CPF SA

[dgeralds]

Congrat Bro....care to share what is your choice and platform for the shielding? Did you do any dry-run prior to the actual day?

I bought Nikko AM shenton short term fund fd (SGD) using poems. Yes I did 2 dry runs, one 6 months ago and a second time 1 month ago, each time 1K from SA.

 

[homedriver]

Bro, I though $200K compounded for 10 years in SA (4%) would be $296K ? How come you only $30K?

I just use as high level example which the difference is 1.5% multiply 10 years,

 

[homedriver]

I bought Nikko AM shenton short term fund fd (SGD) using poems. Yes I did 2 dry runs, one 6 months ago and a second time 1 month ago, each time 1K from SA.

Can this do it online platform like iocbc?

 

[reddevil0728]

I called the CPF hotline. The CS told me the sequence.

this sort of thing best is get b&w

Can this do it online platform like iocbc?

don't think iocbc carries fund...

 

[fr33d0m]

Thank you.

In step 3, after deshield, im just worried, that 93K will auto flow from SA or OA to RA, since I choose ERS plan in CPF. I want to put 93K cash into RA (up to ERS) at a later date and not use OA or SA monies.

ERS has nothing to do with CPF LIFE plans. You can have ERS in RA and choose Basic plan. You can have BRS in RA and choose escalating plan.

under current CPF LIFE plans, some may purposely top up RA to ERS and choose CPF LIFE Basic plan.

 

[dork32]

Hi All - I need some urgent guidance:

1. Did a shielding on 1 Jul:
Shielding 238K
OA 270K
SA 40K


2. 10 Jul - 55 years old
- RA will be created by CPF Borad
- RA 186K (FRS) [ i.e. 40K from SA and 146K from OA will be automatically moved to RA]
- OA 124K
- SA 0K

3. 13 Jul
- deshield
- RA 186K
- SA 238K
- OA 124K

4. around 15 Aug
- RA 279 (Put cash 93K into RA to bring it up to ERS)
- SA 238K
- OA 124K

Is step 3 right (i.e. SA is 238K).
Is step 4 allowed (i.e. after a month gap I'm putting cash 93K into RA)? I don't want to transfer 93K from OA which is 124K. For info, I will have the 93K cash only in Aug.

Please advice. Thank you.

did you ever consider that your 124k oa may be trapped inside there forever?

 

[dgeralds]

did you ever consider that your 124k oa may be trapped inside there forever?

I understand that if I want to withdraw it must come out from SA first. I don't need cash for the time being. When the time comes and if I want to withdraw from OA, I plan to do another shielding of SA then; followed by OA withdrawal and deshield SA.

 

[homedriver]

this sort of thing best is get b&w

don't think iocbc carries fund...

Thank you.

 

[twosix]

I bought Nikko AM shenton short term fund fd (SGD) using poems. Yes I did 2 dry runs, one 6 months ago and a second time 1 month ago, each time 1K from SA.

this fund seems to be the most commonly used for shielding.

 

[zoneguard]

When the time comes and if I want to withdraw from OA, I plan to do another shielding of SA then; followed by OA withdrawal and deshield SA.

1st 40K of SA cannot be shielded so you will withdraw 40K of SA plus 124K of OA.

 

[dork32]

1st 40K of SA cannot be shielded so you will withdraw 40K of SA plus 124K of OA.

this is wat i meant by oa will be stuck there forever.

 

[zoneguard]

this is wat i meant by oa will be stuck there forever.

Recently I came across a maneuver to free up OA monies and leave SA intact. OA 'safe haven' but it is for one-time use only.

 

[dork32]

Recently I came across a maneuver to free up OA monies and leave SA intact. OA 'safe haven' but it is for one-time use only.

bbc taught us this. oa can still be used for housing loan even when ra is formed.

you got any other tricks?

 

[zoneguard]

you got any other tricks?

2.5% is great and when 2.5% isn't good enough any more, the rules may have changed by then. So there's no need for this move right now.

EDIT: henrylbh let the cat out of the bag in the next post. Yes, that's what I had in mind.

 

[henrylbh]

I understand that if I want to withdraw it must come out from SA first. I don't need cash for the time being. When the time comes and if I want to withdraw from OA, I plan to do another shielding of SA then; followed by OA withdrawal and deshield SA.

Invest your OA, then closed it when you want the money. Then liquidate the investment and keep the cash. No need to shield SA as 40k will still be withdrawn first if you need money.

 

[dgeralds]

1st 40K of SA cannot be shielded so you will withdraw 40K of SA plus 124K of OA.

Oh yes. ..i forgot about it. Any solution?

Now i have to think about it carefully...

Can this OA 124K be transferred to my wife to bring it up to her ERS later on?

 

[dork32]

2.5% is great and when 2.5% isn't good enough any more, the rules may have changed by then. So there's no need for this move right now.

EDIT: henrylbh let the cat out of the bag in the next post. Yes, that's what I had in mind.

i did not say 2.5% is bad. 2.5% is great for savings and fd.

2.5% is bad when the money is stuck forever.

2.5% is bad when you have to shield, withdraw 40k from your 4% account for you to withdraw it.

 

[dork32]

Oh yes. ..i forgot about it. Any solution?

Now i have to think about it carefully...

Can this OA 124K be transferred to my wife to bring it up to her ERS later on?

this is wat i intend to do:

my oa will max at my home loan amount. it will be used solely to pay my installments.

 

[BBCWatcher]

....4. around 15 Aug
- RA 279 (Put cash 93K into RA to bring it up to ERS)
- SA 238K
- OA 124K
....Is step 4 allowed (i.e. after a month gap I'm putting cash 93K into RA)? I don't want to transfer 93K from OA which is 124K. For info, I will have the 93K cash only in Aug.

You can top up your Retirement Account just as soon as it's formed. The ideal day to do so is July 30, i.e. at the end of the same month, via PayNow QR. I say July 30 because, if you have trouble, you have one extra day to sort it out. If you're particularly cautious then try July 29 since July 30 is a Friday.

However, since you won't have the cash in hand until August, try $1 at the end of July just so you know it works. Then make the rest of your RA top up on August 30 via PayNow QR. There's absolutely no benefit to making your top up 2 weeks earlier (August 15). You'll lose about two weeks of bank interest if you top up on August 15, and CPF won't pay you anything more since CPF only counts whole calendar months for interest calculations.

When the ERS is raised -- the next increase is on January 1, 2022 -- you can swoop in with another top up if you wish. Every time the ERS is raised. For the next ERS increase same thing: top up on January 30 via PayNow QR. The ERS is calculated based on principal only, so you get more top up room every time the ERS rises.

bbc taught us this. oa can still be used for housing loan even when ra is formed.
you got any other tricks?

Another option is to transfer OA to a qualified family member's SA or RA. For a recipient under age 55 his/her SA must have room below the Full Retirement Sum. For a recipient age 55 or older his/her RA must have room below the Enhanced Retirement Sum.

 

[karakorum1999]

this is wat i intend to do:

my oa will max at my home loan amount. it will be used solely to pay my installments.

That sounds like a very workable strategy, and it is looking possible to literally reduce your OA to zero (esp. good for those already SA-shielded and no more employment contributions).
Of course, there’ll be differences between OA interest and home loan interest. So to get it as close as possible to zero balance for OA when the loan is fully paid, one could consider OA Housing Refund (to add) or withdrawing OA interest (to subtract, but this comes with SA interest withdrawn first).