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Thread: Any Ceiling for contribution of CPF OA?

  1. #961
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    Quote Originally Posted by cbsh38584 View Post
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    =============================================================================
    There are 3 type of min retirement sum as from 2016 Figure.

    2016 retirement sum figure for BRS (80.5k) , FRS ($161k) & ERS ($241k)

    2018 retirement sum figure for BRS (85.0k) , FRS ($171k) & ERS ($249k)

    2020 retirement sum figure for BRS (90.5k) , FRS (est $181k) & ERS (est $271k) inflation est 2.5%

    1. Basic Retirement Sum(BRS) = $80.5k with 2/3/4 rm HDB pledged
    Monthly payout for life@65 = $660-$720

    2. Full Retirement Sum (FRS) = $161k (No 2/3/4 rm HDB pledged)
    Monthly payout for life@65 = $1220-$1320

    3.Enhanced Retirement Sum (ERS) = $241,500
    Those who wish to put more saving in CPF life - optional
    Monthly payout for life@65 = $1770-$1920.

    Max contribution to your CPF for 2015 = $31.45k / yr (20% of your Salary + 17% employer + voluntary cash)
    Max contribution to your CPF for 2016 = $37.75k / yr (20% of your Salary + 17% employer + voluntary cash)


    Many of them are unaware of how their annual income + CPF adds up over 30 years of working (age 25 to age 55).

    Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
    ==================================================================
    At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k

    By age 35, OA=$112k. SA=33k. MA=41k

    By age 45 - OA=$268k. SA=120k. MA=97k

    By age 55 - OA=$479k. SA=354k. MA = $138k

    ** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

    NET CASH Income (take home pay) earned accumulated for 30 years of working (age 25 to age 55)= $1.3 million dollars very very more than enough
    for the HDB BTO 4rm HDB flat $350k (income >$8k no HDB grant) . I did not include variable or performance bonus which range from 0.5 mth to 3 mths
    & also your partner income whic may be also $1.3m if she/he has the same earning power.

    If you have the job stability & the financial capablilty . Consider on How To Manage Your CPF Money by Shift all your money from Ordinary Acct to Special Acct as
    YOUNG as possible. You will get extra >60k to 100k more with no sweat involved at all.Just transfering OA-SA every Year . It MUST BE DONE when you are young.


    Shift CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age & start to transfer OA (2.5% to SA(4%)
    ------------------------------------------------------------------------------------------------------------------------------
    At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.

    By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k

    By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k

    By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

    @ SA=550k to $600k depend on the CPF board yearly adjustment of the min sum retirement % increment. Range from 2.5% to 3.5%.

    @ MA= $100k to $135k also depend on the CPF board yearly adjustment on the MA & your medishield life selection from Govt b2 to private A class
    MA (now call BHS) ceiling is reached. MA Excess goes to SA. But if SA min sum is also reached. MA excess goes to OA

    Remember, you are not voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer.

    ================================================================================================================
    I believe only the minorities have the financial capablity , determination & discipline to prorities their retirement need when young & transfer from OA
    to SA to see the magic of compouned interest in their special acct. Young prefer WANTS 1st & ignore the NEEDS. if they mismanage the CASH & CPF,
    they will be in trouble when they grow old. Low cash & low CPF.

    I do not recommend to voluntary contribute cash into CPF when young unless you really have more more than enough cash either from your parent or you yourself.
    Maybe when your reach late 40s & your children are age 21 & start working . You have extra cash. Can consider voluntary cash into CPF if min sum is met.
    By age 55, you can withdraw all after meeting the min sum (161k). Eg OA=200k SA=201k MA=49.8k(cannot touch). U can withdraw all OA=200k + SA=40k
    (201k minus 161k) if you chose FRS ($161k).


    Since most of the young couple likely to marry late between age 30-40. Why not set yourself a tgt to hit your Special acct min $100k at age 35
    (By age 35, OA=$112k. SA=33k --- Move 67k from your OA to SA (33k + 67k ) to increase your SA to 100k tgt.


    Once your SA=100k is reached by age 35. You know that the BIG WORRY min retirement need is SETTLED & can concentrate to build your OA .
    Any extra contribution to your SA is extra extra bonus.



    $100k compounded 4% interest for 30 yrs. U will have at least 325k at age 65. A very basic retirement est 2.5k/mth at age 65 for life.
    http://www.moneychimp.com/calculator...calculator.htm



    FYI, those wiives who decided to become a homemaker to take care of children & self employed . You better start to think now about your retirement as you have much lesser CPF for retirement. A umarried man or women. You are also need to plan early as MAID is the only person which you need to depend on when you grow old.
    Pls go to your CPF acct. Interest has been credited into your CPF OA (2.5% to 3.5%) , CPF SA (4% to 5%) & CPF MA (4%).
    On tgt to reach $1m before age 60. It will be throughly my emergency fund either for my housing , children education etc


    Current SPECIAL ACCT allocation rate for age 50 to 55 is
    OA = 15%
    SA = 11.5% (>age 55 drop to only 3.5%)
    MA = 10.5%

  2. #962
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    [QUOTE=cbsh38584;533470]Pls go to your CPF acct. Interest has been credited into your CPF OA (2.5% to 3.5%) , CPF SA (4% to 5%) & CPF MA (4%).
    On tgt to reach $1m before age 60. It will be throughly my emergency fund either for my housing , children education etc


    Current SPECIAL ACCT allocation rate for age 50 to 55 is
    OA = 15%
    SA = 11.5% (>age 55 drop to only 3.5%)
    MA = 10.5%[/QUOTE

    It will be truely my emergency fund either for my housing , children education etc

  3. #963
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    CPF - $1million before age 60 if you plan wisely
    =====================================

    Check your CPF.The interest has been credited into your acct.

    --------------------------------------------------------------------

    Min CPF life retirement sum for those who turn age 55 now
    =====================================
    2018 retirement sum - BRS (85k) , FRS ($171k) & ERS ($249k)
    1. Basic Retirement Sum (BRS) = $85k with 2/3/4 rm HDB pledged.
    Mthly payout for life starting @age65 =$720 to $770
    ---------------------------------------------------------------------------------

    2. Full Retirement Sum (FRS) = $171k
    Mthly payout for life@age 65 = $1320-$1410

    --------------------------------------------------------------------------------
    3.Enhanced Retirement Sum (ERS) = $256k (optional)
    Mthly payout for life@age 65 = $1910- $2060

    ----------------------------------------------------------------------------------
    The max amt of Voluntary Contribution (VC) for a person is $37.75k per year including Cash + employee & employer.
    $37.75k / yr is (20% Salary + 17% employer + voluntary cash)

    Any excess of $37.75k. CPF will return back to you with ZERO interest. This is to prevent the Rich people from
    "depositing" thousand or million of their excess $ in a guarantee & risk free & high interest rate CPF acct.


    ------------------------------------------------------------------------------------------------------------------------------
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
    =================================================
    At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k
    By age 35, OA=$112k. SA=33k. MA=41k
    By age 45 - OA=$268k. SA=120k. MA=97k
    By age 55 - OA=$479k. SA=354k. MA = $138k

    ** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

    --------------------------------------------------------------------------------
    Continuous Shifting your CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age to earn higher interest of 4-5% instead of 2.5-3.5%
    At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.
    By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k
    By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k
    By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

    @ SA=est $580k @ age 65

    @ MA= est $135k @ age 65.

    OA (85k)+ SA (580k) +MA ($135k) = $800 at age 55 by awalys moving your OA (2.5%-3.5%) to SA (4%-5%).

    Remember, it did not nclude voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer. So to reach $1million in your CPF acct before age 60 is not a problem at all if you are continously employed till age 55.


    人无远虑, 必有近忧.
    --------------------------
    If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    By age 60. you can say bye bye to Tension. Hello to Pension.

  4. #964
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    I do worry about the case if even 1 in 5 or 1 in 10 Singaporeans reach CPF of $1 million by 60 every batch. Imagine age group evenly distributed, every batch will have something like 50,000 persons reaching 60. We are talking about easily 5,000 to 10,000 persons EVERY YEAR having $1 million liquidity purely in CPF alone.

    Can you imagine the liquidity when they all withdraw the funds (especially when they are likely to have other sources of funds combined)?


    Quote Originally Posted by cbsh38584 View Post
    CPF - $1million before age 60 if you plan wisely
    =====================================

    Check your CPF.The interest has been credited into your acct.

    --------------------------------------------------------------------

    Min CPF life retirement sum for those who turn age 55 now
    =====================================
    2018 retirement sum - BRS (85k) , FRS ($171k) & ERS ($249k)
    1. Basic Retirement Sum (BRS) = $85k with 2/3/4 rm HDB pledged.
    Mthly payout for life starting @age65 =$720 to $770
    ---------------------------------------------------------------------------------

    2. Full Retirement Sum (FRS) = $171k
    Mthly payout for life@age 65 = $1320-$1410

    --------------------------------------------------------------------------------
    3.Enhanced Retirement Sum (ERS) = $256k (optional)
    Mthly payout for life@age 65 = $1910- $2060

    ----------------------------------------------------------------------------------
    The max amt of Voluntary Contribution (VC) for a person is $37.75k per year including Cash + employee & employer.
    $37.75k / yr is (20% Salary + 17% employer + voluntary cash)

    Any excess of $37.75k. CPF will return back to you with ZERO interest. This is to prevent the Rich people from
    "depositing" thousand or million of their excess $ in a guarantee & risk free & high interest rate CPF acct.


    ------------------------------------------------------------------------------------------------------------------------------
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
    =================================================
    At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k
    By age 35, OA=$112k. SA=33k. MA=41k
    By age 45 - OA=$268k. SA=120k. MA=97k
    By age 55 - OA=$479k. SA=354k. MA = $138k

    ** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

    --------------------------------------------------------------------------------
    Continuous Shifting your CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age to earn higher interest of 4-5% instead of 2.5-3.5%
    At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.
    By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k
    By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k
    By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

    @ SA=est $580k @ age 65

    @ MA= est $135k @ age 65.

    OA (85k)+ SA (580k) +MA ($135k) = $800 at age 55 by awalys moving your OA (2.5%-3.5%) to SA (4%-5%).

    Remember, it did not nclude voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer. So to reach $1million in your CPF acct before age 60 is not a problem at all if you are continously employed till age 55.


    人无远虑, 必有近忧.
    --------------------------
    If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    By age 60. you can say bye bye to Tension. Hello to Pension.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  5. #965
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    Quote Originally Posted by Kelonguni View Post
    I do worry about the case if even 1 in 5 or 1 in 10 Singaporeans reach CPF of $1 million by 60 every batch. Imagine age group evenly distributed, every batch will have something like 50,000 persons reaching 60. We are talking about easily 5,000 to 10,000 persons EVERY YEAR having $1 million liquidity purely in CPF alone.

    Can you imagine the liquidity when they all withdraw the funds (especially when they are likely to have other sources of funds combined)?
    I never believe in Money after watching "The Ascent of Money". But there are still people who believe it, is like that one according to Jim Rohn.


  6. #966
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    teddybear is offline Global recession is coming....
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    On this, I agree with you - I never trust paper money!
    Many govs will just print and print their way out when they lack money!
    Look at the money supply in circulation, M1+M2+M3! Scary!

    Luckily they can only print paper money but can't print freehold land, no wonder property prices keep going up (regardless of whatever warning of bubble they are sounding)!

    Quote Originally Posted by Arcachon View Post
    I never believe in Money after watching "The Ascent of Money". But there are still people who believe it, is like that one according to Jim Rohn.


  7. #967
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    Advantages of Placing More Money in CPF Special Account

    1) Guaranteed high interest rate return - 1st 40k earns 5%. Any amt above $40k will earns 4%.

    2) Inflation-proof Interest Rate.CPF Special Account does not only beat inflation, it also beats the stock market Long-Term
    investment.

    3) Away from Creditors like banks, loan shark & others.

    4) Contribute for cash into my son CPF special acct at very early age enable them to take more entrepreneur risk as their
    as call retirement fund is being planned. They don't have to worry about their old age retirement fund.

    50k into children's SA acct at age 5. At age 65, it will grow est $530k - $580k,
    100k into children's SA acct at age 5, At age 65, it will grow est $1m to $1.2m

  8. #968
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    Is it a good idea to draw equity term loan (say 100,000) and put into Special Account?

    Then if needed use Ordinary Account to pay down mortgage (if required)?

    Point 2 it depends. Stocks gains are definitely upwards of 5% for me.



    Quote Originally Posted by cbsh38584 View Post
    Advantages of Placing More Money in CPF Special Account

    1) Guaranteed high interest rate return - 1st 40k earns 5%. Any amt above $40k will earns 4%.

    2) Inflation-proof Interest Rate.CPF Special Account does not only beat inflation, it also beats the stock market Long-Term
    investment.

    3) Away from Creditors like banks, loan shark & others.

    4) Contribute for cash into my son CPF special acct at very early age enable them to take more entrepreneur risk as their
    as call retirement fund is being planned. They don't have to worry about their old age retirement fund.

    50k into children's SA acct at age 5. At age 65, it will grow est $530k - $580k,
    100k into children's SA acct at age 5, At age 65, it will grow est $1m to $1.2m
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  9. #969
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    More than 5% every year for 30 years?

  10. #970
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    Quote Originally Posted by Kelonguni View Post
    Is it a good idea to draw equity term loan (say 100,000) and put into Special Account?

    Then if needed use Ordinary Account to pay down mortgage (if required)?

    Point 2 it depends. Stocks gains are definitely upwards of 5% for me.

    1) Equity loan is allowed only if your ppty is fully paid (new rule).
    Equity loan 1.8% ? Will it go up further to 2.5% or >2.5% ?

    Stocks gains are definitely upwards of 5% for your now. But not necessary perpetual >5% in long run (>20 yrs).

  11. #971
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    Quote Originally Posted by cbsh38584 View Post
    Advantages of Placing More Money in CPF Special Account

    1) Guaranteed high interest rate return - 1st 40k earns 5%. Any amt above $40k will earns 4%.

    2) Inflation-proof Interest Rate.CPF Special Account does not only beat inflation, it also beats the stock market Long-Term
    investment.

    3) Away from Creditors like banks, loan shark & others.

    4) Contribute for cash into my son CPF special acct at very early age enable them to take more entrepreneur risk as their
    as call retirement fund is being planned. They don't have to worry about their old age retirement fund.

    50k into children's SA acct at age 5. At age 65, it will grow est $530k - $580k,
    100k into children's SA acct at age 5, At age 65, it will grow est $1m to $1.2m
    Singapore society (or our govt) is the kind of society that does not let it's people rest especially those working people. Work & work till beyond age 65. But if you can plan your retirement early using CPF as a retirement tool. It can be done. Go for your need as 1st priority. Not your want & desire (long for or yearn for or crave for).

  12. #972
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    Quote Originally Posted by Khng8 View Post
    More than 5% every year for 30 years?
    I haven’t had 30 years to invest, but the last decade gains have helped me pay the down payment for several investment properties.

    Minimum 5% excluding dividends.

    As the tenants helped to pay down further, one day I find that can qualify for equity term loan. My dilemma is perhaps the last decade has been extraordinarily good. Should I embrace more risk, as stock volatility are creating huge opportunities.

    This year gain in stocks alone already exceeded 30% although I can expect a 5 drop next week.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  13. #973
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    I have top up to wife's special acct to the ceiling limit of 171k (2017 figure). At age 65, it will grow to $550k (base on 4%).

    The CPF RA payout will start at age 65. U can delay to age 66,67,68 ..70.
    At age 70, u no longer able to keep your CPF RA untouch till "Kaput"( the rich don't need CPF RA & probably leave untouch)
    This is to prevent "the rich" from benefiting the high interest rate guarantee by our govt. CPF has just implemented the rule this year
    according to the CPF staff.

  14. #974
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    Quote Originally Posted by cbsh38584 View Post
    I have top up to wife's special acct to the ceiling limit of 171k (2017 figure). At age 65, it will grow to $550k (base on 4%).

    The CPF RA payout will start at age 65. U can delay to age 66,67,68 ..70.
    At age 70, u no longer able to keep your CPF RA untouch till "Kaput"( the rich don't need CPF RA & probably leave untouch)
    This is to prevent "the rich" from benefiting the high interest rate guarantee by our govt. CPF has just implemented the rule this year
    according to the CPF staff.
    Last time when everyone say don't take HDB loan because the interest is very high, I take max loan and get another 3 private property loan.

    Now people say put money in CPF can earn interest, my mind tell me take as much out as possible. When everyone is doing it can't be right.

  15. #975
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    CPF - Central provident fund or cash poor forever – U decide

    ===================================================



    SOW & REAPING - The man who moves a mountain begins by carrying away small stones.



    I hated every minutes of my money being lock in my CPF , but I said to myself. Take the leap of faith & persevere. Continue contributing to CPF to max ceiling . I will live a more comfortable retirement for my rest of my life.



    Most of us are going to live longer. it means that we need to save for a longer retirement beyond age 85. Our CPF $ is primarily for retirement funding priority. Not for other purpose like paying for your HDB or investing in stocks



    Looking after OLD AGE PARENT & eventually you yourself (if unmarried) . Are u mentally & financially plan ahead & be prepare for it ?



    The idea of compound interest mean start saving from a very early age that money you have set aside in your CPF SA (only) to compound over next 35 yrs at 4-5% risk free interest and guarantee.



    If u can set aside CPF full retirement sum of 176k let say at early age of 35, then you can sort of enjoying your life more with knowing that that your CPF SA will grow from 176k to est $590k (ONLY CPF SA ) at age 65 . If you are still contributing (working) into your CPF SA from age 35 till age 60. Your CPF SA will grow even more to est $850k by age 65. If include CPF SA +OA + MA. It will be more than $1m to 1.3m. You will become retired with comfort. Success is no accident



    Why people actually couldn’t take advantage of it ?



    Lack of financial knowledge.

    -------------------------------------

    100k bank saving 0.25%. Take 280 yrs to grow to 200k

    100k bank fixed deposit 1.8%. Take 39 yrs to grow 200k

    100k CPF OA 2.5%. Take 28 yrs to grow to 200k

    100k in CPF SA 4%. Take 17 yrs to grow to 200k.



    http://www.moneychimp.com/calculator/compound_interest_calculator.htm



    35 years (age 25 to 60) of Salary (base on 36k/yr) = $1.26m

    Take home pay = 1,080,000X80% = $1m

    CPF contribution employee 20% of $1.26m = $252k

    CPF contribution employer 17% of $1.26m = $214k

    Total 35 yrs of CPF contribution = $252k+214k=$466k





    35 years of Salary (base on 72k/yr) = $2.52m

    Take home pay = 1,080,000X80% = $2.016m

    CPF contribution employee 20% of $2.52km= $504k

    CPF contribution employer 17% of $2.52m = $428k

    Total 35 yrs of CPF contribution = $252k+214k=$932k





    Over confidence - CPF OA 2.5% easily to make through stock

    -----------------------------------------------------------------------------------

    Over the last 10 years,>80% of those who invested through the scheme would have been better off leaving their money in the CPF OA (2.5%).

    CPF SA 4% is the world best. Don't need to bother what US President does or did in the past or what he will do in the future to make life difficult for the world.





    The investment strategy is always preached (No1) is to form a financial safety net 1st by topping up your special acct & MA acct & let it run to millions dollars. With the knowledge that now you have a million dollars that is coming . Then you go and try out at stock mkt or more holiday or buy car etc. You need an emotional stabiliser for your financial emotions.



    There are 2 ways to grow your CPF SA faster:

    1. Top up SA with cash (Max ceiling limit 37.7k per year)

    2. Transfer from OA (2.5%) to SA (4-5%) (Max limit @$176k


    I have contributed cash at total of $50k into my father (age 88) CPF retirement acct earning 5-6% (1st 30k 6%. Next 30k 5% Amt >60k earn 4%).
    Don't intend to switch to CPF life. Just leave it there unless urgent need.

  16. #976
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    Quote Originally Posted by cbsh38584 View Post
    CPF - Central provident fund or cash poor forever – U decide

    ===================================================



    SOW & REAPING - The man who moves a mountain begins by carrying away small stones.



    I hated every minutes of my money being lock in my CPF , but I said to myself. Take the leap of faith & persevere. Continue contributing to CPF to max ceiling . I will live a more comfortable retirement for my rest of my life.



    Most of us are going to live longer. it means that we need to save for a longer retirement beyond age 85. Our CPF $ is primarily for retirement funding priority. Not for other purpose like paying for your HDB or investing in stocks



    Looking after OLD AGE PARENT & eventually you yourself (if unmarried) . Are u mentally & financially plan ahead & be prepare for it ?



    The idea of compound interest mean start saving from a very early age that money you have set aside in your CPF SA (only) to compound over next 35 yrs at 4-5% risk free interest and guarantee.



    If u can set aside CPF full retirement sum of 176k let say at early age of 35, then you can sort of enjoying your life more with knowing that that your CPF SA will grow from 176k to est $590k (ONLY CPF SA ) at age 65 . If you are still contributing (working) into your CPF SA from age 35 till age 60. Your CPF SA will grow even more to est $850k by age 65. If include CPF SA +OA + MA. It will be more than $1m to 1.3m. You will become retired with comfort. Success is no accident



    Why people actually couldn’t take advantage of it ?



    Lack of financial knowledge.

    -------------------------------------

    100k bank saving 0.25%. Take 280 yrs to grow to 200k

    100k bank fixed deposit 1.8%. Take 39 yrs to grow 200k

    100k CPF OA 2.5%. Take 28 yrs to grow to 200k

    100k in CPF SA 4%. Take 17 yrs to grow to 200k.



    http://www.moneychimp.com/calculator/compound_interest_calculator.htm



    35 years (age 25 to 60) of Salary (base on 36k/yr) = $1.26m

    Take home pay = 1,080,000X80% = $1m

    CPF contribution employee 20% of $1.26m = $252k

    CPF contribution employer 17% of $1.26m = $214k

    Total 35 yrs of CPF contribution = $252k+214k=$466k





    35 years of Salary (base on 72k/yr) = $2.52m

    Take home pay = 1,080,000X80% = $2.016m

    CPF contribution employee 20% of $2.52km= $504k

    CPF contribution employer 17% of $2.52m = $428k

    Total 35 yrs of CPF contribution = $252k+214k=$932k





    Over confidence - CPF OA 2.5% easily to make through stock

    -----------------------------------------------------------------------------------

    Over the last 10 years,>80% of those who invested through the scheme would have been better off leaving their money in the CPF OA (2.5%).

    CPF SA 4% is the world best. Don't need to bother what US President does or did in the past or what he will do in the future to make life difficult for the world.





    The investment strategy is always preached (No1) is to form a financial safety net 1st by topping up your special acct & MA acct & let it run to millions dollars. With the knowledge that now you have a million dollars that is coming . Then you go and try out at stock mkt or more holiday or buy car etc. You need an emotional stabiliser for your financial emotions.



    There are 2 ways to grow your CPF SA faster:

    1. Top up SA with cash (Max ceiling limit 37.7k per year)

    2. Transfer from OA (2.5%) to SA (4-5%) (Max limit @$176k


    I have contributed cash at total of $50k into my father (age 88) CPF retirement acct earning 5-6% (1st 30k 6%. Next 30k 5% Amt >60k earn 4%).
    Don't intend to switch to CPF life. Just leave it there unless urgent need.
    Something is not right, next year end Feb I will take as much out as possible.

  17. #977
    Join Date
    Jul 2012
    Posts
    26

    Default

    Quote Originally Posted by Arcachon View Post
    Something is not right, next year end Feb I will take as much out as possible.
    Can share why?

  18. #978
    Join Date
    Jul 2014
    Posts
    21

    Default

    Quote Originally Posted by sying View Post
    Can share why?
    he is just a fool who got lucky

  19. #979
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by sying View Post
    Can share why?
    Not many can accept what I share. I am not Lucky just God Bless.

    Those who MTB is even worst and they keep missing it.

    But I will still share with those who agree so that fewer people MTB again.

    Money is created out of thin air, the amount can only increase cannot reduce.

    The rate of inflation is invisible to many.

    We are in a period of wealth transfer from the have not to the have.

    The government is doing it best to help the have not but still many will tell them they can wait.

    If Bank can lend me money to buy I will still buy.

  20. #980
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    Quote Originally Posted by cbsh38584 View Post
    Singapore society (or our govt) is the kind of society that does not let it's people rest especially those working people. Work & work till beyond age 65. But if you can plan your retirement early using CPF as a retirement tool. It can be done. Go for your need as 1st priority. Not your want & desire (long for or yearn for or crave for).

    Things have CHANGED after the once in a century US financial crisis in 2008/09. Negative interest rate , stagnant pay , uncertainty job security , high cost of living (food & healthcare high inflation) & surging housing price (HDB sold at record $1.2M)


    The govt had pumped trillions of $$ into the economy to stabilize the banking sys. So never before in history has there been as much $$ as there is today and rarely has $$ been so cheap (-ve) & yet the central banks continue to pump $$ into the world We are being flooded by trillions trillions of $$.


    Many Sporean have been burned by stock , high yield junk bond & scam investment. Now they want to stay away from risky investment. They faced the dilemma as many others what to do with their savings with low interest rates. The bank interest on savings acct which is almost zero at just 0.05% That means that U get 50ct interest for every $1000 per yr. Days of high the interest rates of 5% to 8% we had 30 to 40 yrs ago is gone.
    The poor & middle class are not financially educated enough. Poor citizens suffer the most because high inflation is getting higher year by year. The 40 yrs of high growth is the thing of the past The next 10 to 20 yrs will be a tough for future generation.


    With so many uncertainty , you need to micro manage your financial planning seriously. As most of us are going to live longer. We need to save for our retirement beyond age 85.Make sure you plan your retirement way ahead. U need to CHANGE your attitude toward the CPF as a source for retirement planning. It is a damn good scheme even our foreign PR love so much due to high interest rate 4-5%come with risk free & guarantee.


    ----------------------------------------------------------------------
    100k - bank saving rate 0.25%.
    Take 280 yrs to grow to 200k

    100k - bank fixed deposit of 1.8%.
    Take 39 yrs to grow to 200k

    100k - CPF OA 2.5%.
    Take 28 yrs to grow to 200k

    100k - CPF SA 4%-5% .
    Take 17 yrs to grow to 200k.

    -----------------------------------------------------------------------
    There are ways to grow your CPF SA (4% - 5%)
    1a.Top up cash $100/mth for 240 mths or 20 yrs . Amount saved is $24k in your CPF SA. It will grow to $36,389.

    1b.Top up cash $200/mth for 240 mths or 20 yrs . Amount saved is $48k in your CPF SA. It will grow to $72,778 .



    2. Top up SA with cash immediately to current FRS ceiling 176k ( for 2019) if you have the mean.


    3. Transfer from OA (2.5%) to SA (4-5%) to the Max limit @$176k as young as possible if you have the ability to service your housing loan with cash.
    -----------------------------------------------------------------------


    Do it as young as possible while you can. Don't gamble on the future retirement. Act now without delay. You may hated every minutes of your money being locked in my CPF , but you remind to yourself. Take the leap of faith & persevered. Continue contributing to CPF SA . You will live a more comfortable retirement for my rest of my life.

  21. #981
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    Quote Originally Posted by cbsh38584 View Post
    Things have CHANGED after the once in a century US financial crisis in 2008/09. Negative interest rate , stagnant pay , uncertainty job security , high cost of living (food & healthcare high inflation) & surging housing price (HDB sold at record $1.2M)


    The govt had pumped trillions of $$ into the economy to stabilize the banking sys. So never before in history has there been as much $$ as there is today and rarely has $$ been so cheap (-ve) & yet the central banks continue to pump $$ into the world We are being flooded by trillions trillions of $$.


    Many Sporean have been burned by stock , high yield junk bond & scam investment. Now they want to stay away from risky investment. They faced the dilemma as many others what to do with their savings with low interest rates. The bank interest on savings acct which is almost zero at just 0.05% That means that U get 50ct interest for every $1000 per yr. Days of high the interest rates of 5% to 8% we had 30 to 40 yrs ago is gone.
    The poor & middle class are not financially educated enough. Poor citizens suffer the most because high inflation is getting higher year by year. The 40 yrs of high growth is the thing of the past The next 10 to 20 yrs will be a tough for future generation.


    With so many uncertainty , you need to micro manage your financial planning seriously. As most of us are going to live longer. We need to save for our retirement beyond age 85.Make sure you plan your retirement way ahead. U need to CHANGE your attitude toward the CPF as a source for retirement planning. It is a damn good scheme even our foreign PR love so much due to high interest rate 4-5%come with risk free & guarantee.


    ----------------------------------------------------------------------
    100k - bank saving rate 0.25%.
    Take 280 yrs to grow to 200k

    100k - bank fixed deposit of 1.8%.
    Take 39 yrs to grow to 200k

    100k - CPF OA 2.5%.
    Take 28 yrs to grow to 200k

    100k - CPF SA 4%-5% .
    Take 17 yrs to grow to 200k.

    -----------------------------------------------------------------------
    There are ways to grow your CPF SA (4% - 5%)
    1a.Top up cash $100/mth for 240 mths or 20 yrs . Amount saved is $24k in your CPF SA. It will grow to $36,389.

    1b.Top up cash $200/mth for 240 mths or 20 yrs . Amount saved is $48k in your CPF SA. It will grow to $72,778 .



    2. Top up SA with cash immediately to current FRS ceiling 176k ( for 2019) if you have the mean.


    3. Transfer from OA (2.5%) to SA (4-5%) to the Max limit @$176k as young as possible if you have the ability to service your housing loan with cash.
    -----------------------------------------------------------------------


    Do it as young as possible while you can. Don't gamble on the future retirement. Act now without delay. You may hated every minutes of your money being locked in my CPF , but you remind to yourself. Take the leap of faith & persevered. Continue contributing to CPF SA . You will live a more comfortable retirement for my rest of my life.

  22. #982
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    For those with ample liquidity , they can choose not to withdraw their CPF and leave the savings to their beneficiaries. Leave as a LEGACY.

    However,if they are born in 1958 or after,a portion of their CPF savings will be used to join CPF LIFE automatically,which will give them monthly payout for life. 2.They have the option to start their CPF LIFE payouts later,up to age 70.

  23. #983
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    In 2014 (buy high) , my nieces (late 20s) told me that they have invested 40k of their CPF OA (3% sale charge) into a unit trust recommended by their cousin who is a financial adviser.
    Split into - Gold , Bond & higher % into equity. Expected long term return est 3%+. The reason they used their CPF to buy unit trust is "CPF money cannot touch" , "SUPPORT HIM" & hopefully can beat CPF OA ,2.5%.

    I told them to sell away once breakeven & transfer to CPF SA earning guarantee 4%. They are unable to sell as the portfolios are already in the "RED" in 2015. Every now & then I will remind them to sell
    when I have the chances to meet them or through Whatapps . Finally they sold in 2019 at small profit of $1k+. If they will to transfer to CPF SA 5 years ago , they would have earned 8K+ compounded interest. Luckily ,this is
    a small amt of lesson they learnt. They thank me for nagging at them to sell for the past few years.

    My former colleague invested 50k of his CPF OA into HSBC unit trust through his friend recommendation in 1995. Twenty years later, it is still 50k. If he will to transfer 50k from CPF OA to CPF SA (4%), his 50k will grow to 109k (2015).
    A painful lesson he paid for trusting his friend (no longer working as a financial adviser).

    My old elder brother passed away due pneumonia which rank No2 killer in Singapore. I immediately sold his DBS@$26 (2 lots) & [email protected] (50 lots) in 2018. Once I go the cash on hand. I split it. I told my elder sisters & brother, I shall transfer their money into the CPF life. No cash for them as I am afraid they may "misused " it. They trusted me & I also managed to convince my elder brother (healthy) to sell away 80k of his East Spring income fund in 2018 & top up max into his CPF life. He has delayed his payout at age 65 as he still have enough cash liquidity on hand.

    I always have a plan for my CPF retirement. My tgt is to have CPF SA, OA & RA >$1.2m to $1.5m by the time I am age 65 (still a long way to go) & hopefully to get a monthly 4k to 6k perpetual income for life without risk.

    Part of the corp bond coupon I rec'd will always go into my CPF 3 acct. I will not reinvest. I will continue to contribute 37.7k (ceiling limit) yearly. My friend asked me why put more $ into CPF. I told him diversification. Dont put everything into one Basket. I have equity (few % only) , Bond , small amt of UOB gold coin/bar & CPF (higher % if I am going to reach my retirement age).

  24. #984
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    CPF SA / RA is one of the ONLY way which is safe , high interest (4 to 6%) and guarantee by our GOVT. The beauty of the CPF SA / RA is that if you want a higher payout of 5k to 8k (SA + RA) at age 65 onward. You need to have a clear cut focus goal to start planning as young as possible. [COLOR=var(--primary-text)]The Key to success is patience & time. The ability to discipline yourself to delay gratification in short term in order to enjoy greater reward in long term.[/COLOR]












  25. #985
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    Our CPF pension is ranked No7 in the world. But I think it should be ranked No1 in the world. Why ? Because it allow the "average Joe" to have >$1m at age between 58 to 65 with a stable job earning 5k to 8k/mth. (from age 25 to 55) The key to success is to start early (as young as possible) & be Patience & have faith in our CPF system.

    he problem for those above "Average Joe" income earner (12k to 18k) is that they think they can be like WARREN Buffet. Can easily beat CPF 2.5% to 4%. It is their emotional instability & GREED that make them lose a lot money after 20-30 yrs of investing.

    Some Option or FX traders think that they can be like George SOROS. Trade Long & Short position using derivative option to get the max profit in a short time. After a few years of trading, they become "George Sorry".








  26. #986
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    CPF SA shielding. For those approaching age 55 soon .

    FYI, this year CPF Full retirement sum is 181k. Read carefully by this lady (Invest Editor for strait time) how she did her CPF SA shielding.

    Take note if you do not have a CPFIS (CPF investment acct), pls go to the bank to open asap. All CPF SA approved unit trust sale charge is ZERO. She has moved her CPF SA out to AM Shenton short term bond fund b4 age 55. After age 55, she sell away her bond Fund to move back to CPF SA.


    My tgt when I reach age 55. I value security when I am approaching age 55
    =================================================
    CPF RA = 288k (compounded growth = $439k at age 65)
    CPF SA = 250k (compounded growth = $370k at age 65)

    Father (Age >80) CPF RA = 270k - Dont withdraw out. Hold as long as possible. Est interest rate >5%.
    FATHER CPF MA = 60k - Hold as long as possible. Interest rate 4%.

    CPF is a perfect solution for your retirement goals. This is provided you start very young.

    I managed to convince my niece (age 32) to transfer from her CPF OA to CPF SA to max 180k after 4 yrs of nagging her the benefit of transferring CPF SA as early as possible.
    I have calculated for her (Salary 6k) with 1 mth bonus yearly & assuming her is employable till age 55. She says her job is stable.
    She will have est CPF OA + CPF SA = $1.38m at age 55. Her FRS ceiling (at age 55) will be est 319k. So she can withdraw > 1 million out age age 55 (1.38-0.319) if the CPF interest rate stay the same



  27. #987
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default Re: Any Ceiling for contribution of CPF OA?

    George Sorry Stones..... Lol nice. 😂

    Quote Originally Posted by cbsh38584 View Post
    Our CPF pension is ranked No7 in the world. But I think it should be ranked No1 in the world. Why ? Because it allow the "average Joe" to have >$1m at age between 58 to 65 with a stable job earning 5k to 8k/mth. (from age 25 to 55) The key to success is to start early (as young as possible) & be Patience & have faith in our CPF system.

    he problem for those above "Average Joe" income earner (12k to 18k) is that they think they can be like WARREN Buffet. Can easily beat CPF 2.5% to 4%. It is their emotional instability & GREED that make them lose a lot money after 20-30 yrs of investing.

    Some Option or FX traders think that they can be like George SOROS. Trade Long & Short position using derivative option to get the max profit in a short time. After a few years of trading, they become "George Sorry".







    click: 🏢shoeboxmickeymousehouse 🏢

  28. #988
    Join Date
    Jan 2011
    Posts
    1,081

    Default Re: Any Ceiling for contribution of CPF OA?

    The bond coupon that I have rec'd. I topped it up to my son's CPF SA. My tgt is for them to have CPF SA $100k by age 18. At age 18, I shall handle the "key" to them to let them grow bigger.

    Remember , the younger you fill up your CPF SA acct to accumulate interest .1st 40k earns 5%. The bal earn 4%. The faster & bigger your pension fund will grow. Go to CPF board to deposit $50 (1st timer must produce Birth Cert to "open ") into your children (age between 1 to 16 ) CPF SA acct. If your children at age14 start to work as student part timer job. Get him to contribute $20 to $100 into their CPF SA.


    Take the first step. Open CPF acct for your kids ,as young as possible & deposit $50 into their CPF SA. Pls make sure remember to bring the birth cert (1st timer).

    Make the first & single step is what separates the winners from the mediocre.







    CDA account
    ===========
    I told many of my friend about the reasonable interest rate for Child development acct. Unfortunate Many of them have used it up even though they have the liquid cash (bank interest 0.05%) to pay for this children medical & child care fee.
    I did top up to my children CDA to 30k (earning 2% to 2.5% - Max limit is 36k). If they dont have the need to use it for the future higher education. Will let it roll till age 30 which will be transferred to their CPF OA est >46k.






    Insurance saving plan
    ================
    My sister bought Insurance saving plan (25 yrs) in 2002.. Yearly premium = $1174. Projected return (not guarantee) $40,494 by 2027. So projected return in % is 2.41%p.a


    My insurance friend also bought insurance saving plan (25 yrs) for his children in 2003. Yearly premium = $1005. Different insurance company. He was surprised that the project return is 2.2%p.a.


    Those who bought the policies in the 80s to 90s will be a better return of 3.5 to 4%.
    I bought (1996) from GE Savers Lion endowment with RB (18 yrs) using CPF OA. Yearly premium is $2232.9. Total premium paid for 18 yrs is $40192. Matured in 2014. So the actual return is $59,757 or around 4% p.a
    I have requested to have the same plan using my CPF OA again in 2014. But all insurance companies no longer sell saving plan using CPF OA. They say that they are unable to guarantee the min 2.5% which CPF OA is giving
    .



  29. #989
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default Re: Any Ceiling for contribution of CPF OA?

    Yes this says a lot doesn't it.

    But I am not so keen parents help their children so much these days. We Gen X the sandwiched generation have to take care of ourselves yet also our parents boomer gen. The Millenials and Gen Y seems to have it good! Property.... CPF topups.... downpayment.... without lifting a finger.

    Quote Originally Posted by cbsh38584 View Post
    The bond coupon that I have rec'd. I topped it up to my son's CPF SA. My tgt is for them to have CPF SA $100k by age 18. At age 18, I shall handle the "key" to them to let them grow bigger.

    Remember , the younger you fill up your CPF SA acct to accumulate interest .1st 40k earns 5%. The bal earn 4%. The faster & bigger your pension fund will grow. Go to CPF board to deposit $50 (1st timer must produce Birth Cert to "open ") into your children (age between 1 to 16 ) CPF SA acct. If your children at age14 start to work as student part timer job. Get him to contribute $20 to $100 into their CPF SA.


    Take the first step. Open CPF acct for your kids ,as young as possible & deposit $50 into their CPF SA. Pls make sure remember to bring the birth cert (1st timer).

    Make the first & single step is what separates the winners from the mediocre.







    CDA account
    ===========
    I told many of my friend about the reasonable interest rate for Child development acct. Unfortunate Many of them have used it up even though they have the liquid cash (bank interest 0.05%) to pay for this children medical & child care fee.
    I did top up to my children CDA to 30k (earning 2% to 2.5% - Max limit is 36k). If they dont have the need to use it for the future higher education. Will let it roll till age 30 which will be transferred to their CPF OA est >46k.






    Insurance saving plan
    ================
    My sister bought Insurance saving plan (25 yrs) in 2002.. Yearly premium = $1174. Projected return (not guarantee) $40,494 by 2027. So projected return in % is 2.41%p.a


    My insurance friend also bought insurance saving plan (25 yrs) for his children in 2003. Yearly premium = $1005. Different insurance company. He was surprised that the project return is 2.2%p.a.


    Those who bought the policies in the 80s to 90s will be a better return of 3.5 to 4%.
    I bought (1996) from GE Savers Lion endowment with RB (18 yrs) using CPF OA. Yearly premium is $2232.9. Total premium paid for 18 yrs is $40192. Matured in 2014. So the actual return is $59,757 or around 4% p.a
    I have requested to have the same plan using my CPF OA again in 2014. But all insurance companies no longer sell saving plan using CPF OA. They say that they are unable to guarantee the min 2.5% which CPF OA is giving
    .


    click: 🏢shoeboxmickeymousehouse 🏢

  30. #990
    Join Date
    Jan 2021
    Posts
    21

    Default Re: Any Ceiling for contribution of CPF OA?

    Quote Originally Posted by cbsh38584 View Post
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    =============================================================================
    There are 3 type of min retirement sum as from 2016 Figure.

    2016 retirement sum figure for BRS (80.5k) , FRS ($161k) & ERS ($241k)
    2020 retirement sum figure for BRS (90.5k) , FRS ($181k) & ERS ($271k) inflation est 2.5%

    1. Basic Retirement Sum(BRS) = $80.5k with 2/3/4 rm HDB pledged
    Monthly payout for life@65 = $660-$720

    2. Full Retirement Sum (FRS) = $161k (No 2/3/4 rm HDB pledged)
    Monthly payout for life@65 = $1220-$1320

    3.Enhanced Retirement Sum (ERS) = $241,500
    Those who wish to put more saving in CPF life - optional
    Monthly payout for life@65 = $1770-$1920.

    Max contribution to your CPF for 2015 = $31.45k / yr (20% of your Salary + 17% employer + voluntary cash)
    Max contribution to your CPF for 2016 = $37.75k / yr (20% of your Salary + 17% employer + voluntary cash)


    Many of them are unaware of how their annual income + CPF adds up over 30 years of working (age 25 to age 55).

    Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
    ==================================================================
    At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k

    By age 35, OA=$112k. SA=33k. MA=41k

    By age 45 - OA=$268k. SA=120k. MA=97k

    By age 55 - OA=$479k. SA=354k. MA = $138k

    ** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

    NET CASH Income (take home pay) earned accumulated for 30 years of working (age 25 to age 55)= $1.3 million dollars very very more than enough
    for the HDB BTO 4rm HDB flat $350k (income >$8k no HDB grant) . I did not include variable or performance bonus which range from 0.5 mth to 3 mths
    & also your partner income whic may be also $1.3m if she/he has the same earning power.

    If you have the job stability & the financial capablilty . Consider on How To Manage Your CPF Money by Shift all your money from Ordinary Acct to Special Acct as
    YOUNG as possible. You will get extra >60k to 100k more with no sweat involved at all.Just transfering OA-SA every Year . It MUST BE DONE when you are young.


    Shift CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age & start to transfer OA (2.5% to SA(4%)
    ------------------------------------------------------------------------------------------------------------------------------
    At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.

    By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k

    By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k

    By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

    @ SA=550k to $600k depend on the CPF board yearly adjustment of the min sum retirement % increment. Range from 2.5% to 3.5%.

    @ MA= $100k to $135k also depend on the CPF board yearly adjustment on the MA & your medishield life selection from Govt b2 to private A class
    MA (now call BHS) ceiling is reached. MA Excess goes to SA. But if SA min sum is also reached. MA excess goes to OA

    Remember, you are not voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer.

    ================================================================================================================
    I believe only the minorities have the financial capablity , determination & discipline to prorities their retirement need when young & transfer from OA
    to SA to see the magic of compouned interest in their special acct. Young prefer WANTS 1st & ignore the NEEDS. if they mismanage the CASH & CPF,
    they will be in trouble when they grow old. Low cash & low CPF.

    I do not recommend to voluntary contribute cash into CPF when young unless you really have more more than enough cash either from your parent or you yourself.
    Maybe when your reach late 40s & your children are age 21 & start working . You have extra cash. Can consider voluntary cash into CPF if min sum is met.
    By age 55, you can withdraw all after meeting the min sum (161k). Eg OA=200k SA=201k MA=49.8k(cannot touch). U can withdraw all OA=200k + SA=40k
    (201k minus 161k) if you chose FRS ($161k).


    Since most of the young couple likely to marry late between age 30-40. Why not set yourself a tgt to hit your Special acct min $100k at age 35
    (By age 35, OA=$112k. SA=33k --- Move 67k from your OA to SA (33k + 67k ) to increase your SA to 100k tgt.


    Once your SA=100k is reached by age 35. You know that the BIG WORRY min retirement need is SETTLED & can concentrate to build your OA .
    Any extra contribution to your SA is extra extra bonus.



    $100k compounded 4% interest for 30 yrs. U will have at least 325k at age 65. A very basic retirement est 2.5k/mth at age 65 for life.
    http://www.moneychimp.com/calculator...calculator.htm



    FYI, those wiives who decided to become a homemaker to take care of children & self employed . You better start to think now about your retirement as you have much lesser CPF for retirement. A umarried man or women. You are also need to plan early as MAID is the only person which you need to depend on when you grow old.



    CPF (Compounding Power Fund)
    ==========================

    With the advancement in medical technologies. We are likely going to live longer beyond age 85 .So it is important to have CPF as a safety net that we can rely on no matter how adverse our financial situation. It will kept safe from any legal liabilities (like bankruptcy ), SCAM or even from your closest family member & failed investment in stock.

    For retires who are being cash-poor & bad health are a horrible & terrible combination. It is important to maintain a healthy lifestyle & have retirement planning at very young age to provide a decent healthy lifestyle when u retire @ age 65.
    We really need to CHANGE our attitude toward the CPF as a source for retirement planning. It is a damn good scheme even our foreign PR love so much due to high interest rate 4-5% come with risk free & guarantee.



    1) CPF OA – Housing, insurance, investment & education.
    -----------------------------------------------------------------------------

    a) Govt Dependent protection scheme term (DPS). deduct from OA & payable till age 65. OPTIONAL. I opt out

    b) Govt Mortgage insurance triggered if U take HDB loan using CPF. OPTIONAL. I opt out . Payable till your HDB loan is fully paid.


    2) Special Account (CPF SA) – For old age retirement planning


    3) Medisave Acct (MA)
    ------------------------------

    * Expenses for hospitalisation
    * Compulsory CAREshield insurance at age 30. Deduct from CPF MA
    (formerly call ELDERshield Optional which I opt out much earlier


    4) Retirement Account (RA)
    -------------------------------------

    Created on your 55th birthday. For lifetime annuity payout starting
    @age 65 & as long as you live.


    Having SGD Millions in CPF. Time is the critical factor
    ------------------------------------------------------------------------------------------------

    The best way to prepare for retirement is to use NO CPF OA for housing . Consider using cash payments for mortgage payments instead of OA monies unless you are cash shortage.
    When your finance health is much better. You should switch back from CPF to cash


    There are 2 ways to grow your CPF SA faster:
    1. Top up SA with cash (Max ceiling limit 37.7k per year)
    2. Transfer from OA (2.5%) to SA (4-5%).


    The idea of compound interest mean start saving from a very early age that money you have set aside in your CPF SA (only) to compound over next 35 yrs at 4-5% risk free interest and guarantee. Once your a financial safety net (CPF SA) is taken care of at age 30 to 35. Your CPF compounded interest will run to > 1millions $ as long as you are still working till 55

    The ability to discipline yourself to delay gratification(Car very least priority , less holiday/fine dining etc) in short term in order to enjoy greater reward in long term . When U reach your so call retirement age of age 65 onward. You can say GoodBye Tension. Hello PENSION (CPF SA & RA combine).



    CPF LIFE & CPF SA shielding at age 55

    ------------------------------------------------------
    CPF LIFE is an annuity scheme that is meant to support Singaporeans and PRs in retirement


    At age 55, the following will happen.
    1. CPF will create a NEW Retirement Account (RA) on top of your existing OA, SA and MA.

    2 CPF will first transfer your SA (1st priority) to RA to meet the prevailing FRS (2021=$186k)..

    3. If the amount in your SA is insufficient to meet the FRS (186k), your OA will get transferred to your RA to meet the prevailing FRS (186k)

    4. When you hit FRS (186k) in your RA, you can withdraw (using PAYNOW) ALL of the monies in your OA and SA or Treating my CPF OA & SA as a "savings account" which u can withdraw anytime & anywhere (online) using PayNOW link to CPF.
    For those with ample liquidity , they can choose not to withdraw their excess CPF OA & SA and leave the savings to their beneficiaries. Leave as a LEGACY.


    After CPF RA is formed at age 55 & CPF life payout start @age 65
    -----------------------------------------------------------------------------------------

    1. Choose to start your payouts later.
    By default, we start receiving CPF LIFE payouts at age 65. To increase your payouts, you can defer the payout starting date up to age 70. For each year that you defer, your savings can increase by up to 7%.

    2. Make cash top-ups to your RA
    Top up your Retirement Account and enjoy tax relief of up to $7,000 per year. This is applicable to top-ups up to the Full Retirement Sum.

    3. Transfer savings from your OA to RA (if your SA bal=0)
    Transfer your OA savings to your RA (if you are aged 55 or above) to enjoy higher interest — from 2.5% to 4%. Over time, these savings will grow significantly!



    Lastly, you need to remember
    Your parents are not your EMERGENCY FUND
    Your children are not your RETIREMENT FUND
    Build your OWN wealth through small step.

    By age 65, say GOODBYE TENSION (stress). HELLO PENSION (Annuity - CPF life payout + the excess CPF SA & OA).




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