Search Results for: cpf

Parking my extra $14,000 cash into CPF for better returns

Some people see putting money into CPF as a foolish thing to do. They do not believe in the CPF system for it locks their money up unless conditions are satisfied. They may be right, and they may be wrong, for there are no perfect systems. I am putting my faith in CPF as a way for me to generate higher returns for my retirement. A 4% p.a interest in risk-free environment. Other than CPF, which other systems provide such benefits? I am only in my twenties, and have close to 30 years till 55 before I could start...

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CPF Life Payout Estimator and questions.

Reader: I would like to ask you about transferring from OA to SA. Currently my mother is under CPF life. According to CPF board, I am able to withdraw the OA and SA. Is there anything I should look at before transferring OA to SA? Thanks! AK: OA to SA transfer is not allowed for those 55 years and older. You qualify for CPF Life if:   Reader: oh damnnn XD ok the RA amount that is not deducted for CPF life, what can we do with that balance? AK: RA is meant to fund our retirement. Cannot be...

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CPF Mobile Service Centre has you covered.

I blog about the CPF quite a bit and although some might think I have all the answers, I don’t. Reader: are you familiar with CPF LIFE? i am worried that my dad who is 63 wondering if there is any chance i could do a VC to his account to qualify for CPF LIFE and get annuity payout? AK: Of course, you can top up his CPF account so that he can take part. 🙂 Give CPF Board a call and ask them how much to top up. If you stay in Choa Chu Kang or nearby, you...

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Is CPF really that bad? (Part 3 – Healthcare)

What does Medisave do? “Medisave is a national savings scheme which helps CPF members save for future medical expenses, especially after retirement.” – CPF.GOV.SG What can you do with your Medisave account? Use it at all public healthcare institutions, and approved private hospital and medical institution – Click here if you want to know which specific one Benefits of Medisave? Use it for yourselves (of course) and for you family members For all medical issues “The Medisave Withdrawal Limits are generally enough to pay for the charges incurred by a patient staying in a Class B2/C ward in a...

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Contributing or Topping CPF MA???

Our CPF MA has immediate use when necessary. It will NEVER be enough based on Uncle8888’s personal experience with his older close relatives so it is right thing to top up our CPF MA. Never enough! This is only CPF account that Uncle8888 will advocate topping up. Other voluntarily topping up. Hmm …. case by case hor! Don’t be seduced by social media loud voice. What good for some may be poison for some in later part of their life journey when sudden unplanned sharp needs for liquidity arises! Don’t be caught in asset rich. cash poor before 55 and...

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HOW MUCH MONEY CAN YOU WITHDRAW FROM YOUR CPF AT 55???

If we need to know how much money we can withdraw from our CPF at 55; we MAY have failed in our retirement planning unless we already plan to retire after 55. So far what Uncle8888 knows from his peers who are 55 and above; NONE of them bother about how much they can withdraw at 55 as they plan to touch their CPF only after their retirement at 62/65 to 67. So how much can we withdraw at 62/65 to 67? ...

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How Much Money Can You Withdraw From Your CPF At 55

Heartland Boy notices that there seems to be some confusion on the amount of money/cash that one can withdraw from his or her Central Provident Fund (‘CPF’) upon reaching the withdrawal age of 55. Indeed, withdrawal limits do get more complex when various schemes such as Retirement Sum Top Up (‘RSTU’) and transferring from one’s Ordinary Account (‘OA’) to Special Account (‘SA’) are taken into consideration. This is understandable as the answers to these questions can sometimes be found over several pages on CPF’s website. It takes considerable effort to piece those information into a consistent and congruent piece....

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Boost elderly parents’ CPF-RA or CPF-MA?

Reader: Since reading your blog last year (if i only had done so when i first started working years ago!) i have transferred some of my OA to SA and did some cash top up to my SA. Would appreciate if you can advice on a a dilemma i am facing with regards to whether i should top up CPF for my mum. My mum is 63 yro and has almost nothing in her CPF. I had asked CPF Board for advice but it would take a very significant top up (>$50k) to even reach BRS. i) should i top...

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Is CPF really that bad ? (Part 2 – Housing)

CPF Did we harm ourselves? Or is it the Government fault? Like how DTLIM commented, the allowance of more usage has lead us to deplete our CPF money faster than ever.  It’s actually quite scary, that Govern allowed CPF savings to pay for more than one property ( Very bad for the low/middle Income group) Have the Allowance of CPF used for housing a good thing?   Singstats   There was a study done by the Government as you can see, the average Singaporeans doesn’t shift to a smaller house but always to a bigger house! The number is...

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Is CPF really that bad? (Part 1)

Try putting whatever you know about CPF aside before reading this post Disclaimer; CPF is a mandatory thing for all Singaporeans/PR so knowing it is as important as maintaining your financial health -Short Summary- There are 3 Accounts in your CPF before you turn 55: Ordinary Account (OA) Special Account (SA) Medisave Account (MA) When you turn 55: OA + SA = RA (Retirement Account) MA = Acts like your health insurance At this current point of our life, how much do we have for retirement (Cash/Savings) not including property, because we would want to be living comfortably like...

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What to do if we don’t trust the CPF system?

I have been sharing quite a bit of stuff on Facebook regarding the CPF in recent days. Nothing new, really. They are mostly conversations with readers on stuff I have blogged about. I shared how I grew my CPF savings and also why it is an important part of my overall retirement funding strategy. I have also shared my numbers to exemplify the magic of compound interest. Of course, we know that there are people who do not believe in the CPF. This is nothing new. I am constantly amused by the reasons put forth as to why we should not...

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Want to withdraw $500,000 from CPF at 55?

Hi AK, A quick intro about myself. I am 34 this year, staying in a bto hdb flat and have existing housing loan of $20k outstanding (serviced by my wife and myself). Checking with you on my strategy for CPF. I have around $5k in ordinary account, and $145k in special account. Already met my min sum for medisave. Am hoping to hit my S.A. min sum when I reach 35yo. My thinking is that once my min sum (FRS of $166k) for S.A. is met, all employment contribution will flow into my ordinary account(~$2k a mth), and I would...

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A big loan to buy a condo and CPF not enough.

The focus should be on the CPF but I cannot help but wonder if Kelly has little money, why is she spending it on dogs and cats? Shouldn’t she use the money to better prepare for her old age?  (Credit goes to Raymond Ng for sharing the above with me. ) Reader (not Kelly): I came to know of your blog recently and find it to be full of useful information.I regret that I did not know what you know and had not done what you’ve done in terms of CPF voluntary contributions when I first started working. I’ve...

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How to Avoid Cleaning Out Your CPF Balance When You Take a HDB Loan

When you apply for a loan from HDB to buy a flat, it will take all the money from your CPF Ordinary Account (OA) before giving you the loan. This is to reduce the loan amount that you need to service. If you wish to avoid an empty OA account, you can temporarily transfer some of your OA balance out of CPF before you apply for the HDB loan. The pros and cons for either approach are discussed in Clean Out CPF Balance When Taking HDB Housing Loan? A reader recently asked me how to temporarily transfer some of...

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