There is an article in the Sunday Times today on how to maximize the use of your CPF.
Let me summarize the key points and share with you a tip on how to reduce your tax bill while doing something which you do anyway.
- CPF OA earns a guaranteed interest rate of 2.5% and can be used for housing, investing, education and approved insurance.
- CPF SA and CPF MA earned guaranteed interest rate of 4%.
- The first $60,000 of your combined CPF earns an extra 1%.
- When you turn 55, a Retirement Account will be created and you will need to transfer the minimum sum in and for me, that will be $155,000.
- You can enjoy tax relief of up to $7,000 if you contribute cash into your own CPF SA and another $7,000 if you …