CPF SA

[dork32]

And to dork32 for acknowledging my past sharing as well.

i will give credit when it is due. as if i will pretend that i am the smart guy after stealing your idea and making it mine

 

[dork32]

Ok got u,then how can i grow my cpf with the 80k?thks!

you already know the answer. if you do not mind this 80k being locked behind your sa, do a housing refund into the oa.

 

[dork32]

You getting bonus of about 40k and hence to annual limit? If not, there should be a gap of about 10k to VC. Strange indeed that someone did not suggest you to top up spouse's CPF [/QUOTE
2019 it was 37k credited in my cpf fyi

please note that you were 54 last year. at 55, cpf contribution will go down. you will have a lot of room for vc

 

[SUVperb]

please note that you were 54 last year. at 55, cpf contribution will go down. you will have a lot of room for vc

Will checkout thou how much is available to VC thks

 

[BBCWatcher]

the serious mistake is ma interest overflow to oa rather than ra.
at this stage of life, it is highly likely that the frs is reached, so oa will overflow into oa rather than ra.

The CPF Board is ... delightful. They don't actually say that, unfortunately. They use the word "contributions" but omit the word "interest."

Interestingly a couple other individuals who don't work within the CPF Board offered this explanation late last year (2019): "For members who have met the Full Retirement Sum in their SA or RA, the savings in excess of the BHS will be transferred to the Ordinary Account (OA). Savings in the OA can be used for other purposes such as housing repayment." (Emphasis mine.) That's a little better, but is interest "savings"? That's not the greatest word to use for clarity.

OK, so "silly me" for trusting what the CPF Board wrote. It looks like you have to dig into the regulations to see what's going on. There's a regulation called (what else?) the "Central Provident Fund (Medisave Account Transfers) Regulations 2016" which came into force on January 1, 2017. It's available here. The regulation uses the word "amount," and it defines this term: "'excess amount in a member’s medisave account' means the amount standing to the credit of a member in the member’s medisave account that is in excess of the basic healthcare sum." The regulation makes no distinction between contributions and interest, so it's fairly clear "excess amount" is interest inclusive.

Now, wasn't that "fun"?

 

[henrylbh]

Will checkout thou how much is available to VC thks

From 55 total contribution to CPF drops from 37% to 26%. There will be room for VC of more than 10k unless your bonus is like more than 40k

 

[SUVperb]

From 55 total contribution to CPF drops from 37% to 26%. There will be room for VC of more than 10k unless your bonus is like more than 40k

Thank Henry i will do so when possible...any good timing to do VC?
Thanks appreciate all advice guys!

 

[BBCWatcher]

Thank Henry i will do so when possible...any good timing to do VC?

When you have determined that you will highly likely have at least $X of room below the year's CPF Annual Limit ($37,740 in 2020) -- let's suppose you are highly confident you'll have at least $8,000 of room, for example -- then you'd make your "all three account" Voluntary Contribution at the end of the calendar month. For example, this month ends on June 30, 2020. The fastest way to get funds into your CPF accounts is via CPF e-Cashier's PayNow QR feature. If you make your VC on June 29, 2020 (one day before the end of the month) via PayNow QR, that should be quite safe in terms of crediting.

OK, why the end of the month? Well, it's because your $8,000 (or whatever amount) is earning at least a little bank interest right now. It won't earn any CPF interest until the calendar month following crediting. So it makes sense to maximize the bank interest for the month. If that $8,000 is earning 1.0% bank interest p.a., then that's about 22 cents per day of interest. Even 5 more days is a buck, so why not?

All that said, Henry also pointed out that a Retirement Account top up is also possible. Your Retirement Account funds earn 4.0% interest (not the 2.7X% blended rate your "all three account" VC would earn), and then those RA dollars plus interest feed into your future retirement income (and the residual to your CPF nominees at any/every age when a residual still applies). You also might still have some ability to withdraw some funds from your Retirement Account with a property pledge/charge, although that's a bit iffy and depends on how your RA got funded. Check with the CPF Board if that particular detail matters.

Also, if you have a partner, spouse, or elder in the picture, there may be other CPF-related opportunities available that beat your "all three account" VC option.

 

[8zaoyu]

Here we go again with the “I’ve got a secret (not)” .

....

True. As long as someone else’s MediSave Account is paying your MediShield Life or Integrated Shield premiums, and as long as you don’t touch the money, you can leave your MediSave dollars untouched for the rest of your life. They’ll then go to your CPF nominees. MediSave earns the highest interest and qualifies for bonus interest, but unlike your Retirement Account there’s no maximum age 70 payout start. Residual OA+SA earns that blended interest rate a little above 2.5% when you try to add funds past age 55, and it’s easier to withdraw than MediSave. So if using CPF as a bequest delivery vehicle is what you’d like to do, start with MediSave.

When I was in Hospital Emergency Room, they make sure , me, the patient sign first so that the hospital can claim from my own Medisave, but if too sick to sign, i think they check also if patient got insurance or money to go into a better class! If dead, only 60k plus interest to bequest provided there is fund left ( for those who are very aged or admitted repeatedly, don't ever think this amount would never be used up)

Gong Shimi??? Shoo.. don't like u in CPF chats, you can have yr audience in yr other threads! You keep working so hard here to add in this and that alternatives which most over 55s already have done. Here, for CPF SA pump up chat, do Paynow at month end before 55 years old, of course after settling housing loans soonest with the lowest loan rates you can get nowadays.

 

[Andrew833]

When I was in Hospital Emergency Room, they make sure , me, the patient sign first so that the hospital can claim from my own Medisave, but if too sick to sign, i think they check also if patient got insurance or money to go into a better class! If dead, only 60k plus interest to bequest provided there is fund left ( for those who are very aged or admitted repeatedly, don't ever think this amount would never be used up)

Gong Shimi??? Shoo.. don't like u in CPF chats, you can have yr audience in yr other threads! You keep working so hard here to add in this and that alternatives which most over 55s already have done. Here, for CPF SA pump up chat, do Paynow at month end before 55 years old, of course after settling housing loans soonest with the lowest loan rates you can get nowadays.

"Gong Shimi??? Shoo.. don't like u in CPF chats...."
I like this. I just skip his post.

 

[Nesplex]

When you have determined that you will highly likely have at least $X of room below the year's CPF Annual Limit ($37,740 in 2020) -- let's suppose you are highly confident you'll have at least $8,000 of room, for example -- then you'd make your "all three account" Voluntary Contribution at the end of the calendar month. For example, this month ends on June 30, 2020. The fastest way to get funds into your CPF accounts is via CPF e-Cashier's PayNow QR feature. If you make your VC on June 29, 2020 (one day before the end of the month) via PayNow QR, that should be quite safe in terms of crediting.

OK, why the end of the month? Well, it's because your $8,000 (or whatever amount) is earning at least a little bank interest right now. It won't earn any CPF interest until the calendar month following crediting. So it makes sense to maximize the bank interest for the month. If that $8,000 is earning 1.0% bank interest p.a., then that's about 22 cents per day of interest. Even 5 more days is a buck, so why not?

All that said, Henry also pointed out that a Retirement Account top up is also possible. Your Retirement Account funds earn 4.0% interest (not the 2.7X% blended rate your "all three account" VC would earn), and then those RA dollars plus interest feed into your future retirement income (and the residual to your CPF nominees at any/every age when a residual still applies). You also might still have some ability to withdraw some funds from your Retirement Account with a property pledge/charge, although that's a bit iffy and depends on how your RA got funded. Check with the CPF Board if that particular detail matters.

Also, if you have a partner, spouse, or elder in the picture, there may be other CPF-related opportunities available that beat your "all three account" VC option.

Hi BBCWatcher, I have a question on the CPF annual limit and I hope you can enlighten me. My interpretation of the CPF Annual Limit is that it consists of both contributions from employment (MC) and VC, and it is capped at $37740. However, my 2019 CPF yearly statement shows my annual CPF contribution (from employment contribution) to be more than $37740. I am wondering if my interpretation of the annual limit is wrong?

 

[dork32]

Hi BBCWatcher, I have a question on the CPF annual limit and I hope you can enlighten me. My interpretation of the CPF Annual Limit is that it consists of both contributions from employment (MC) and VC, and it is capped at $37740. However, my 2019 CPF yearly statement shows my annual CPF contribution (from employment contribution) to be more $37740. I am wondering if my interpretation of the annual limit is wrong?

mine oso more than that. coz we in civil service got extra ma contribution.

 

[dork32]

Gong Shimi??? Shoo.. don't like u in CPF chats, you can have yr audience in yr other threads! You keep working so hard here to add in this and that alternatives which most over 55s already have done. Here, for CPF SA pump up chat, do Paynow at month end before 55 years old, of course after settling housing loans soonest with the lowest loan rates you can get nowadays.

never mind lah. this guy just luv writing. let him enjoy himself loh.

oso, there are people that like him. see some guy is asking him for advice loh.

 

[a4973]

More exposure of the SA shield hack.
http://createwealth8888.blogspot.com/2020/06/turning-55-soon-heres-cpf-special.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+CreateWealthThroughStocksTrading+(Create+Wealth+Through+Stocks+Trading)&m=1

 

[maple96]

Here we go again with the “I’ve got a secret (not)” games. It’s SO boring.


True.


True. Maple96 is likely hot and bothered because this characteristic of “all three account” VCs for a member age 55+ depends on the Retirement Account being funded at the Full Retirement Sum (or BRS with property pledge/charge). Otherwise a portion of the VC ends up in the RA when MediSave is at the BHS. OK, there’s Maple96’s big “secret,” which he could have just posted. SUVperb’s Retirement Account is funded to the FRS, so this caveat doesn’t apply to him/her.


True, same reference.


True. As long as someone else’s MediSave Account is paying your MediShield Life or Integrated Shield premiums, and as long as you don’t touch the money, you can leave your MediSave dollars untouched for the rest of your life. They’ll then go to your CPF nominees. MediSave earns the highest interest and qualifies for bonus interest, but unlike your Retirement Account there’s no maximum age 70 payout start. Residual OA+SA earns that blended interest rate a little above 2.5% when you try to add funds past age 55, and it’s easier to withdraw than MediSave. So if using CPF as a bequest delivery vehicle is what you’d like to do, start with MediSave.

Does Maple96 want to hang his hat on the fact that there might be compulsory CPF contributions in the picture? I don’t know. That would require mind reading and more stupid game playing, wasting everyone’s time. Again.

Just enjoy his wayang again and again

He wrote the above fake stories and then he slap himself below for making those fake stories
(another famous quote "dogs bark when they dunno the person")

The CPF Board is ... delightful. They don't actually say that, unfortunately. They use the word "contributions" but omit the word "interest."

Interestingly a couple other individuals who don't work within the CPF Board offered this explanation late last year (2019): "For members who have met the Full Retirement Sum in their SA or RA, the savings in excess of the BHS will be transferred to the Ordinary Account (OA). Savings in the OA can be used for other purposes such as housing repayment." (Emphasis mine.) That's a little better, but is interest "savings"? That's not the greatest word to use for clarity.

OK, so "silly me" for trusting what the CPF Board wrote. It looks like you have to dig into the regulations to see what's going on. There's a regulation called (what else?) the "Central Provident Fund (Medisave Account Transfers) Regulations 2016" which came into force on January 1, 2017. It's available here. The regulation uses the word "amount," and it defines this term: "'excess amount in a member’s medisave account' means the amount standing to the credit of a member in the member’s medisave account that is in excess of the basic healthcare sum." The regulation makes no distinction between contributions and interest, so it's fairly clear "excess amount" is interest inclusive.

Now, wasn't that "fun"?

 

[henrylbh]

Hi BBCWatcher, I have a question on the CPF annual limit and I hope you can enlighten me. My interpretation of the CPF Annual Limit is that it consists of both contributions from employment (MC) and VC, and it is capped at $37740. However, my 2019 CPF yearly statement shows my annual CPF contribution (from employment contribution) to be more than $37740. I am wondering if my interpretation of the annual limit is wrong?

never mind lah. this guy just luv writing. let him enjoy himself loh.

oso, there are people that like him. see some guy is asking him for advice loh.

You should let your friend have the chance and hear what he has to say, unless you cannot tahan long story.

 

[henrylbh]

"Gong Shimi??? Shoo.. don't like u in CPF chats...."
I like this. I just skip his post.

I also usually skip cause too much cosmetic is added.

 

[henrylbh]

Thanks very much. I can also used Jan statement to see my accrued interest for previous year & calculate my monthly withdrawal.
Happy to know that I can rely on earned interest from SA/OA after 55yo, with CPFL kicks in on 65, I will be richer

There is no such Jan statement or any monthly statement. Statement is given only once a year for the year.

It's safe enough to used the statement for the year 2019. Based on OA/SA balances on 31 Dec/1 Jan you can estimate the monthly accrued interest (assuming no in and out) to be withdrawn. But in Jan itself, there is no interest to be withdrawn as Dec's interest has been capitalised as principal amount at the beginning of the year.

 

[lordofthering]

Bbcwatcher is nice enough to give his advice. Great to have him in this thread

 

[BBCWatcher]

Hi BBCWatcher, I have a question on the CPF annual limit and I hope you can enlighten me. My interpretation of the CPF Annual Limit is that it consists of both contributions from employment (MC) and VC, and it is capped at $37740. However, my 2019 CPF yearly statement shows my annual CPF contribution (from employment contribution) to be more than $37740. I am wondering if my interpretation of the annual limit is wrong?

mine oso more than that. coz we in civil service got extra ma contribution.

That's one possibility. There's something called the AMCS (Additional MediSave Contribution Scheme) that can be above the CPF Annual Limit. It's also possible to have a couple jobs, each with their own limits. If you change jobs sometime during the year and have enough variable pay you can get above the CPF Annual Limit, too.

Bbcwatcher is nice enough to give his advice. Great to have him in this thread

That's nice of you to say, thanks.