CPF SA

[BBCWatcher]

I really don't understand why you keep telling ppl to go for MA instead of SA.

Just base on salary with no top up, MA can be max before you turn 50. But if you do nothing SA is only half of FRS.

Yes, and that means you can bring forward and enlarge the tax relief opportunities. You're also able to transfer OA into SA, not into MA.

I've spelled out the multiple reasons I lean a little bit in favor of MA as a top up priority. Please refer to my earlier post.

 

[aamaterasu]

Hi guys just want to check if anyone knows the following:

1) Possible to top up SA after 55?
2) Possible to top up RA after ERS met?
3) Any limit in top up to SA per year and it could only be done before 55?
4) Is it possible to put in huge amount of cash to SA before 55 to enjoy risk free 4% int that could be withdrew anytime after 55?

The optimized way of CPF is to ensure 1) that all funds to RA to form FRS should not be from SA as far as possible 2) Keep SA amount as high as possible from shielding/cash top up from personal investment before 55?.

SA will be in a way similar to a high int rate bank account (4%) after 55?

Thank you.

 

[cal3135]

1) Possible to top up SA after 55?
Yes via VC3AC

2) Possible to top up RA after ERS met?
Yes, following year/yearly when ERS adjusted upward

3) Any limit in top up to SA per year and it could only be done before 55?
Before 55y cap at FRS
After 55y cap 37740

4) Is it possible to put in huge amount of cash to SA before 55 to enjoy risk free 4% int that could be withdrew anytime after 55?
Cap of SA = FRS

1)yes
2)shield yes / cash TOP up ?

Hi guys just want to check if anyone knows the following:
The optimized way of CPF is to ensure 1) that all funds to RA to form FRS should not be from SA as far as possible 2) Keep SA amount as high as possible from shielding/cash top up from personal investment before 55?.

SA will be in a way similar to a high int rate bank account (4%) after 55?

Thank you.

xs HardwareZone Forums app

 

[terence2112]

I really don't understand why you keep telling ppl to go for MA instead of SA.

Just base on salary with no top up, MA can be max before you turn 50. But if you do nothing SA is only half of FRS.

TOP up MA to the max, because it’s the lowest ceiling. After Which, the overflow to SA (and together with the SA contribution) will compound it much much faster, then just topping up SA alone.

At least that’s how I do it.

 

[dork32]

TOP up MA to the max, because it’s the lowest ceiling. After Which, the overflow to SA (and together with the SA contribution) will compound it much much faster, then just topping up SA alone.

At least that’s how I do it.

you sure you know wat you tokking?

i can have a counter argument

I top up my sa. because its principal amount is higher, SA will earn compound interest at a much much faster rate. I do not have to wait till the ma is full before my sa can feel its effects.

to me the argument is one sided. you considered the effect of ma overflowing into sa, but you did not consider that effect of a higher sa in the first place.

 

[BBCWatcher]

I top up my sa. because its principal amount is higher, SA will earn compound interest at a much much faster rate. I do not have to wait till the ma is full before my sa can feel its effects.

MA and SA earn exactly the same interest rate and count exactly the same toward bonus interest. A dollar inside MA compounds just as fast as a dollar in SA.

 

[maple96]

Why people cannot agree to disagree? Why people cannot acknowledge that each person's priorities, financial situation and CPF account balances are different?

Why must force everyone into a standard crafted mould of one and only one route to rome?

Use a decision tree to make your financial decisions, If then else, based on your own priorities, financial situation and CPF account balances.

Dun listen to people who continue to talk rubbish.

 

[dork32]

MA and SA earn exactly the same interest rate and count exactly the same toward bonus interest. A dollar inside MA compounds just as fast as a dollar in SA.

yes you are correct. i am just saying that terrence is wrong. the advantages and disadvantages cancels out each other.

in other words, if you are topping up less than 7k, it is not much difference whether you top up sa or ma.

 

[Andrew833]

I think factor we need to consider whether SA or MA.

Before 55, MA reach BHS. MA will overflow to SA. (If SA has FRS, will overflow to OA)

After 55, MA reach BHS. MA will overflow to RA. (If RA has FRS/BRS, will overflow to OA)

 

[aamaterasu]

1) Possible to top up SA after 55?
Yes via VC3AC

2) Possible to top up RA after ERS met?
Yes, following year/yearly when ERS adjusted upward

3) Any limit in top up to SA per year and it could only be done before 55?
Before 55y cap at FRS
After 55y cap 37740

4) Is it possible to put in huge amount of cash to SA before 55 to enjoy risk free 4% int that could be withdrew anytime after 55?
Cap of SA = FRS

1)yes
2)shield yes / cash TOP up ?

xs HardwareZone Forums app

thank you. So the maximum amount in RA is ERS (All from OA+40k SA) and SA is FRS-40k (fully shielded)? Everything else should overflow to OA/MA

 

[dork32]

I think factor we need to consider whether SA or MA.

Before 55, MA reach BHS. MA will overflow to SA. (If SA has FRS, will overflow to OA)

After 55, MA reach BHS. MA will overflow to RA. (If RA has FRS/BRS, will overflow to OA)

if your ma can reach bhs before you hit 55, it does not really matter where you top up

 

[Andrew833]

if your ma can reach bhs before you hit 55, it does not really matter where you top up

I don't top up, my salary not much

My priority is how much to withdraw and how much to keep in SA when I reach 55.
Confirm plan is RA FRS, SA BRS, OA 0

 

[The_Davis]

No doubt, the shielding is a no brainer for some

But why care about shielding and to a lesser extent tax relief in planning to max your CPF? You have one and only chance to buy a 30 years AAA bond early.

Wow... you mean buy the bond using sa now???

 

[lifeafter41]

I don't top up, my salary not much

My priority is how much to withdraw and how much to keep in SA when I reach 55.
Confirm plan is RA FRS, SA BRS, OA 0

Never say salary not much.....
How old are you btw?

 

[dork32]

1) If one is in the early career is because given that MA top-up is subjected to the lowest of A) cash contribution directly to MA, B) Annual contribution cap less Mandatory contribution and C) Prevailing BHS less balance in MA before cash contribution, the chances one busting (B) is higher in the later part of one's career as one might be earning more and get a higher bonus and eventually max out what one can contribute to MA.

most people, early in their career will not have much cash to top up. you will paying your study loan, your wedding, your car, your hdb. and also, most of our salary is not very high early in the career. this statement is irrelevant to many of us.

 

[dork32]

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2) MA has technically "more practical" usage now as you can use it for medical expenses, whereas SA is meant more for retirement further down the road.

this statement is correct for the young. but our garmen do not allow indiscriminate use of ma. i have used my ma for delivery for both kids and a number of minor operations. my ma is still at bhs.

you can check out with many here. if they are in their mid 30s or older, they would have maxed out bhs.

in other words, our ma is a big overkill for most of us. topping up ma would be topping up into the irrelevant portion of the fund. yes, i know that ma will overflow into sa once it is max.

ma is really funds for the next generation. if you dont fall sick, you will never see the money till you die. even if you fall sick, it is the doctor that will see the money.

part of sa can be withdrawn 55. the rest will be completely drawn down if you lived till 90.

 

[reddevil0728]

most people, early in their career will not have much cash to top up. you will paying your study loan, your wedding, your car, your hdb. and also, most of our salary is not very high early in the career. this statement is irrelevant to many of us.

There’s a difference between asking what’s the “ideal” state and what’s “realistic”.

Thought it’s still pretty relevant. Sometimes is whether one would like to bootstrap for a “better” future. 先苦后甜 that kind.

 

[dork32]

There’s a difference between asking what’s the “ideal” state and what’s “realistic”.

Thought it’s still pretty relevant. Sometimes is whether one would like to bootstrap for a “better” future. 先苦后甜 that kind.

i dont believe in 先苦后甜. i believe in spreading out my expenses such that i can 甜 for my whole live.

ok loh, i save up first. by the time i saved enough, i may be already 55 and get my cpf money. it is then that i start dating and getting married and buy hdb. is this ok?

certain things just cannot wait.

there is one guy here can survive very happily on 600 per month. he does not mind staying in parents home for life, be a celibate for live. look, i used the word most and not all

 

[reddevil0728]

i dont believe in 先苦后甜. i believe in spreading out my expenses such that i can 甜 for my whole live.

ok loh, i save up first. by the time i saved enough, i may be already 55 and get my cpf money. it is then that i start dating and getting married and buy hdb. is this ok?

certain things just cannot wait.

there is one guy here can survive very happily on 600 per month. he does not mind staying in parents home for life, be a celibate for live. look, i used the word most and not all

Everybody’s mileage may vary. What might not be ideal to you doesn’t mean it isn’t ideal to others ma.

If you don’t believe in 先苦后甜, but believe in spreading out your expenses is your own prerogative, but as I mentioned I thought the question is still quite relevant.

Again, whether you want to start dating, get married and buy HDB @ 55 is your own prerogative. There’s no universal right or wrong whether something is worth waiting.

Don’t need to be so despair, do what’s right for yourself.

 

[dork32]

4) You also get higher tax relief that is not subjected to the 7k cap for SA (conditional on you meeting the “lowest” of criteria)

5) If I am reading you right, any tax relief you get from MA top up is independent from the 7k limit you get from SA top up (subject to the 80k overall cap), so you do both

you can only meet this criteria early in your career. early in your career, your salary is not high.
1. salary not high means not much spare cash to top up. 7k is already a strain on many early in their career
2. salary not high means that tax bracket is low. so the effect of tax relief is much less. if you are not in at least the 7% bracket, tax relief is quite a waste of time.