Search Results for: cpf

Biggest myths about CPF Nomination

Bullionstar Subscribe to Blog via Email Enter your email address to subscribe to this blog and receive notifications of new posts by email. Join 2,665 other subscribers Email Address Search for: The Chinese has a saying “You come to this world with nothing, and you shall leave this world with nothing.” Death is an inevitable phase of life which everyone would have to go through. While your CPF savings certainly belong to yours, the ownership would cease upon death. This is a fundamental universal truth. However, being a responsible wealth builder, I believe in forward planning. In this article,...

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Young CPF Members Should You Transfer CPF OA TO SA For additional 1.5% Compounding Interests Over Next Few Decades?

Read? How I Accumulate $1M In CPF OA! Read? Top Up CPF SA From CPF OA? Depending On Who You Ask! (10) Uncle8888 did once to transfer from CPF OA to SA and then realized .. oh dear and better stopped it! One and only once! Luckily; at that time personal finance and investment bloggers DID NOT EXIST yet to cheer the power of additional  1.5% compounding interests in CPF SA to reach FRS as soon as possible to secure RA well in advance. For his $1M in CPF OA; 53% or $528K was from mandatory CPF contributions as employees from Aug 1977 to Sep 2016. It took him 39 years up to...

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How would Your First $60,000 in CPF Compound Over Time?

This exploration article might be applicable if you are a business owner, freelancer who could build up your net worth faster than a salaried employee. One of my reader went through this thought exploration about the CPF and he selflessly shared it with me. I thought I will share it here as well. The question here is how would your first $60,000 in your CPF grow to in 40 years time? Your first $60,000 in your CPF is interesting as CPF gives you an extra 1% on top of the usual CPF interest on your Ordinary Account and Special...

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CPF Retirement Planning Roadshow Comes to Seng Kang this Weekend

The CPF these few years runs a few road shows where they bring the concept of retirement and your life closer to you. The games are interactive and there are some freebies to be had, if you go through the stations. This weekend, the road show will come to the north east at Compass One in Seng Kang. It will be held on 4th and 5th of November from 11 am to 6 pm. If you live close by why not take a peek or talk to the volunteers at the road show. Details here...

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Good and Bad Ways of Using Your CPF Money In Singapore

In our Seedly Personal Finance Community, the topic of CPF has been a heavily debated one. Everyone has a different opinion on whether CPF is a good thing or a bad thing. However, the answer to this question isn’t that relevant for most people since making CPF contribution is an unchangeable fact of life for Singaporeans and PRs, at least as for now. What ways can we use our CPF? Rather, what is worth pondering on is how we can best use the fund that is sitting in our CPF accounts since this is something we can actually decide and...

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Which CPF Life Plan To Choose – Part 2 of 2

Its easier to score distinctions in Science and Math subjects as the answers are more binary – you are either right, or wrong. Precision. It’s either black or white. Simple! But for Arts subjects like Literature, there’s no such thing as right or wrong answers – you are marked according to how well you’ve argued out your case. Its grey, murky, and fuzzy, but we can see all 7 colours of the rainbow! (History can score distinction that’s because you have memorised the version that’s told by the victor; if you ask the subjugated, they’ll have another version –...

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Which CPF Life Plans To Choose? Part 1 of 2

Its amazing isn’t it? One would expect questions on CPF Life Plans to come from financially illiterate people or those not very into DIY investing or trading – not those from our community of financial freedom seekers… I mean if one can’t make an independent decision ourselves, it sort of brings into question our abilities to practice active DIY retail investing and trading, doesn’t it? Half the readers will leave in a huff now. Good. Now that I’ve filtered out the freeloaders, lets move on… I come with foreplay; I’m the man with the slow hands. Its all our...

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Which CPF Life Plan for me? Basic, Standard or Escalating?

An annuity is supposed to help fund our retirement. So, I should be looking at getting a bigger payout, if possible, and not a smaller one. So, my choice is the Standard Plan. I know there are people who would like to leave more money behind for their children and they might say I think the way I do because I have none (or at least I think I have none). OK, maybe so. However, I do feel that children should take care of themselves once they are adults. Some might tell me that this is a Western idea....

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What is effective annuity rate and is CPF Life competitive?

A reader read an article in The Straits Times on CPF Life and asked me to write a piece on it. I have blogged about CPF Life so much already and, so, to avoid boring anyone too much, I will try to keep this short. This is taken from a recent chat with another reader: foolishchameleon said… … with so many annuities in the market, what returns would be considered decent? 2.5%? 3% ? AK said… What is a decent return? I have not done any comparison lately but I know none is able to come close to what...

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Exceeded CPF FRS and 2 questions.

Reader: May i get your advise on this matter. Am going 52, meet Full Retirement Sum (FRS) with excess. So OA, SA and MA all met limit. I read your blog said its good to do Voluntary Contribution (VC) to CPF. Questions: 1. If i do a VC, where or which account will the money go to since all 3 accounts had hit limit? 2. Can i withdraw the VC that i put in with interest together with my excess above the FRS at 55? Thanks for your advise in advance. AK: Please remember the CPF Annual Contribution Limit (i.e. $37,740...

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CPF-Investment Scheme – My Experience

CPF-IS has been a hot and never ending topic since DPM Tharman made a comments in 2016 that “the scheme was not fit for purpose “ because 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. He 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 since the Ordinary account still give member a 2.5%...

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Remove the CPF Annual Limit and…

Read comments section: HERE. In reply to AK’s comment that not having a cap (i.e. CPF annual contribution limit) would be a burden to the system, 全自然 said… I am not convinced how can more money by contributors in CPF be burdening the system. While the return of CPF is higher than fixed deposits or bonds, the money is locked almost permanently, well you get what i meant. To give a comparison, a whole life insurance can give a compound return of 4%, the insurance company will welcome more money if you are willing to put in. AK said… I...

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How I Accumulate $1M In CPF OA!

Year on year voluntary top up to CPF Accounts? 1. Mandatory CPF contributions as full-time employee 2. Becoming one patient and discipline CPFIS investor who is only active during STI bear markets 3. Compounding interests at CPF OA  2.5% rate Read? More CPF investors beat guranteed risk-free returns in fiscal 2016 Read? One Uncommon Way To Top Up CPF OA Through...

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3-3-5 rule now endorsed by the CPF Board

It is official. CPF Board just endorsed Property Soul’s 3-3-5 rule. The statutory board recently published an article “How to use the 3-3-5 rule to consider if you can afford your new home” in its “Are You Ready?” portal. “Are You Ready?” is an initiative by the CPF Board to educate Singaporeans on how to plan for major financial decisions at different stages of their life cycle – from starting work, getting married, buying a house to planning for retirement. The article also comes with an infographic using guidelines from the 3-3-5 affordability test for home buyers to calculate...

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Save Money in Singapore Savings Bonds or CPF?

 The Singapore Savings Bond (SSB) It is a special Singapore Government bond, issued by the Singapore Government and sold to the public as a form of savings. Introduced as another form of investment and savings plan for people living in Singapore The Singapore Central Provident Fund (CPF) It is a compulsory savings plan for all Singaporeans and PR living and working in Singapore. A portion of an individual’s monthly income is channelled into their respective CPF accounts for different purpose; for buying a house, for retirement and for medical expenses, Differences between CPF & SSB Differences CPF SSB Withdrawal No...

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