Author: Investment Stab

CPF Housing Interest

Today’s topic will be on the Interest you pay to CPF on your housing loan.This topic is asked by 2 of our readers.We got an email asking us to talk in detail the 3rd point (am I paying double interest to CPF?) in this post of ours: LINK .We also got another reader who asked us to post about using CPF to pay for our housing loan.We would like to thank our readers for the questions asked, and we hope to see more of them coming our way.This will be the first part of our CPF Housing Loan Related...

Read More

CPF Minimum Sum: 4 Insurances in 1

Today’s post will be on how CPF is actually 4 insurance in one.Our apologies that we have not been posting for the past few days.We have been busy with some of our personal matters and thus were unable to blog daily. I was working on a post on CPF Minimum Sum Scheme when a sudden thought came into my mind.The CPF and subsequently the CPF minimum sum scheme is actually 4 insurance plan merged into one. Instead of looking at the CPF minimum sum as a target where you can withdraw money at a certain age, look at it...

Read More

Reaching Retirement is Tough

Reaching your retirement tough, especially with inflation, low interest rates and longevity.The amount that we are saving might not be sufficient for us to retire at the age we feel we should be retiring. Assuming you make the income as per below.Assuming you save 20% of your monthly income, and there is no inflation. Age Monthly Income Annual Savings 20 – 24 $2,000 $4,800 25 – 39 $2,500 $6,000 30 – 34 $3,000 $7,200 35 – 39 $3,500 $8,400 40 – 44 $4,000 $9,600 45 – 49 $4,500 $10,800 50 – 54 $5,000 $12,000 55 – 59 $5,500 $13,200...

Read More

The Automatic Customer

Today I will be sharing a book that I recently read. I think that this is a really good book that is worth sharing to our readers, even though it does not belong to any of our blog category. This book is more of a “business start-up” book than a “investment/personal finance” book. Personally, I don’t buy books because I believe that a public library provide really good resources for free – better save the money and invest more. But, there are certain books that I believe are worth buying. Mary Buffett’s ‘The Warren Buffett Stock Portfolio: Warren Buffett...

Read More

Retirement Sum Top Up Versus Voluntary Contribution

Today’s topic will be a more complex one because it covers 2 CPF schemes.These 2 CPF schemes are complex because there weren’t enough information on the CPF website that allowed me (or us) to understand it fully.In fact, I must thank one of our readers – la papillion, for pointing out that there are 2 different schemes for CPF top up, if not I would have assumed that “Voluntary Top Up” was a new scheme used to replace “Retirement Sum Top Up”, so thank you la papillion. This is the link to the article that lead to this post: LINK...

Read More

CPF Voluntary Contribution Rates

Today’s post will be on: CPF Voluntary Contribution Rates. This post is written to complement our 2 other posts: CPF Interest VS Fixed Deposit Retirement Sum Top Up VS Voluntary Contribution When you voluntarily contribute money into your CPF via the Voluntary Contribution Scheme, your money goes into your OA, SA & MA based on a fixed percentage that is determined by your age. There is a Voluntary Contribution Calculator on the CPF website. However, we have done the work for you, and the contribution rates are as per below: Age Ordinary Account Special Account Medisave Account Below 35...

Read More

Earning more Interest with my CPF Ordinary Account

Today’s TIP will be on: Earning more Interest with my CPF Ordinary Account (OA).This tip is proposed by one of our readers, who asked the question: is it wise to transfer my money in OA into SA?We would like to thank all our readers who posed us questions and sent to us tips.We would love to see more of that coming in, so do feel free to keep sending us these love messages!You can contact us via email (investmentstab@gmail.com) or comment on our blog. There is a scheme in the CPF that allows you to transfer your money in...

Read More

Repay the Accrued Interest from my CPF Home Loan?

Today’s post is an answer to the question: Why do I have to return the into my CPF the accrued interest I would have gotten from my CPF home loan?This question is posted by one of our readers.We would like to thank him/her for reading and interacting with us by posting a question for us to answer. If you have any more questions regarding this topic, feel free to comment, ask us, or email us.We would love to hear from you on how you think about this topics or other things that you would like more details/clarity on. 1)...

Read More

How much can I invest in ETF using my CPF Monies

Today’s post will be on: how much can I investing in ETFs using CPF monies. This question is posted by one of our readers. We would like to thank him/her for reading and interacting with us by posting a question for us to answer. 1) What is ETF? An ETF is an Exchange Traded Fund, a fund traded on financial markets (SGX, NYSE etc) like a stock. For more information on what ETF is, please read...

Read More

Reduce your Insurance Cost

Today’s post is to give you a tip on how you can save up on your monthly/annual insurance premiums. If you have made contributions to your CPF, you are most likely enrolled into the CPF’s Dependents’ Protection Scheme (DPS). DPS is a life insurance scheme that provides your family with a lump sum of $46,000 when you: 1) become mentally or physically incapacitated from ever continuing in any form of employement 2) passed away Its is a term insurance and is meant to insure you until you reach the age of 60. In simple words, it is a term...

Read More

How much is Dependents’ Protection Scheme (DPS) Premium?

Today we will be answering this question: How much is my Dependents’ Protection Scheme (DPS) premiums? DPS is a term life insurance scheme that provides your family with a lump sum of $46,000 when you: 1) become mentally or physically incapacitated from ever continuing in any form of employement 2) passed away Its is a term insurance and is meant to insure you until you reach the age of 60. In simple words, it is a term life insurance that insures you up to $46,000 and is paid by your CPF money. The insurance premiums are paid annually and...

Read More

What is the Historical CPF Minimum Sum?

This post will answer 2 questions: 1) what is the historical CPF Minimum Sum? 2) what is its growth rate like? Below is a table of the historical minimum sum since 2003. The actual minimum sum you need to have is in column ‘MS adjusted for inflation’. Date MS in 2003 dollars % change in MS in 2003 dollars (A) MS adjusted for inflation % change in MS adjusted for inflation (B) B-A Govt stated inflation Jul-03 $80,000 – $80,000 – – – Jul-04 $84,000 5.00% $84,500 6.63% 0.63% 0.40% Jul-05 $88,000 4.76% $90,000 6.51% 1.75% 1.72% Jul-06 $92,000...

Read More

CPF Interest Versus Fixed Deposits

This post will contain a tip on how to increase your CPF returns, namely in the form of interest. One way to earn more interest from CPF is to transfer your extra money, into your CPF Special Account. Your Ordinary Account currently earns 2.5%, Special Account and Medisave Account earns 4% interest while your normal bank Fixed Deposit earns less than 2% annually. Real Life Example: My mum is 46 this year. She wanted to buy a 10 year Fixed Deposit which earns less than 3% per year. I suggested that she put her money into her CPF to...

Read More

Key take-aways from The Edge ETF Forum 2015

My apologies for the long 1-month hiatus from this blog as I was handling some personal issues while juggling NS at the same time. Just an update, I was managing my family’s insurance coverage and finding out more on the Direct Purchase Insurance (DPI) Initiative launched by MAS recently. Hence, I was busy shuffling between investment advisors, insurance agents and insurance forums to check out different information. I would be crafting out a detailed guide on the new initiative and suggestions on how this could potentially reduce your premiums while maintaining your coverage. However, it will only be released...

Read More

To the man who placed us on the map

Today, at 3.18 am, Mr Lee Kuan Yew was passed away peacefully at Singapore General Hospital. A man that many people regarded deeply as a visionary and revolutionist, he is also known as one of Singapore’s founding fathers. Not only viewed nationally, but also internationally. To put it simply, he was the one who placed Singapore, a little red dot, on the map. A man of great determination and mettle, he led the pioneer generation of Singaporeans in laying the foundations of the current vibrant and prosperous country. He faced many obstacles of a developing nation: Communism, lackluster economy...

Read More

Like us on Facebook

Follow us on Twitter