Author: Lizardo Realm (Investment)

How are the excess CPF funds withdrawn after meeting the Full Retirement Sum?

Presuming that at age 55, you have the necessary CPF Retirement Account (RA) funded, what happens to the rest of the ‘excess’ money in the Ordinary Account (OA) and Special Account (SA)?  Can we withdraw freely, and how in what order will it be withdrawn from the respective accounts? Here goes the responses from CPF Board … Question: If there is still balance in my SA after deducting the sum for RA, will it remain in the SA, or will the balance be transferred to OA?It will remain in the SA. Question: And thereafter, is it correct that any...

Read More

How will the CPF Retirement Sums be formed upon age 55?

So we have heard about the various CPF retirement sums, i.e. Basic (BRS), Full (FRS) and Enhanced (ERS), which gets committed upon reaching age 55, and for which these will generate lifetime of payout from age 65 onwards (or deferred till age 70 if so decided). Here’s an interesting response that a friend of mine obtained from CPF Board on his queries. It provided details on how the FRS and ERS will actually be formed. —[edited extract] Question 1: Instead of FRS or ERS, can I choose any amount that is in between, even though I have enough for...

Read More

Maximising CPF Post-55

It’s really great to hear from the post-55ers on their interesting ideas and experience in maximising retirement benefits.  Here’s one from ‘Adam’ that cropped up in a previous conversation which I found especially interesting … (re-posted with edits): —OA: Ordinary AccountSA: Special AccountRA: Retirement AccountFRS: Full Retirement SumERS: Enhanced Retirement Sum— How do you protect your SA money from being taken to form the RA upon reaching 55 years old? As it stands now, money in the SA earns 4% pa of interest. Likewise money in the RA also earns 4% per annum of interest. For those 55 years...

Read More

Using CPF-OA as a High-Yield Savings Account

Property is really expensive in Singapore. For most, buying a home is pretty ingrained as a basic need to establish a family. So it is often the case that we would tap on our CPF as a source of cash to fund the purchase of a house. We are poor savers, by and large, particularly at the tender ages of 20’s to 30’s. Being new in our career, with a salary at its lowest point, and yet filled with floords of commitments and distractions. Plus, we’re probably dead silly in the way we manage our money anyway. So we...

Read More

Rise of the Financial Ruler – by Paul See

Reading stuff on the mobile phone is quite an addictive thing. But I think we are all going to experience increasing cases of eye problems in time to come. As it is, my eyes blur out and lose focus after staring at laptop screens and mobile phones all day long. Hourly breaks are recommended. So it’s probably good to break off and read books and magazines when I don’t really have to be stuck to these electronic hypnoses. The libraries are stocked full of options. And the National Library Board has been setting up shop at places where people...

Read More

End of Life – How Much Does a Funeral Cost?

Of the multitude of things we examine into concerning our personal finance, investments, medical costs and such, FUNERAL is certainly not something that I would have gone around to actively find out. But when the need comes, there is little time to think, nor are we likely to be in the optimal state of mind to weigh options carefully. There is an emotional factor at play. So I guess we would tend to just go with the flow? So just how much does it cost? For sure, it varies over a wide range, from the basic to the exorbitant...

Read More

15 Ways to Save Money, Redux

Was watching this YouTube video by Lavendaire on 15 Ways to Save Money (YouTube) She is based in Los Angeles. So these 15 ways to save money might have a certain slant towards American consumerism. But here’s a quick summary of the 15 ways, and my thoughts on some of these points: “1. Use cash instead of credit card”. You will realise how much you are actually spending. Credit card charges high-interest rates if the debts are not paid in full. By using case, you will be pending what you have, versus spending on borrowed money. I think it’s just a...

Read More

Using Leverage for REIT Investment

So here’s a play I came across, mentioned by a number of people:Worked for a few years, saved some money. Let’s say $100,000. Take that $100,000, borrow some (leverage), say at an interest rate of 4%. Let’s assume $100,000 + $100,000, giving a total capital of $200,000. Put everything in REITs, yielding say 6% annually – i.e. $12,000. Pay $4,000 in interest. And still, make $8,000. That’s an 8% yield over a starting capital of $100,000! Sounds good right? The numbers seem credible under such a low interest rate environment. Let’s play out this scenario … There is an...

Read More

Where Does a $120,000 Annual Retirement Income Go To?

I am most grateful to a reader who shared his monthly expense figures. I’m not even sure if I should say “he” or “she”? But for convenience, I’m going to just call him Adam (A). [To: ‘Adam’ – Give me a shout out if prefer to be called by another name?] It looks like Adam’s household is made up of a couple, an elderly and a maid.  Not sure if there are any children? In contrast, my situation (B) is that of a couple and two children.  While the specifics are not the same, there are high similarities –...

Read More

End of Life – What happens to the CPF?

While we are still growing up in our twenties, CPF is just a ‘sinkhole’ where part of our salary ends up in. Goes in, never come out. Over time though, as we progress towards our thirties, it becomes the source upon which we can only be glad that there is money to help pay for our housing. And when you are getting closer towards retirement in your forties, you think about how to accelerate the build-up of CPF to get the desired retirement funds desired. As well as tax-deductible top-ups to reduce the burden of taxation. In our fifties,...

Read More

Can You Top-up CPF-RA Beyond FRS to Achieve ERS After Age 55?

Here’s something that I’ve been puzzling about regarding the CPF retirement sum. Say you only managed to accumulate enough for a Full Retirement Sum (FRS) of $176,000 by age 55. But you actually wanted to achieve the Enhanced Retirement Sum (ERS) of $264,000. Can you still do so somehow later? Up to age 55, you can contribute to the Special Account (SA) up till the FRS amount. And at age 55, the Ordinary Account (OA) and Special Account (SA) are then poured into the Retirement Account (RA). But let’s suppose you didn’t have any money left in the OA,...

Read More

Phone Smashed in the Land of the Rising Sun II – The Outcome

So I mentioned how Wifey’s phone got smashed up during our trip to Japan.  Thankful that we were reminded that this should be covered by our travel insurance.  We had completely overlooked that. Thank goodness for travel insurance! Checking through the details, it seems the insurance we bought could cover up to a maximum claim of $500 for lost or damaged items. So we submitted a claim. Not bad. Just received a cheque for $203. Considering that the phone is a already two years old and would have depreciated in value, it was still a reasonable outcome. Something is...

Read More

Saving more with SP Utilities app and UOB One Card

With the recent liberalisation of power services, I think many would have switched out of SingPower (SP) by now.  If you have not, time to give it some serious thought (see Switched to Keppel Electric, saved some). But there remain other utilities that are still serviced by SP. So here’s a quick hack offered by SP to provide further discount on the remaining bill with them: “Enjoy power on your fingertips with your UOB One Card. Paying your utilities bill is now an easy finger tap away via SP Utilities app. What’s more, enjoy up to 6% rebate on your SP...

Read More

A Lifetime of Income for Retirement

Recent articles mentioned local survey results which suggested that an aged single could live off $1,379 per month. That works out to be $16,548 annually. A portfolio of $413,700 could generate that income perpetually based on 4% extraction (i.e. annual income needed x 25). But we need to understand that this is for a minimalist lifestyle for a single. Referencing the last published Department of Statistics report on Household Spendings by Age Group, the average monthly household spending of those aged 50-59 was $4,837 (or $58,044 annually), and drops to $3,586 (or $43,032 annually) for those aged 60 and...

Read More

End of Life – Death Certificate

Sharing some nuggets with dealing with End of Life issues … Upon death, there is a need to obtain a Death Certificate.  Usually, if a person passes away at a Restructured Hospital, the Death Certificate is automatically issued.  But if a person passes away in a private hospital, then you need to bring the Cause of Death letter issued by the hospital to a Police Post to register for an official Death Certificate. Other things required:– NRIC of the reporting person– NRIC of the person who has passed away The Police Officer will punch out the NRIC to void...

Read More

Like us on Facebook

Follow us on Twitter