CPF SA

[henrylbh]

born before Jul 1957. Has login and checked thru the portal, it is under RSS.

OK, that’s too bad. In short they’re relatively CPF poor.

Starts with a falsetto.

 

[jnashville]

i have just topped up 50k to cpf sa account.

have told some of my older generation folks and they say i shouldnt have done that, saying the money is lock up bla bla..

but from what i see, its really a good retirement tool.

i have excess funds that i prolly wont use anytime soon so just placed 50k to SA account.

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

 

[dork32]

Hi Guys, I am back. Apologize for the late post as i am digesting the information on.. I will answer them here:

1. born before Jul 1957. Has login and checked thru the portal, it is under RSS.
2. Parents are in healthy stage at present.
3. check thru the estimator calculator:

RSS:
$570/mth (25 years)
CPFL:
Standard Plan
$544 - $577
Escalating Plan
$433 - $462
Basic Plan (default plan)
$498 - $528

Base on the observation, there is not much different in terms of payout range. except RSS has a limit to 25 years before it goes to 0. Using the CPFL estimator, Bequests ends 80 yo for standard and escalating plan.

Base on my understanding, RSS allow age 70 then start withdrawal. if now to age 70 which we continue to contribute into his RA, it will still helps to earn some interests during these years right?

after reading and digest the information, i think CPFL looks much better I feel. Hope to hear more advise from you guys as well..

this clear confirms what i say. rss gives a higher payout.

i did mentioned that my advice sucks. the reason is there are no numbers. it is very difficult to make decisions without any number.

if you want to compare, you should do it this way.

1. rss vs basic. rss gives a 60 more per month. do you want to pay 60 per month to buy insurance just in case you dont die at 90? if you choose rss, then forget about step 2.

2.basic vs standard. if cpf life is the way to go, next step is to consider basic vs standard. standard you get 50 per month more. but you lose all your interest to the pool. this is why the bequest amount reduces rapidly and hits 0 by the time you are 80. basic will have some bequest till you are close to 90. if you choose basic then forget about step 3

3. standard vs escalating. if standard is good, you may want to consider escalating as well. your starting payout is 110 less than escalating. it will take your about 12 years for you to catch up with escalating. after that, the monthly payout is better. also because you are already down for 15 year, you will need another 12 years to catch up to your initial losses.
just for your info, i did the comparison quite sometime ago. i cannot remember the exact number of 12 years and 15 years. you may want to do your calculations on your onw.

 

[henrylbh]

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

Be prepared that the world is turning upside down with interest rates.

 

[lampano]

i have just topped up 50k to cpf sa account.

have told some of my older generation folks and they say i shouldnt have done that, saying the money is lock up bla bla..

but from what i see, its really a good retirement tool.

i have excess funds that i prolly wont use anytime soon so just placed 50k to SA account.

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

how old are you? Have you hit your FRS?
You knw you entitled to tax offset max 7k topup per year, before u hit FRS?



and then cross fingered the goal post dont shift till retired

 

[dork32]

I tried reading up on how to purchase tbills but it's really confusing. Does anyone have experience on how we can purchase tbills through CPFSA and how the process would be (from buying to maturity) ? Although its still quite a long way for me but i would love to find out. Thank you alot.

i do agree that t-bills is a good shielding tool. it can be as short as 6 months, guarantee you will not lose money.

unit trust is much more volatile. but you can sell off very quickly, immediately after your ra is formed. not sure if tbills can be traded.

i refer to this site for how to buy tbills with cpf

https://www.mas.gov.sg/bonds-and-bi...uy-SGS-at-Auction-Information-for-Individuals

 

[dork32]

i have just topped up 50k to cpf sa account.

have told some of my older generation folks and they say i shouldnt have done that, saying the money is lock up bla bla..

but from what i see, its really a good retirement tool.

i have excess funds that i prolly wont use anytime soon so just placed 50k to SA account.

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

you are probably very young.

when i was young, i had few worries and ambition. i was happy to stay in my parents hdb 4room. i did not care about property, cars, wedding and other big ticket items because they were out of reach.

but as i grew older, my salary increased. all those items that seemed so far away suddenly became much closer. with my cash and cpf oa, i managed to acquire all the stuff that i have mentioned comfortably because i did not continuously transfer to sa.

looking back, i did lose quite a lot of compound interest, but i am still happy where i am.

again to each its own.

 

[Gitaro]

i have just topped up 50k to cpf sa account.

have told some of my older generation folks and they say i shouldnt have done that, saying the money is lock up bla bla..

but from what i see, its really a good retirement tool.

i have excess funds that i prolly wont use anytime soon so just placed 50k to SA account.

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

If you have taken care of any emergency need, this is then a wise move.

 

[cal3135]

Good choice ...

i have just topped up 50k to cpf sa account.
.

xs HardwareZone Forums app

 

[cal3135]

Good to see u able decide better after these reading n towards CPFL; next u may read up which plan namely Basic, standard or escalated schemes suit your folks better.

Do consider defer PEA payout for a few years if able to. This will push up little more CPFL monthly payout.

after reading and digest the information, i think CPFL looks much better I feel. Hope to hear more advise from you guys as well..

xs HardwareZone Forums app

 

[SkyNinja]

i have just topped up 50k to cpf sa account.

have told some of my older generation folks and they say i shouldnt have done that, saying the money is lock up bla bla..

but from what i see, its really a good retirement tool.

i have excess funds that i prolly wont use anytime soon so just placed 50k to SA account.

used a compounding interest calculator and the amount more than triples after 30 years..seems really good especially i dont have to do anything about it. Just hopes the interest rate of 5 percent/4 percent do not drop.

What's your age now? Any upcoming commitments to pay downpayment for a new house?

 

[chrisloh65]

Guessing is a $1M now?

“Invaluable and Rare” Benefits of RSS

I envy Ms Lorna Tan, ex ST editor now Head of Financial Planng DBS, for her “invaluable and rare” benefits of RSS. He dad is 84+ with low RSS RA balance, She made that RSS RA her investment vehicle by topping up the account. She continues to support her Dad, who does not need any payout from his account yet. If he needs payout, she is willing to let him have it. Every year, she will topup 7k to his RA to get tax relief.

Hwz has a similar Ms Lorna Tan, lucky Uncle Henry! His dad passed away at 88-90+? and he still “inherited” a large sum from his RA. How much was it?

Food for thought

 

[souldude]

What happens in this case
Going for Brs 90.5k + pledge property

OA 40.5k
SA 90 5k which 40.5k by rstu

Weeks before age 55, shield 40.5k in my SA with FD

After RA is formed, I liquidate my shield. 40.5k is return back to SA.
Can this 40.5k be withdraw?

Which bank still allows FD from SA? I called OCBC and they said no longer possible.

 

[souldude]

i do agree that t-bills is a good shielding tool. it can be as short as 6 months, guarantee you will not lose money.

unit trust is much more volatile. but you can sell off very quickly, immediately after your ra is formed. not sure if tbills can be traded.

i refer to this site for how to buy tbills with cpf

https://www.mas.gov.sg/bonds-and-bi...uy-SGS-at-Auction-Information-for-Individuals

FD is the safest and easiest I think. But not sure of banks still taking SA.

 

[dork32]

FD is the safest and easiest I think. But not sure of banks still taking SA.

t bill actually safer than fd. fd guaranteed by bank. tbills guaranteed by garmen of sg. triple a rated. i thing our garmen safer than banks

 

[yokine3a]

FD is the safest and easiest I think. But not sure of banks still taking SA.

No more FD for CPFIS, be it OA or SA.

 

[foxshare]

SA gives 4% interest so cap is necessary

 

[Andrew833]

Which bank still allows FD from SA? I called OCBC and they said no longer possible.

If you trying to shield SA, you can check with CPF on which bond/bond etf can be invested by SA.

 

[BBCWatcher]

but bbc recommends standard and escalating. you will not have any bequest at 85 for these 2

An able bodied child should never demand, pressure, or otherwise encourage his/her parents to experience (or even risk) lives of poverty or even destitution. Our elders should live dignified lives for the rest of their days insofar as possible. If you want something else, earn it yourself....

....And "don't worry," heirs are still probably getting the remaining HDB leasehold anyway.

This isn't a game, not at these levels anyway. It's absolutely serious business. If you're even thinking about playing bequest lottery games with your parent's ~S$500/month retirement income levels, you've completely lost the plot. Look in the mirror, look deep into your soul. Something is seriously f**ked up with you.

 

[BBCWatcher]

i do agree that t-bills is a good shielding tool. it can be as short as 6 months, guarantee you will not lose money.

unit trust is much more volatile. but you can sell off very quickly, immediately after your ra is formed. not sure if tbills can be traded.

There's an enormous cost to use even a 6 month T-bill as a shielding vehicle because you're losing 4% interest for 6+ months. You're also going to have to leave substantially more than S$40,000 behind because T-bills are only available in S$1,000 face value increments, and some of your noncompetitive bid price is refunded. Or, if you try to sell your T-bill on the secondary market, you'll lose a substantial amount of money that way, too, since that market has fairly high transaction costs and spreads.

While a bond unit trust has some modest volatility, you're only holding it for ~10 days (something like that), and even in a really, really super unfortunate episode of negative volatility you're most unlikely to end up paying the high costs you'd bear with a T-bill as a shield. Unit trusts are also dollar precise, so you can get very tightly down to that S$40,000 minimum left behind. And instead of monthly T-bill cycles you're dealing with daily buying and redemption cycles, so you can align very closely (but not too closely) with your 55th birthday.