Search Results for: cpf

How to invest your CPF: 5 things you need to know

The Central Provident Fund (CPF) is a government savings scheme that requires Singaporeans and permanent residents to save 20% of their salary to fund their retirement, healthcare, and housing needs. The CPF pays an interest of 2.5% for savings in the Ordinary Account (OA) and 4% for savings in the Special Account (SA), Medisave Account and Retirement Account. An extra 1% interest is paid on the first $60,000 of your combined balance (including up to $20,000 from your OA). Most Singaporeans use their CPF to buy their homes but only a few know how to invest your CPF in...

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Working Adults: Should You Transfer Your CPF From OA To SA?

A common working adult dilemma In our Seedly personal finance community discussion recently, we found that one of our avid members posted an article on his/her own experience behind hitting the magical number of $40k in the CPF SA (special account). We soon found out also that in the discussion, this seems to be a recurring topic most working adults consider on a daily basis as seen in the CZM blog. Even CPF often advocates topping up of SA balances to plan for retirement early. Hence, this article serves to bring you the hard facts and share with you...

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Investing your CPF money, really?

There was a period of time earlier this year that I contemplated on using my CPF money to invest. I sought some advice from my financial adviser back then on how the process is like and what options were available. The idea of using money that has to be locked away for a long, long time and not having to consider much “risk” with using cash on hand was a tantalizing thought indeed. But the idea didn’t last long with me. If you’re not that familiar with how you can use your CPF money to invest, here’s a quick...

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Peep into the 19 year old student’s CPF Account – Transfer from OA to SA

Years ago, I used to hate the concept of CPF deduction from my part time job, as I felt that it is eating 20% of my salary away which I could channel it into buying things I love. However, I do realize that after 3 or 4 years of working in part time jobs that has taken my CPF, lately I’ve fallen in to love with what it is able to do for me. Also the sweet 17% additional contribution from my employers is doing great inside too. Let’s have a look at the various types of CPF Account:There’s...

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CPF Milestone ($40k in Special Account) and The Power of Compound Interest

Yay! KPO’s CPF has hit a milestone, my SA (Special Account) has hit its first $40,000! If you are wondering, what is the big deal? It is just 4/5% of risk-free interest (for now) that can be compounded for many many years :) I have been transferring my OA to SA ever since I started working. The reason why I can do this is that I do not have any liability/mortgage to pay as of now. Going forward, I will stop transferring as I need to build up my OA for my house in 2019! Anyway, the interest rates for our...

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CPF Nomination and Making a Will

The recent saga involving the will of the late founding father of Singapore, Lee Kuan Yew, has cast a spotlight on will. Of course, it is ridiculous to question the validity of Mr Lee Kuan Yew’s will as he was a trained lawyer. But most Singaporeans are not lawyers by profession. So, it is important to understand the legal framework to avoid the devastating outcome of making the wrong will. In this article, I will also share what is the outcome if you did not make a CPF nomination. Basically, a will is a legal document that indicates the...

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Reduce home loan with CPF OA or do OA to SA transfer?

Reader: I have an existing HDB loan of 270k over 30 years with my spouse and we are deciding whether we should try toreduce the loan amount with our CPF OA or transfer some to CPF SA. Objective is to pay the housing loan – debt free and to have a good retirement amount at 65 (hopefully to hit at least 500k in CPF). We are 35 this year and we have around 80k in our CPF OA each with around 30k in CPF SA. Hope to get your kind advice on this! AK: When we use our CPF-OA...

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Using CPF for The Bedokian Portfolio? Part 2

In this part, I will describe on how to go about implementing your Bedokian Portfolio using your CPF Ordinary Account (OA). Take note that I am posting this from the perspective of an investor who is below 55 years old. Ideal Amount to Start It is recommended to start off the CPF Bedokian Portfolio in one shot, much like the one bought using your disposable income with the same reasonings.1 The ideal quantum to start, after setting aside a buffer for your home mortgage payments and/or kids’ education fees, would be $36,500 ($36,500 – [35% x $36,500] – [10%...

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See The Effect Of Compounding Interests In CPF OA Through CPFIS Yearly Dividends

Read? Time In The Market, or Timing The Market?? Don’t laugh or poke at some Buy and Hold folks for their passive income. Just one time effort on clicking on the Buy button and many years of passive income of dividends, interests on dividends and then interests on interests. See the effect of compounding interests in CPF OA through CPFIS’s yearly dividends contribution. Ah Gong’s near risk free money in CPF OA as Uncle8888 has read some folks in the cyber world are smiling when they are voluntarily topping up CPF OA for this 2.5% compounding interests. How about through...

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How CPF Saves You 5 Insurance Plans

Have you ever thought about CPF as more than just a scheme to lock Singaporeans’ money? There could be a lot more to it if you dig deeper – like really deeper. There is a reason why most financial advisors actually advise you to keep your money with CPF. Not because CPF pays them, but because CPF as a scheme is quite good – except the part where you cannot withdraw money as and when you like. Instead of looking at the CPF Retirement Sum as a target where you can withdraw money after a certain age, look at...

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The Unconventional Millennial’s Guide To Winning At CPF

Okay, quick poll: How many of you hate being called a “millennial”? I know I do. A little part of me dies every time I see a millennial commercial showing beautiful young people laughing, taking selfies and drinking hipster coffee. You see, I don’t think I fit into the typical millennial stereotypes. I hate WhatsApping, I prefer reading books over checking my Facebook feed, and I run away from stores that sell anything with the word “artisanal” in it. I recently read an article titled “Don’t Call Me A Millennial” and I was like, “YES! FINALLY someone understands me!” Some...

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Wealth destruction from CPF Accrued Interest???

Someone said: “I dun think such stocks exist in our SGX. 10% dividend yield for 10 years? Absolutely no, as least not in SGX.” His saying has motivated Uncle8888 to post this series as matter of fact. It is possible. Even in SGX! Our own local backyard. Read? 10% dividend yield for 10 years? Fact or Fiction? (8) Wealth destruction from CPF Accrued Interest Uncle8888 no cock eye hor. Wealth destruction!!!...

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Wealth destruction from CPF Accrued Interest

Your CPF savings can be your best friend. But it can also be your worst enemy if you don’t manage it well. For some unknown reasons, some readers attacked me in my previous article, claiming that I wrote “misleading” and “nonsense” information on the CPF Accrued Interest. They refused to believe that CPF Accrued Interest could lead to potential wealth destruction if the game is not played correctly. First of all, CPF Accrued Interest is of course your money! I have never disputed that in my previous article and I don’t know why some readers tried to stir up...

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Our parents and their CPF plans.

Reader: I have been thinking about topping up my mum’s CPF account in order to earn a higher interest for her monies because she currently keeps the allowances me and my sibling gives her at home 😓..  I tried to read up online on the CPF schemes but got a little confused along the way. She is 60 this year, and I believe she is not under CPF LIFE, she was given an option to opt in but she did not do so. Thus, this would mean she is under the Retirement Sum Scheme and she has around $91k...

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