CPFIS dividend

[Benson27]

Hi guys,

I have question regarding dividend issue.
Let say i invest in reits, and i got dividend returns. When the returns deposit to my uob account.

1. How long it take to transfer back to cpf OA?
2. Let say 3 years down the road i got hdb housing my cpf wipe out, How do i reinvest with my dividend every 6 month.

Assume the dividend is quarterly payout.

 

[Epps_Sg]

1. You can transfer dividends back into CPF-OA using uob internet banking. Or just wait 2 months and dividend will auto transfer back to CPF-OA.
2.You mean you sold all your CPF-IS investment, bought a house, wiped out yoru CPF...then you have no more stocks to generate dividends. Am i missing something, maybe you can rephrase your question.

 

[henrylbh]

Hi guys,

I have question regarding dividend issue.
Let say i invest in reits, and i got dividend returns. When the returns deposit to my uob account.

1. How long it take to transfer back to cpf OA?
2. Let say 3 years down the road i got hdb housing my cpf wipe out, How do i reinvest with my dividend every 6 month.

Assume the dividend is quarterly payout.

Dont quite understand your queries.

When you take HDB loan, all you CPFOA will be wiped out. HDB will not take into account what you have in your CPF Investment account, be it cash or shares.

With zero balance in CPFOA, you cannot use CPF money for investment without first meeting the min balance of 20k in CPFOA, even if you have cash balance of 20k in your CPF Investment account.

If you have less than 20k, any proceed from sale of investment will need to make good the 20k.

 

[Benson27]

Dont quite understand your queries.

When you take HDB loan, all you CPFOA will be wiped out. HDB will not take into account what you have in your CPF Investment account, be it cash or shares.

With zero balance in CPFOA, you cannot use CPF money for investment without first meeting the min balance of 20k in CPFOA, even if you have cash balance of 20k in your CPF Investment account.

If you have less than 20k, any proceed from sale of investment will need to make good the 20k.

Was wondering if my stock is kept in poems will hdb force sell my stock.

So I believe all dividend collected will be transfer to cpf after 2 month.
And cannot be invested again unless hit 20000.


To built up 20000 in OA is quite a challenging task.

 

[bbmars1128]

Was wondering if my stock is kept in poems will hdb force sell my stock.

So I believe all dividend collected will be transfer to cpf after 2 month.
And cannot be invested again unless hit 20000.


To built up 20000 in OA is quite a challenging task.

No, what ever you have already invested can't be taken out by HDB. Assuming 2 months it would be transfer back to CPF account provided you have no use it any more. UOB will automatically transfer the money back, that is what I understand. However, given your condition, it will likely transfer back as you won't have any more $$ to invest. It is not just the so call 20K limit that you have to beat, there is a proportion of your CPF $$ that can only be used for stock investment as the bulk of it can only be used for managed product such as Unit Trust and a small portion for gold. Not sure, check your CPF statement.

So it does not mean that you have more than the 20K limit you will have $$ to invest in stock.... that's not the way it works.

 

[henrylbh]

You can only use 35% of your OA for stock investment. But the first 20k cannot be used.

If you have 25k, according to the 35% limit, you can use $8,750 for stock investment but because of the 20k min balance, you can only use $5k.

 

[Epps_Sg]

Was wondering if my stock is kept in poems will hdb force sell my stock.

So I believe all dividend collected will be transfer to cpf after 2 month.
And cannot be invested again unless hit 20000.


To built up 20000 in OA is quite a challenging task.

For the dividend that is transferred to your bank CPF-IS account, perhaps you can immediate transfer it into a low volatility, no sales charge bond unit trust, then when there is enough accumulated in the bond unit trust, sell them and invest in the asset you want.

Correct me if i am wrong, as long as the money is still in bank CPF-IS account, it can be reinvested, provided it is still within stock limits, and even if there is less than 20k in CPF-OA?

 

[henrylbh]

For the dividend that is transferred to your bank CPF-IS account, perhaps you can immediate transfer it into a low volatility, no sales charge bond unit trust, then when there is enough accumulated in the bond unit trust, sell them and invest in the asset you want.

Correct me if i am wrong, as long as the money is still in bank CPF-IS account, it can be reinvested, provided it is still within stock limits, and even if there is less than 20k in CPF-OA?

Nay. If you have less than 20k, your available stock limit will be zero or negative and the agent bank will not allow you to touch the money in the CPF investment account. At one time I had near 70k in my investment account and I can't even use 12k for investment!!!

 

[Epps_Sg]

Nay. If you have less than 20k, your available stock limit will be zero or negative and the agent bank will not allow you to touch the money in the CPF investment account. At one time I had near 70k in my investment account and I can't even use 12k for investment!!!

Thanks for the correction. Good to have the facts straight.

 

[SharesGreenH]

Hi, I have a question that is related. Please correct me if I'm wrong.
Let's say my balance in CPFIS account is 3000 due to profits and dividends, but my stock limit is 2800, the 200 difference will have to go back to CPF account and cannot be reinvested?

 

[henrylbh]

Hi, I have a question that is related. Please correct me if I'm wrong.
Let's say my balance in CPFIS account is 3000 due to profits and dividends, but my stock limit is 2800, the 200 difference will have to go back to CPF account and cannot be reinvested?

Transfer your cash balance in your CPF Investment Account back to your OA and your stock limit will increase. But it takes some time to recalculate your stock limit, unless your call them to expedite it.