Personal Finance
Why I Top Up My Mum’s CPF Retirement Account instead of giving Cash?
By Live Rich Life Free  •  June 12, 2021
I just topped up $4.5k into my mum's CPF Retirement Account. Let me share 5 reasons why I did so instead of giving her cash.
  1. Tax Relief
For selfish reason, I would like to enjoy tax relief of up to $7k per calendar year for topping up my parent's CPF Retirement Account under the Retirement Sum Top Up (RSTU) scheme. Assuming my tax bracket is at 7%, a relief of $7k will save me $490 of taxes in cash, which is enough to eat more than 100 boxes of $3 cai png (vegetables rice) at the coffeeshop. The tax relief is also applicable to family members such as parents-in-law, grandparents, grandparents-in-law, siblings and spouse.
  1. Compounding growth at 4%
In today's low interest environment, the value of cash is eroded by inflation and stifled by poor interest rates offered by banks' savings accounts. CPF Retirement Account yields at least 4% and up to 6% for senior folks risk-free and guaranteed by the Singapore Government....
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By Live Rich Life Free
The purpose of this blog is for me to share my reinventions of how life should be lived and journal my journey towards financial independence. I believe that life is a story book. Each chapter contains 10 years of our lives. I am moving on towards mid 30s in 2021. As a nobody but somebody, I am in Chapter 4 of my story book. I hope to influence my philosophy of living a rich life freely and healthily with all of you. Embrace the future and empower freedom!
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