CPF SA

[dork32]

Don’t need shielding at all
Just take out everything to use
Why does anyone need shielding?

so, if i dont need the money immediately and my kids dont need the money immediately, where do i put this money, posb savings? sa is a good store of this cash. it can be withdraw very easily.

yes shielding is useful. if lorna does it, ocs is trying to do it in a few years, even bbc is recommending it, it must be good.

 

[dork32]

Ha ha, I know some with 0 OA without shielding because they not enough monthly CPF contribution and have to pay mortgage partly with cash.

my situation is not so bad yet. i have more than enough to pay my mortgage.

 

[Polar Bear King]

so, if i dont need the money immediately and my kids dont need the money immediately, where do i put this money, posb savings? sa is a good store of this cash. it can be withdraw very easily.

yes shielding is useful. if lorna does it, ocs is trying to do it in a few years, even bbc is recommending it, it must be good.

getting into unlimited QE spiral future
cash is trash
now is borrow more to pump into real estate to keep up with the value
4% is nothing,will lose to inflation

 

[henrylbh]

Please note that "child" does not equal "minor." Nobody ever qualified this by saying "minor child." There are some additional considerations that apply to minors receiving CPF deposits.

Nobody will fault you even if you want to say an 80 yo is a kid. My oldest of all cousin is 81 yo and her mother is 99 yo.

Most kids here is what is matter and not many here have working kids.

 

[dork32]

getting into unlimited QE spiral future
cash is trash
now is borrow more to pump into real estate to keep up with the value
4% is nothing,will lose to inflation

in times of crisis cash is king.

i do dabble in properties and have outstanding property loans. but it is crazy to leverage to the max.

no 4% is not trash. especially for many of us. we have home loans for 1+% 2+%. why dont you tell dbs their loans to us is trash?

whether it can fight inflation or not is another story. at the moment it can. inflation is definitely less than 4%

 

[Andrew833]

Don’t need shielding at all
Just take out everything to use
Why does anyone need shielding?

Shield or not shield is not the main problem.
E.g. RA acc got FRS.
What are you going to do with all the money in OA + SA at 55?
1) Draw out OA to use, keep SA for interest.
2) Draw out all but what are you going to do with the money, spend or invest it.
If invest, where can get risk free 4% interest?
3) Keep all in CPF (not for me )

 

[Polar Bear King]

Shield or not shield is not the main problem.
E.g. RA acc got FRS.
What are you going to do with all the money in OA + SA at 55?
1) Draw out OA to use, keep SA for interest.
2) Draw out all but what are you going to do with the money, spend or invest it.
If invest, where can get risk free 4% interest?
3) Keep all in CPF (not for me )

draw out to spend on properties to live in lar so simple
go to help kids get their flats
cash is turning into trash in the foreseeable future

 

[SKenny]

Shield or not shield is not the main problem.
E.g. RA acc got FRS.
What are you going to do with all the money in OA + SA at 55?
1) Draw out OA to use, keep SA for interest.
2) Draw out all but what are you going to do with the money, spend or invest it.
If invest, where can get risk free 4% interest?
3) Keep all in CPF (not for me )

For me, it is clearly option 3.

 

[henrylbh]

For me, it is clearly option 3.

Same for me. As much as I can, until the appropriate time to spend

 

[henrylbh]

Shield or not shield is not the main problem.
E.g. RA acc got FRS.
What are you going to do with all the money in OA + SA at 55?
1) Draw out OA to use, keep SA for interest.
2) Draw out all but what are you going to do with the money, spend or invest it.
If invest, where can get risk free 4% interest?
3) Keep all in CPF (not for me )

Shielding SA is the best feature of CPF Scheme to give a miss.

 

[henrylbh]

smart guy. that is y you put money in father's cpf and not kid's cpf

But my cleverer kid not doing that for me leh

 

[Andrew833]

Shielding SA is the best feature of CPF Scheme to give a miss.

Yes, agree.
That's why I planning to keep BRS in SA acc at 55.
Thanks to you guys here, I learn alot from all the CPF threads.

 

[Andrew833]

I just calculate, if at 55, leave example $90k in SA.
After 20 years if I don't withdraw, the amount will be double!

BRS 2020 is $90.5K
BRS 2021 is $93K
BRS 2022 is $96K

After age 75, relax lah

 

[hwmook]

Shield or not shield is not the main problem.
E.g. RA acc got FRS.
What are you going to do with all the money in OA + SA at 55?
1) Draw out OA to use, keep SA for interest.
2) Draw out all but what are you going to do with the money, spend or invest it.
If invest, where can get risk free 4% interest?
3) Keep all in CPF (not for me )

There is nothing risk free in this world. There is nothing to stop CPF from removing the 4% floor.

 

[Andrew833]

There is nothing risk free in this world. There is nothing to stop CPF from removing the 4% floor.

CPF will not stop increasing BRS, FRS and ERS. So if CPF remove 4%, there is something very wrong, head will roll

 

[BBCWatcher]

this i doubt so. garmen seems to like us to keep a lot of money at the cpf.

I wouldn't say that. There are various limits (Basic Healthcare Sum, CPF Annual Limit, Basic/Full/Enhanced Retirement Sums), and maximum Retirement Account payout starting age is now 70 (versus no maximum previously). CareShield Life premiums are going to pull down MediSave balances somewhat. It used to be that heirs could keep CPF funds parked in a deceased member's accounts and earning regular interest, but that's gone now.

I think the government prefers a "decent amount," not "a lot."

There is nothing risk free in this world. There is nothing to stop CPF from removing the 4% floor.

That's true! However, the world in which the government reduces the 4.0% MA/SA/RA floor interest rate is a world in which you'll still be comparatively happy with the new floor rate, i.e. it'll likely be a persistently Singapore dollar deflationary world with some negative market interest rates. It'll be a world in which DBS's Multiplier account is really DeMultiplier. Said another way, CPF's real interest rate will still be quite excellent, and only real interest rates matter.

 

[lifeafter41]

I just calculate, if at 55, leave example $90k in SA.
After 20 years if I don't withdraw, the amount will be double!

BRS 2020 is $90.5K
BRS 2021 is $93K
BRS 2022 is $96K

After age 75, relax lah

Ehhhh....Andrew, while I am not sure about what age are you, to aim for 75, even for moi is very far away.........Lololol

 

[Andrew833]

Ehhhh....Andrew, while I am not sure about what age are you, to aim for 75, even for moi is very far away.........Lololol

Few years to 55, so trying to make up my mind on what amount to keep in SA acc after FRS is transfer to RA acc.

The amount keep in SA acc;
1) withdraw yearly interest at 65 (RA payout start at 65)
2) Or keep till 75 then decide.

I'm not rich and my salary is not alot, so must plan ahead for retirement.

 

[celtosaxon]

Call me crazy, but I don’t think it is beyond the realm of possibilities that one day CPF members will be allowed to override the account sequence from which withdrawals are made to fund RA at 55. Since it is already allowed through shielding, what is the harm in making it official?

 

[lifeafter41]

Few years to 55, so trying to make up my mind on what amount to keep in SA acc after FRS is transfer to RA acc.

The amount keep in SA acc;
1) withdraw yearly interest at 65 (RA payout start at 65)
2) Or keep till 75 then decide.

I'm not rich and my salary is not alot, so must plan ahead for retirement.

I would suggest as follows:

If OA is sufficient to offset deduction of SA to create RA after shielding, then go for max.

Ie, before 55,

OA 200K
SA 200K
MA 60K

Age 54 years, 11 months more or less.....lol, assuming reaching 55 in Sep 2020.

OA 200K
SA 40K + raise Shield (160K in SA approved investment)
MA 60K

After age 55years + 1week

OA 59K
SA 160K (Lower shield)
RA 181K
MA 60K

That’s about the size of it. You can choose to withdraw your 59K in OA, if you wish, but has to be done before lowering of SA shield.