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CPF

Every Singaporean's contribution till 55 and beyond

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PFF Panel 2

Seedly PFF 2019

CPF

You can consider using this from CPF Board to calculate: https://www.cpf.gov.sg/eSvc/Web/Schemes/LifeEstimator/LifeEstimator

CPF

PFF Panel 1

Seedly PFF 2019

You should consider paying in CPF first. Using cash to pay off your loan is not a good idea as your home is an illiquid asset, hard to convert back to cash when you need it urgently in times of need like medical emergencies or loss of job. Consider putting your money in other areas, like investments or bonds or even high-interest savings account.

PFF Panel 1

CPF

Seedly PFF 2019

Hi Anon, I'm assuming you're refering to SA instead of RA as mentioned in your question. Personally, I would not advice on that unless you are very certain that you are not going to buy a property in Singapore and going to retire in Malaysia for sure. I would suggest that you should still keep the money in your OA where it is, in case your plans change where you decide to buy a property in Singapore, as you can't reverse the transfer. Alternatively, you can consider investing your OA monies for higher returns. There are many products in the market that you can consider. Do take note that investments are non guaranteed and there will be charges involved.

CPF

Loans

Education

Lifestyle

Pay off the lump sum, IF you can afford it. No point paying extra interest. The faster you pay off, the money gets back into your parents CPF account which in turn will grow at the prevailing CPF rates.

Investments

CPF

Savings

Hi, 1) You'll have to go back to the broker you opened the investment account with to check. (I assume you are talking about a trading account) Most of the time the account will still be there, and probably just needs a reset of password to be usable again. 2) Do you mean you currently have an Asian fund that is already invested via CPF OA monies but hasn't changed value much? Then you are already set up to invest via CPF OA. I don't recommend using CPF SA to invest due to the high interest. If that is not the case, you need to open a CPF OA investment account with any local bank to invest CPF OA monies. 3) I'd recommend looking for an independent financial advisor who carries a wide range of products, so as to have better access to the instruments on the market. Have a conversation with them and see who you are comfortable to work with.

Bank Account

CPF

Savings

Lifestyle

Hi anon, I would recommend that you open an SRS account first to lock in the withdrawal age to this year's prevailing retirement age, which is 62. You can just put a dollar in first when opening. Beyond that, you are unlikely to require the tax benefits of an SRS account at this point in time. SRS is usually useful when you are in the 7% tax bracket and above. However, in time as your salary grows, SRS may be of use to you. Eventually, should you utilize your SRS account, you just need to note the key points, namely, no early withdrawal from SRS until retirement age, 10 years to withdraw the funds/monies inside, and only 50% of the withdrawal is considered income for that year. You are probably at a point where SRS will not be required, but there is no harm in preparing for the day when you need it. There is probably a place in any one's retirement planning for SRS, but that also largely depends on a person's earnings.

Retirement

Savings

Stocks Discussion

CPF

Insurance

Hi Adam. It helps to know what you are RSP-ing into, it could be UTs, or even shares/ETF. As I do not know what you have, my advice to diversify would be to consider looking at other asset classes. If you have been doing Share RSP, consider UT RSP, and vice versa. At the same time, take a look at your current portfolio that you have build, and see if there is a need to rebalance the portfolio. To hedge investment risk, consider setting aside money monthly into a riskless product such as an annuity. The process is similar to RSP, just that the asset class is different from what you have been doing. Ultimately we want to build a portfolio that has a good mix of safe, stable assets, and some assets that are exposed to market risk in order to have an element of growth. On the insurance aspect, if you have not had any major changes in your life, then the need to review your coverage is likely to be lower. However if there have been significant changes since you bought the policies, it would be prudent to get a second opinion. Also, in some cases, insurance premiums have come down over the years, especially on a term, so there might be a potential to retain your coverage but pay a lower premium, freeing up your cash flow to invest/save more. For SGS bonds, they are safe, so no problem holding on to them. Just be aware of the proportion of your investment portfolio that they take up. Based on your question, I am unable to give too specific advice due to the limited information provided. It would be helpful to know your portfolio so that more detailed advice may be given, so you may consider speaking to an independent advisor like myself to get advice on how to improve moving forward.

CPF

Savings

Retirement

Healthcare

Endowment Policies

Hi anon, I'm very sorry to hear about what your son went through, as well as the emotional pain as parents that you would have endured. In light of this, topping up of his MA and SA will be a good choice as the interest earned in MA and SA can snowball to a significant amount when he reaches the age where he can start to withdraw from SA (30 years from now), or when he will start to get payouts from CPF life (40 years from now). This is provided that there are no policy changes. MA interest is credited to SA when SA is full, and that helps compounds SA faster. When SA is also full, MA interest will credit to OA. SA interest will stay in SA. Thanks to compounding, this will give your son a good basic source of guaranteed income in his later years. Naturally, you'll want to make sure any of your own risks are mitigated as well, i.e. death/TPD/CI/Long Term Care on yourselves, and your own plans for your retirement. I would like to point out that an endowment plan will be paying out in a lump sum, whereas a retirement plan would pay him a stream of income for a certain period. Assuming that you are looking for the former, there are many insurers that offer endowment plans (fixed maturity date), and some have perpetual endowment plans whereby the money in the plan will keep growing and you can choose to cash out when you need it (don't cash out too soon though). To do a proper and fair comparison, I would need to look at what samples in detail were given to you from the other insurers so that I can benchmark properly. If it is actually the latter you are looking for, again, to run a fair comparison, we would need to see the options available and 'equalize' them in terms of premium, duration, etc. As I am from an independent advisory firm carrying multiple insurer products, I would be able to provide you with the comparison that you need to understand your options better and eventually reach a decision. To maintain privacy, feel free to reach out to me at [email protected] and we can converse there.

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CPF

Supplementary Retirement Scheme (SRS)

You need to understand the different eligibility for tax relief Employee 1) Voluntary contribution to MA account (Medisave up to BHS) 2) Mandotry contribution (automatically calculated) Self employed 1) Voluntary contribution to CPF account (tax relief allowable up to $37,740, or basically 17 times of the monthly pay limit of current $6,000). So could you elaborate what you mean by the $14,000? If you meant RSTU, its a limit seperate from the Voluntary Contribution of $37,740 for CPF.

Retirement

CPF

Supplementary Retirement Scheme (SRS)

Elijah Lee
Elijah Lee
Top Contributor

Top Contributor (Sep)

Level 9. God of Wisdom
Updated on 15 Jun 2019
Yes, definitely. You can open the account online too, I did that with mine (DBS). No need to walk in to any branch. That saves you time.
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