I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday 26 December 2010

Reaching 55 - Your CPF Investment Account?

Upon reaching 55, you will have to decide what to do with your CPF Investment Account as you have the option to continue with your CPF Investment Account or close it.

So it is for you to decide for yourself based on Cost-wise and Interest-wise.

Cost-wise

To close CPF Investment Account and transfer share counters to CDP:
  • One time cost per share counter
    • Central Depository (Pte) Ltd (“CDP”) imposes a transfer fee of $10.70 (inclusive of GST) for every share counter transferred from your CPF Investment Account to your CDP Account.
To maintain CPF Investment Account:
  • Running costs
    • Service Charge: S$2 per counter/unit trust per quarter
    • Transaction Charge: S$2 per 1,000 shares/units or part thereof per transaction, subject to a maximum of S$20
So it is better to consolidate, enlarge and to retain only higher value share counters for the quarterly service charges to be cost-effective.

Interest-wise

This is the most tricky part as money returned to CPF OA after sales of your share counters will continue to earn compound INTEREST at current rate of 2.5% and under current low bank interest rate of less than 1%; this option may look attractive depending on your size of your investment per share counter despite incuring quarterly service charge of $2. So you may have to do your own maths and decide for yourself - to close or not?

Read? Temperament wrote...

No comments:

Post a Comment

Related Posts with Thumbnails