Search Results for: cpf

Infographic – All You Need To Know About HDB Loan And Bank Loan (Guest Post)

home-loan-vs-bank-loan.PNG

Buying a HDB flat for the first time can be an intimidating experience. It’s probably the first big ticket purchase in your life that will take the next couple of decades to pay off, so you’d definitely want to rake in as much savings as you can. Perhaps you have not really thought about what kind of loan to take up. If you don’t already know, you have a choice between taking up a HDB or bank … [Read more...]

CPF Home Loan or Bank Loan?

Buying a HDB flat for the first time can be an intimidating experience. It is probably the first big ticket purchase in your life that will take the next couple of decades to pay off, so you would definitely want to rake in as much savings as you can. Perhaps you have not really thought about what kind of loan to take up. If you do not already know, you have a choice between taking up a HDB loan … [Read more...]

What an unemployed 53 year old can do with $20K?

Dear AK, I am 53 and I have been jobless for more than a year. I have given up on job search. Fortunately, I am a saver and have almost 200k in savings. Jobless 10 years too soon, I need to make my savings last longer. My sister told me about a 5 years endowment plan from _____Life. Minimum required is $20,000. 2.25% p.a. is more than fixed deposits. (Email truncated.) Hi JK, 5 years is … [Read more...]

Singapore Retirement Age, Re-Employment Age and CPF Withdrawal Age

800px-Tai_Chi1.jpg

As a follow up to our previous post on the Misconception Singaporeans have on the Re-Employment Age, we decided to go further and explain the difference between Singapore's Retirement Age, Re-Employment Age and CPF Withdrawal Age.Singapore Retirement Age Singapore's Retirement Age is set at 62. This means that your employer cannot ask you to retire before you reach 62. This does not mean that you … [Read more...]

Should I transfer money from OA to SA account?

transfer-OA-to-SA.jpg

One of the key aspect to achieving early Financial Independence is to optimise the returns of your wealth. However, many people focuses primarily on building up their cash bags and neglect the other bulk of their savings, the CPF. Although our CPF savings cannot be withdrawn before the age of 55, it is important to start acting early, to take advantage of the risk-free interest rate on our CPF … [Read more...]

Top Up CPF SA From CPF OA? Depending On Who You Ask! (9)

Read? Top Up CPF SA From CPF OA? Depending On Who You Ask! (8) Financially, psychologically, emotionally, responsibly married couples with dependents have to think and must consider their options differently. Matured and confirmed Singles may only need to secure their own retirement future. They will have less uncertainties and probabilities ahead of them. But, as married couples with … [Read more...]

Why the CPF is bad for you

In September last year, Deputy Prime Minister Tharman Shanmugaratnam said that "over the last 10 years, more than 80 per cent of those who invested through the scheme would have been better off leaving their money in the CPF Ordinary Account". I have written a post about it: here. The Ordinary Account provides returns of 2.5% for amounts above $20,000. 45% of investors lost money through the … [Read more...]

The Difference Between Smart Financial Advice and Smart Financial Advice For You (5)

Read? The Difference Between Smart Financial Advice and Smart Financial Advice For You (4) Do we know that all these topping up of our CPF Accounts with our "excess" Cash is no different from selling options to Big Daddy and collect one time premiums of $XXX to $X,XXX with maturity date at 55, 62, 65 (soon 67)? Great deals??? For those younger folks who have few dependents; it is going to … [Read more...]

Alternative to CPF Top-ups

Psst. Try this. If CPF is paying 2.5% interests, while banks are paying less than 1% for savings accounts, why don't you pay up your housing loans using cash? This way, you don't touch your CPF and you can enjoy the magic of compounding with higher interest rates? Also, by not touching CPF for housing, you won't be "asset rich; cash poor" when you reach age 55 or 65. How? Isn't this … [Read more...]

CPF Money That Keeps Growing (2017)

Not so long ago, my brother-in-law applied for the latest HDB launch of flats, and selected a 4-room apartment to ballot for. My brother-in-law had quite a few questions for me, but my memory is failing me as the process happened so long ago. Red Brick has an awesome infographic that answered a lot of his financing questions. Located right beside Woodleigh MRT, the apartment had a decent location … [Read more...]

Understanding the “Spirit” of CPF

I think the pendulum has swung a little to the opposite direction this time... CPF money can't see and touch There was a time when people would "shun" CPF. When got chance, quickly use our CPF to buy shares, properties, useless ILPs, integrated policies, and what not. If don't use now, wait we'll never see our CPF money ever! It seems we were in a race to deplete our CPF as fast as … [Read more...]

Is National Service a good thing? (Financially)

ktquuihh3_w-frank-mckenna.jpg

What was used 100 years ago should be used now because no one question it? As educational value and experiences increases in life among the younger generation…Do you guys think National Service should be mandatory? A Financial Example Average working fresh graduate will have a monthly salary of $1,600 [After CPF] and a NS man is about $580. Fresh graduate spends $20 a day, 1 week – … [Read more...]

Holistic approach to a secure financial future.

(Decide how much income you will get from anasset and pay a fair price for that.) I am always happiest reading happy stories. I mean who wouldn't be? OK, if you need a reason, well, they are easier for me to reply to compared to sad stories. LOL. It is true that happy stories are easier to reply to and that makes me happy but I am happiest with happy stories because they are an affirmation of … [Read more...]

Tea with LS: Withdraw CPF MSTU and interest at 55?

Very well researched and put together. Hats off to LS who originally placed this in the comments section. Hi AK, I guess this withdrawal regarding top-up money and its interest is causing a lot of confusion. This is due to the frequent changes in CPF policies/withdrawal rules. What is making it worse is that some of our CPF officers are also not as well-versed and providing wrong information … [Read more...]

Do online contribution to Medisave and get $88 Ang Bao.

The Basic Healthcare Sum (BHS) which was known as the Medisave Contribution Ceiling (MCC) in the past has been raised from $49,800 to $52,000 in 2017. This means that we can voluntarily contribute $2,200 now. Of course, for those who are gainfully employed, this contribution will enjoy income tax relief. For people like me whose CPF-SA has already hit or exceeded the prevailing Minimum Sum or … [Read more...]

Are you neglecting your wealth: you have more CPF savings than you think

employment-income-breakdown.JPG

Let me start this post by the following statement: At least 31% of your wealth are in CPF Rub your eyes, stare at the statement again. <No, this is not a typo> If your only source of income is your full-time employment, then a whooping 31% of your income goes to CPF, and the remaining 69% are the cold hard cash you receive as monthly take-home pay. Are you kidding me? 31%? For … [Read more...]

AK showing off his CPF-OA and MA (2017).

I thought that only my CPF-SA numbers garnered a following but it seems that my CPF-OA numbers have a following too. So, I agreed to share more of my CPF numbers here. Latest CPF numbers, OA, SA and MA: If we add all the three accounts together, the total amount of savings I have in the CPF is: S$723,088.16 At the ripe old age of 45 too. I know this is impressive to many people and … [Read more...]

AK showing off his CPF-SA numbers again?

(4 things you need to know about your new CPF statement.) I hope my blog has not caused too much trouble for the authorities. Just like my passive income numbers, my CPF-SA numbers seem to have garnered a following as readers reminded me on Facebook that it is time. Even Facebook reminded me that it is time. I guess sharing my CPF-SA numbers is inspiring to many readers and it helps them to … [Read more...]

1 year closer to financial independence – great 2016, awesome 2017?

2016 will be a critical year in my life as I began to take a more active approach to achieving my financial goals. Let's evaluate how I fare and set new goals for 2017. Income - Evaluating my source of money Total income (after CPF deduction) for 2016 is broken down into 4 main categories: Salary - 67.4% Bonus - 30.5% Benefits - 0.9% Others - 1.1% Benefits are subsidies which I … [Read more...]

Power to become financially stronger is within us.

Although there were not many comments in my blog when I asked if I should continue talking to myself in 2017, I received many emails and also messages in FB. They are all positive (so far). I am particularly touched by a couple of emails. First, this email from a reader of modest means: Hi AK, As the new start of the year, first thing I want to do is to write this thank you note to … [Read more...]