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...]

Know how to grow our CPF savings.

I think there are quite a few readers who are confused about the difference between contributing to their CPF account and topping up their CPF account. I understand their confusion. Once upon a time, I was confused too. 1. There is such a thing as the CPF annual contribution limit. Basically, our mandatory contribution (MC) and voluntary contribution (VC), if any, cannot exceed the annual … [Read more...]

Emails on investments and the CPF.

I have been spending more time on a new hobby. Online gaming! No, don't worry. It is not of the casino variety. It is a MMORPG. What is this? Massively multiplayer online role-playing game. For more information: MMORPG. The game is "Neverwinter" by Dungeons & Dragons. I am amazed that something like this is available to play free of charge! I remember "Diablo" by Blizzard was quite … [Read more...]

How much can you withdraw from CPF at 55?

Earlier today, there was this article indicating that those who turn 54 this year are eligible for a new CPF retirement planning service (CRPS). There will be a one on one session to help the individual to understand the CPF scheme and plan for the options which will be available one year later when they turn 55.Article … [Read more...]

Go hit CPF MS or FRS by age 40!

Hi AK: I am currently 37 years old. I am working towards the target of hitting my CPF mininum sum by the age of 40. The current balance in my SA is about 80k. My OA account balance is zero as I have transferred all my OA to my SA account. I have already hit the max limit for my MA of 52k. After reading your blog, I top up at the start of the year to receive free $88 ang pow. :) I have … [Read more...]

Improving retirement funding adequacy for my father.

To have aged parents is our good fortune. However, they could be a drain on our financial resources if they do not have adequate savings to fund their golden years. Add to this the greater possibility of being stricken by illnesses which require hospitalization or even long term medical care, we could have a very stressful situation on hand. In recent years, I have been suggesting that we … [Read more...]

When is the best time for making OA to SA transfer | Earlier is not always better

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Few months back Max wrote a post to discuss the things to consider before transferring our CPF money from OA to SA savings. Essentially, the post discussed that if the transfer is made earlier, the power of compounding at the higher interest rate will reap significant benefits, but because the transfer is irreversible, the 'in case I need it' mentality is still the key barrier for some to optimize … [Read more...]

Personal Finance is Really Personal (CPF / Insurance/ Housing /Saving /Investing etc)

Personal finance is an interesting subject which is really“ Personal “ as there are many factors affecting a person or family’s finances – how much to keep as saving vs investing , to buy term or life insurance , to take up HDB loan or from private banks , to buy HBD or Condominium and of course the hottest topic of CPF ( to transfer our OA to SA or do a voluntary cash top up into SA account) … [Read more...]

CPF Talk Review – No General Solutions, Rich Assets vs Good Assets, Opening a CPF SA for your baby, Paying off Home Loans Earlier and Niche Rule of Thumbs

CPF is many things to Singaporeans, and we should be concern about how we can make sense of the CPF, and manage the CPF more efficiently. We conducted our BIGS LIVE on 16 Mar 2017, centering on making sense of your CPF and we have a very healthy turned out. My friends Chris from Tree of Prosperity, Budget Babe and Uncle Createwealth888 provide us with a glimpse of how they live with CPF and we … [Read more...]

You don’t get to hack the CPF, the CPF gets you hack you !

Ok, it is time to summarise yesterday's proceedings. In case you guys are wondering, when we conduct our talks, we don't really do rehearsals so some of us speakers are also there to listen to what other bloggers have to say. So things get interesting if there is a disagreement between us, nothing we ever do is scripted. Here are some comments and things which I learnt from yesterday's session … [Read more...]

AK the born again teacher or a mental blogger?

Reader: I chanced upon your blog half a year ago and been following your every entry since then. In my free time, i try to read up your entries to get a grasp of what we can do to improve our wealth and be financially independent. Articles such as contribution to CPF SA holds dearly to my heart as it means the earlier we transfer from OA (of course living a portion for hdb flat payment) to SA … [Read more...]

How to choose which CPF LIFE retirement plan is best for you

In the past, CPF retirement options were confusing. There used to be 12 different methods of getting your pension which only had subtle differences. This has since been reduced to just two basic options: CPF LIFE Basic, and CPF LIFE Standard. Here’s how to pick between the two. What is CPF LIFE in the first place? It’s actually an acronym for the Central Provident Fund Lifelong Income … [Read more...]

Learn To Optimise Your CPF

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CPF is something close to the hearts of Singaporeans. In fact, it is hard to meet an adult Singaporean without strong views on CPF policies or issues. Be it the inability to withdraw your CPF funds until age 55, interest rates on CPF funds, CPF LIFE or the compulsory Medisave contribution for self-employed (just ask any taxi uncle about this), few would sit on the fence. Much as we dislike some … [Read more...]

Buy a car with 4D winnings or win again?

Reader: I want to thank you... A friend shared your 4d pick at a gathering... I am a gambler and I bought the most... I have never won so much money gambling before...  He told me to top up my CPF but I have been thinking of buying a car... (The above is not the full email.) Remember this? Lucky! AK: Welcome to my blog. I will not tell you not to buy a car if you are one of the … [Read more...]

CPF Retirement Sum Scheme | Can I achieve the CPF retirement sum when I reach 55?

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The CPF Retirement Sum Scheme is one of the CPF schemes for us to utilize the money in our CPF. In fact, in my opinion, it is the most important CPF scheme as it will determine the 'fate' of the savings we painstakingly built up throughout the working life. Unless we are approaching the magic number of age 55 to be eligible for CPF withdrawal (after setting aside the Retirement Sum), chances … [Read more...]

3 Ways Your Parents Can Grow Their Retirement Funds

Money is an emotional topic in Heartland Boy’s family, and often, also the root of all problems in the household. This can all be traced to the diverse perspectives on money held by his family members. As age catches up, Heartland Boy’s parents find it increasingly tiring to stand behind the wok for long hours to serve up a good bowl of fish soup. What is even more worrisome is that his parents … [Read more...]

My financial goals to make the most out of 2017

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It’s a new year again. How has 2016 been for you? As we begin the new year, it is time to reflect on my goals for 2016. Here are some goals I set for 2016: Advancing in my career  In 2016, I wanted to advance in my career after being in the same job for the past 6 years. I figured that if I continued to stay on, there wouldn’t be much progression. I also wanted to go into another industry … [Read more...]

A tale of two HDB flats by Darles Chickens.

Chinese New Year is a time of family bonding, catching up with friends and also gossiping. What? Gossiping is not a Chinese New Year tradition? Alamak.  Oh, it is something we do daily? OK lor. Since this is the Year of the Chicken (What? Not Chicken? Is Rooster? Rooster is not a Chicken meh?), I present to you "A tale of two HDB flats" by Darles Chickens. Gossip Tale … [Read more...]

We don’t have to be smart to be rich!

Recently, I had a blog on three attributes of a wealthy peasant. Prudence. Pragmatism. Patience. We don't have to be smart and we don't have to make a lot of money to become wealthier. However, we should be prudent, pragmatic and patient if we want to become wealthier. (See related post #1 at the end of this blog.) Charlie Munger certainly thinks it is a no-brainer and so do … [Read more...]

$3K salary a month but saving $16K this year!

Hello AK, How are you? One year ago i've start following your blog and chatting with you via FB as well. I got so much things to share and update you. After completed my private degree, i have changed a job and income increased from 2.4k to 3k.  Some of my friends are still earning more than me. i was so stressful to keep up with the market and expenses. But thanks to AK's Blog, everything … [Read more...]