CPF SA

[a4973]

I believe you must keep a minimum of 40k in SA before any investment activity.

 

[crimsontactics]

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.

What you said is true. I stand corrected.

Sent from . using GAGT

 

[Tiger9119]

I believe you must keep a minimum of 40k in SA before any investment activity.

Even when the full amount of FRS been transferred to RA, one still needs to maintain 40K in SA?

 

[maple96]

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.

I am sharing common-sense, practical and beneficial strategies to meet dork32's request.

He wants to shield OA, so we are talking about CPFIS/OA investment which requires 20k to be maintained in OA. It is ok to keep 20k to be sweeped into RA, he has nothing to lose if u understand the objective/ratitonale of shielding OA. There is no need to wipe out OA to benefit from shielding it

The above is no secret, dork32 already mentioned he read my sharing sometime ago.

I do not share or write to impress anyone. I share practical common-sense and beneficial strategies.

If u dunno what u dunno, keep quiet.

 

[crimsontactics]

For example, I invest all the balance in SA in January, then I withdraw $37,740 from OA in January and then VC back $37,740 into all 3 accounts in January. Then sell the SA investment in January, assuming no loss in the investment, this way, the SA will increase by at least 5k. Indirectly, I am transfering OA money(about 5K) to SA. Can?

Yes. It is possible assuming your MA is maxed out.

Sent from . using GAGT

 

[a4973]

Even when the full amount of FRS been transferred to RA, one still needs to maintain 40K in SA?

Answered in this FAQ.
https://www.cpf.gov.sg/members/FAQ/schemes/optimising-my-cpf/cpf-investment-schemes/FAQDetails?category=optimising+my+cpf&group=CPF+Investment+Schemes&ajfaqid=2186966&folderid=11851

 

[dork32]

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.

you are right. get hdb in mature estate will earn 200k at least,

but hdb in non mature estate may not earn so much

 

[BBCWatcher]

I am sharing common-sense, practical and beneficial strategies to meet dork32's request.

Dork32’s hypothetical centered around whether it’s possible to minimize Retirement Account creation funding such that CPF LIFE participation isn’t automatic. And the core answer is no, at least not if you have $40,000 or more in your Special Account on the cusp of your 55th birthday. I illustrated the maximally minimized RA funding “sweep,” which is possible to do as I’ve just explained. You then got upset about that information but wouldn’t say why. Then you present an alternative scenario that is less aligned with Dork32’s hypothetical because it ends up with $20,000 sourced from OA, which isn’t a requirement. Then you get upset again when I point out the misalignment and the fact OA can be dropped to zero if desired. (And I happen to know Dork32 could easily do so as he’s explained. He has more than $20,000 of outstanding mortgage debt, so no problem if he wishes to pursue such a scenario.)

In what ways, if any, do you disagree with my summary?

 

[Tiger9119]

Yes. It is possible assuming your MA is maxed out.

Sent from . using GAGT

Even if the MA is not maxed, it doesn't affect the percentage of the VC amount into SA.

 

[maple96]

Dork32’s hypothetical centered around whether it’s possible to minimize Retirement Account creation funding such that CPF LIFE participation isn’t automatic. And the core answer is no, at least not if you have $40,000 or more in your Special Account on the cusp of your 55th birthday. I illustrated the maximally minimized RA funding “sweep,” which is possible to do as I’ve just explained. You then got upset about that information but wouldn’t say why. Then you present an alternative scenario that is less aligned with Dork32’s hypothetical because it ends up with $20,000 sourced from OA, which isn’t a requirement. Then you get upset again when I point out the misalignment and the fact OA can be dropped to zero if desired. (And I happen to know Dork32 could easily do so as he’s explained. He has more than $20,000 of outstanding mortgage debt, so no problem if he wishes to pursue such a scenario.)

In what ways, if any, do you disagree with my summary?

Dun waste my time

Ask Dork32, I am answering his final request.

Good bye, u can continue, Dork32 pls reply to him.

 

[crimsontactics]

Even if the MA is not maxed, it doesn't affect the percentage of the VC amount into SA.

Yes it won't. But money will be stuck in MA. You end up having lesser money to withdraw.

Sent from . using GAGT

 

[Tiger9119]

Yes it won't. But money will be stuck in MA. You end up having lesser money to withdraw.

Sent from . using GAGT

Any way, even after 55, the first 20k in OA and 40k in SA cannot be invested. Just checked my CPF accounts.

 

[edwinttt1978]

crimsontactics and I are probably the only ones to actively transfer from OA to SA at a young age.

Having reached and exceeded the FRS in SA in 2015, the ever changing annual retirement sum is no longer a concern.

Time is money. Don’t hesitate. Transfer from OA to SA today.

 

[Kaypohji]

Have to top up too like crisontactics cause younger age haven’t accumulate too much money in oa anyway.

Top up 100k is no easy feat but clever ! At 65, will have 600k by doing nth at all. Don’t even need to worry about FRS

crimsontactics and I are probably the only ones to actively transfer from OA to SA at a young age.

Having reached and exceeded the FRS in SA in 2015, the ever changing annual retirement sum is no longer a concern.

Time is money. Don’t hesitate. Transfer from OA to SA today.

 

[Ace King]

Any way, even after 55, the first 20k in OA and 40k in SA cannot be invested. Just checked my CPF accounts.

Any idea why can withdraw all but cannot invest the $20K OA and $40K SA? To prevent shielding?

 

[terence2112]

Any idea why can withdraw all but cannot invest the $20K OA and $40K SA? To prevent shielding?

To earn the extra 1% interest on the first 60K

 

[omgwtflol]

I didn’t expect this thread to auto pilot until so much.

Thanks, I will read up on this.

 

[edwinttt1978]

Have to top up too like crisontactics cause younger age haven’t accumulate too much money in oa anyway.

Top up 100k is no easy feat but clever ! At 65, will have 600k by doing nth at all. Don’t even need to worry about FRS

Doesn’t need to be a lump sum but the sooner it’s done, the faster it earns. I started with $12k when I was barely 24, without hesitation. “What ifs” scenarios didn’t bother me; swift and decisive was my motto.

Some people start to think of transfer only when they are in their late 40s or early 50s. While it is never too late to start investing, it is certainly too late when it comes to transfer from OA to SA. Time lost is money lost.

 

[peppermint7]

Some people start to think of transfer only when they are in their late 40s or early 50s. While it is never too late to start investing, it is certainly too late when it comes to transfer from OA to SA. Time lost is money lost.

For myself I only max FRS by transferring from OA and top up lump sum cash at late 40s after ensuring my house fully paid and nothing else to "spend" my OA on. Actually I should have start transferring 10 years earlier but too much concern about needing the $ later on etc etc.

Like u said. Never too late

 

[yoongf]

I doubt that is the reason since CPF Extra Interest takes RA balances first.

The sequence for the account balances used to make up the combined balances is as follows:

1st: Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE
2nd : OA, with a cap of $20,000
3rd : Special Account (SA)
4th: MediSave Account (MA)


https://www.cpf.gov.sg/members/FAQ/...=&group=Others&ajfaqid=2192040&folderid=13726

To earn the extra 1% interest on the first 60K