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CPF

Every Singaporean's contribution till 55 and beyond

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Are You Suffering From The Pandemic Of CPF Illiteracy In Singapore?

Be CPF Literate if you want to retire a Millionaire

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Kenneth Lou
Kenneth Lou

23 Oct 2020

Nice one Loo! 👍
Loo Cheng Chuan
Loo Cheng Chuan

24 Oct 2020

Thanks Kenneth!
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HDB BTO

HDB Resale

Loans

Home Loans

CPF

SeedlySOS

I don't like that I am currently paying my HDB with a loan. Should I rush to pay back my housing loan using CPF savings?
Why do you not like it? Is it because you feel uncomfortable living with a debt...? Or is it because you have money sitting in OA while you are servicing a HDB loan? Housing loan is not an expensive debt. If you have money sitting in OA, you can make use of this to invest or transfer to SA for more interest. Locking your money in your house is not recommended unless you can't produce returns of more than 2.6% p.a.

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CPF

Retirement

I’ve recently fully paid up my 4 room Hdb flat. However, have a zero balance on my OA and maybe 20k each in Special & Medisave account. Which level of cpf life will I be entitled to if I pledge my Hdb?
Hi there! I believe you’re asking about the Basic/Full/Enhanced Retirement Sums. To get maximum CPF Life payout, you have to hit the Enhanced Retirement Sum by topping up. Pledging your HDB property will get you the Basic Retirement Sum, which is 50% of the Full Retirement Sum or one-third of the Enhanced Retirement Sum, and pledging your property will NOT give you the maximum CPF LIFE payout, which is the lowest payout compared to the other two sums. That exact figures depend on which year you turn age 55. Which year were you born in?

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Property

Condo

Lifestyle

CPF

I am 29 and single with no plans to get married. Is it worth for me to buy a condo together with my parents who are 56 and 62. I have only $40+K in my CPF OA with a monthly salary of $4K+?
In addition to YJ's question, you also need to check out Hariz's answer regarding affordability https://seedly.sg/questions/will-my-partner-and-i-be-able-to-afford-a-700k-condo-with-our-situation

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Retirement

CPF

My parents' CPF do not meet the Basic Retirement Sum. If I were to start topping up their RA now making use of the Matched Retirement Savings Scheme, how will the monthly payout be decided?
The scheme will start 2021 and matching by government be up to max of 600 per parent (as of now) I would recommend taking advantage of this to the max. For two parents, it's just 1200 per year, or 100 per month. You put in 1200, government put in another 1200. It's a 1 for 1 deal if you are eligible. Normally if people see buy 1 get 1 free in their favourite store, they would just shop liao. I don't see why it should be any different for cpf. You can approach cpf to retrigger the calculation for the monthly cpf payout. I asked before but it was a year ago, and can't remember right now. For 1200 (with govt top-up) per parent, the jump in payout would probably not be that big, but I believe it would probably cover at least two meals per month? If you can't set aside 1.2k, then go for the max you can without reducing what you give them. If you think long term, going for this relief means increasing their monthly payout over time. There is no good reason not to do so.

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CPF

What happens if my CPF contribution exceeds the annual limit?
If you did voluntary contributions, you will get a refund of the excess voluntary contributions without interest. As for mandatory-only contributions, I'm not sure if the excess comes out immediately as cash.

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CPF

When should I top up my SA and MA account?
Hi Anon, CPF interest is calculated monthly. Hence, topping up as early as possible will help to increase the interest earned. One thing that I would like to check is, are you topping up into your CPF or your son's CPF? This will make a difference, as topping up into your person CPF will provide you with tax relief, while topping up your son's will not. If you are after the tax relief as well, then I suggest that you take a look to determine which Calendar Year will you require the tax relief more.

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CPF

CPF SA

Anyone doing the CPF SA top-up for your children?
Hi Anon, I understand where you are coming from regarding this. Personally, I think I would like to do that in the future when I start my family, if I am able to afford it. This will provide my children a headstart, but only towards their retirement years down the road. However, there are some risk to it. - Topups are locked in until your kid hits 55 years old, or any age it might be in the future. - CPF interest rates are not fixed. While our CPF rates had not changed for years, it is possible for the interest rates to change, for better or for worse. Coupled with the first point, you will not be able to do anything should CPF interest rates take a sharp dive in the future. Seedly had an article on this. You can take a look at it to help you come to a conclusion. https://blog.seedly.sg/cpf-hacks-tips-child/

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Investments

Endowus

CPF

Robo-Advisors

What are the returns rates for Endowus like? Is it more than the CPF rate of 2.5% thus far?
Hi, Over a short period of time, it ultimately depends on when you got into the market, but over a long period of time, you can expect 7-9% p.a. for a 100% equities portfolio. Here are my 2 Endowus CPF portfolio returns: This is my main portfolio which I started mainly invested in November Decemeber, January and Feb, and i DCA all my monthly CPF contribution since then. As you can see the returns are not very high due to most of the money being invested pre-crash. ! I invested a smaller lump sum in April just for the fun of it, and the returns figures look fantastic. ! I think it is more important to appreciate that the market is volatile and that it is impossible to time the market. Better to stay invested despite market movements, and get long term returns. On the point of investing your cash with us, sure why not! This will allow you to monitor and manage your portfolio in a single, convenient platform.
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Mortgage Insurance

HDB Resale

CPF

I purchased an HDB resale recently and was contacted by someone from the bank giving me the loan. (More details below). Should I go for the Home Protection Scheme and ignore the cash plans out there?
Hi anon, No harm going for medical underwriting first to see what the outcome is, before deciding whether to proceed or not. Having sufficient death/TPD insurance is important for the loan, and it good that you know that what you currently have is sufficient for the amount. However, note that if you have a whole life with CI coverage, the purpose of such a plan is not for the event of death/TPD. Imagine a situation where you contract a CI, burn through the payout, and then pass away. There would still be insufficient death/TPD cover. So it is plausible to have a standalone plan for death/TPD cover to protect the loan, as the flexibility provided and the ensuring liquidity ensures the surviving family members will have options available to them. HPS only negates the loan and still leaves the family cash strapped.

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