cpf Special account shielding

[BBCWatcher]

You can also liquidate the investment and re-invest the proceed as voluntary contribution to CPF. In this way, part of 'OA' can get into SA. But that portion going into SA gets smaller with each subsequent age band.

That’s an interesting idea, Henry.

Please note this voluntary “all three” contribution must fit within the CPF Annual Limit ($37,740).

 

[bladez87]

It's similar to hacking SA using CPFIS-SA but on a limited scope for those above 55.

After meeting FRS at 55, the of withdrawal of excess is SA followed by OA.

If you have fairly large OA and want to leave SA to the last, you can invest OA up to 35% of investible limit. Then close CPFIS. Whatever you have invested will not return to CPF, whether disposed or not.

Repeat the process (by re-opening CPFIS) until amount in OA cannot be invested.

You can also liquidate the investment and re-invest the proceed as voluntary contribution to CPF. In this way, part of 'OA' can get into SA. But that portion going into SA gets smaller with each subsequent age band.

all of this hacks works on the premise that someone successfully did the SA shielding.
for people who did not shield, all these hacks are not applicable right?

thanks

 

[doody_]

So, what's the SA shielding technique? I seemed to have missed the party...

 

[ocs_woodlands]

I will say this 1 more time. Going at this rate, with the title of this thread being so, this method will NO longer be applicable in 5 years...

that's what happened to HDB decoupling...

 

[bladez87]

I will say this 1 more time. Going at this rate, with the title of this thread being so, this method will NO longer be applicable in 5 years...

that's what happened to HDB decoupling...

i highly doubt it will be applicable for me in 23 years time...but just for knowledge...

 

[isaac_3]

Thanks for this thread. Full of information and answer here. So great!

Sent from Xiaomi MI 8 using GAGT

 

[lifeafter41]

It's similar to hacking SA using CPFIS-SA but on a limited scope for those above 55.

After meeting FRS at 55, the of withdrawal of excess is SA followed by OA.

If you have fairly large OA and want to leave SA to the last, you can invest OA up to 35% of investible limit. Then close CPFIS. Whatever you have invested will not return to CPF, whether disposed or not.

Repeat the process (by re-opening CPFIS) until amount in OA cannot be invested.

You can also liquidate the investment and re-invest the proceed as voluntary contribution to CPF. In this way, part of 'OA' can get into SA. But that portion going into SA gets smaller with each subsequent age band.

Thank Henry, I see what you mean.
SA will be the first, followed by this.

 

[henrylbh]

Thanks for this thread. Full of information and answer here. So great!

Sent from Xiaomi MI 8 using GAGT

Beware! Also contains misinformation and disinformation and biased and neutral comments.

 

[alt2015]

Thank Henry, I see what you mean.
SA will be the first, followed by this.

Can also invest 100% of oa in unit trust, then close?

 

[lifeafter41]

Can also invest 100% of oa in unit trust, then close?

I believe it’s restricted to certain sum to be retained inside OA. Definitely not 100%.

 

[hwmook]

Can also invest 100% of oa in unit trust, then close?

$20000 of OA cannot be invested.

 

[henrylbh]

I believe it’s restricted to certain sum to be retained inside OA. Definitely not 100%.

Go to cpf website to read on CPFIs to get the correct info. If don't understand then look for clarifications.

 

[maple96]

I will say this 1 more time. Going at this rate, with the title of this thread being so, this method will NO longer be applicable in 5 years...

that's what happened to HDB decoupling...

No need worry, it is "official"

CPF SA Hack

 

[romeo88]

To every one, as one who has just gone through the creation of RA (but not this particular hack because probably hit 37k cap), it should work. I say should because I did not do it myself. In all honesty, even if I've balance from 37k, I may not want to do it because of too much hassle and the risk of SA investment and what not.

1. Birthday 15th June.
2. Before the day (preferably within June), all SA (minus 40k) invested
3. Birthday (exactly 12 midnight), RA created, 40k from SA transferred in (leaving SA zero). Balance of FRS drawn from OA.
4. Before liquidating earlier SA investment (i.e. SA still zero), make withdrawal. Sequence of withdrawal is interest accrued from SA first, then interest accrued from OA, then SA (in this case zero), then OA, then... (not relevant for this discussion). Interest accrual is calculated from 1 Jan till your withdrawal, (ignoring minor details of how CPFB calculates your interest by the lowest of the month...).
5. Do VC to make up the 37k cap

So if your birthday is nearer to beginning of the year, good for you as interest accrual is near negligible.


As BBCW disclaimed, this additional hack works only when you know for sure your entire CPF contributions does not exceed 37,740.

OK, so what happens if you turn 55 in January? Remember, you’re raising a SA shield in January, so there’s no SA interest that particular calendar year. (January is sacrificed already for the shielding.)

This can be done, it just depends on the circumstances. This is some advanced CPF hackery.

 

[a4973]

what is the impact for 55th birthday in Dec?

 

[henrylbh]

what is the impact for 55th birthday in Dec?

Does it matter? Just do what you need to do regardless of the impact. There is nothing you can do to change your birthday month.

 

[ocs_woodlands]

No need worry, it is "official"

CPF SA Hack

smartinvesting is really dumb.

This is as bad as a property agent advertising decoupling for hdb flats (pre 2015) on his website.

This "hack" as we know it, is OVER.

I am sure (willing to take bets to partially make yo for lost interest due to hack gone ) the hack will be gone soon.

it is the policy of the govt to NOT allow folks to have too much benefit...

Gone. ..

 

[kelhot2001]

smartinvesting is really dumb.

This is as bad as a property agent advertising decoupling for hdb flats (pre 2015) on his website.

This "hack" as we know it, is OVER.

I am sure (willing to take bets to partially make yo for lost interest due to hack gone ) the hack will be gone soon.

it is the policy of the govt to NOT allow folks to have too much benefit...

Gone. ..

They probably increase Mini amount leave behind or set minimum period before 55 cannot invest

 

[henrylbh]

SA is basically for retirement purpose and they should disallowed SA for any investment.

The investible instruments under SA are very limited and carry risk that would affect the retirement savings. None of the financial products is much better than 4% on SA without risk. Even SGB/TB, like FDs, are no better. However, annuities and endowment could still be allowed as they do serve some retirement purpose.

Except for the 1st 20k and 40k for OA/SA cannot be invested, it does not mean sense that there is a limit of 35% on OA and none on SA when the opportunity cost on the latter is much higher. They should forget about CPFIS-SA and raise the limit for CPFIS-OA.

Likely CPFB will plug the loophole on SA shielding together with other changes to CPF at an appropriate time. If CPFIS-SA is not closed, they may require that any SA used for investment be returned to OA, if OA was appropriated to RA to meet FRS at 55.

 

[kelhot2001]

SA is basically for retirement purpose and they should disallowed SA for any investment.

The investible instruments under SA are very limited and carry risk that would affect the retirement savings. None of the financial products is much better than 4% on SA without risk. Even SGB/TB, like FDs, are no better. However, annuities and endowment could still be allowed as they do serve some retirement purpose.

Except for the 1st 20k and 40k for OA/SA cannot be invested, it does not mean sense that there is a limit of 35% on OA and none on SA when the opportunity cost on the latter is much higher. They should forget about CPFIS-SA and raise the limit for CPFIS-OA.

Likely CPFB will plug the loophole on SA shielding together with other changes to CPF at an appropriate time. If CPFIS-SA is not closed, they may require that any SA used for investment be returned to OA, if OA was appropriated to RA to meet FRS at 55.

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