CPF

[endlssorrow]

my friend say OA can transfer all into one account called SA? I cant remember. this account got higher interest which is 4%? this saving meant for retirement usage one.

thus if hit $148k, every year can redeem $5k.

cons is OA no money forever liao..

good?

 

[nauhchop]

my friend say OA can transfer all into one account called SA? I cant remember. this account got higher interest which is 4%? this saving meant for retirement usage one.

thus if hit $148k, every year can redeem $5k.

cons is OA no money forever liao..

good?

Wah if ur friend do this, then i must say pap will love your friend deep deep.
Basically you cannot use this money for a long long time and probably by then retirement age has increased to 70yo which govt is thinking of an evil plan to make us work longer and lock the money in even longer.

 

[antonpoh]

Wah if ur friend do this, then i must say pap will love your friend deep deep.
Basically you cannot use this money for a long long time and probably by then retirement age has increased to 70yo which govt is thinking of an evil plan to make us work longer and lock the money in even longer.

Ya, when gahmen change the retirement age to 65yrs old. This news was beside it in the papers.

Wheelock's '$1 billion man' David Lawrence dies at 65 - BTInvest

 

[o0KelviN0o]

OA can invest, can pay mortgage... unless really bad in investing and no mortgage to pay, then I guess it's fine to do that

but 4% interest can "catch up" with the rate that minimum sum is increasing?

 

[henrylbh]

I transferred about 54k from my OA to my dad's RA so that his RA reached 60k and hence earns interest at 5%. The monthly payout from his RA is about $1160, over a period of about 5 years, which goes in a joint account with me. He doesn't need the payout cause I give him monthly cash allowance. Upon his demise, his balance RA will go back to my OA.

 

[makav31i]

Your CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. Special, Medisave and Retirement Account savings currently earn a guaranteed minimum 4% interest until 31 December 2013. In addition, the first $60,000 in your combined CPF balances, with up to $20,000 from your Ordinary Account, will earn an extra 1% interest. So leave your money in your CPF accounts to enjoy this extra interest.

 

[therat]

my friend say OA can transfer all into one account called SA? I cant remember. this account got higher interest which is 4%? this saving meant for retirement usage one.

thus if hit $148k, every year can redeem $5k.

cons is OA no money forever liao..

good?

Provided OA is your spare cash. U don't have any mortgage to pay.
By doing this, in the event you want to use the OA to buy 2nd property or you want to upgrade, U will not have any money in OA.
Remember , can you transfer OA to SA any time you like BUT you can't transfer out from SA to OA.
Once in SA, it's belong to SA Ghost.

 

[henrylbh]

my friend say OA can transfer all into one account called SA? I cant remember. this account got higher interest which is 4%? this saving meant for retirement usage one.

thus if hit $148k, every year can redeem $5k.

cons is OA no money forever liao..

good?

Only if you are very very sure you wont need to use OA for anything or if you are close to age 55. Even if you dont transfer to SA, all your OA will be automatically transferred to SA to meet the min sum when you reach age 55. For those close to 55, they have a choice of transferring now and earn higher interest or be forced to transfer to meet the min sum at age 55.

 

[teerance85]

Transferring from OA to SA can be done progressively. Don't need to transfer 1 shot 50 - 60k. Every mth can transfer say maybe $200 or $300 (provided you have no mortgage to pay.

If you have plans to buy a 2nd property, you need to set aside a certain amount of monies in your CPF, before you can use your OA. And i believe SA is part of the monies to set aside.

 

[o0KelviN0o]

Transferring from OA to SA can be done progressively. Don't need to transfer 1 shot 50 - 60k. Every mth can transfer say maybe $200 or $300 (provided you have no mortgage to pay.

If you have plans to buy a 2nd property, you need to set aside a certain amount of monies in your CPF, before you can use your OA. And i believe SA is part of the monies to set aside.

in order to buy 2nd property using CPF (and have outstanding loan with HDB), one needs to have at least 50% of the MS in the OA & SA account.

quite difficult to acheive that so most people use cash sua

 

[teerance85]

in order to buy 2nd property using CPF (and have outstanding loan with HDB), one needs to have at least 50% of the MS in the OA & SA account.

quite difficult to acheive that so most people use cash sua

Yup, agree with that. Thats where top up can be put to good use. Of course cash used must be cash that you don't need. It's pretty hard for individuals whom are still paying for the 1st HDB to buy a 2nd ppty. But i've seen cases where some individuals are doing that. The key is to buy a HDB as cheap as possible (let's not start on the price of HDB), and then save up CPF to form part of the MS.