What to do with inheritance

[havetheveryfun]

Wouldn't it better to get earlier since the premiums is lower due to age and health conditions? In case of marriage in the future?

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money wise is the same one.. they have statistics team calculate everything nicely one already leh..

the only risk is exclusion of certain health illnesses or conditions for certain policies..

 

[beefjerky]

Thank you for such a detailed reply!!

I’ll most likely proceed w the SCB option and do some investing on global etfs...
Yup I do already have a POSB acc and CIMBFastsaver (it was what I used b4 I received the inheritance)
But I really gotta read up more before continuing w the global ETFs cause I know nuts lol.

I’m actually quite keen on the UOB one account (50k deposit w 2.xx% when the necessary req are met) what are your thoughts on this ?

i think before u plow ur money in to the uob one account for 2% u shld check out shiny things thread. there is a consolidated shiny things thread somewhere which might help simplify the info

 

[Prof. Utonium]

Wow how did you amass 300k by mid 20s? And I suppose your total is higher cause that excludes your cpf and current savings/investments?

Inheritance.

Would gladly trade that for deceased to be alive.

Excludes CPF of $50k and savings balance of $10k since I paid for debt and funeral.

 

[Prof. Utonium]

Yes, premiums go up when you grow older, but overall you pay more in premiums if you start paying earlier, so really there is no benefit to buying early to cover you when you don't need cover.

I see. I do have dependents though so I will still have to keep it.

 

[Prof. Utonium]

Doesn't look like you've been lurking in the right threads

For the consumer there is no tax on capital, and dividend tax can be reduced from 30% to 15% if you buy an Irish-domiciled ETF. We generally recommend VWRD or a combination of IWDA+EIMI. With $300K, the obvious choice would be to open an IBKR account and transfer in at least US$100k to purchase VWRD / IWDA+EIMI and meet the minimum sum to avoid incurring minimum monthly charges.

The rest can go into SSB, STI ETF, and good interest saving accounts.

You don't have to use OA to pay for your house down payment. If you are able to afford it using cash, you can always pay cash, then let your CPF grow happily in SA/MA. Otherwise yes, you will need to calculate how much you will need for your down payment and keep the appropriate amount in OA.

Seems like I need to read up more. So many terms I have to google.

Hmm... I guess I will transfer more OA to SA to make up $40k. Then allow OA to accumulate as per normal starting next month. Since I am single and even if buy BTO under single scheme that would be 8 to 9 years later.

The extra interest is really tempting for retirement sake. lol.

 

[Loofish]

i think before u plow ur money in to the uob one account for 2% u shld check out shiny things thread. there is a consolidated shiny things thread somewhere which might help simplify the info

Hey hey so sorry, but i've been looking through the shiny things threads but I can't seem to understand why people aren't encouraging this HY saving acc.. 1. i dont have a salary hence i cant credit... i should be able to spend >$500 a mth plus 3giros.. Please advise.. I see some mention about an A35 bond thingy but i dont quite understand either

 

[crimsontactics]

Don't do anything for awhile while gathering information.

Many people rush to do something, ending up losing money.


Sent from . using GAGT

 

[findinglaserprinter]

I don't have financial advice to offer. But don't tell anyone you inherited money.

Money is a very touchy topic. Some friends and family may treat you differently once they know that you are in possession of so much money. Hide the fact as much as possible and continue living your life as per normal.

For examples look at what happens to lottery winners. Take things slowly and make rational decisions.

 

[swordsly]

Hey hey so sorry, but i've been looking through the shiny things threads but I can't seem to understand why people aren't encouraging this HY saving acc.. 1. i dont have a salary hence i cant credit... i should be able to spend >$500 a mth plus 3giros.. Please advise.. I see some mention about an A35 bond thingy but i dont quite understand either

Bonds act as a counterweight to stocks. In the event the market turns bearish (stocks values dropping) and if your portfolio consists of mostly stocks, you are going to see a lot of red and might be tempted to sell off out of fear. Bonds in this case will reduce that impact.

High yield accounts can be good but because of the conditions attached to it, some may find it troublesome to fulfil it while there are other products out there that yield similar interests.
For example: recent SSB 10 year rates are quite comparable to even a full-bonus Maxigain account. The only downside is that you will need to hold it for 10 years to enjoy the 10 year annualised rates.
Also, these HY accounts are subjected to banks TnCs which the banks can change at any point they want to. When they do and it is no longer attractive, you'll have to find something else to redeploy at.

All in all, I would say that if you can easily satisfy the HY account conditions without needing to go your way out for it (spend for the sake of spending for eg), go ahead. Interests aside, there's that 50k SDIC protection as well.

 

[JuniorLion]

Yes, premiums go up when you grow older, but overall you pay more in premiums if you start paying earlier, so really there is no benefit to buying early to cover you when you don't need cover.

If you can buy later, then why buy earlier?

Simple.

Well, in the event that you could have gotten some ailments between the "earlier" and "later" date.

 

[BBCWatcher]

Hmm... I guess I will transfer more OA to SA to make up $40k.

Bonus interest is earned on the first $60K of MA+SA+OA, of which up to $20K can be in OA. Moreover, voluntary top-ups to MA and to SA usually qualify for tax relief.

MA top-ups are a bit trickier to do because they must fit within the CPF Annual Limit of $37,740, and once your income from work in Singapore gets high enough you could hit that limit. Also, Medisave funds are potentially useful at any age, so I like giving a little first attention to MA if you want to do some top-ups for tax relief. SA top-ups are easier, but only the first $7,000 per year is eligible for tax relief.

If you’re going to transfer any OA funds to SA, I’d do it online on or before June 30, 2018 — very soon. If you beat that particular deadline then June’s higher interest is yours, because CPF calculates the higher SA interest starting from the beginning of the month in which you make the OA to SA transfer. That’s a rare exception to the “lowest balance for the month” interest calculation rules that CPF normally applies.

If you’re married or otherwise have a significant other, he/she is subject to the same bonus interest rules. So if you have maxed out your bonus interest already but he/she hasn’t, it’s wise to give him/her some CPF-related help.