Pay back CPF or HDB first?

[henrylbh]

BBC always recommend and tell all here he will delay till 70 to start payout with ERS and join CPF Life choosing Escalating Plan. Whether he will follow his own recommendation/plan when he reached 70, no one knows, only he knows and he has a strong option to leave Singapore for good at 69.5 as he is a PR

Just simple common sense

He may have no choice but to leave Sg unless he is willing and has the energy to go back and forth every year when that time comes.

 

[JustDoLor]

Maximising compound interest, and maximum payouts I think is quite classic in my view.

Anyhow, going for BRS not necessary mean I want to actually withdraw $90.5k before or even after 65/70. If I decided on Basic Life, the $90.5k can continue to remain in my RA “forever” or until I need it, and still earn 4% compound interest. The interest thus earned will also become part of my bequest.

Furthermore I think, if you (not necessary me ）have cash, OA, SA and other incomes (dividends, salaries, rentals, etc) why need to draw payouts of $1k~$2k, can leave it in RA and earn 4% interest and as emergency fund mah.....

henry mentioned that bbc has only one recommendation. ers, escalating, rstu every year, draw down at 70.

he will shoot down all decisions.

if you like liquidity, or need money becoz your foreign lover who is jailed by authorities and need cash to get out, brs may be a good choice.

 

[maple96]

Maximising compound interest, and maximum payouts I think is quite classic in my view.

Anyhow, going for BRS not necessary mean I want to actually withdraw $90.5k before or even after 65/70. If I decided on Basic Life, the $90.5k can continue to remain in my RA “forever” or until I need it, and still earn 4% compound interest. The interest thus earned will also become part of my bequest.

Furthermore I think, if you (not necessary me ******************）have cash, OA, SA and other incomes (dividends, salaries, rentals, etc) why need to draw payouts of $1k~$2k, can leave it in RA and earn 4% interest and as emergency fund mah.....

Have u got written confirmation from CPFB for your understanding on this (in red above)?

I can tell u it (in red underlined plus BRS not withdrawn) will become part of bequest only if u die before CPF Life starts. After CPF Life starts...to be continued..

The statement in blue... will update u once u reply

 

[JustDoLor]

Item in red, i only spoke with CPFB hotline, not in detail but basically as follows:
1. If choose Standard or Enhanced, the $90.5k pledge go to CPF life.
2. If choose Basic, 10%~20% of the total in RA (including the $90.5k pledge) go to CPF life. I can still withdraw the $90.5k from RA after that.

(After writing the above, I think maybe it should be ~80% of $90.5k instead . Will need a former written from CPFB liao..... no urgency for me... if u got time can help write to CPFB... I afraid cannot ask all the right questions.....hehe)

For underline in red. If remembered correctly, everything in RA will be refund after I pass on.

As for the blue, I mean instead of going for SP or EP and get payout of $1k, I choose BP and get $500, the other half supposing part of $90.5k still earn me 4% interest.

Have u got written confirmation from CPFB for your understanding on this (in red above)?

I can tell u it (in red underlined plus BRS) will become part of bequest only if u die before CPF Life starts.

The statement in blue... will update u once u reply

 

[maple96]

Item in red, i only spoke with CPFB hotline, not in detail but basically as follows:
1. If choose Standard or Enhanced, the $90.5k pledge go to CPF life.
2. If choose Basic, 10%~20% of the total in RA (including the $90.5k pledge) go to CPF life. I can still withdraw the $90.5k from RA after that.

(After writing the above, I think maybe it should be ~80% of $90.5k instead ��. Will need a former written from CPFB liao..... no urgency for me... if u got time can help write to CPFB... I afraid cannot ask all the right questions.....hehe)

For underline in red. If remembered correctly, everything in RA will be refund after I pass on.

As for the blue, I mean instead of going for SP or EP and get payout of $1k, I choose BP and get $500, the other half supposing part of $90.5k still earn me 4% interest.

If u read the rules in the CPF website, it “appears” u can still pledge and withdraw 50% of FRS after CPF Life payout starts.

But written replies from CPFB states u should pledge and withdraw before CPF Life payout starts.

When u apply to withdraw 50% of FRS with property pledge/charge, u can choose to withdraw partial amt and CPFB will pay it into your bank account. To withdraw the rest, u have to apply again. If u do not apply to withdraw the rest before CPF Life starts (based on the statement by CPFB above), I think it will form part of CPF Life. (I did not write to CPFB to confirm this as it does not apply to me. I ask it “just by the way” since I have other “my” queries to write in. So those who intend to do property pledge and leave your monies in RA, pls write in to CPFB to confirm, dun regret later!)

So if my conclusion is correct, u have to withdraw 90.5k from RA before CPF Life starts. What to do with the monies, I let others share with u,

If u choose Basic Plan (after u withdraw 50% ie 90.5k), the balance in RA (90.5k plus accumulated interest) will be your CPF Life, of which 10-20% goes to CPF Life Pool as premium.

How many years have u before u hit 55, 65, 70? What possible changes in CPF rules could happen then? New MP, new CPF management, what have u, can all change the future. But be prepared, know the answers and plan accordingly. Always get written answers

 

[JustDoLor]

Like that also can ah! CPFB come on... maybe they r like me, have yet to prepare the actual numbers... haha

If u read the rules in the CPF website, it “appears” u can still pledge and withdraw 50% of FRS after CPF Life payout starts.

But written replies from CPFB states u should pledge and withdraw before CPF Life payout starts.

Got thread in discussion already?

So if my conclusion is correct, u have to withdraw 90.5k from RA before CPF Life starts. What to do with the monies, I let others share with u,

No urgency for me, still many years to go.... at least after discussion here, got a better understanding of this “complex” issue. Thanks all.

How many years have u before u hit 55, 65, 70? What possible changes in CPF rules could happen then? New MP, new CPF management, what have u, can all change the future. But be prepared, know the answers and plan accordingly. Always get written answers

 

[henrylbh]

Maximising compound interest, and maximum payouts I think is quite classic in my view.

Anyhow, going for BRS not necessary mean I want to actually withdraw $90.5k before or even after 65/70. If I decided on Basic Life, the $90.5k can continue to remain in my RA “forever” or until I need it, and still earn 4% compound interest. The interest thus earned will also become part of my bequest.

Furthermore I think, if you (not necessary me ******************）have cash, OA, SA and other incomes (dividends, salaries, rentals, etc) why need to draw payouts of $1k~$2k, can leave it in RA and earn 4% interest and as emergency fund mah.....

My memory not so good. But you are not lucid in the above statements

Yesterday I was given a test to remember Lemon, Key and Ballon. Then after a few minutes of going around with further questioning and casual talk with the tester, I was asked to recall the 3 items. And I said Lemon, Key …….. and Balls The lady tester smiled and said balls quite close

From 55 you can pledge/charge your property to withdraw amount above BRS, anytime in any amount.

If my memory still ok, if you pledge/charge your property, you must take out the money. In other words, you cannot leave it in RA or SA as you like or till you are ready to take out. Off course you can delay the pledge/charge amount but the accumulated interest thereon will go into CPF Life. After life payout commences, you can still pledge/charge your property, but the amount to take out will be adjusted to take into account the amount of life payout disbursed.