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CPF

Every Singaporean's contribution till 55 and beyond

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Wedding

Resale HDB

CPF

Savings

Do you start talking to your gf/bf about finance before or after getting proposed to?
Daniel Kok
Daniel Kok
Level 5. Genius
Answered 12h ago
I was together with my current wife for 5 years before proposing so we had long enough time to discuss. good thing is we were very much aligned in life's direction and spending habit's so there wasn't anything much to worry before. An advice would be to discuss and plan your finances before taking the relationship to the next level :)

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CPF

Investments

Retirement

Hi I would like to find out about the various strategies that people use for investing with CPF-OA?
D
Deedee
Level 5. Genius
Answered 2d ago
Hi anon! Few years back I invested via my insurer into First State Dividend Adv A to grow the returns so I can make a higher downpayment on my bto upon key collection. Mistake I did was to trust my agent and blindly invest =x Luckily though, the returns are ~10% +/- What I didn't know was that there were sales charges (which fortunately would be 0 from 1 Oct 2020 if I'm not wrong), ongoing trailer/platform charges of 0.4% (I think) plus every quarter cpf would deduct $2.14 for the investments. I haven't quite calculated my total growth but since the returns are still double digit and my key collection delayed, I am taking my time to research then decide if I will continue with it or to withdraw and then invest via endowus which has lower fees, or withdraw to reduce loan amount.. All these is because my partner and I haven't decided what to do with our bto.. Whether we will stay till retirement or to sell after MOP.. And whether to service via cpf or cash or both haha. There's a lot to think about but I think I will periodically invest maybe every year or few years lump sum. Go global to diversify :)

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4

Home Loan

HDB BTO

Resale HDB

CPF

Does HDB loan always mean less downpayment compared to bank loan? Since we are forced to wipe out our entire OA savings upfront to reduce the mortgage loan (with the option to keep 20k).?
I think the main difference is, HDB has a fixed interest at 2.6% no matter the condition of the economy. Bank interest rate may be lower than HDB loan now, but it fluctuates depending on the economy i guess? I dont know how the ecnomics work but thats what I understand. So I would rather have a stable interest rate throhgout my loan years than having a unstable interest rate that the banks are offering. Banks of course you can re finance and change to other banks but the rates are usuallly about there lah so to save the hassle i stick to HDB loan. Just my opinion, Im no property agent or financial advisor hehe :)

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2

CPF

CPF SA

Investments

Lifestyle

My dad,51 yo is a taxi driver as this are his CPF values: OA: 0 (emptied to pay for house) SA: 43k MA: 59k Are there any CPF strategies for him situation?
Dare to Finance
Dare to Finance
Level 3. Wonderkid
Answered 2d ago
Hello! In my opinion, there is no easy solution to this problem. It will be almost impossible for him to meet the Basic Retirement Sum (BRS) now. Although you could top up to his SA to meet the BRS but you would need a big sum of money. As far as I know, if he did not manage to meet the BRS, his payout would be pro-rated. Alternatively, you can help him to source for additional income streams so that it can help with his retirement. 1) Downgrade your house. It is not an easy option but have a chat with him. House isn't an asset if it doesn't generate income. By downgrading the house part of the $$ would be pumped back into the OA which can help him to meet the BRS. 2) Rent out one of the room. 3) Buy a annuity plan. An annuity plan is a special type of endowment that provide periodic payouts very much like CPFLife. Such plan would be of great help as it can provide guaranteed monthly payout once your father retired. (if you wish to learn more about this. Feel free to pm me.) Personally, my father is a similar situation as your father except he is 61 now, has no savings, and forced to retire due to parkinson disease. I'm a financial advisor (but im still in uni) and my brother is working now. So what we are doing now is to split the cost of my father retirement together. It is definitely not easy to be in the sandwich generation but let's us do our proper financial planning to break this cycle of relying the next generation for retirement =).

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7

CPF

Income Tax

Retirement

If my taxable income is at 40k, and by topping up my SA account with $x (up to 7k), does it mean that my Returns is effectively 3.5% (from tax relief) + 4% (from SA)?
Hi anon, Yes, for that year. You'll get 3.5% savings on your tax plus 4% on your top up, so effectively 7.5%. This is followed by 4% on your SA in the years after that since tax relief is only granted for that year that you top up. It's good that you are looking towards beefing up your SA. People say that the FRS amount is hard to reach, but all your need is time and compounding. You don't have to get there in 5 years or 10 years, but give yourself 20 years and you'll likely get there.

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3

Property

CPF

If parents are above age 55, should they withdraw money from CPF to pay for housing in order to avoid incurring accrued interest? Instead of using CPF to pay directly.?
Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered 3d ago
Hi Anon, Accrued interest is just a way for CPF to ensure that Singaporeans have enough saved up for retirement when they sell the property. If your parents are 55 years old, CPF is effectively a high interest savings account that has daily liquidity for them. If your parents have cash sitting in the bank earning a paltry interest, you should encourage them to do a voluntary refund into CPF and earn the higher interest. I encourage you to read more in our article here: https://sg.endow.us/2FVvbew

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CPF

DBS Vickers Securities

FSMOne Fundsupermart

PhillipCapital (POEMS)

Hi what's the difference between SPDR® Gold MiniShares or SPDR Gold Shares? I can buy shares of SPDR Gold using CPF? How do i do it? I have DBS vickers and FSM and poems account.?
I think you can only buy SGX shares using CPF. I bought some SGX shares using my cpf funds. There is a list of stocks you can buy using cpf, you cannot buy it from other markets. (I KNOW RIGHT, WHAT A BUMMER) SPDR is under US market so unless, DBS app allows you to buy it, its possible but if its not possible, then no choice can only buy from the list of "approved" stocks using your CPF funds. (Rant : in my opinion nobody should control what we can or cannot buy, whoever is in charge of that who is reading this, please consider changing that rule, we already give in part of our salary to you, so please adopt a win win situation for the citizens)

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CPF

Retirement

Savings

What if CPF RA exceed Enhanced Retirement Sum (ERS) at age 55? If choose not to withdraw, how much CPF life can pay? Using 1M65 as an example, how much CPF life pays based on 1million balance at 65?
Hi JTan, I believe that the maximum you can top up your RA to at 55 is the year's prevailing ERS. After that, you'll continue to grow the RA monies via interest paid to that account, which, if you have ERS, should oustrip the rate of increase of the ERS. The rest of your monies would then reside in SA/OA/MA, depending on your account balances. With the CPF SA shielding trick, you could easily end up with $500K across your SA and RA at 55 and that will be quite a good safety net. With CPF LIFE paying you from 65, and leaving money in SA to compound at 4%, you'll have 2 guaranteed sources of money when you retire, CPF LIFE plus interest/interest+principal withdrawals from your SA. I personally am aiming to rely on CPF as the first layer of guaranteed income, but will definitely have more layers built on top of that.

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3

CPF

Retirement

Endowus

Ultimate Hacks: Adulting

Which is better in term of building up a retirement nest in CPF - RSTU vs VC3A?
Hi Samantha! On topping up CPF Hope you have considered the trade-offs between illiquidity of CPF monies, CPF returns and the tax savings you can get from Retirement Sum Top Up. SA Top up monies cannot be withdrawn, cannot be invested (so cannot be used for SA shielding) but will form part of your BRS. On investing your CPF with Endowus Thank you for considering us! Want to share my personal views on this. As a 31yo middle income single male, with no ambition of buying my own private property, I should be able to 1. buy a BTO 2br flexi if I am still single at 35 2. stop my investments and save up my CPF OA monies for my housing payments if I were to settle down. I intend to be more aggressive with my own investments/money management because I am disciplined enough to plan to the dollar. This may not work for you though. Your decision process Your own decision making depends on 1. how much you are going to spend on housing 2. how fast you accumulate your CPF OA moving forward I think it is better to invest very long term through Endowus to maximise your chance of success. You may want to understand more about the trade-offs of financing your property with CPF to help you make a better decision. I wrote this article for people like us! https://sg.endow.us/2FVvbew

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Endowus

Investments

CPF IS

CPF

Unit Trust

Investments in Endowus, is capped by the 35% CPFIS-OA limit?
Endowus
Endowus
Updated 4d ago
Hi Anon, You are right, Endowus helps you invest in Unit trusts, and you can invest all your investible CPF (anything above $20,000) with us. You can read more about why Endowus is a great CPFIS investment solution here:

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