How Much to keep in OA

[kzonexx]

Hi guys,


I'm thinking of moving some of my OA to SA but very undecided how much to keep in OA as a buffer for my mortgage payment. For those who have done such a move, how do u decide how much to move?


Current situation as follows :


OA Balance 45K
SA Balance 80K
Monthly OA contribution 1.26K
Yealy OA contribution 18.5K (estimated)
Monthly Mortgage 1.7K

 

[BBCWatcher]

It's hard to answer without more information, in particular how much you could tap to support mortgage payments and other needs. For example, if you've got this sort of formula going:

* $30,000+ in SSBs
* $10,000+ for ordinary banking needs
* reasonable, simple disability, medical, and term life insurance coverages
* no other debts
* reasonable confidence in some baseline earning and re-employment potential (excl. disability/death of course)

then yes, I'd make OA work harder for you in SA. However, assuming you qualify for tax relief (which you should with a $1.7K/month mortgage), I think I'd take the $7,000 SA cash top-up tax relief first/also. I would also incorporate some estimate of interest rate risk since (I assume) that $1.7K/month payment could increase if (or when) interest rates do.

 

[kzonexx]

don't have spare cash to top up SA while my insurance needs & emergency funds are sufficient for now.

Other debts are car & bike loans. yeah, on bank loan so interest could go up after the foxed rate in 2019. Total monthly mortgage is 3K, my portion is 1.7K

My main concern is the loss of earning part and re employment.

 

[Sinkie]

Hi guys,

I'm thinking of moving some of my OA to SA but very undecided how much to keep in OA as a buffer for my mortgage payment. For those who have done such a move, how do u decide how much to move?


Current situation as follows :


OA Balance 45K
SA Balance 80K
Monthly OA contribution 1.26K
Yealy OA contribution 18.5K (estimated)
Monthly Mortgage 1.7K

you already used OA for your mortgage payment already? why your SA so much sia..

anyway for me, i wont want to use my OA for first property as using compounding on it to buy second property in future.

 

[kzonexx]

you already used OA for your mortgage payment already? why your SA so much sia..

anyway for me, i wont want to use my OA for first property as using compounding on it to buy second property in future.

I've always used CPF to buy house... this is my 2nd property. I'm the type who will not use cash if can be avoided.


OA used for property including accrued interest is 186K


SA so much meh? Been working for 15 years. I was thinking whether to move some OA to SA so can reach minimum sum earlier.

 

[mosmos]

i transfer most of my OA to SA to earn better interest rates

 

[kzonexx]

i transfer most of my OA to SA to earn better interest rates

mind sharing how much housing loan u have and do u use OA or cash to pay?

 

[Sinkie]

I've always used CPF to buy house... this is my 2nd property. I'm the type who will not use cash if can be avoided.


OA used for property including accrued interest is 186K

SA so much meh? Been working for 15 years. I was thinking whether to move some OA to SA so can reach minimum sum earlier.

actually i am just thinking, u have 2 properties already, do you really need to meet the min so that you can have the money when u retire? i rather concentrate on repaying properties debt if any etc

 

[kzonexx]

actually i am just thinking, u have 2 properties already, do you really need to meet the min so that you can have the money when u retire? i rather concentrate on repaying properties debt if any etc

sorry I wasn't clear... already sold off my 1st property to buy my 2nd. Still very much dependent on CPF as the main income for retirement.

 

[SBC]

My outstanding mortgage loan is about $828k. Monthly repayment is over 4k.

I did a transfer of few k from OA to SA last year to take adv of the higher interest.

 

[die]

what property u buy sia , 4k ?

My outstanding mortgage loan is about $828k. Monthly repayment is over 4k.

I did a transfer of few k from OA to SA last year to take adv of the higher interest.

 

[MoneyFace =p]

i transfer most of my OA to SA to earn better interest rates

Jin rich lor can afford to transfer OA lui to SA.

 

[SBC]

3BR private FH. Bought at 1.1mil 1.5 years ago.

 

[BBCWatcher]

Jin rich lor can afford to transfer OA lui to SA.

I think I disagree with that. There's only one major prerequisite for being in a good position to transfer OA to SA: no plan to use OA for housing. If your medium-term (or longer) plan is to rent rather than to purchase a leasehold, then why not convert OA to SA?

 

[windwaver]

I think I disagree with that. There's only one major prerequisite for being in a good position to transfer OA to SA: no plan to use OA for housing. If your medium-term (or longer) plan is to rent rather than to purchase a leasehold, then why not convert OA to SA?

That's right.

 

[BBCWatcher]

That's right.

Just to pick an example, suppose you have $10,000 in your OA, you're "not rich" (at least now), you live overseas, and you have no plans to return to Singapore, never mind buying any leasehold or freehold in Singapore. Should you convert all your OA to SA? Yes, that would be the smart move.

 

[i1magic]

Assuming no change in situation, moving $ from OA to SA is fine.

So the question is not whether to shift the $ but rather tell us what you working as, for how long already and how old are you.

Mi Max HardwareZone Forums app

 

[kzonexx]

3BR private FH. Bought at 1.1mil 1.5 years ago.

wah dats a very good price. wats the psf and I u don't mind sharing which development? I'm also considering options around serangoon/hougang area maybe near rosyth pri in a few years time.

 

[SBC]

Is around $800 psf, is an 20 years old boutique apartment. About 8min away from Kovan MRT. Good catch for me. Very happy so far.

Did you consider Regentville? There is an EC coming up v soon beside it.

 

[RoLanTo]

TS,

i did not move from OA to SA.. instead i just converted my mortgage to use cash instead of cpf.. then if i have some spare cash, i just slowly pay off the capital+accrued interest in OA.

cos i think.. if i xfer from OA to SA.. it limits how much cash i can topup to my SA.. part of it is for tax relief, part of it because i want more funds in cpf