The thought of depositing cash into CPF struck me when I read some blogs on reducing tax reliefs and also earning the decent interest rates given by our government in the current low interest rates climate. Since then, I’ve been researching on the pros and cons of this move and concluded to transfer $7,000 cash into my mom’s Retirement Account.
1. To reduce my tax payable
My annual income this year is estimated at $60,000+. The estimated tax is around $2,400, assuming there are zero reliefs. By topping up my mom’s CPF, I’ll get a relief of $7,000. Now that will reduce my tax to around $1,900.
2. Growing spare cash
I mentioned that I’m always on the look out for safe places to park my cash, mostly FDs. But the FDs these days are disappointing. I’ve on standby, at least $60k cash in my BOC account
. So, …