Search Results for: cpf

What Are The CPF Housing Grants For HDB BTO and Resale Flats

Heartland Boy was very impressed with Jeraldine Phneah’s savvy use of the housing grants available to reduce the cost of her HDB resale flat. He compares this with his own experience where the Heartland Couple did not enjoy any subsidy when they bought their HDB BTO in 2014. It got him thinking about how the various CPF housing grants available for HDB Resale and BTO flats. Besides factors such as the length of the leasehold, waiting time, CPF housing grants will add a further dimension to the age-old dilemma of HDB vs BTO. CPF Housing Grants are critical because...

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[#AskDrWealth] Should I Invest My CPF Money in Stocks?

Should you use CPF to invest in stock or should you just leave your money in CPF to collect the 2.5% interest in your ordinary account? These are the questions most newbie investors in Singapore encounter. Which is why, in this episode of the #AskDrWealth series, we are going to tell you two key considerations to help you with the decision. Let’s begin! But First, Studies Before we begin, let us first put everything in context. Let us run through a study stage and find out about some statistics about CPF. So for those members who invest their CPF...

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My Mother’s Day gift – $7,000 for her CPF RA

The recent events in my life taught me to cherish my loved ones, and there’s no time to lose. I don’t wish to regret the things I’ve not done in the future. I’ve been trying to make it a point to celebrate every event possible with them. We aren’t big on words or actions, so our celebration usually just revolves around dining out as a family. I’ve also make it a resolution to bring my family overseas once a year. I could tell my parents really enjoyed their time at the cruise which I brought them to early this...

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CPF Musings

Figure I want to do a write-up on CPF after thinking about its usage and my planning for long-term goal. First, let’s start with reviewing the benefits we receive in CPF. Benefits CPF-OA gets a 2.5% guaranteed interest rate. CPF-SA, CPF-MA and CPF-RA gets a 4% guaranteed interest rate. First 60k in CPF gets an extra 1% interest rate, of which up to 20k is contributed by CPF-OA. CPF-RA will get an additional 1% on top of the first 60k We can transfer funds in CPF-OA to CPF-SA (however this will not be tax deductible.). This is irreversible. Next...

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Understanding CPF LIFE (Lifelong Income for Elderly)

Sometimes, you really have to hand it to the policymakers for coming out with an acronym like CPF LIFE, which stands for Lifelong Income for Elderly. As the name aptly suggests, CPF LIFE provides you with a lifetime monthly pay outs. Introduced in 2009 by the Singapore government, this annuity scheme ensures that Singaporeans do not outlive their CPF savings. There is a marked difference between the previous scheme, CPF Retirement Sum, and the current CPF LIFE. It is important that Singaporeans understand how this improved system works so that they can plan their retirement needs appropriately. It should...

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Playing catch-up with CPF Full Retirement Sum

I was reading Dollars and Sense’s article on Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55 and wondered how far I am from the required Full Retirement Sum. I am still playing catch-up with the Full Retirement Sum. Rightfully so since I am 36 years old in 2018 with 19 years to 55. What am I expecting the CPF Full Retirement Sum to be in the year 2037? We already know what the Singapore Government (or CPF Board) expects someone turning 55 to have until the year 2020 – S$181,000. However, I am only reaching 55 years...

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Buy the CPF-RA and win win!

Reader said… Hihi, thank you for taking the time to answer my query. I was trying my luck and wasn’t really expecting a reply! Excuse me while I have a fan girl moment! 😍😍😍 The post which you recommended for my reading was the post that got me started thinking about my parents cpf! I tot it was a really brilliant idea! Would never have occurred to me 😂 We’re thinking to get the best of both worlds by converting my mom to CPF Life and ‘buying’ over my dad’s RA. We’ll pay him the $XXXX in his RA by...

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Should I Let HDB Wipe Out My CPF OA Before Collection Of Keys

After waiting for 4 long years, Heartland Boy will finally be able to collect the keys to his BTO. Not yet, but soon enough for him to start pondering about keys collection. Since he is likely to apply for a HDB concessionary loan, his thoughts inevitably swing over to the prospect of HDB wiping out the entire balances in his CPF Ordinary Account (‘OA’). This is the process whereby HDB will deduct whatever balances remaining in the CPF OA, thereby reducing the mortgage quantum, before granting the applicant a HDB loan. After doing some research online, Heartland Boy realises...

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CPF to help fund our retirement but what about our parents’?

Reader says… I am a new reader to your blog and have benefitted greatly from the nuggets of wisdom that you have shared within these first 2 weeks of reading your blog. I have transferred money from my ordinary account to special account and managed to convince my Husband to do the same as well! Hopefully, we will be able to help the gov help us hit the minimum sum by the time we reach 55. We are in our mid 30s now : ) Because of your blog, it got us started thinking abt our parent’s cpf as...

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Your 5 Minutes Guide to CPF

What Is CPF? Young or old, CPF is important to you as it concerns your pay contributions and future benefits. Firstly, a quick lookup on CPF will lead you to the definition that The Central Provident Fund (CPF) is a comprehensive social security savings plan implemented by the government, compulsory for all Singaporeans. In short, CPF is implemented to ensure that Singaporeans save up the important things — retirement, housing, and healthcare. Let’s face it, way more Singaporeans believe that they are disciplined enough to save up for retirement, but not many actually manage to do so. CPF Contribution And Allocation Rate: Below Age...

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CPF Retirement Sum Scheme

55 is a milestone age for many Singaporeans as we all look forward to cashing out our hard-earned CPF savings accumulated through decades of hard work. But before you rejoice, it is important to understand the CPF Retirement Sum Scheme. This is because the amount of cash you can take out may be vastly different from what you had been dreaming of all along. There might be heart pain. There could be disappointment, or even bitterness. To put things into perspective, Central Provident Fund (CPF) is Singapore’s social security system and over the years, it has evolved to cover...

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Personal tax planning 2: CPF Cash Top-up

Welcome to part 2 of my basic personal income tax planning series! In this series of posts I hope to cover the following topics: Tax reliefs CPF Cash Top Up Supplementary Retirement Scheme Bringing it all together – How to best utilise these reliefs to your advantage In this part, I will cover how topping up your CPF can be used as a tool to mitigate your tax bill. As mentioned in Part 1, there are 2 ways to top up your CPF to obtain reliefs: Top up your / your family member’s Special Account (SA) / Retirement Account...

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CPF Housing Grants – an Easier Way to Check Your Eligibility

One of the milestones you go through in life is purchasing your first home. 80% of Singaporeans start this journey by buying an HDB. HDB is already highly subsidized in Singapore, and many people are eligible for further subsidies in the form of CPF Housing Grants. The problem with CPF Housing Grants, like the HDB scheme itself, is too complicated. The government has also made many changes over the years. Keeping up-to-date information about CPF Housing Grants becomes a daunting task. In the recent Budget 2018, more changes were made to CPF Housing Grants to encourage people to live...

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Making a CPF nomination

I have just made my CPF nomination recently. As it is still fresh in my mind, the following is how the process went for me: 1). Head down to one of their CPF Service Centres (see here for a list of CPF Service Centres). I went with my nominee (The person/s who will be receiving your CPF monies if anything untoward happens to you). 2). Produce your NRIC to the staff, answer some questions related to the nomination (Name, NRIC, Nominee Name/s, Nominee NRIC/s, relationship to Nominee/s, marital status). Staff emphasized that any change in my marital status would...

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My 19 Year Old CPF Account – For Millenials and Young Adults

Being a Singaporean, we’re all exposed to CPF the very moment you commence work. But once again, I believe many would have heard this from the seniors Singaporeans and even to some millennial whom have just started out with their part time job. Central Provident Funds – CPF (from CPF Official site) “My hard-earned cash are all locked up in the CPF”  A slight variation to the younger ones that I’ve heard many times personally: “I want my 20% salary in cash, why did they take it away? I’m working hard for it!” These are the many who felt...

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