Anonymous

04 Aug 2020

∙

Should I max out 7k+7k VC for SA to reach FRS asap or use that 14k to invest in global equities instead?

Comparing 4% illiquidity VS 10% annual returns 3% SWR

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Cedric Jamie Soh

24 Apr 2020

Director at Seniorcare.com.sg

I would NOT top up CPF for the illiquidity reasons you mentioned.

4% is nothing if you cannot use the CPF money for your private uses.

The 2nd reason is also very valid, if you can get higher returns than 4%, why do a non-reversable transfer to CPF? The only thing you need to focus on is that the higher returns is only valid for long term, so be prepared for short term swings that may be unpleasant compared to the "stability of 4% yearly".

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If my CPF SA account is already at FRS ($181k), can i deploy or invest some money from SA account so that the SA sum is below FRS amount and then top up $7k cash to qualify for tax exemption?

Which platform should I use to invest in global ETFs? Thinking of investing quarter-annually at about $3-5k for long term. Any advice?

Would like to check if I top up $7K to my CPF SA account, does it mean that I could only top up to $8.3K in SRS so that I max out $15.3K maximum contribution per SRS limit for tax deduction?

If I have topped up 7k for RSTU early this Jan and then after I do a transfer from OA to SA to reach FRS, will there still be a tax relief of 7k next year, 2022?

How can I max my SA if CPF says I am unable to contribute $7k cash top up to my SA as it has already met the minimum retirement sum (currently $100+k)?