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Do you actively invest or top up CPF


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4 hours ago, AMorrison said:

Guys, sorry for bringing this thread up, but can anyone explain me what is a CPF retirement fund? Thanks in advance!



 

What is the Retirement Sum Scheme?

Answer:

The Retirement Sum Scheme provides CPF members with a monthly income to support a basic standard of living during retirement. These are the cpf sum from your ordinary and special account to make up ur retirement account. 

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Guest Widow Spider need breeding
On 1/2/2019 at 10:16 AM, Guest Guest said:

How many of you actively invest or put money into CPF retirement fund

As the saying goes, a bird in hand is better than 2 in the bushes, consideration to your unforseeable emergency fund needed for yourself and your family as and when it arises.   You have control over your own liquidity instead of letting it being managed by other people.  Nobody know how much those people were drawing "up there" and what toxic products they have invested overseas with your money and then have policies changes accordingly to their need more than your need.

 

Besides, I hate disclaimer clauses everywhere in the CPF,  I hate it when some government people said it is not your money and you need to meet certain requirements imposed by them, to get your money back - partially (again, depending on their decsion  the amount you can withdraw, linked to your HDB, accrued interest, minimum sum and subsequent changes not within your radar and most of the time not very favourable indeed).  

 

Utlimately,  once money is thrown into a CPF safe, unlike insurance savings, you no longer hold on to the key.  Under such circumstances, you won't see your money and have better decided to will it to your love ones just in case you no longer around.   The annuity payout, when you thought is sufficient to survive, may also be subjected to changes to suit the cirucumstances and timing of the payout .  Any future disagreement by you, will not be protected under the binding fine clauses. In order to study how CPF works,  you need a professional, not those promotional material you see from brochure or the main stream newspaper which won't tell you more than what you are supposed to know and then you ended up TOPPING UP like no tomorrow and you are simply putting a male spider into a widow spider web - feel good at first, but you know the outcome.

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  • 9 months later...

If any got pointers.

 

Helping a relative figure this out.

100k in RA. Age 71. Female. Started RSS payout last year. Calculators on cpf website only estimates <70.

 

Recently wrote in to cpf and were given these options.

1. Reduce the monthly payout to $X under RSS and pays till 95

2. Join cpf life and get same payout $X (standard plan) for life. With basic plan $X-Y and escalating plan $X-Y-Z

 

If no change, by right RSS pays out all monies by age 82.

 

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1 hour ago, keyboard said:

If any got pointers.

 

Helping a relative figure this out.

100k in RA. Age 71. Female. Started RSS payout last year. Calculators on cpf website only estimates <70.

 

Recently wrote in to cpf and were given these options.

1. Reduce the monthly payout to $X under RSS and pays till 95

2. Join cpf life and get same payout $X (standard plan) for life. With basic plan $X-Y and escalating plan $X-Y-Z

 

If no change, by right RSS pays out all monies by age 82.

 

 


What kind of pointers or advice are you specifically looking for?

This may depend on your relative’s circumstances. Does she have other savings besides CPF? Is she healthy such that she may expect to live beyond 85/90/95 (e.g. if no major issues and no major chronic conditions) - of course no one can predict accurately... 

Does she have dependents that she care enough about to wish to leave some inheritance to? Does she trust the CPF scheme or somewhat sceptical?

 

Some possible pointers”:

(1) Remain status quo on RSS till age 82 if she distrusts CPF and wants to take out her money as quickly as possible. This option, however, makes sense only if she has other savings (or younger relatives to depend on) after age 82. Generally the chance that she will live beyond 82 is pretty high, unless she has major medical issues.

 

(2) if pointer 1 does not seem good, then the next step is to reduce monthly RSS payout to go for longer duration. I don’t think you need to commit till 95; it should be possible to opt for a different age e.g. 90, and get payout of $X + a bit more. Need to get CPF to calculate for you.

(CPF used age 95 because they want to use the same $X as CPF life to illustrate that you can get lifetime payouts of $X under CPF life. So purely from payout perspective, CPF life “wins”.)

 

(3) Joining CPF life has its pros and cons. It can give you peace of mind, obviously, so you need not worry if you are lucky enough to live till 95/100, but would appeal more to those who are generally healthy. On the other hand, CPF “dissenters” would always opt for RSS, and if forced to be on CPF life (for younger cohorts born after 1957), would go for basic because under basic, if you die early, your dependents get to receive more. Standard is better if you have no dependents or don’t care about leaving them more at the expense of yourself receiving a lower payout. The details can be quite complex - a lot of discussions and arguments in hwz if you care to go to that forum (more professional advice available there, but also fair share of strong advocates emotional about their positions lol)!

 

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Guest Forty

I'm reaching 40 soon and I'm already worried about my retirement. 

 

Didnt actively save much in my 20s and 30s but after a debt period in my 30s. I lead a debt free life now and minimalism. 

 

Yes. I only have 1pair of shoes. Slippers. 2 shorts etc. And I really saved alot

 

However I realised I still won't be able to save enough for retirement. 

 

Feel like I need to work harder now since I'm still able bodied otherwise I might need to be those cleaners at 50s or 60s 

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9 hours ago, ken99chia said:


What kind of pointers or advice are you specifically looking for?

This may depend on your relative’s circumstances. Does she have other savings besides CPF? Is she healthy such that she may expect to live beyond 85/90/95 (e.g. if no major issues and no major chronic conditions) - of course no one can predict accurately... 

Does she have dependents that she care enough about to wish to leave some inheritance to? Does she trust the CPF scheme or somewhat sceptical?

 

Some possible pointers”:

(1) Remain status quo on RSS till age 82 if she distrusts CPF and wants to take out her money as quickly as possible. This option, however, makes sense only if she has other savings (or younger relatives to depend on) after age 82. Generally the chance that she will live beyond 82 is pretty high, unless she has major medical issues.

 

(2) if pointer 1 does not seem good, then the next step is to reduce monthly RSS payout to go for longer duration. I don’t think you need to commit till 95; it should be possible to opt for a different age e.g. 90, and get payout of $X + a bit more. Need to get CPF to calculate for you.

(CPF used age 95 because they want to use the same $X as CPF life to illustrate that you can get lifetime payouts of $X under CPF life. So purely from payout perspective, CPF life “wins”.)

 

(3) Joining CPF life has its pros and cons. It can give you peace of mind, obviously, so you need not worry if you are lucky enough to live till 95/100, but would appeal more to those who are generally healthy. On the other hand, CPF “dissenters” would always opt for RSS, and if forced to be on CPF life (for younger cohorts born after 1957), would go for basic because under basic, if you die early, your dependents get to receive more. Standard is better if you have no dependents or don’t care about leaving them more at the expense of yourself receiving a lower payout. The details can be quite complex - a lot of discussions and arguments in hwz if you care to go to that forum (more professional advice available there, but also fair share of strong advocates emotional about their positions lol)!

 

Apologies, missed out quite a bit of info in my head.

 

Widow with no children. Low wage worker but not enough to be on MSF radar. 10k savings. PG with the 3 highs.

 

The payout is like in the X=700s which I don't think is enough. Hwz too much opinions than actual advice there.

 

Pointer 2 doesn't seem very negotiable from cpf, do not know the intention why the two options basically is the same if you don't live beyond 95, which I think is far fetched.

 

One burden is the all encompassing hospital insurance class A2 with full riders which I believe will be hard to handle in the future when it's needed most. And with the recent rubbish about 5%.

 

Tldr; if you are in that situation, what would you do.

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3 hours ago, keyboard said:

Apologies, missed out quite a bit of info in my head.

 

Widow with no children. Low wage worker but not enough to be on MSF radar. 10k savings. PG with the 3 highs.

 

The payout is like in the X=700s which I don't think is enough. Hwz too much opinions than actual advice there.

 

Pointer 2 doesn't seem very negotiable from cpf, do not know the intention why the two options basically is the same if you don't live beyond 95, which I think is far fetched.

 

One burden is the all encompassing hospital insurance class A2 with full riders which I believe will be hard to handle in the future when it's needed most. And with the recent rubbish about 5%.

 

Tldr; if you are in that situation, what would you do.


For RSS, need to check with CPF as the rules and calculations are not available on their website. Since no dependents, then suggest can opt for CPF Life standard (to maximise payout which is $X).

 

The difference between 

(a) RSS at $X till age 95

(b) CPF life standard at $X for lifetime

is that if you die before $95, the remaining RA unpaid in (a) goes to your beneficiary, whereas for (b) little to no $ left to your beneficiary because there is participation in the common pool to benefit those who live longer.

 

Since still working, she should be receiving Workfare. She is lucky to be (just) in the PG (those 1 year younger only Merdeka) so more medical subsidies and MA top ups. MediShield life more or less covered.  Riders are a bit of a luxury and usually require premiums to be paid in cash, and will spike up very non-linearly as one goes into 80s and beyond. As individual needs and preferences differ, cannot comment further.

 

The other thing I can think of is Lease Buyback Scheme. If she owns a HDB and has no dependents to pass down to, she can use LBS to top up her RA - that will increase her payout by quite a bit, depending on the remaining value of the flat.

 

Her RA sum is not too bad (many around her age has less), but this also means she is unlikely to be eligible for Silver Support when she is longer working.

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Noted much. Pretty much the same conclusion I got.

 

Though the current is to withdraw under RSS and then place in FD or whatever at age 82. LBS not going to last her more than 5 years, rental might be the only option by then.

 

Was re-digging hwz again and found moneymind. Going to max out VC to get more tax rebates and OA interest for myself. 

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Please note that only VC to MA confers tax benefits. VC to all 3 accounts does not.

There is also the overall annual limit of $37740 (whether from MC or VC).

If your VC exceeds this limit, CPF will return you the excess without interest (in fact reverse any interest earned on the excess).

 

The other way to save taxes is to consider cash top-ups to your SA (if SA still less than FRS).

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Yea. Got returned the excess last year, so paid for my lesson fee.

 

Have you tried doing VC above your MA BHS? I know it's doable after the deduction (for insurance) and before monthly MC from employer. That's my only way left to reduce taxes.

 

Definitely want to max out the VC as nothing is paying the amount of interest at the moment, nor see it improving over time in the future. Just need to very carefully and remember when/amount to get max tax relief... Haiz. Burning brain cells again.

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Yes, for VC to MA, there are 3 main scenarios:

 

(a) every Jan.  2020 BHS is $60k, 2021 BHS is $63k. Suppose on 1st Jan 2021, your MA is $60k. You can VC $3k to your MA in Jan to get the tax relief, must do it before your own MC for Jan gets credited (usually near month end).

 

(b) Say your medical insurance (includes MediShield life plus any private ones) premium gets deducted on 15 Jul by $Z. This brings your MA to BHS-$Z. Quickly VC to MA this $Z before your own MC for July gets credited. So you must know your premium deduction date in advance as you are not going to check your MA balance daily!

 

(c) similar to (b) but you use your Medisave to pay for your own medical/dental bills or those of your loved ones.

 

BUT the overriding constraint remains - all such VCs to MA count towards the annual limit. Do your sums correctly. Sometimes you even need to predict your own bonus??!

 

In all cases, you cannot VC to have your MA above prevailing BHS at any time. Catch it while the MA dips below BHS, like in the 3 scenarios described.

 

Ironically, the higher your income, the more this becomes difficult or just plain impossible (e.g. your MC already hits the annual limit).

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awesome pointers dude!

 

Yea,

(a) already done on early Jan before my first paycheck contribution.

(b) found a post on hwz that if BHS breached, usually a month will return (not next feb), so I got to time my contribution on the day the MA is deducted. There's that disability new one that needs to pay but that's like one day before my paycheck contribution, think need to find someone with PayNow to help. eNETs take like next working day.

(c) dont think that's going to be much of a difference vs the effort (and i'm the only freak in the household who thinks about such things only)

 

Good part is, i got converted to a perm position late last year and had lousy bonus (feb) moving forward and a lower income. So pretty much fixed for this year and the spare cash is really just like 0.05% from the bank.

 

Gave up on hwz. as usual it's became like a catfight more than actual information after going through 15+ pages out of 106.

 

Higher income still ok, cos still capped at 6k monthly CPF calculation. Is the industry you're in if they pay more than 30k (at 37% cut) bonus then will exceed. That will never happen for me haha.

Edited by keyboard
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Transfer your OA to your parent RA has no tax benefits- main benefit is your money earning 4% instead of 2.5%.
 

Instead of using your cash to VC to all 3 accounts (or to OA and SA effectively if MA always at BHS), why don’t you use the cash to top up parent RA first? Got some tax benefits.

 

Anyway, to your question about parent payout giving you back the cash, to earn better interest (your main aim I think), you could either

(a) VC to all 3 accounts

(b) refund back to OA only, provided you have used CPF before for your housing (can be public or private, no diff). You aware of this option? You can put back lots of $$ to OA this way if you have the cash. Now can do this online, I used to have to submit hard copy forms!!

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4 hours ago, ken99chia said:

Transfer your OA to your parent RA has no tax benefits- main benefit is your money earning 4% instead of 2.5%.
 

Instead of using your cash to VC to all 3 accounts (or to OA and SA effectively if MA always at BHS), why don’t you use the cash to top up parent RA first? Got some tax benefits.

 

Anyway, to your question about parent payout giving you back the cash, to earn better interest (your main aim I think), you could either

(a) VC to all 3 accounts

(b) refund back to OA only, provided you have used CPF before for your housing (can be public or private, no diff). You aware of this option? You can put back lots of $$ to OA this way if you have the cash. Now can do this online, I used to have to submit hard copy forms!!

LOL! I think I'm a very great top. Plugged all the holes of CPF already.

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2 hours ago, keyboard said:

LOL! I think I'm a very great top. Plugged all the holes of CPF already.

Haha, you should be offering advice instead.

But maybe always asking others for pointers/advice is your way of ensuring that you got everything covered and leave no stones unturned, so to speak.

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Yes. In fact I make voluntary cash contributions to my own SA and mum's RA every January.

Like it or not, this scheme is here to stay. Use it to save for retirement.

Don't use the OA to buy property if you can. If you already did, try to pay back the money to your OA to prevent the accrued interest from rolling.

If there is no CPF, I shudder to think how those who have prepared for retirement, have to subsidise those who don't.

Everyone should have a "Compound Interest" calculator app on their smartphones and see the effects.

 

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9 hours ago, ken99chia said:

Haha, you should be offering advice instead.

But maybe always asking others for pointers/advice is your way of ensuring that you got everything covered and leave no stones unturned, so to speak.

To be honest, I'm sure I'm late to the game. Only attempted the VC to MA and VC to all only last/this year (paid dues/lessons with refunds without interest). It's just not easy to understand CPF at advanced level and I'm not even bothering to figure out RSS and CPFL for my parents and relative because it's just too much numbers crunching.

 

I had dad apply and approved RSS payout to start at 75 though but don't see holes after that. CPFL for them seems to be worse than RSS from all that I read from hwz. I hope this assumption of mine is correct.

 

I did make the mistake of asking my aunt to transfer her OA to RA. Didn't know by retaining in OA you can withdraw any time (not clear if it's multiple times). But to stay in RSS, hopefully she doesn't spend all the payout and put back to OA via housing refund and not sure what happens after 82 how CPF works then.

 

One big realisation is that CPFL does not pay interest from 65 onwards.

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1 hour ago, Neh Neh said:

I do VC $50 for all 3 accounts monthly 😄. Thinking to increase my VC to $100.

Just don't exceed the annual limit. Feb notice you exceed, late Feb then send cheque. Also VC to MA have tax rebates and higher interest also. If can, do VC earlier in the year to get the monthly interest if you know you are going to do it anyway.

Edited by keyboard
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2 hours ago, keyboard said:

Just don't exceed the annual limit. Feb notice you exceed, late Feb then send cheque. Also VC to MA have tax rebates and higher interest also. If can, do VC earlier in the year to get the monthly interest if you know you are going to do it anyway.


Agree. Overall, putting cash voluntarily into CPF depends on individual needs and circumstances.

Generally, the 1st choice for most may be to top up SA first - you get 4% interest and tax relief (up to $7k), but your contributions plus accrued interest get locked up and go back to you thru CPF life payouts. So this move is meant for retirement planning but can be quite a smart one.

 

Next you can VC to MA - again gets tax relief and makes even more sense if your MA already near BHS. Your money is however locked up for restricted use under MA withdrawals, and only your CPF nominee gets to receive it in cash.

 

VC to all 3 accounts has no tax benefits. Usually it means your have exhausted other options. Or you could want to have some $$ partially in OA which has less restricted usage (e.g. housing, education).

 

So to each his/her own preferences/decisions.

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  • 2 weeks later...
21 hours ago, Gozu said:

Any bro here invest in Unit Trust? Any good UT to recommend? 

Personally don't believe in unit trust, the fees alone make it hard to beat the rates. Also it's a black box which means higher returns = higher risks. Can get 7% can also lose 7%.

 

https://www.cpf.gov.sg/Assets/members/Documents/RCSILP_ListA.pdf

 

If you're shielding your SA/OA, then that's another thing (earning 4% interest instead of 2.5% on turning 55 onwards). Learnt this from HWZ Money Mind. But rules might change by the time you reach 55 also.

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On 4/18/2021 at 11:43 AM, Gozu said:

Any bro here invest in Unit Trust? Any good UT to recommend? 


As mentioned by keyboard, unit trusts are not the preferred choice due to the high fees ( I did invest in unit trusts long ago when I was still rather clueless).

 

But should you still prefer unit trusts for your own reasons, please do so via a zero-fee platform such as POEM or Dollardex (no sales charge, no platform fee). DO NOT buy thru your banks or insurance agents - they will just charge you extra sales charges.

 

You also need to consider your overall investment portfolio when choosing the unit trust , e.g. are you investing in local/global, equities/bonds etc. Do your own research. Perhaps read up on the discussions in hwz (lots of useful info despite some nonsense and pointless arguments). Ultimately you have to make some efforts with your hard-earned money.

There are UTs with relatively lower fees.

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  • 5 months later...

Been checking daily since late Sept to when CareShieldLife premiums are deducted. Finally shown up on today's Transaction Statement on 17 Oct 2021. Luckily a day after employer contribution. Have top up MediSave to BHS to get the max tax rebate possible.

 

I did miscalculate again at some point prior (encash leave to flexi must pay CPF also) and did MediSave then VC on the same day. Ended up the VC was logged first, then MediSave flowed to VC - less tax rebate it seems (since VC has no rebates).

 

Edit: Sent email to CPF at end Dec to ask for revision but was denied as the financial year was closed, so do it earlier and it can be fixed.

Edited by keyboard
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I don't understand why some people will still want to voluntarily top up their own CPF, when the rules and regulations to the CPF money can be changed at the whims and fancies at the spur of the moment to the joys of the administrators. It's not as if such things has not happened in the past, such as the extension of the withdrawal dates and the implementation of the retirement sums etc. There are sayings that goes "once bitten, twice shy", "fool me once, shame on you; fool me twice, shame on me". But I think the more relevant saying on this thread should be: "some people will never learn".

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On 10/17/2021 at 12:30 PM, Guest Guest said:

I don't understand why some people will still want to voluntarily top up their own CPF, when the rules and regulations to the CPF money can be changed at the whims and fancies at the spur of the moment to the joys of the administrators. It's not as if such things has not happened in the past, such as the extension of the withdrawal dates and the implementation of the retirement sums etc. There are sayings that goes "once bitten, twice shy", "fool me once, shame on you; fool me twice, shame on me". But I think the more relevant saying on this thread should be: "some people will never learn".

Because pap says topping up our cpf is good.

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All systems have some kind of loophole or benefits a certain demographic. If you could see how that group benefits, then if it applies to you. Then that is the answer.

 

If you don't see it, the benefit does not apply to you, then don't really need to care about it as eventually it does not affect you too much.

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On 10/17/2021 at 5:00 PM, keyboard said:

All systems have some kind of loophole or benefits a certain demographic. If you could see how that group benefits, then if it applies to you. Then that is the answer.

 

If you don't see it, the benefit does not apply to you, then don't really need to care about it as eventually it does not affect you too much.

 

Such big brave words. Wait till they delay your CPF withdrawal age to 95 just before you want to withdraw, increase your Medishield Life premiums by another 35% every year, increase your Retirement Sum by 100% tomorrow, and also maybe impose a 50% capital gain tax on whatever is supposed to be given to your descendants, then we see what people who topped up or encourage others to top up their CPF have to say during that time. Lol. 

 

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You made it sound like CPF can keep millions of dollars that the govt could lock it up on your behalf. CPF at its best can only provide a lower end of lifestyle, aka won't be full, won't starve to death. Definitely not enough for you to have a luxurious retirement that include travels plans.

 

If it's of interest to you, plowing through the CPF website can reveal some insights that CPF really can't do much and doesn't do more than preventing you off living on the streets.

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On 10/17/2021 at 5:00 PM, keyboard said:

All systems have some kind of loophole or benefits a certain demographic. If you could see how that group benefits, then if it applies to you. Then that is the answer.

 

If you don't see it, the benefit does not apply to you, then don't really need to care about it as eventually it does not affect you too much.

 

On 10/17/2021 at 6:29 PM, keyboard said:

You made it sound like CPF can keep millions of dollars that the govt could lock it up on your behalf. CPF at its best can only provide a lower end of lifestyle, aka won't be full, won't starve to death. Definitely not enough for you to have a luxurious retirement that include travels plans.

 

If it's of interest to you, plowing through the CPF website can reveal some insights that CPF really can't do much and doesn't do more than preventing you off living on the streets.

 I like what you said. 👍

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On 10/17/2021 at 6:29 PM, keyboard said:

You made it sound like CPF can keep millions of dollars that the govt could lock it up on your behalf. CPF at its best can only provide a lower end of lifestyle, aka won't be full, won't starve to death. Definitely not enough for you to have a luxurious retirement that include travels plans.

 

If it's of interest to you, plowing through the CPF website can reveal some insights that CPF really can't do much and doesn't do more than preventing you off living on the streets.

 

WTF. If that money means so little to you, then maybe you route your 20% employee CPF and 17% employer CPF contribution into my bank account lor! 🖕🖕 

 

On 10/18/2021 at 10:47 AM, Guest Gas said:

 

 I like what you said. 👍

 

How many stupid people are there on this forum? 

 

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On 10/17/2021 at 12:30 PM, Guest Guest said:

I don't understand why some people will still want to voluntarily top up their own CPF, when the rules and regulations to the CPF money can be changed at the whims and fancies at the spur of the moment to the joys of the administrators. It's not as if such things has not happened in the past, such as the extension of the withdrawal dates and the implementation of the retirement sums etc. There are sayings that goes "once bitten, twice shy", "fool me once, shame on you; fool me twice, shame on me". But I think the more relevant saying on this thread should be: "some people will never learn".

Interest rate of 2.5% to 4% is the reason for everyone !

 

I guess you are the people who have different views - which with mutual respect - one man food is another poison quote.

 

Just for sharing my personal view : 

if any changes from cpf (let say bad news) - it won't be last minute but with ample of notice times. For example adjustment of reduce interest rate, i can withdraw OA or SA to lesser the impact within a period of notice time. FYI

 

as your example of your adjustment of retirement age gap - Everyone knew that RA is fixed and only unable to withdraw cash out at all - except until payout ! So there no issue for everyone.

 

 

 

 

 

Edited by Firday
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On 10/18/2021 at 1:11 PM, Firday said:

Interest rate of 2.5% to 4% is the reason for everyone !

 

I guess you are the people who have different views - which with mutual respect - one man food is another poison quote.

 

Just for sharing my personal view : 

if any changes from cpf (let say bad news) - it won't be last minute but with ample of notice times. For example adjustment of reduce interest rate, i can withdraw OA or SA to lesser the impact within a period of notice time. FYI

 

as your example of your adjustment of retirement age gap - Everyone knew that RA is fixed and only unable to withdraw cash out at all - except until payout ! So there no issue for everyone.

 

 

 

So, even after all those changes in the CPF regulations, govt says RA is fixed, YOU ACTUALLY STILL BELIEVE THEM ??? In case you have forgotten, just a few years ago, there wasn't even an RA to talk about, OK? And just how long did the govt talk to us about the implementation of the RA before they really implement it? So much for "ample notice". LOL! 🤣😂  🤣😂 

 

And I don't know how you can suka suka "withdraw OA or SA to lesser the impact within a period of notice time". Other's people CPF, once you top it up inside, is going to be in there forever. Why is yours so special that you can "withdraw OA or SA to lesser the impact within a period of notice time"?

 

As for your 2.5% or 4% CPF interest, if you like that kind of interest rates because your salary is credited into CPF and you have no choice, then still never mind. But if you have cash and you topped it up just to earn 2.5% or 4%, that's really stupid, because most funds and unit trust are earning more than that on a yearly basis already, and some even goes without commissions and charges minimal management fees now. And now, those cash funds are the ones that you can suka suka "withdraw ... to lesser the impact within a period of notice time". The only reason why the govt is so "good" to let you earn that 2.5% or 4% on your CPF is because they have taken your money to get a return of much much more than that to pay for themselves. 

 

Anyway, I'm not here to advertise any financial services. I left that line long long time ago. I'm just here to enjoy laughing at the stupidity of people who wants to top up CPF on a voluntary basis for the sake of 2.5% and/or 4% interests, thinking that they got the better end of the deal, when in fact what they got is only the leftover chicken bones with the rest of the meat having gone elsewhere.    

 

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On 10/18/2021 at 2:16 PM, Guest Guest said:

 

 

 

So, even after all those changes in the CPF regulations, govt says RA is fixed, YOU ACTUALLY STILL BELIEVE THEM ??? In case you have forgotten, just a few years ago, there wasn't even an RA to talk about, OK? And just how long did the govt talk to us about the implementation of the RA before they really implement it? So much for "ample notice". LOL! 🤣😂  🤣😂 

 

And I don't know how you can suka suka "withdraw OA or SA to lesser the impact within a period of notice time". Other's people CPF, once you top it up inside, is going to be in there forever. Why is yours so special that you can "withdraw OA or SA to lesser the impact within a period of notice time"?

 

As for your 2.5% or 4% CPF interest, if you like that kind of interest rates because your salary is credited into CPF and you have no choice, then still never mind. But if you have cash and you topped it up just to earn 2.5% or 4%, that's really stupid, because most funds and unit trust are earning more than that on a yearly basis already, and some even goes without commissions and charges minimal management fees now. And now, those cash funds are the ones that you can suka suka "withdraw ... to lesser the impact within a period of notice time". The only reason why the govt is so "good" to let you earn that 2.5% or 4% on your CPF is because they have taken your money to get a return of much much more than that to pay for themselves. 

 

Anyway, I'm not here to advertise any financial services. I left that line long long time ago. I'm just here to enjoy laughing at the stupidity of people who wants to top up CPF on a voluntary basis for the sake of 2.5% and/or 4% interests, thinking that they got the better end of the deal, when in fact what they got is only the leftover chicken bones with the rest of the meat having gone elsewhere.    

 

Hi Dear, If you are able to invest in funds and unit trust that you are so sure can earn more than 4% then go ahead and do the investment, it is good for you.

 

You don't have to call people stupid as they have their own calculation which may not suit you. I know  some people who are smart and humble, because they know that being humble can win more friends and widen their social circle. Don't have to be so stuck up with your reply.

 

 

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On 10/18/2021 at 2:16 PM, Guest Guest said:

 

 

 

So, even after all those changes in the CPF regulations, govt says RA is fixed, YOU ACTUALLY STILL BELIEVE THEM ??? In case you have forgotten, just a few years ago, there wasn't even an RA to talk about, OK? And just how long did the govt talk to us about the implementation of the RA before they really implement it? So much for "ample notice". LOL! 🤣😂  🤣😂 

 

And I don't know how you can suka suka "withdraw OA or SA to lesser the impact within a period of notice time". Other's people CPF, once you top it up inside, is going to be in there forever. Why is yours so special that you can "withdraw OA or SA to lesser the impact within a period of notice time"?

 

As for your 2.5% or 4% CPF interest, if you like that kind of interest rates because your salary is credited into CPF and you have no choice, then still never mind. But if you have cash and you topped it up just to earn 2.5% or 4%, that's really stupid, because most funds and unit trust are earning more than that on a yearly basis already, and some even goes without commissions and charges minimal management fees now. And now, those cash funds are the ones that you can suka suka "withdraw ... to lesser the impact within a period of notice time". The only reason why the govt is so "good" to let you earn that 2.5% or 4% on your CPF is because they have taken your money to get a return of much much more than that to pay for themselves. 

 

Anyway, I'm not here to advertise any financial services. I left that line long long time ago. I'm just here to enjoy laughing at the stupidity of people who wants to top up CPF on a voluntary basis for the sake of 2.5% and/or 4% interests, thinking that they got the better end of the deal, when in fact what they got is only the leftover chicken bones with the rest of the meat having gone elsewhere.    

 

pls dun laugh at me bcz i m not what u think stupidity !

 

what i state is my experience with cpf on RA OA withdrawal especially you have not acquire the knowlege of information on CPF as far i cab read from the post. Go to re read the cpf webstite before u start to comment here. 

 

u sound very harsh tone in writing so i leave you alone without comment for you with immediate effect.

 

 

 

 

 

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On 10/18/2021 at 3:13 PM, Guest Gas said:

Hi Dear, If you are able to invest in funds and unit trust that you are so sure can earn more than 4% then go ahead and do the investment, it is good for you.

 

You don't have to call people stupid as they have their own calculation which may not suit you. I know  some people who are smart and humble, because they know that being humble can win more friends and widen their social circle. Don't have to be so stuck up with your reply.

 

 

thank for kind words - let leave him alone for any comment. 

 

 

 

 

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Ya, whether CPF is good or not really depends on the individuals.

 

It's GOOD for people who otherwise wouldn't know what to do with the money, and getting a returns of 2.5% to 4% is considered good returns.  This is perfectly understandable given the pathetically low interest given by the banks on savings accounts.  So

 

However, the lack of flexibility in withdrawing the CPF money makes it BAD for some people, who really need immediate access to money that really belongs to them.  While locking the money away until later-age is meant to be a safeguarding measure to protect the vulnerable, it is also at the detriment of a small portion of the population that the scheme was precisely intended to protect, ie. by the time the money is scheduled to start flowing back to their pocket, it could already be too late.

 

Conversely, CPF is quite BAD for people who are savvy enough to manage their own money to make them work. It's really not difficult at all to get more than 4% in returns dabbling in stocks and shares. Many stocks pay upwards of 8% to 10% just on dividends, that's already twice as much as what CPF is giving, and liquidity is not an issue. You can sell the stocks and immediately have access to cash.  For these people, any money locked in the CPF is a wasted opportunity to make more money.

 

So it really depends on the individual's background and circumstance.  And yes, I do invest my CPF money for higher than 4% returns.  But no, I don't top it up with cash. :)

Edited by Gentleman
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On 10/18/2021 at 1:11 PM, Firday said:

Interest rate of 2.5% to 4% is the reason for everyone !

 

I guess you are the people who have different views - which with mutual respect - one man food is another poison quote.

 

Just for sharing my personal view : 

if any changes from cpf (let say bad news) - it won't be last minute but with ample of notice times. For example adjustment of reduce interest rate, i can withdraw OA or SA to lesser the impact within a period of notice time. FYI

 

as your example of your adjustment of retirement age gap - Everyone knew that RA is fixed and only unable to withdraw cash out at all - except until payout ! So there no issue for everyone.

 

 

 

 

 

How can we withdraw OA and SA? isnt SA for retirement, and OA only for certain payment like housing or investment?

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On 10/18/2021 at 3:59 PM, Gentleman said:

Ya, whether CPF is good or not really depends on the individuals.

 

It's GOOD for people who otherwise wouldn't know what to do with the money, and getting a returns of 2.5% to 4% is considered good returns.  This is perfectly understandable given the pathetically low interest given by the banks on savings accounts.  So

 

However, the lack of flexibility in withdrawing the CPF money makes it BAD for some people, who really need immediate access to money that really belongs to them.  While locking the money away until later-age is meant to be a safeguarding measure to protect the vulnerable, it is also at the detriment of a small portion of the population that the scheme was precisely intended to protect, ie. by the time the money is scheduled to start flowing back to their pocket, it could already be too late.

 

Conversely, CPF is quite BAD for people who are savvy enough to manage their own money to make them work. It's really not difficult at all to get more than 4% in returns dabbling in stocks and shares. Many stocks pay upwards of 8% to 10% just on dividends, that's already twice as much as what CPF is giving, and liquidity is not an issue. You can sell the stocks and immediately have access to cash.  For these people, any money locked in the CPF is a wasted opportunity to make more money.

 

So it really depends on the individual's background and circumstance.  And yes, I do invest my CPF money for higher than 4% returns.  But no, I don't top it up with cash. :)

i do agree with your view !

 

 

 

 

 

About top up money/cash issue, i like to clarify sometime beyond my choice - i must top up cash due to selling of HDB whereby profit go into CPF, medical for self or parent/family and others.

 

 

 

 

 

 

Edited by Firday
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Reading at some of the inputs, I reckon, despite that Singapore always want to claim to be a developed nation, some of its people are actually quite suaku in many aspects, and in this case, very low in financial literacy.  I guess that is why some are rich, and some simply CMI.

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On 10/18/2021 at 5:55 PM, Guest Tree said:

Reading at some of the inputs, I reckon, despite that Singapore always want to claim to be a developed nation, some of its people are actually quite suaku in many aspects, and in this case, very low in financial literacy.  I guess that is why some are rich, and some simply CMI.

Actually we are here for sharing not into create enemy or keyboard warriors !

Mutual respect while other view may differ too.

 

Thank for your views - hope u not referring me hor as CMI. :)

 

 

 

Edited by Firday
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On 10/18/2021 at 5:41 PM, Firday said:

About top up money/cash issue, i like to clarify sometime beyond my choice - i must top up cash due to selling of HDB whereby profit go into CPF, medical for self or parent/family and others.

 

So the reason you top up is mainly because (A) no choice, (B) want to earn that lousy 2.5%/4% interest, or (C) just so that you can hit the FRS amount in order to withdraw your SA?


Keep changing your answer left and right. So confusing. No wonder people call you stupid.


And why CPF is new to you? You new citizen meh?

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On 10/18/2021 at 5:33 PM, Firday said:

You can withdraw SA (100%) then OA upon reaching the FRS of $181k (may increase as time go by). Proof by  self reading CPF website.

 

You can't withdraw RA until payout based your retirement age.

 

That conclude why SA and OA can be withdraw if top up cash to hit the FRS requirement. 

But this is only applicable if above retirement age, for someone still working how to do that? It’s misleading for a lot of us here.

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On 10/18/2021 at 8:20 PM, Guest How said:

But this is only applicable if above retirement age, for someone still working how to do that? It’s misleading for a lot of us here.

Hi Guest How,

 

here's the link from CPF.

https://www.cpf.gov.sg/members/FAQ/schemes/retirement/withdrawals-of-cpf-savings-from-55/FAQDetails?category=Retirement&group=Withdrawals of CPF savings from 55&folderid=12854&ajfaqid=2189257

 

In Summary, at age 55,

if you reach FRS, you can withdraw anything above FRS (more if above BHS + property pledge).

if >$5k to FRS, $5k + anything above BRS (if you have property)

if <$5k, all balance.

 

Hope it helps.

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On 10/18/2021 at 10:01 PM, keyboard said:

Hi Guest How,

 

here's the link from CPF.

https://www.cpf.gov.sg/members/FAQ/schemes/retirement/withdrawals-of-cpf-savings-from-55/FAQDetails?category=Retirement&group=Withdrawals of CPF savings from 55&folderid=12854&ajfaqid=2189257

 

In Summary, at age 55,

if you reach FRS, you can withdraw anything above FRS (more if above BHS + property pledge).

if >$5k to FRS, $5k + anything above BRS (if you have property)

if <$5k, all balance.

 

Hope it helps.

Yes this is what i understand too, then why firday say until like OA/SA can be withdrawn anytime like that.

Below 55 cannot touch at all unless for housing/insurance/investments.

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