CPF SA

[77james]

I am average sinkie. I still suggest buy new BTO 1st and sell after 5years with profit 200k then top up CPF. I myself never top up. It is true I lose out the compiled interest, but I gain value from HDB selling. From New HDB, I was able to upgrade to huge EC. Not sure what is next. But I think if you can use other ways like property to grow your wealth. You can achieve even more wealth thru property if u go the right way.

Remember, as a local, u can buy HDB and executive condominium at subsidiary price. If u don't use the opportunity, u don't get to gain. So, we should all explore this as well.

Not sure after get BTO sell after 5 years have 200k profit. Maybe 10-20k

But 200k profit abit like unrealistic but once u got grant, u getting 2nd subsidies also need to pay back like if not wrong. Can’t remember

 

[chrisloh65]

Make sense, invest in what you know best and can earn highest return, better than those falling into ponzi scheme like DCA blindly into index ETFs regardless of market conditions (dreaming that they can earn good returns with little to no effort)!

I am average sinkie. I still suggest buy new BTO 1st and sell after 5years with profit 200k then top up CPF. I myself never top up. It is true I lose out the compiled interest, but I gain value from HDB selling. From New HDB, I was able to upgrade to huge EC. Not sure what is next. But I think if you can use other ways like property to grow your wealth. You can achieve even more wealth thru property if u go the right way.

Remember, as a local, u can buy HDB and executive condominium at subsidiary price. If u don't use the opportunity, u don't get to gain. So, we should all explore this as well.

 

[onegoal]

Not sure after get BTO sell after 5 years have 200k profit. Maybe 10-20k

But 200k profit abit like unrealistic but once u got grant, u getting 2nd subsidies also need to pay back like if not wrong. Can’t remember

I totally disagree, depends where u buy. I got my new HDB in Queenstown area. Still remember the price I bought, I told some old unker business suppliers, and he laughed at me. Commented it is super overpriced. But 10years later, I sold at 390k profit and I upgraded to EC, now i look forward for my EC to be privatise on the 10th year and if can sell at good profits to foreigners, I will seriously consider too. Who knows what happens.

My purpose of sharing is, do not top up aggressively. Use your funds for your home. If u stay in in nice home, it is better than just money.

 

[77james]

I totally disagree, depends where u buy. I got my new HDB in Queenstown area. Still remember the price I bought, I told some old unker business suppliers, and he laughed at me. Commented it is super overpriced. But 10years later, I sold at 390k profit and I upgraded to EC, now i look forward for my EC to be privatise on the 10th year and if can sell at good profits to foreigners, I will seriously consider too. Who knows what happens.

My purpose of sharing is, do not top up aggressively. Use your funds for your home. If u stay in in nice home, it is better than just money.

That’s good, if u make a huge profit. I think yr location is good thats y manage to fetch a good price.

But BTO also depends on luck and time to build.

Also have to be married and discuss with partner and agree with flipping on property for profit.

I am not sure EC after privatised can sell for better profit. I think as long 5 years MOP can sell but not under private

 

[SKenny]

A little further below the 1st screenshot you can see this link
"Part of your account has been reserved. View details."

Interestingly I do not have this option!! I can't see how much of my SA is reserved?

So this means I can withdraw all of them?

 

[beefjerky]

Are we allowed to do SA shielding after 55 so that we can withdraw from OA instead of SA first?

 

[crimsontactics]

That’s good, if u make a huge profit. I think yr location is good thats y manage to fetch a good price.

But BTO also depends on luck and time to build.

Also have to be married and discuss with partner and agree with flipping on property for profit.

I am not sure EC after privatised can sell for better profit. I think as long 5 years MOP can sell but not under private

Comparing property vs CPF is like comparing apple vs orange, both are totally different things.

Property have to have a higher profit margin than CPF because there is a higher risk of loss.

It's very hard to make a direct comparison between property and CPF.

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[crimsontactics]

Are we allowed to do SA shielding after 55 so that we can withdraw from OA instead of SA first?

No.

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[beefjerky]

No.

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Can elaborate? Means not allowed to do investments with SA after 55 isit?

 

[Tiger9119]

No.

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Cannot invest with SA money after 55?

 

[crimsontactics]

Can elaborate? Means not allowed to do investments with SA after 55 isit?

Can do investment for SA after 55, but bulk of SA will be used to form RA by then.

SA shielding must be done before 55.

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[crimsontactics]

Cannot invest with SA money after 55?

Can. But not for SA shielding since RA has already been formed.

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[Tiger9119]

Can. But not for SA shielding since RA has already been formed.

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That's mean can still shield SA after RA is formed to prevent drawing from SA first when needed.

 

[crimsontactics]

That's mean can still shield SA after RA is formed to prevent drawing from SA first when needed.

Cannot. You must shield before RA is formed.

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[BBCWatcher]

Ok one last comment on an old post:

"You can invest your CPF savings under the CPF investment Scheme (CPFIS) after setting aside $20,000 and $40,000 in your OA and SA respectively."

So u should have OA(20k)+ SA(40k)-OA(5k) = 55k in RA at 55.

If u return OA and SA investments back to the account after 55, it will be sweep back to RA at 65 to meet FRS or when u request any withdrawal.

Useless = PHD syndrome for someone to tell stories

You can drop an Ordinary Account down to zero via qualified educational payments, housing-related payments, and/or via OA transfers to eligible recipients (spouse, elders). The $20,000 minimum you refer to only applies to the CPF Investment Scheme. If you really, really want to prevent your Retirement Account from being funded much, you can.

This is why it’s important to convey what you’re thinking calmly, without the name calling. You might miss what’s technically possible. “I’ve got a secret” games just waste everyone’s time, whether or not you even have a “secret.” Nobody is impressed; quite the opposite.

 

[Tiger9119]

Cannot. You must shield before RA is formed.

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Let's say I have 50K in SA and 100K in OA after RA is formed and I need to withdraw 20K, I can invest the 50K in SA and SA become zero, so I withdraw 20K from OA, can?

 

[BBCWatcher]

Cannot. You must shield before RA is formed.

Tiger9119 is essentially correct. If you’re over age 55, your Retirement Account is at least “decently” funded (no OA/SA withdrawal restrictions to worry about), your Special Account has >$40,000, your OA has >$0, and you’d like to withdraw >$40,000, you can raise a Special Account “shield,” make your withdrawal, then lower the shield. That’ll preserve more SA dollars in SA than otherwise. This particular shield can be raised whether or not you had an earlier shield.

You still have to leave the minimum S$40K behind in SA, so that’s the amount each shield cannot shield.

 

[crimsontactics]

Let's say I have 50K in SA and 100K in OA after RA is formed and I need to withdraw 20K, I can invest the 50K in SA and SA become zero, so I withdraw 20K from OA, can?

Yes you can. But the effects of SA shielding is not maximised.

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[crimsontactics]

Tiger9119 is correct. If you’re over age 55, your Retirement Account is at least “decently” funded (no OA/SA withdrawal restrictions to worry about), your Special Account has >$40,000, your OA has >$0, and you’d like to withdraw >$40,000, you can raise a Special Account “shield,” make your withdrawal, then lower the shield. That’ll preserve more SA dollars in SA than otherwise. This particular shield can be raised whether or not you had an earlier shield.

The whole point of SA shielding is to preserve your SA amount.

If you do SA shielding after RA is formed, then you are not maximising the use of SA shielding.

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[BBCWatcher]

The whole point of SA shielding is to preserve your SA amount.

If you do SA shielding after RA is formed, then you are not maximising the use of SA shielding.

Those are two different statements. Each SA shield has value or it doesn’t. If it has value to you, it’s still worth doing, even if you missed a prior opportunity. Yes, in a perfect world we’d take advantage of every legal opportunity we’re able to, but that’s not realistic. I’ve missed a couple; practically everyone has. However, unless you have a time machine, you do the best you can going forward.