CPF SA

[Gitaro]

yes, the kid may have a gambling problem. he loses all his money. he borrow from ah long. he wanted the parents to help. parents say sorry all the money is in your sa, and tell the ah long to wait until kid is 55 before ah long can get money back. ah long chump the kid.

If there is such a kid, better let Ah Long chop him into pieces.

 

[Wryer]

For people who believe in using OA to pay down some HDB loans, any thoughts on when should be the breakeven point to stop paying down? Idea is to balance: (a) FRS accumulation and (b) cpf housing withdrawal limit.

 

[Gitaro]

For people who believe in using OA to pay down some HDB loans, any thoughts on when should be the breakeven point to stop paying down? Idea is to balance: (a) FRS accumulation and (b) cpf housing withdrawal limit.

If I were you, I dun bother with the above.

Just try your best to pay-up the housing loans as soon as possible.

In my case, I used a lot of cash from my/wife's hard-earned salary and forced savings to pay up via capital repayment on a regular basis.Once I got rid of the loans, my other savings including that of my CPF amount went up exponentially.

 

[BBCWatcher]

If there is such a kid, better let Ah Long chop him into pieces.

In all seriousness, the fact is that CPF protects assets extremely well against creditors, court judgments, and in some cases one's own recklessness. There are some situations when a parent might rationally, prudently, appropriately decide that the best form a financial gift can take is a CPF Special Account top up. We might think that's "sad" or whatever, but it's certainly possible. And it's definitely not crazy.

 

[Kaypohji]

If don’t Shield and we choose brs, they force us to leave the remainder in RA until when ? Can withdraw in cash ?

this is one of the options that i have suggested. but you have to do shielding

 

[BBCWatcher]

If don’t Shield and we choose brs, they force us to leave the remainder in RA until when ? Can withdraw in cash ?

I don't quite understand the questions, but I'll attempt an answer. You have all the standard Retirement Account withdrawal options starting on your 55th birthday. Let's assume your Retirement Account is funded to the Full Retirement Sum. One immediate option you have, if you wish, is to make a property pledge or charge (if you don't have one already) and withdraw RA funds, dropping your Retirement Account down as low as the Basic Retirement Sum if you wish.

If you don't withdraw funds and simply start CPF LIFE payouts -- which you can do as early as age 65, as late as age 70, or anywhere in between -- then that's your participation level, for life. (Unless you add funds. You can go up from there if you wish.)

You aren't able to "choose the BRS" and then keep funds above the BRS in your Retirement Account if that's what you're asking. No, you don't get to set aside $X in your RA, above the BRS, to stay in your RA as if it were a piggybank. The very act of "choosing the BRS" involves withdrawing funds.

Note that there could be withdrawal restrictions below the Full Retirement Sum if the source of some of your Retirement Account funds is from Special or Retirement Account top ups, plus accrued interest on the top ups.

Did I answer your questions?

 

[dork32]

If there is such a kid, better let Ah Long chop him into pieces.

the question is this: if there is such kid, will topping his sa help?

 

[dork32]

For people who believe in using OA to pay down some HDB loans, any thoughts on when should be the breakeven point to stop paying down? Idea is to balance: (a) FRS accumulation and (b) cpf housing withdrawal limit.

if you on bank loan, there is no breakeven. just dont pay.

if you are hdb loan, it depends how much you value liquidity in the cpf oa.

 

[dork32]

If I were you, I dun bother with the above.

Just try your best to pay-up the housing loans as soon as possible.

In my case, I used a lot of cash from my/wife's hard-earned salary and forced savings to pay up via capital repayment on a regular basis.Once I got rid of the loans, my other savings including that of my CPF amount went up exponentially.

if you are on bank loan, paying up using cpf oa is probably the most stupid thing to do. but if you intend to pay up using cash, then i reserve the comments. again it is how you value the liquidity of not paying up.

if you do not pay up the loan, yes cpf rises slowly because of servicing the loan. but your principal is high. you are working on already a bloated cpf.

if you pay up the loan, yes cpf rises quickly, but you may have to start from 0. and it will never catch up compared to if you dont pay up your loan.

please not that the above comments is meant for bank loans and not hdb loans

 

[dork32]

If don’t Shield and we choose brs, they force us to leave the remainder in RA until when ? Can withdraw in cash ?

i think bbc is correct in the posting after yours.

 

[dork32]

In all seriousness, the fact is that CPF protects assets extremely well against creditors, court judgments, and in some cases one's own recklessness. There are some situations when a parent might rationally, prudently, appropriately decide that the best form a financial gift can take is a CPF Special Account top up. We might think that's "sad" or whatever, but it's certainly possible. And it's definitely not crazy.

yes cpf protects assets against creditor. putting the assets under your own name also protects assets against creditor.

lets say the kid is bankrupt because at 25. you tell your kid " dont worry, i have topped your cpf. they cannot take that money away. all you need is to wait for 30 years and you will be rich again."

i laugh my toes off if you were to do that. i will give my kid some allowance to help him tide over the daily expenditure, instead of topping his cpf sa.

 

[Kaypohji]

Kinda. Thanks so much.

Yup I don’t want to leave my money in RA and I only want BRS. So I’m wondering the excess of brs goes where

I want to keep the excess in sa. It’s possible right?

I don't quite understand the questions, but I'll attempt an answer. You have all the standard Retirement Account withdrawal options starting on your 55th birthday. Let's assume your Retirement Account is funded to the Full Retirement Sum. One immediate option you have, if you wish, is to make a property pledge or charge (if you don't have one already) and withdraw RA funds, dropping your Retirement Account down as low as the Basic Retirement Sum if you wish.

If you don't withdraw funds and simply start CPF LIFE payouts -- which you can do as early as age 65, as late as age 70, or anywhere in between -- then that's your participation level, for life. (Unless you add funds. You can go up from there if you wish.)

You aren't able to "choose the BRS" and then keep funds above the BRS in your Retirement Account if that's what you're asking. No, you don't get to set aside $X in your RA, above the BRS, to stay in your RA as if it were a piggybank. The very act of "choosing the BRS" involves withdrawing funds.

Note that there could be withdrawal restrictions below the Full Retirement Sum if the source of some of your Retirement Account funds is from Special or Retirement Account top ups, plus accrued interest on the top ups.

Did I answer your questions?

 

[hachi]

For people who believe in using OA to pay down some HDB loans, any thoughts on when should be the breakeven point to stop paying down? Idea is to balance: (a) FRS accumulation and (b) cpf housing withdrawal limit.

By 45 fully paid it. Then transfer OA to sa every month. You got another 25 years to build your retirement fund. At 55 don't take anything out...

Don't who think can sell your house and get money. Pls understand old people and your wife, they don't like changes alr...

 

[Kaypohji]

Guys

I have another qns

Please ignore the irr before age 80. Assuming we are most likely to live between age 80 to 89. The irr for cpf life standard frs is only 2.28% to 4.06%. The longer u live the higher the return.

If that’s the case, wouldn’t be a private insurance annuity better ? The last I checked it’s 2. Plus % to 4 plus % also but usually funds can declare the upper range like ur whole life insurance.

 

[crimsontactics]

Guys

I have another qns

Please ignore the irr before age 80. Assuming we are most likely to live between age 80 to 89. The irr for cpf life standard frs is only 2.28% to 4.06%. The longer u live the higher the return.

If that’s the case, wouldn’t be a private insurance annuity better ? The last I checked it’s 2. Plus % to 4 plus % also but usually funds can declare the upper range like ur whole life insurance.

What about the bequest of whole life insurance?

We need that information to compare.

Sent from . using GAGT

 

[Andrew833]

Kinda. Thanks so much.

Yup I don’t want to leave my money in RA and I only want BRS. So I’m wondering the excess of brs goes where

I want to keep the excess in sa. It’s possible right?

Yes, by shielding SA before 55.
I think you need to understand more on CPF life.
1st choice is FRS for RA, if you choose BRS, I think you need to inform CPF with property. Property, I think must be less then 50 years.

What you do with the remaining money?
OA can withdraw to invest else where.
SA must shield before 55.
After 55, Unshield SA.

Can take yearly interest in SA?
Yes, but money in OA will be withdrawn first.

Hope you are clearer now.

 

[Kaypohji]

Let’s say I don’t mind they take the whole brs from my sa. 90.5k. But I want the other 90.5k to remain in my sa. Also must shield sa?

U mean we don’t have to drawdown sa first? we can withdraw oa the lower interest account first?

I intend to withdraw like 1k per month from either sa or oa, whichever also can. On top of my brs payout.

Yes, by shielding SA before 55.
I think you need to understand more on CPF life.
1st choice is FRS for RA, if you choose BRS, I think you need to inform CPF with property. Property, I think must be less then 50 years.

What you do with the remaining money?
OA can withdraw to invest else where.
SA must shield before 55.
After 55, Unshield SA.

Can take yearly interest in SA?
Yes, but money in OA will be withdrawn first.

Hope you are clearer now.

 

[Kaypohji]

I think it has bequest... cpf life from 80 onwards no bequest... but say if u sign up a insurance annuity that pays u from 70 to 90. If u die anytime between this period, u will have bequest (exact amount need to calculate depends on plan) but definitely have... like that seems like already better than cpf life? I mean if u die at 81, ur cpf life has no bequest at all for frs standard but ur insurance annuity still has. Even 1$ also win already ?

But then if u live past 90, ur insurance annuity will stop paying u la... this part is where cpf life is better but I think ppl in this thread believe they can’t outlive past 90?

Edit: oh u asking from me the exact amount ah... my agent didn’t give me.. he only make a table showing me IRR range from guaranteed to non guaranteed and the payout amount and premium. But I found this online.

Death benefit – Pay-out of 105% of all net premiums paid, and 100% of terminal bonus if death occurs during the accumulation period. Additional 105% of all net premiums paid if accidental death happens before age 70.

What about the bequest of whole life insurance?

We need that information to compare.

Sent from . using GAGT

 

[dork32]

Guys

I have another qns

Please ignore the irr before age 80. Assuming we are most likely to live between age 80 to 89. The irr for cpf life standard frs is only 2.28% to 4.06%. The longer u live the higher the return.

If that’s the case, wouldn’t be a private insurance annuity better ? The last I checked it’s 2. Plus % to 4 plus % also but usually funds can declare the upper range like ur whole life insurance.

wonderful. you understand how the irr formula works. can i request that you do a similar one for the case that we delay to the payout to 70? you will see wonderful results.

 

[dork32]

I think it has bequest... cpf life from 80 onwards no bequest... but say if u sign up a insurance annuity that pays u from 70 to 90. If u die anytime between this period, u will have bequest (exact amount need to calculate depends on plan) but definitely have... like that seems like already better than cpf life? I mean if u die at 81, ur cpf life has no bequest at all for frs standard but ur insurance annuity still has. Even 1$ also win already ?

But then if u live past 90, ur insurance annuity will stop paying u la... this part is where cpf life is better but I think ppl in this thread believe they can’t outlive past 90?

Edit: oh u asking from me the exact amount ah... my agent didn’t give me.. he only make a table showing me IRR range from guaranteed to non guaranteed and the payout amount and premium. But I found this online.

Death benefit – Pay-out of 105% of all net premiums paid, and 100% of terminal bonus if death occurs during the accumulation period. Additional 105% of all net premiums paid if accidental death happens before age 70.

you are comparing with cpf life standard. standard really sucks before 85, so it is not a good comparison. but stardard is really worth it if you live long. this is not a fair comparison.

you should compare your insurance with basic. you will realize that basic probably have a higher payout, higher bequest and pays throughout your life compared to your insurance throughout the life, except during the accumulation period.