CPF SA

[dork32]

Is there still time to repent Bro dork32?

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if you concern is raising the cpf withdrawal age, it will not happen in the next 5 years, especially with the pap dismal showing at the last election. they would not want to antagonize the people more.

but you are very young, you have to wait many another 20 years. the garmen have lots of time to make the adjustment to hit you.

i have already mentioned. contributions to cpf is a one way trip when you are young. you have to ensure you really do not need the money before putting into cpf

 

[yoongf]

How old are you?
Housing loan paid up?
Kids hw old?
Other investments?

CPF shd be viewed as a illiquid bond portfolio. Have to see the very big picture.

Funds can also be used to serve the nation by funding more babies.

20k FD just matured. Current FD interest rate only 0.75% very low. Is it wise to topup cpf OA for 2.5% interest?

 

[jnashville]

https://m.youtube.com/watch?fbclid=...uLH6XiLQ046_Aeq4w&feature=share&v=0ZvAX1bzXpM

See this link of cpf life.

 

[Kaypohji]

Also safe I feel

Cause the surplus withdrawal age is always 55... it’s only the basic sum that cannot be withdraw and become annuity

I no scared minimum sum, but I scared withdrawal age increase.

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[cal3135]

Yes, especially if u can’t find better investment returns with your cash stack. U may consider moving in OA 50% of your matured fund as a start...

20k FD just matured. Current FD interest rate only 0.75% very low. Is it wise to topup cpf OA for 2.5% interest?

xs HardwareZone Forums app

 

[iceblendedchoc]

https://m.youtube.com/watch?fbclid=...uLH6XiLQ046_Aeq4w&feature=share&v=0ZvAX1bzXpM

See this link of cpf life.

for FRS on standard plan is 82 years old to break even.

For ERS , will take longer then.

Sticking to BRS.

 

[crimsontactics]

for FRS on standard plan is 82 years old to break even.

For ERS , will take longer then.

Sticking to BRS.

So low meh?

I thought need at least 90 years old to breakeven for FRS?

If only 82 while average lifespan of Sinkie is 85, how to breakeven?

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[WeiHan]

for FRS on standard plan is 82 years old to break even.

For ERS , will take longer then.

Sticking to BRS.

I understand the video already. But if you stick to BRS, you are only better than leaving the money in CPF if you can at least earn a interest rate yourselves for at least 2-3%. correct, don't need 4-6% as the money left in RA is not earning anymore interest after 65yo.

 

[ocs_woodlands]

for some time, I was toying with ERS + basic plan as the best way to extract max benefit from CPFL in terms of payout AND bequest for my children..

recently I started thinking from another perspective...
There is no doubt that the SA interest rate is attractive and max juice should be squeezed out from there. unfortunately as all of us get older, we will have to suffer CPFL. So choosing the different combinations of retirement sums and payout plans is just to choose the least lousy plan...

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

if I think this way, the correct strategy would be:
1) do SA shielding before 55.
2) put some OA money into RA - the min ie BRS.
3) Withdraw whatever bequest amount I have in mind for my children from the OA.
4) Put that withdrawn OA money into my children OA and then transfer to SA. by the time I am 55, my children will only be 25 and 23 yo. I am sure their SA would still have space to be topped up....

In this way, my "early bequest" to them is secure (they can't touch till they are 55, by then i should be either dead or about to die). and the best thing is that this "early bequest" actually grew at 4% pa unlike the bequest in CPFL which does NOT grow from 65 till I die..

as for my own CPFL, I will just go for BRS+basic...

what do you all think

 

[WeiHan]

If you watch the video, you will notice interest is only paid from age 55yo-65yo for the sum in your RA. After that, there is no more interest accrued. Take that into consideration, the interest in RA for most people living to age 80-85 is maybe only 2% annually.

 

[WeiHan]

for some time, I was toying with ERS + basic plan as the best way to extract max benefit from CPFL in terms of payout AND bequest for my children..

recently I started thinking from another perspective...
There is no doubt that the SA interest rate is attractive and max juice should be squeezed out from there. unfortunately as all of us get older, we will have to suffer CPFL. So choosing the different combinations of retirement sums and payout plans is just to choose the least lousy plan...

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

if I think this way, the correct strategy would be:
1) do SA shielding before 55.
2) put some OA money into RA - the min ie BRS.
3) Withdraw whatever bequest amount I have in mind for my children from the OA.
4) Put that withdrawn OA money into my children OA and then transfer to SA. by the time I am 55, my children will only be 25 and 23 yo. I am sure their SA would still have space to be topped up....

In this way, my "early bequest" to them is secure (they can't touch till they are 55, by then i should be either dead or about to die). and the best thing is that this "early bequest" actually grew at 4% pa unlike the bequest in CPFL which does NOT grow from 65 till I die..

as for my own CPFL, I will just go for BRS+basic...

what do you all think

I agree in your plan after learning that money in RA don't grow after 65yo. May I ask you what are the ways to shield SA account before 55yo? I roughly knows need to open a special account investment. then what is the safest instruments that is SA account investable? thanks in advance.

 

[ocs_woodlands]

I agree in your plan after learning that money in RA don't grow after 65yo. May I ask you what are the ways to shield SA account before 55yo? I roughly knows need to open a special account investment. then what is the safest instruments that is SA account investable? thanks in advance.

ok a quick answer to you.

Google Lorna Tan Straits Times CPF SA shielding. thermals are all there..

 

[polyglob]

If only 82 while average lifespan of Sinkie is 85, how to breakeven?

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If break even at 82 and you live to 85 means you earn liao.

 

[crimsontactics]

If break even at 82 and you live to 85 means you earn liao.

Not sustainable...

I believe the video is wrong. The breakeven point for FRS should be around 90 years old...

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[BBCWatcher]

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

if I think this way, the correct strategy would be:
1) do SA shielding before 55.
2) put some OA money into RA - the min ie BRS.
3) Withdraw whatever bequest amount I have in mind for my children from the OA.
4) Put that withdrawn OA money into my children OA and then transfer to SA. by the time I am 55, my children will only be 25 and 23 yo. I am sure their SA would still have space to be topped up....

First of all, the basic idea of lifetime gifts is most sensible. You’re in the best, strongest position to give more and earlier when your lifestyle is reliably sufficient and stable for life.

However, there are a couple potential problems with large SA top ups specifically. One is that you may close off some tax relief opportunities they have (the $7,000/year top ups). There are also potential issues with how the MA portion of compulsory contributions behaves when SA “fills up” “too quickly.”

While I think SA is reasonably attractive at 4.0% interest, I don’t think it’s quite attractive enough for children, including young adult children, who have long time horizons. I think there are other, better investments available. However, to reiterate, the ability to be generous starts with being rock solid.

 

[WeiHan]

ok a quick answer to you.

Google Lorna Tan Straits Times CPF SA shielding. thermals are all there..

Thanks. Don't like her idea of temporary parking SA money in Nikko bond fund. Also read somewhere that fix deposit is not allowed for SA investment. I read Singapore government bonds is allowed. can somebody confirm?

 

[lifeafter41]

for some time, I was toying with ERS + basic plan as the best way to extract max benefit from CPFL in terms of payout AND bequest for my children..

recently I started thinking from another perspective...
There is no doubt that the SA interest rate is attractive and max juice should be squeezed out from there. unfortunately as all of us get older, we will have to suffer CPFL. So choosing the different combinations of retirement sums and payout plans is just to choose the least lousy plan...

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

if I think this way, the correct strategy would be:
1) do SA shielding before 55.
2) put some OA money into RA - the min ie BRS.
3) Withdraw whatever bequest amount I have in mind for my children from the OA.
4) Put that withdrawn OA money into my children OA and then transfer to SA. by the time I am 55, my children will only be 25 and 23 yo. I am sure their SA would still have space to be topped up....

In this way, my "early bequest" to them is secure (they can't touch till they are 55, by then i should be either dead or about to die). and the best thing is that this "early bequest" actually grew at 4% pa unlike the bequest in CPFL which does NOT grow from 65 till I die..

as for my own CPFL, I will just go for BRS+basic...

what do you all think

Firstly, they will, by then be too old and you could be six feet under or going six feet under for them to thank you.
2nd, they will need the money most when they are in the midst of setting up their family, buying a house, their children’s education, etc. not at 55.
Maybe put in OA and let them decide if they want to use it to pay for their house, imo.....

 

[culture_counter]

Thought of topping up CPF OA after FD has matured, but afraid they may change the rules and make it difficult to withdraw the excess after FRS

 

[seowyian]

for some time, I was toying with ERS + basic plan as the best way to extract max benefit from CPFL in terms of payout AND bequest for my children..

recently I started thinking from another perspective...
There is no doubt that the SA interest rate is attractive and max juice should be squeezed out from there. unfortunately as all of us get older, we will have to suffer CPFL. So choosing the different combinations of retirement sums and payout plans is just to choose the least lousy plan...

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

if I think this way, the correct strategy would be:
1) do SA shielding before 55.
2) put some OA money into RA - the min ie BRS.
3) Withdraw whatever bequest amount I have in mind for my children from the OA.
4) Put that withdrawn OA money into my children OA and then transfer to SA. by the time I am 55, my children will only be 25 and 23 yo. I am sure their SA would still have space to be topped up....

In this way, my "early bequest" to them is secure (they can't touch till they are 55, by then i should be either dead or about to die). and the best thing is that this "early bequest" actually grew at 4% pa unlike the bequest in CPFL which does NOT grow from 65 till I die..

as for my own CPFL, I will just go for BRS+basic...

what do you all think

You can also contribute directly into their SA now under the RSTU scheme.
https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

 

[celtosaxon]

for some time, I was toying with ERS + basic plan as the best way to extract max benefit from CPFL in terms of payout AND bequest for my children..

The choice of B/F/ERS depends on your overall portfolio, specifically how much fixed income allocation versus stocks you require in retirement (50/50 is a good rule of thumb, but you could use a bond tent or age minus 100/110/120 etc).

To the extent you need more fixed income, increasing CPFL is usually a better option than adding FD or bonds.

There is no doubt that the SA interest rate is attractive and max juice should be squeezed out from there. unfortunately as all of us get older, we will have to suffer CPFL. So choosing the different combinations of retirement sums and payout plans is just to choose the least lousy plan...

Even with CPFL ERS Basic plan you can generally be assured of at least 3% considering both payments and bequest, approaching 4% in later years. So, after you’ve maxed out SA, you can decide how much CPFL makes sense based on your overall portfolio needs.

But since I have children and like all normal parents, I intend to leave them an inheritance, why don't I leave them the inheritance in their CPF SA instead of the bequest portion of CPFL?

Although 4% is fantastic rate for guaranteed fixed income purposes, it is not a fantastic rate for your longest-term investments - the stuff you don’t have to draw on too much during retirement... that is what you can let compound for your kids - presumably over decades. Not to mention, this also helps protect your retirement from inflation.

For a 50/50 allocation, you take the total annual income you can generate from CPF or other means and divide that by 0.04 to get the target size of your equity portfolio.