as much as possible in SA.

 

[sleep200am]

Yes, after age 55 with RA at FRS.

Not happy with the pathetic 2.5% interest in OA.

Considering to withdraw all out from SA and OA.

But if possible, try to keep some in SA with 4% interest.