As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Friday, 17 March 2017

Some CPF Matters : Understanding It Better By Actually Going Through The ProcessTo Do It (3)


Read? Some CPF Matters : Understanding It Better By Actually Going Through The ProcessTo Do It (2)

Read? Optimising Your CPF For Retirement (2)

You can't ask Uncle8888 on these two questions for his view anymore at kopi session as to be fair to those 80 participants paying and also used their precious time to attend last night talk. He has decided to embargo these two questions till end Apr 2017.



(1) SHOULD I TRANSFER CPF OA TO SA TO EARN AN ADDITIONAL 1.5% COMPOUNDING INTEREST?

(2) SHOULD I DO VOLUNTARY CASH TOP UP TO MY CPF?



16 comments:

  1. CW,

    Hello! Put a time frame to your embargo lah!

    If not, you can't blog or talk about the above 2 topics forever and ever you know?


    I not sure how much they paid you, but I know its too cheap to entail forever and ever!



    Readers out there no worries!

    Just as long you jio me along for kopi, you can still ask CW the above 2 topics even if there's a life time embargo.

    There's a loop hole. CW can't answer but I can answer on his behalf mah!

    I don't call myself a man-whore for nothing. I super cheap!

    Remember 1 kopi hor!


    ReplyDelete
  2. Uncle,

    I agree with SMOL. I know you want to be fair.

    But looking at the amount the attendee paid, multiple by the total attendees and divided by number of presenters, I have excluded the topics covered by each presenter, the embargo should not be forever. Anyway people asking you and SMOL for coffee is also spending their time with you.

    There could be reasons for not attending the conference. e.g. timing issue

    ReplyDelete

  3. If OA accumulate too much no good - only 2.5%/12 per month(that's it no interest on interest)

    Using OA to invest in stocks in CPFIS no guaranteed you get get 4% risk free as in SA.

    Maybe not even 2.5%

    If SA reach MAX, then on monthly basis, the excess interest will be transfer to OA.

    Check with CPF please.

    ReplyDelete
    Replies
    1. CPF SA got max? Don't think so. Just can't do cash SA top up when SA reaches FRS.

      Delete
    2. Sorry,

      i am talking about people below 55 who have too much OA can transfer to SA.

      But be careful it's irreversible.

      During my working time already in practice.

      i did it more than one time.

      Whether can top up with cash to SA, i am not sure; cause i have never done it.

      i did see excess fund from my SA transfer back to my OA once SA reach MAX for that year.

      But SA MAX can change from year to year until you are 55.

      Is the SA goal post shifted now for people below 55?

      Delete
    3. CPF is not stupid to let members taking advantage of 1.5% compounding edge. Like that high income earners become richer.

      It is not MAX SA. It is FRS that is shifting goal post. Inflation! Bo pian! This afternoon drank kopi-o. Up 10 cts liao!

      Delete
    4. And MA can change year to year (aka the max limit) until you are 65.

      Delete
    5. In other word; you can't brutal force your SA beyond FRS even you are richer than ordinary folks; but you want more SA; continue working :-)

      Delete
    6. I have checked with the Institute of Financial Literacy. After SA reaches the prevailing FRS, the interest earned in SA will still be credited to the SA.

      Delete
    7. That is correct understanding as I hit FRS (during my pre-55 era it was known MSS but interests from MA above max was credited to CPF OA)

      Remember that I am financial statement rubbish collector. Every year I record down principal and interests for OA, SA and MA and after 55 OA, SA, MA and RA.

      Delete


  4. CPF Changes

    1 January 2008
    CPF Reforms and Other Changes: More $ For Your Retirement

    Your CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. In 2008 and 2009, Special, Medisave and Retirement Account savings will earn a guaranteed minimum 4% interest. In addition, the first $60,000 in your combined CPF balances, with up to $20,000 from your Ordinary Account, will earn an extra 1% interest.

    Extra 1% Interest ​


    To earn more interest, consider the following:

    "If you are currently below age 55:
    Leave your CPF savings in your accounts to earn the extra interest.
    Transfer savings from your Ordinary Account (OA) to the Special Account (SA).
    Make a voluntary cash contribution."

    Just copy from the WEB dated 2008/2009. ​

    ReplyDelete
    Replies
    1. That's why there is a MAX limit (cut of point) for SA for year to year.

      Delete
  5. Hello temperament and CW,

    If CPF is a minor part of our overall net worth, we are immune to shifting of goal posts.

    If CPF is a major part of our retirement funds, then we are still in the matrix...

    What's the point to nickel and dime our CPF when we have not removed the shackles?





    ReplyDelete

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