Losses in CPFIS-OA

[alex76]

Hi,
There are some worthless shares in my CPFIS-OA account that I bought during the Lehman crisis period. Unfortunately, these share doesn't pick up till now, in fact, it has incurred a big loss for my CPFIS-OA
1. Do I need to cover these losses in the future?
2. DBS charges my CPF investment acc about $14 monthly, the dividend from these shares can't even cover up the yearly deduction from DBS.
Can I use cash to buy over these shares into my CDP account and close my CPFIS account?
3. There are some other Funds and insurance investment tag to my CPFIS-SA account, do I need to let go all this fund before I can close my DBS CPF investment account?

thanks

 

[Andrew833]

Hi,
There are some worthless shares in my CPFIS-OA account that I bought during the Lehman crisis period. Unfortunately, these share doesn't pick up till now, in fact, it has incurred a big loss for my CPFIS-OA
1. Do I need to cover these losses in the future?
2. DBS charges my CPF investment acc about $14 monthly, the dividend from these shares can't even cover up the yearly deduction from DBS.
Can I use cash to buy over these shares into my CDP account and close my CPFIS account?
3. There are some other Funds and insurance investment tag to my CPFIS-SA account, do I need to let go all this fund before I can close my DBS CPF investment account?

thanks

1. CPF is your money, so don't need.
2&3. You have to sell your shares and other funds holding in DBS before you can close it.

Actually, you don't need to close your DBS acc. As long as you manage your investment well, the cost will be cover.
Just don't buy then forget about it.

 

[alex76]

1. CPF is your money, so don't need.
2&3. You have to sell your shares and other funds holding in DBS before you can close it.

Actually, you don't need to close your DBS acc. As long as you manage your investment well, the cost will be cover.
Just don't buy then forget about it.

I thought it's something like the money drawn for housing, got accrued interest when you sell your property lol...

Just feeling not worth for DBS to deduct my CPF everymonth...haiz..

thanks for the feedback

 

[limster]

Because CPF custodian Bank charges a fee per counter, I try to minimise the number of counters I hold using CPF. Currently only holding 3 counters, so cost is manageable since my dividend more than covers the charges. ($24 a year total vs 4-digit total dividend collected)

If you are charged $14 a month it seems that you are holding quite a few counters. You should definitely try to consolidate.

Of course, I am conflicted as a DBS shareholder, I am benefiting from DBS account holders who do nothing and let DBS happily deduct their money away....

 

[Andrew833]

Because CPF custodian Bank charges a fee per counter, I try to minimise the number of counters I hold using CPF. Currently only holding 3 counters, so cost is manageable since my dividend more than covers the charges. ($24 a year total vs 4-digit total dividend collected)

If you are charged $14 a month it seems that you are holding quite a few counters. You should definitely try to consolidate.

Of course, I am conflicted as a DBS shareholder, I am benefiting from DBS account holders who do nothing and let DBS happily deduct their money away....

Didn't know they charge per counter. Thanks.

 

[addict951]

Didn't know they charge per counter. Thanks.

Per counter per quarter ah.

 

[Mecisteus]

Just cut the losses and return back proceeds to OA.

It is not recommended to invest with your OA.

 

[alex76]

I have no more $ in my CPF eligible for CPFIS investment but if I sell the current share from my CPFIS account, can I use back all the proceed to buy new shares? or will the funds immediately go back to my OA once I sell the shares in CPFIS?

 

[Andrew833]

I have no more $ in my CPF eligible for CPFIS investment but if I sell the current share from my CPFIS account, can I use back all the proceed to buy new shares? or will the funds immediately go back to my OA once I sell the shares in CPFIS?

Yes, but not immediately. Still need 1-2 for clearing.
When you buy, there is T+3, 4th day start clearing.

 

[alex76]

Yes, but not immediately. Still need 1-2 for clearing.
When you buy, there is T+3, 4th day start clearing.

Yes, I remember, if I want to use the proceed to buy the other shares, I have to wait one day, which means sell today, tomorrow only can buy so the procced is ready for the clearing day, unlike doing contra with cash.

but as long as I can use back these proceed, then I should be safe, as long as CPF does not immediately freeze my proceed just because I no longer meeting the sum in my OA.

 

[hwmook]

Yes, I remember, if I want to use the proceed to buy the other shares, I have to wait one day, which means sell today, tomorrow only can buy so the procced is ready for the clearing day, unlike doing contra with cash.

but as long as I can use back these proceed, then I should be safe, as long as CPF does not immediately freeze my proceed just because I no longer meeting the sum in my OA.

First time selling? It will go into your investment account with the bank. It will stay there unless you transfer it back to OA.

 

[henrylbh]

I have no more $ in my CPF eligible for CPFIS investment but if I sell the current share from my CPFIS account, can I use back all the proceed to buy new shares? or will the funds immediately go back to my OA once I sell the shares in CPFIS?

When you sell your CPF shares, it will take about 3 working days for the money to be credited in the CPF Agent account.

If you want to use the proceed to buy new shares, you need to transfer the proceed from CPF Agent account to your CPF account. Then inform CPF that you want to buy new shares and to recalculate your latest available stock limit. Otherwise your available stock limit will only be calculated from the 12th of the month based on previous month's OA balance (assuming no more stock holdings).

 

[henrylbh]

It is not recommended to invest with your OA.

My CPFIS have generated 115k dividends over the years, not counting capital gain which is more than dividends. CPF charges and gst about 10k. Now stuck with Kep Corp for few years and that constraint my trade

 

[HMAN]

A not so related question, after purchasing shares with CPFIS, do I need to release the payment from the bank that CPFIS is registered too ?

I am using DBS and buy through POEMS, account information are setup properly, first time buying with CPF .

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[Mr. Wood]

A not so related question, after purchasing shares with CPFIS, do I need to release the payment from the bank that CPFIS is registered too ?

I am using DBS and buy through POEMS, account information are setup properly, first time buying with CPF .

Sent from Samsung SM-T830 using GAGT

once yr broker linked brokerage to CPFIS accnt, the rest is automatic. fees will be deducted automatically from CPF accnt to CPFIS accnt

 

[HMAN]

once yr broker linked brokerage to CPFIS accnt, the rest is automatic. fees will be deducted automatically from CPF accnt to CPFIS accnt

Thank you. Yes I have linked up the brokerage account with agent Bank account info.

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