CPF special account what to do??

[ysyap]

Yes, they told me minimum sum is auto commit to annuity but I am referring to the excess of minimum sum. Regardless, the responses here indicate that regardless of minimum sum, SA cannot be used for 2nd prop.

Not sure 2nd property or 1st property but heard that if you OA has insufficient funds to deduct for mortgage loan, cpf will activate the SA to take over OA. Not too sure about the details!

[NorthernStar]

I think I must have misunderstood then. From several responses here, I think the bottomline is SA cannot be used.

Does anyone by chance withdrew your cpf in excess of 50% of minimum sum upon reaching 55? Can share whether it's true that you can take out everything (including SA) in cash except leaving behind 50% minimum sum and medisave?

I think there is a chance that you can leave 50% min sum in CPF and take out the rest if you pledge your house with CPF @ age 55. This depend on whether is the house fully paid or still have outstanding loan, values of the house, and your CPF contribution into the house.

http://ask-us.cpf.gov.sg/efa/cs/idcp...t=1&noSaveAs=1

[NorthernStar]

Not sure 2nd property or 1st property but heard that if you OA has insufficient funds to deduct for mortgage loan, cpf will activate the SA to take over OA. Not too sure about the details!

From CPF:

Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:

- Your property is bought before 1 October 2003; and

- The balance in your Ordinary Account has been used up.

So, i guess NOPE if u bought property after Nov 2003..

[phantom_opera]

overflow of mortgage payment by CPF SA has cap I think 2xx only monthly

[chiaberry]

overflow of mortgage payment by CPF SA has cap I think 2xx only monthly

Not sure about this. I have had 6xx or 7xx deducted from the SA for mortgage sometimes.

[radha08]

From CPF:

Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:

- Your property is bought before 1 October 2003; and

- The balance in your Ordinary Account has been used up.

So, i guess NOPE if u bought property after Nov 2003..

blady joke policy better say if you bought your property before 1950

why must put all these stupid dates property is property la

[ysyap]

From CPF:

Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:

- Your property is bought before 1 October 2003; and

- The balance in your Ordinary Account has been used up.

So, i guess NOPE if u bought property after Nov 2003..

Thanks for the information. Did something major happened on 1 Oct 2003?

[richwang]

http://mycpf.cpf.gov.sg/cpf/news/InTouch/NL_042003.asp

From 1 October 2003, the employer’s CPF contribution rate will be cut by 3 percentage points.

[richwang]

Minimum Sum was introduced in 2003.

[richwang]

blady joke policy better say if you bought your property before 1950

why must put all these stupid dates property is property la

Guess you are "young" man. We need to go back in time to slightly before 1 Oct 2003. The cut off date is to provide policy continuity. Before that, there was no such thing called Minimum Sum.

Every much like SSD has a cut off date. Before that, there was no SSD.

[ysyap]

http://mycpf.cpf.gov.sg/cpf/news/InTouch/NL_042003.asp

From 1 October 2003, the employer’s CPF contribution rate will be cut by 3 percentage points.

Thank you for your valuable revelation...

[phantom_opera]

there is definitely a cap which is linked to that 3% point of lowered employer contribution

but u know there is CPF contribution ceiling of 4.5-6k back then ... so 4,500 X 3% = 135 (or $6,000 x 3% = $180)??

how can it be as high as 600-700?

[phantom_opera]

bloody hell ...

[phantom_opera]

I checked out my 2008 cpf statement .. there was once my CPF OA dropped to zero so they deducted 201 from my CPF SA ... so my cap was 201 (and I remembered I paid cash for the shortfall that month)

Really don't know how they calculate ...

[teddybear]

Ha ha ha!
Isn't this similar to telling people implement GST to help the poor?
Ok ok, help the poor or not we don't know for sure, but 2 things are certain:
1) Top earners and businessmen saved 13% taxes.
2) Majority middle-incomers who get hit and become the "new poor" get nothing (definitely pay more GST than get they get anything)!

bloody hell ...

[DKSG]

Hope Office Boy can share some thoughts on this CPF SA.

I also thought of finding ways to make better use of this monies.

So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.

To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.

Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?

DKSG

[dtrax]

[chiaberry]

Hope Office Boy can share some thoughts on this CPF SA.

I also thought of finding ways to make better use of this monies.

So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.

To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.

Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?

DKSG

I don't think it's worth it at this point in time.

However, there have been opportunities in the past to make significantly higher than the 4%. For example, during SARS period, if one had bought certain CPF-SA approved funds, example NTUC Trust Fund (now renamed Singapore Managed Fund) or Franklin Templeton Global Balanced Fund, it was possible to have made good gains in the following years. I can't remember the history for the FT fund, but for the Trust Fund, if you continued to hold it through and beyond the Lehman period, it would still have been OK and beaten the 4% compounded of the SA.

Those who are keen to beat the guaranteed 4% of the SA, wait for a deep deep crisis, then buy a balanced fund with a decent track record and hold on for the rebound. It is "safer" if you are younger, therefore having a longer period of time for the recovery and upturn. If you are near retirement, then it is prudent to hang onto the "guaranteed" 4%.

My

Another tip: Don't buy Capital Guaranteed Funds. Their returns are miserable, not much above the amount guaranteed. And after factoring in the sales charge, you could be in the red when they mature. And you have no control over their maturity date.

Furthermore, please read the fine print of so-called Capital Guaranteed products and try to figure out how they are invested. The notorious "Mini-bonds" were touted as some sort of capital guaranteed product (I remember being stopped outside DBS and given this kind of spiel about it).

[teddybear]

The 4% guarantee rate will be gone soon right? When are they pegging to 10 years gov bond?

Hope Office Boy can share some thoughts on this CPF SA.

I also thought of finding ways to make better use of this monies.

So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.

To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.

Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?

DKSG