Funding during retirement

[limster]

I am so inspired by this thread that I made a $5k housing cash refund to my CPF today!

 

[BBCWatcher]

I am so inspired by this thread that I made a $5k housing cash refund to my CPF today!

Because....? (Out of curiosity.)

 

[henrylbh]

I am so inspired by this thread that I made a $5k housing cash refund to my CPF today!

Wouldn't voluntary CPF contribution or topping up to SA be better than housing refund to CPF?

 

[limster]

Wouldn't voluntary CPF contribution or topping up to SA be better than housing refund to CPF?

CPF doesn't allow me to make voluntary self-contributions or transfer to CPFSA, I think I have reached the limit already.

To me, CPF-OA is actually quite "liquid". Earning 2.5% interest but any time the market crashes, can deploy the cash to buy STI ETF or unit trust. Better than sitting in my bank account earning not much interest

 

[SBC]

I am so inspired by this thread that I made a $5k housing cash refund to my CPF today!

Should wait till 1st Jan to too MA meh.

 

[woof]

Sounds like a possible plan (bucket strategy as suggested earlier) would be to create buckets, so that the buckets can have different time frames / risk profiles.
E.g.
Bucket 1: money for drawdown for 5 years
Bucket 2: money needed in 5 years’ time
Bucket 3: money needed in 10 years’ time
Bucket 4: money needed in 15 years or more etc

So we can plan for lower returns for those buckets that are nearer term. E.g.
Bucket 1: 2%
Bucket 2: 3%
Bucket 3: 4% etc

For those longer term ones, I think the general plan to use IWDA+MBH+STI works.

What about the shorter term ones?
For those > 55 years old, sounds like CPF-OA may be an option.
Are there any other suggestions for low risk investments? I’m thinking ABF and MBH may be reasonably stable for Buckets 1 & 2?
Any other suggestions?

Thanks for sharing.

 

[quanwen]

I don’t think you need to go overboard here, and you shouldn’t if you’re of modest means — just hunker down with CPF and CPF LIFE in that event. But for moderate and greater wealth, a little custodial diversification has merit. As it happens, certain offshore broker custodians are much less expensive (in part because of scale and efficiency), and that’s useful, too.

Also, apply some common sense. Practically every developed country offers reasonable custody, but I would not be inclined to hold much wealth in anything domiciled in Venezuela even if I planned to retire there. For example.

I totally buy in your idea. Can you be a bit more specific in terms of how to execute though?

Say, what would you classify as the threshold for "moderate and greater wealth"? 500K? 1M? 5M?

Also, in terms of custodial diversification, should we consider the diversification across multiple offshore brokers?