cpf Special account shielding

[Iyarash11]

Probably by my time, all SA invested after RA creation will be return in cash

this the only time SA can go back to OA

 

[kelhot2001]

Let me guess by your time.

No more CPFIS-SA.

Once FRS formed, no more SA. All go to meet ERS or go to OA including new contributions or top-ups, if not withdrawn.

All net proceeds from property go back to CPF.

Bobian lor, keep in OA got 2.5 percent. Keep in MBS, can only smell nia

 

[maple96]

so under the CPF Act, it might be an offence?

Read CPF SA Hack Part 3

 

[lifeafter41]

so under the CPF Act, it might be an offence?

Read CPF SA Hack Part 3

What do you think?
It’s allowed under the framework of using CPF to invest.
And the funds goes back to the respective acct.

Still safe with them......lol

 

[maple96]

What do you think?
It’s allowed under the framework of using CPF to invest.
And the funds goes back to the respective acct.

Still safe with them......lol

U should focus on what the auditors think if they find out? If it is considered an offence, what will happen to those who commit the offence, to those who teach

U are allowed to invest CPF SA for the medium to long term. But if u invest less than that just to "deceive" CPFB into drawing more from OA instead of SA into RA, will it be considered 'ok"?

 

[kelhot2001]

U should focus on what the auditors think if they find out? If it is considered an offence, what will happen to those who commit the offence, to those who teach

U are allowed to invest CPF SA for the medium to long term. But if u invest less than that just to "deceive" CPFB into drawing more from OA instead of SA into RA, will it be considered 'ok"?

Nope, it is not ok in my opinion
Our laws are general cover very huge grey areas


What will happen as usual, they will kill one to warn a thousand and pray that the one kill is not you

 

[RoLanTo]

Think still depends on how many % or people can do the hack. If only so miniority ppl can achieve it. What for they go thru big trouble to stop ppl improving their retirement payout.

I thought govt say less than 50% people even manage to hit min sum? To do the hack. Your SA must hit min sum. Your OA must also have more than min sum to fully exploit the benefit right?

 

[BBCWatcher]

To do the hack. Your SA must hit min sum. Your OA must also have more than min sum to fully exploit the benefit right?

No, not really. "SA shielding" has merit when both of these conditions hold just before your 55th birthday:

1. You have "materially" more than $40,000 in your Special Account -- in other words, you have a non-trivial number of SA dollars that can be shielded. (You're not going to bother if you're trying to shield $5.) You could make a Special Account top up and/or transfer OA funds to SA in order to raise your SA balance, and that's a good thing to do because you want to end up with as many SA dollars as possible.

2. After satisfying condition #1, you still have enough in your Ordinary Account to make up most or all of the difference to the Full Retirement Sum (i.e. the FRS minus $40K). You could muster these OA dollars from repayment of OA funds (plus accrued interest) used for housing (and education) and/or redemption of CPF Investment Scheme (OA) assets.

 

[qhong61]

What is account shielding?

 

[kelhot2001]

What is account shielding?

It is SA account shielding before your RA is created

 

[antro65]

I wanted to do SA account shielding as my RA is going to be created soon, so will be going to check with a bank RM,
any advice how else to invest the CPFSA for the short term?
Thanks!!

 

[crimsontactics]

I wanted to do SA account shielding as my RA is going to be created soon, so will be going to check with a bank RM,
any advice how else to invest the CPFSA for the short term?
Thanks!!

Can try SGS 6 months bond.

Sent from Samsung SM-N960F using GAGT

 

[BBCWatcher]

I wanted to do SA account shielding as my RA is going to be created soon, so will be going to check with a bank RM,
any advice how else to invest the CPFSA for the short term?
Thanks!!

You don't need or even want your bank to do this, because that just won't work due to the unit trust's hefty sales charge. You want to use a zero sales charge platform, such as POEMS. And you want to use a CPF Investment Scheme (SA) approved Singapore dollar bond unit trust. Look in this table to find a bond unit trust you like that has both of these characteristics:

1. Included under CPFIS-SA.

2. A risk class of "Low to Medium Risk - Narrowly Focused - Country - Singapore."

A low expense ratio is helpful as a tie breaker but not too important for these purposes.

The Eastspring Singapore Select Bond Fund Class A looks like a very good choice in this role.

Can try SGS 6 months bond.

Theoretically that could work if your bank can find one to sell you that's maturing when you need it to mature. Realistically, though, this is so hard to execute as to be impractical. I would just use POEMS, dollarDEX, or FSMOne and a low volatility unit trust to pull this off.

 

[tangent314]

I wanted to do SA account shielding as my RA is going to be created soon, so will be going to check with a bank RM,
any advice how else to invest the CPFSA for the short term?

My recommendation:

Create an account with POEMS, link your CPF-SA account. Once that is done, make a purchase:

Fund name: Nikko AM Shenton Short Term Bond Fund SGD
Settlement: CPFISSA
Amount: Your SA balance minus $40000

 

[BBCWatcher]

My recommendation:

Create an account with POEMS, link your CPF-SA account. Once that is done, make a purchase:

Fund name: Nikko AM Shenton Short Term Bond Fund SGD
Settlement: CPFISSA
Amount: Your SA balance minus $40000

I disagree with the specific unit trust. That one holds assets well beyond/outside Singapore, which is why it's listed differently in terms of risk. But otherwise that's the formula.

The formula can be mechanically tested in advance by making the unit trust's minimum initial contribution, to understand the process and the execution time in terms of when the Special Account deduction occurs. Armed with that information you'd then execute the final big unit trust purchase for shielding early enough but not too early to beat the "sweep" into your 55th birthday Retirement Account formation.

 

[Guojing88]

I disagree with the specific unit trust. That one holds assets well beyond/outside Singapore, which is why it's listed differently in terms of risk. But otherwise that's the formula.

The formula can be mechanically tested in advance by making the unit trust's minimum initial contribution, to understand the process and the execution time in terms of when the Special Account deduction occurs. Armed with that information you'd then execute the final big unit trust purchase for shielding early enough but not too early to beat the "sweep" into your 55th birthday Retirement Account formation.

Interesting that Lorna Tan used that specific Nikko fund for the shield.

 

[BBCWatcher]

Interesting that Lorna Tan used that specific Nikko fund for the shield.

It's OK and gets the job done, but there are a few better choices.

 

[decibel.]

Hi I read somewhere that recommends buying Tbill 6 months for shielding. So let's say next month my 55 birthday then this month I use 600K in SA to buy T Bill left 40K remain in SA. After 6 months, the 600K automatic go back to my SA? Is that how it works?

Sent from HUAWEI VOG-L29 using GAGT

 

[oceanicmanta]

what would happen if after shielding, the RA amount is less than FRS ...

Would there be a 2nd SA sweep into RA to meet FRS after shield is removed ?

 

[BBCWatcher]

Hi I read somewhere that recommends buying Tbill 6 months for shielding. So let's say next month my 55 birthday then this month I use 600K in SA to buy T Bill left 40K remain in SA. After 6 months, the 600K automatic go back to my SA? Is that how it works?

That's one way, but ~7 months of SA interest loss is an enormously steep price to pay. The unit trust-based method is much lower cost.