CPF SA

[ramlee]

showing cpf$ with no asset or asset not fully paid is no use.

got use. looking at the statement can make us field rcih

 

[jnashville]

If one greedy the interest from sa and wana dump money insai, note that you are warned over and again the money cannot be taken out till 55. If you want greedy and no plan for future money usage, who to blame?

if someone wants to put money in SA, he will already be well aware that money cant out till 55 and its only for retirement. he definitely wont go around blaming like those people who is pro opposition and only know how to whine and complain about cpf.

its obviously for retirement. dont need use brain also know its not like a bank where u can withdraw anytime. only stupid and disgruntled people like to shoot cpf etc etc.

and it is also obviously one will already set aside emergency funds etc. i have too much cash lying around that is more than my emergency funds. basically got cash that can last me 30 years if i based on my monthly expenses. which is basically too much.

 

[mp4005 help]

my OA is use for housing. so wanna put in cash. i got too much cash that is lying around..but do not know about investments like stocks etc as that comes with risk.

so SA is the best since i dont need the money. able to top up using cash right? what is the max amount

i think another way is to just return what you withdraw from your housing withdrawal .. meaning you can topup your OA with cash and earn the 2.5% - at least this money in OA can be used to partial or fully pay your house.

if you top up to SA then you cannot touch it until 55 years old. it depends on your financial situation and future plans.

 

[ramlee]

if someone wants to put money in SA, he will already be well aware that money cant out till 55 and its only for retirement. he definitely wont go around blaming like those people who is pro opposition and only know how to whine and complain about cpf.

its obviously for retirement. dont need use brain also know its not like a bank where u can withdraw anytime. only stupid and disgruntled people like to shoot cpf etc etc.

and it is also obviously one will already set aside emergency funds etc. i have too much cash lying around that is more than my emergency funds. basically got cash that can last me 30 years for my my monthly expenses. which is basically too much.

bank RM magnet spotted

 

[highsulphur]

i think another way is to just return what you withdraw from your housing withdrawal .. meaning you can topup your OA with cash and earn the 2.5% - at least this money in OA can be used to partial or fully pay your house.

if you top up to SA then you cannot touch it until 55 years old. it depends on your financial situation and future plans.

Yes. Essentially paying your mortgage with cash

 

[lb95010]

What's the max amount?

https://www.cpf.gov.sg/employers/FAQ/employer-guides/hiring-employees/cpf-contributions-for-your-employees/FAQDetails?category=Hiring+Employees&group=CPF+Contributions+for+your+Employees&ajfaqid=2230518&folderid=17077

 

[bright_84]

Should be no max
Can fill up kids SA at birth also just pump all the money into it

got max la. there's FRS and total contribution limit

 

[jnashville]

i think another way is to just return what you withdraw from your housing withdrawal .. meaning you can topup your OA with cash and earn the 2.5% - at least this money in OA can be used to partial or fully pay your house.

if you top up to SA then you cannot touch it until 55 years old. it depends on your financial situation and future plans.

oh i will never do that by putting in OA for 2.5 percent... not attractive enough for me to put cash in there. but SA seems attractive enough at 4 percent.

30 years, the SA will triple itself if my calculations are not wrong and if i use 4 percent as the interest percentage.

example if got 100k now, 30 years it will grow to 324k.

i used the calculator below and put a fix amount of 100k with no annual addition for easier calculation.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

theres alot of argument out there that CPF is not your money bla bla..but i see the bigger picture. it is actually indeed our money still, just that its only accessible after 55. its no diff den my cash sitting around for retirement as well. and one day if i am gone, the money also pass to my kids. somemore its tripled. its like a good way to gift to our next of kin.

 

[highsulphur]

Why isn't 2.5% good enough? I see many complain about the current low bank rates but forgot cpf pays 2.5% guaranteed with having to jump through hoops (cc spending, salary credit etc).

Of course the two main reasons given are "I don't trust cpf" and "I can get better returns investing myself"

 

[Polar Bear King]

got max la. there's FRS and total contribution limit

that's the annual cap
but voluntary contribution no cap I think or super high that none of us has reached

 

[jnashville]

Why isn't 2.5% good enough? I see many complain about the current low bank rates but forgot cpf pays 2.5% guaranteed with having to jump through hoops (cc spending, salary credit etc).

Of course the two main reasons given are "I don't trust cpf" and "I can get better returns investing myself"

Because getting 2.5 percent only in OA and locking it in CPF?

Since i am locking it in CPF, i rather put in SA to get 4 percent instead of 2.5 percent.

I dont need money in OA to sit to earn lesser interest. I can still pay my housing loans fine.

your "2 main reasons" dont really apply to me.

 

[highsulphur]

Because getting 2.5 percent only and locking it in CPF?

Rather 4 percent and lock in CPF right?

Yes obviously 4 is better than 2.5 but as you mentioned, you want to limit your SA top up for future tax deduction purposes.

Once SA is above FRS, the next best option is to refund your OA for the balance used for housing

 

[simnonsg]

CPF is good if you can smell it at 55 yo, otherwise is just a statement

 

[jnashville]

Yes obviously 4 is better than 2.5 but as you mentioned, you want to limit your SA top up for future tax deduction purposes.

Once SA is above FRS, the next best option is to refund your OA for the balance used for housing

yup. of course i wouldnt put even 25 percent of my current liquid cash to SA. just a good amount so that it can triple up and have a good amount of cpf life payments as allowance as i retire.

 

[jnashville]

CPF is good if you can smell it at 55 yo, otherwise is just a statement

otherwise its a gift to your children. not a bad thing at all. unless of course u dont have children or next of kin that u care about.

 

[highsulphur]

yup. of course i wouldnt put even 25 percent of my current liquid cash to SA. just a good amount so that it can triple up and have a good amount of cpf life payments as allowance as i retire.

Your liquidity needs changes with age. At 20 and early 30s, it's probably not wise to top up SA too aggressively or use cash to pay mortgage. But towards your later years when your cash builds up, you might struggle to find safe decent yield instruments for your cash and that's where cpf refunds make sense

 

[crimsontactics]

If one greedy the interest from sa and wana dump money insai, note that you are warned over and again the money cannot be taken out till 55. If you want greedy and no plan for future money usage, who to blame?

It can be taken out if you exceed FRS.

Even never exceed can also withdraw $5k.

Sent from . using GAGT

 

[mp4005 help]

oh i will never do that by putting in OA for 2.5 percent... not attractive enough for me to put cash in there. but SA seems attractive enough at 4 percent.

30 years, the SA will triple itself if my calculations are not wrong and if i use 4 percent as the interest percentage.

example if got 100k now, 30 years it will grow to 324k.

i used the calculator below and put a fix amount of 100k with no annual addition for easier calculation.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

theres alot of argument out there that CPF is not your money bla bla..but i see the bigger picture. it is actually indeed our money still, just that its only accessible after 55. its no diff den my cash sitting around for retirement as well. and one day if i am gone, the money also pass to my kids. somemore its tripled. its like a good way to gift to our next of kin.

it is just an option for some. for those who want a way out to at least use your CPF rather than wait until 55 years old. There is not one size fits all because everyone has different goals in life.

e.g. someone who already hit FRS and cannot contribute anymore to SA. but alot of cash with no where to earn higher interest and have plans to fully pay his house in next years years. Then might as well throw the money into OA earn the 2.5% then when times up just fully pay using CPF. at least the total accured interest is also reduced abit.

the older you get especially once you hit 40, CPF is a very attractive option because so close to withdrawing

 

[crimsontactics]

Your liquidity needs changes with age. At 20 and early 30s, it's probably not wise to top up SA too aggressively or use cash to pay mortgage. But towards your later years when your cash builds up, you might struggle to find safe decent yield instruments for your cash and that's where cpf refunds make sense

Nothing to do with age or liquidity tbh.

All to do with investment ability and risk tolerance.

Ppl who are not good at investing should just pump CPF, even if they are young.

Ppl who are good at investing shouldn't pump into CPF, even if they are old.

Sent from . using GAGT

 

[mgx-alander]

Cpf ish not ur moolah