Search Results for: cpf

When the lease on my HDB flat ends.

What happens to our CPF money used to buy a HDB flat when the lease ends? Reader: can I assume that whatever has been used to pay for the flat will be forfeited and we still need to pay back the accrued interest? I have friends who are paranoid over the lease issue cuz they keep on reading the anti hdb and anti CPF articles. End up frightening themselves. AK: Tell your friends it is the … [Read more...]

How much will your lifestyle cost when you turn 65?

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Have you ever wondered about how much your lifestyle will cost when you turn 65?? How much do you think you'll need every month to get by? $800? $1000? $1500?  The folks at The Fifth Person ran a calculation on estimated living costs 30 years from now, and I thought it'll make for a fun exercise to tweak it to something closer to us 90s kids. Let's work out the numbers. To keep our calculations … [Read more...]

Chiong Housing Loan or Take It Slow?

I was chatting with a friend and congratulating him on getting his BTO a while back. I got a 4 room HDB for 430k while he got a 5 room HDB for 590k (both of ours are on mature estate and what a huge difference!). One of our conversation was on how he plans to take up a 10 years HDB housing loan and repaid it ASAP. I was telling him that he should start investing and let the money compound instead … [Read more...]

Net Savings rate for Singaporeans with CPF

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Well, as you know, many online articles (especially US, at least from my experience) advocate saving at least 20% of your income.And as we all know, whether we like it or not, 20% of our salary is usually saved automatically into an account we call CPF.But that's not the full story.Fortunately for us, similar to the 401k, there's sorta a matching contribution, just that instead of 1:1, we get … [Read more...]

Penny pinching season

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Officially, other than the monthly $1k ETF through POSB invest saver which pays me "brokerage" when i buy, there is nothing i dare buy from the local stock market at this point in time. The old adage:'Buy when there is blood on the streets' came true again and i hope you took opportunity of that short period of time from late 2015 to early 2016. What will i be doing since STI has surged - Dec … [Read more...]

Work, Travel Insurance, CPF, business account, HDB.. what else?…

just got back from a long work trip, finally taking some personal down time to just sit back relax, kiao kar and zhuo bo time. But i wasnt being idle, took this chance to sort out personal and family administration. work : O&G exploration activities are picking up, albeit sporadic, mostly in the Middle East region. oil prices still hovering +/- $50 for the longest time ever, which is … [Read more...]

Prudent retirement funding strategy for elderly parents.

Reader: Hi AK, apologies for the multiple questions from me. 🙂 I am looking to help my parents with their retirement planning and hope you could shed some light. For convenience of calculation and discussion, assuming the following hypothetical figures, can you share how you would do the planning? Parent A - 500k cash parent b - 300k cash, Zero CPF for both, No existing loans at … [Read more...]

Cory Diary : Singapore Tax Rate to Taiwan

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Two things cannot escape in life. Death and Taxes. How do we compare with other countries in taxes ? Since i do not have more in-depth knowledge of most, I will do a rough estimate between Taiwan and Singapore. Taiwan has a model kind of similar to some western countries in concept. In Taiwan, the medical and other benefits portion are funded separately and not part of the annual income tax. … [Read more...]

The best insurance in life revisited.

Reader: I like your view on how to see term insurance as paying a sum of money for the protection from the accidents in life. Also how passive income is an alternative to paying for disability insurance.  I like to seek your views, since it take time to build up passive income, would u view buying disability insurance as an temporary expense before we reach our passive income targets? CPF … [Read more...]

Landed property as an investment?

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Recently I’ve been asked my a close friend if I would purchase a landed property as an investment… So I spotted a real nice Terraced Flat (3B/2T/Full renovated/1.5k SQF/99 Years/Terraced/Prime location) online going for $850k and decided to use that as a comparison to a REIT etf. These are factors I took into consideration: Total cost of the property Downpayment (20% of Property Price = … [Read more...]

Free money from the government is good.

Reader: I don't know if this is the correct avenue to ask you a question. I'm hoping that you can give your insights if you're faced with this situation. I bought a HDB flat and took a bank loan plus used a bit of my OA to pay for it. I have about $240k of bank loan left and now I 'owe' my OA $85k. Since the market is kinda 'overvalued' now, so nothing to invest in. What would you do if … [Read more...]

Retirement Planning: What You Need to Know About CPF Top Up

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CPF Life is crucial to every Singaporean’s retirement planning. There are people who protested and demanded the government to “Return Our CPF”, but there are also many people who have good faith in our national pension system and want to top up more into CPF for their own retirement planning. What are the benefits of topping up CPF, how much more can you top up? This article will give you the … [Read more...]

Smart move on your Income Tax

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8 months ago I shared about the power of Supplementary Retirement Scheme account and was recently been asked….. how good it really is. It reduces your chargeable income tax while allowing you to invest that supposedly “payable tax amount” REITS, FIXED DEPOSIT, BONDS, SHARES, SINGLE PREMIUM INSURANCE, UNIT TRUSTS Investments returns in the SRS a/c are all tax free till the date of … [Read more...]

Maximize Or Optimizing Your Wealth In Your Younger Years???

Read? Hey! Are You Married With Kids? Same as the CPF Talk. Initially; the topic suggested was Maximizing CPF For Your Retirement when he was first approached to participate in the talk. If it is aboutMaximizing; then don't find him. LOL! So do you want to maximize or optimize your wealth in younger years by monetizing all your available free time? Any time lost in your younger years can … [Read more...]

Yes, CPF takes 20% of your Monthly Salary, BUT….

A lot of people have the misconception that the Central Provident Fund (CPF) takes away 20% of your salary every month. While that is true, there is more to that than just what it seems like. There are a few things you should know about this 20% "pay cut". Recommended Post: Singapore Retirement, Re-Employment, CPF Withdrawal Age 1) The amount that you give actually decreases as you … [Read more...]

Upgrading from 4 room flat to executive condominium.

Reader: Hi AK, I have been scouring your blog and other cpf articles but need your advice. I currently have about 67k in my cpf OA (I refunded my OA with cash for my hdb installments which I previously paid using OA, thus considered cash payment for my hdb) And 63k in my SA (due to yearly top up). I am turning 30 this year. I started using cash to continue paying for my hdb installments … [Read more...]

Another Example of CPF Nomination

Read? My CPF Nomination Experience Uncle8888 nominated 100% to Auntie8888 Auntie8888 nominated to her three children : 34%, 34% and 32% There is valid reason for doing this form of nomination instead of spouse nominating each other! Guess why? 34%, 34% and 32% (as 33.33% still cannot add up to 100.00% so CPF System disallow) When it is about money; we still need to count to the 2 … [Read more...]

My CPF Nomination Experience

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I've been wanting to do nomination for my CPF account for a very long time but has always procrastinate on laziness. Last week, when a group of us are chatting about it in the chatgroup, I quickly made a decision to book for an appointment and I went down to the center during lunch hour. *Do note that an appointment is highly recommended as otherwise the waiting time could be up to 2 … [Read more...]

Your Children University Fund. Who pays???

Read? Sending Your Kid To Overseas University Education Real People. Real Story. He has gotten his flat and getting married soon; but he is financially stress as he has supported himself and paid for himself his tertiary education as his father's CPF OA was not enough to pay for his tuition loan after using up for his elder sister's tertiary tuition fee. While his peers are saving money; … [Read more...]

Why join the Supplementary Retirement Scheme?

Hi AK: I just like to share one of my view on SRS account. When I first decided to contribute to SRS, it was mainly to reduce my income tax. However, I realize that a lot of people between 55 to 65 years old have to work because their CPF is not enough for them to stop work before the CPF life pay out at age 65. This is assuming that CPF is their only retirement fund. By contributing … [Read more...]