CPF SA Shielding hack - RIP (Obsolete)

[DevilPlate]

Sure, older people has less risk capacity, and might just be forced to take the risk free small wins. You may have another 30-40 years to live; if you can sustain your lifestyle with just risk free assets, then you have built up an enviable pool of capital.

DCA index funds while u are still working vs retiree lump sum investing into index funds today.
See the difference?

 

[royalmix]

DSDF.
On the 0.4%, agree if your bank is near zero balance.
But if your bank balance is $10K, that's $40. And if there is $40 lying on the road, I will pick it up.
Or if your bank account deposit is $100K, that's $400 - a very fine meal for 2.
And if your bank account balance is $3M, that's $12K.

That's magical about maths! If you know how to interpret, apply and make use of it to your advantage, you win no matter how small, it is still a small win worth celebrating in your senior years!

There are some folks who simply cannot interpret, apply and make use of information given to them. Just another example:

If you are above 55, CPFB pays you extra interest of 3% on 30k (2% on first 30k and 1% on next 30k) assuming you have at least 60k in RA/CPF Life (most people will have anyway, those who dun are the exceptions not discussed here!) Simple maths = 3% * 30k =900 per year of extra interest credited to RA (Basic Plan). If you are on Standard/Escalating Plan, 900 gets credited to CPF Life Pool until your CPF Life Balance gets depleted to below 60k then the story will be different!

 

[royalmix]

Thanks for that. Yes, if you keep MA “full” you’ll get the MA interest every January 1st in your OA, available to spend on anything you wish (assuming your RA is at least adequately funded). Keep MA at or above $60,000 and you’re guaranteed to collect all bonus interest no matter what happens with your other accounts and CPF LIFE decisions. And $60,000 pays for a lovely funeral if that’s your wish. So I think the MA “package” makes a lot of sense if you can afford it.

This is material misinformation or fake news (in bold above)!

If you are above 55 with at least 60k in RA/CPF Life, RA/CPF LIfe earns all the extra interest of 3% on 30k!

Your MA will never earn extra interest until your RA/CPF Life balances are depleted to below 60k.

If you are on Standard/Escalating Plan, the extra interest of 3%*30K = 900 gets credited to the CPF Life Pool and you are only guaranteed to collect it if you live long enough, otherwise it gets donated to the CPF Life Common Pool!

Extra interest is computed in this priority = ROM (with SA RIP) with O cap at 20k!

 

[bruiser69]

One road good walk

 

[dork32]

Your MA will never earn extra interest until your RA/CPF Life balances are depleted to below 60k.

english fail, understand of cpf fail. bbc say if you have 60k in your ma, confirm you will earn bonus interest. if you understand how cpf works, you will not that it is fake

 

[dork32]

If you are above 55, CPFB pays you extra interest of 3% on 30k (2% on first 30k and 1% on next 30k) assuming you have at least 60k in RA/CPF Life (most people will have anyway, those who dun are the exceptions not discussed here!) Simple maths = 3% * 30k =900 per year of extra interest credited to RA (Basic Plan). If you are on Standard/Escalating Plan, 900 gets credited to CPF Life Pool until your CPF Life Balance gets depleted to below 60k then the story will be different!

still want to insist on this lousy maths?

 

[reddevil0728]

The choice is yours to decide! DYODD! If you live long enough to see this day, the truth! Good Luck!

sometimes is not about choice? it's about not spreading misinformation?

 

[dork32]

The choice is yours to decide! DYODD! If you live long enough to see this day, the truth! Good Luck!

i have lived long enough to see a whole bunch people gloat when your maths has been taken down

 

[dork32]

vote for our pap. becoz pap is in power. you are getting a 90000% bonus interest on your sa/ra. it beats anything that you can get.

 

[dork32]

I will not waste time with this! I am not here to "spoonfeed"! Bye bye!

please come back soon. we really like your antics and fake news and lousy maths. please dont go away

 

[reddevil0728]

All the information are still there! It is your own interpretation or assumption. I always delete my posts after it has been read, many people are aware of this!

that sounds right you have something to hide. but is ok. quotation will immortalise whatever you have said. so doesn't matter delete or not

You cannot interpret what I write? Choice has many meaning, including misinterpretation! Which part that I posted is misinformation?

not saying you cannot "create math / change definition" of something using "artistic license" to convey a point. but you cannot assume people know what you are talking about if you don't caveat. if you don't caveat then it is a misinformation and you should admit it rather than blame others for not understanding you when you aren't even clear.

n when people ask you to substantiate, n u choose to say up to others to do their homework, then you are posting meaningless stuff.

I will not waste time with this! Bye bye!

i suggest you just save your effort to type this, because you don't mean it.

it's a well known thing

 

[s0crates]

Topping MA is a nice avenue of running tax. The following provided me opportunities to top up my ma
1. Ceiling raised 2500
2. Medishield 1300
3. Careshield 400
Total 4.3k

Take myself. i am on 11% and close to 55. Topping up will cause my oa to go up faster, which is as good as cash to me. Of course i get to run $400++ of tax.

i do agree that if you are much younger, topping up is like locking money into your cpf.

That's nice. TBF I have also considered topping up a CPF MA, so I hit BHS sooner and therefore enable more for SA investing. Calling myself out - someone else may think I am also a penny pincher. But I am not too fuss about all small stuff.

But I'm more interested in what you've found out about SA investing.
Care to share? Any good options at present?

Imo the best risky option is the Schroders multi asset revolution fund. The fund fees are high, the performance meh, but we just have to make do. It's not easy to get funds approved for cpf, so I heard, and worse so for CPF SA due to the greater investment constraints and lack of demand.

Buy this... High returns... Keep in bank cannot sustain your lifestyle ... you must invest in higher return products to keep up with inflation.

That's why so many elderlies get scammed or induced to buy products sold by banks or insurance agents without really understanding what they are taking up.

Better to have lower returns then risk the capital for the elderlies.

The question then is - why didn't they try to pick up some investment knowledge and confidence when they are younger?

Is it because they were chasing one-off promos/tips/hacks in the past, they can't be bothered, or there isn't properly financial content in the past?

It's probably a mixture of all.

DCA index funds while u are still working vs retiree lump sum investing into index funds today.
See the difference?

Of course. It's all psychological and some form of mental accounting. Bruh when I am retired I will minimally have 2mil in equity index funds, and from an investment exposure perspective that's no different from lump-sum investment in index funds.

I can't tell if a retiree should invest in index funds at retirement, but I am sharing that at a high level we shouldn't be too fussy about tips and hacks across all ages.

 

[reddevil0728]

The question then is - why didn't they try to pick up some investment knowledge and confidence when they are younger?

Is it because they were chasing one-off promos/tips/hacks in the past, they can't be bothered, or there isn't properly financial content in the past?

It's probably a mixture of all.

different era. exposure and access to information also not the same.

and different people have different priorities. hence they will have to bear the consequences of their action.

everybody has to. no one-size-fits-all

 

[dork32]

not saying you cannot "create math / change definition" of something using "artistic license" to convey a point. but you cannot assume people know what you are talking about if you don't caveat. if you don't caveat then it is a misinformation and you should admit it rather than blame others for not understanding you when you aren't even clear.

i agree that companies are allowed to be creative when they design their products.. Eg uob give 3% for the first 75k and 4.5% for the next 50k and 6% of the next 25k. Yes uob creates confusion when designing product this way. but it is their product. they can do anything with it as long as they honor their deal.

however, when we try to make sense with the deal, we are not allowed to come up with our own creative rules. eg i say you get 0% of the 37.5k and 6% for the next 37.5k. yes, it would mean the same thing if you have 75k or more. but it would be a very different story if you have amount less than 75k..

Notice cpf used "up to 2% bonus interest". This is because this statement is correct under all conditions. If you have less than 30k, you will get 6% interest for your ra.. however 3% extra interest totally does not exist. there is no way that you are going to get 7% interest. if he had said 900+ 4% i would not argue with him. but 3% out of 30k totally does not exist. it only exists in people that do not understand cpf, do not understand maths. used his lousy common sense, and blame it on academics when people dont understand his trash

 

[dork32]

That's nice. TBF I have also considered topping up a CPF MA, so I hit BHS sooner and therefore enable more for SA investing. Calling myself out - someone else may think I am also a penny pincher. But I am not too fuss about all small stuff.

you are probably in your 30s. you will not understand how old uncles like us think. our sa have passed frs, our ma is passed bhs. we kena taxed so much that we cannot tahan. we are always looking for ways to run tax. topping up your ma is probably the best way to do so.

 

[royalmix]

Thanks for that. Yes, if you keep MA “full” you’ll get the MA interest every January 1st in your OA, available to spend on anything you wish (assuming your RA is at least adequately funded). Keep MA at or above $60,000 and you’re guaranteed to collect all bonus interest no matter what happens with your other accounts and CPF LIFE decisions. And $60,000 pays for a lovely funeral if that’s your wish. So I think the MA “package” makes a lot of sense if you can afford it.

This is material misinformation or fake news (in bold above)!

If you are above 55 with at least 60k in RA/CPF Life, RA/CPF LIfe earns all the extra interest of 3% on 30k!

Your MA will never earn extra interest until your RA/CPF Life balances are depleted to below 60k.

If you are on Standard/Escalating Plan, the extra interest of 3%*30K = 900 gets credited to the CPF Life Pool and you are only guaranteed to collect it if you live long enough, otherwise it gets donated to the CPF Life Common Pool!

Extra interest is computed in this priority = ROM (with SA RIP) with O cap at 20k!

BBCWATCHER never fails to respond to replies with a wall of text! This time is different, because I shared all the CPF Rules to prove his fake news!

This is a CPF thread! Whatever you write must be supported by CPF Rules, otherwise it is fake news!

Extra interest = 2% on first 30k + 1% on next 30k = 900 per year. 2%+1% = 3% * 30k = 900 if you have at least 60k in RA/CPF Life! Not guaranteed your money unless you live long enough beyond 80+ for Standard Plan!

Remember the rules for calculating Extra Interest = ROM with O cap at 20k!

Show me the CPF Rules to prove me wrong. Otherwise, Good luck and Bye!

This thread is on SA RIP, so applicable to those above 55. Whatever I shared is for above 55!

(Are u getting 900 every year in extra interest? Read the bold statement above on the conditions before you can use this maths, 100% correct once you are above 55 or on CPF Life. Unless you are the exception, dun have 60k at 55 or when you join CPF Life! )

Dun lose your common sense to academics!

I am back just to close this issue! Ignore all the noise!

 

[dork32]

Extra interest = 2% on first 30k + 1% on next 30k = 900 per year.

this is real. you can find this info on the cpf site. it may be phrased in a slightly different way.

2%+1% = 3% * 30k = 900 if you have at least 60k in RA/CPF Life!

this is an example of lousy maths and fake news
1. if you pass your primary maths you will know that you cannot add percentages in this case.
2. 2%+1% = 3% * 30k = 900. anyone that pass sec 1 maths will know this statement makes no sense. 2% +1% = 900.
3. no where in cpf site do you see the adding of the percentages. cpf is run by scholars and acedemics. they know that they are going to be gunned down if they do maths this way. only people that feel that they are smarter than academics does maths this way.

 

[dork32]

i am going to reply this on behalf on royalmix.

you do not have common sense you do not understand how cpf works.

i am wasting time here . i am off. by by. but i will be back as soon as someone else post a reply

 

[WingZer0]

Hi, I just recently chanced upon supercharging one's CPF accounts. I have two questions about MA and topping up. I understand that topping up (up to $8000 for self, not family members) will provide some income tax relief but when is the window/ time frame for topping up so that I qualify for the tax relief and avoiding over & multiple top ups within the same taxation window? Is the qualifying top up period from Jan to Dec or is it Apr to Mar?

Am I right to say that once my BHS hits the maximum amount, subsequent monthly CPF MA contributions from personal and employer will be transferred into my OA, assuming I have also hit FRS for SA or will it go into my SA?

Thank you.

 

[highsulphur]

Hi, I just recently chanced upon supercharging one's CPF accounts. I have two questions about MA and topping up. I understand that topping up (up to $8000 for self, not family members) will provide some income tax relief but when is the window/ time frame for topping up so that I qualify for the tax relief and avoiding over & multiple top ups within the same taxation window? Is the qualifying top up period from Jan to Dec or is it Apr to Mar?

Am I right to say that once my BHS hits the maximum amount, subsequent monthly CPF MA contributions from personal and employer will be transferred into my OA, assuming I have also hit FRS for SA or will it go into my SA?

Thank you.

Jan to Dec. Contribution will be offset against income over the same period.

If MA cap is hit, contribution to MA will flow to SA. But if SA is above FRS, the MA component will then overflow to OA