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Friday, 16 June 2017

The Secret Behind $33K CPF Accounts Interests on Jan 2017


Read? My CPF : Like It or Hate It!!!







What is the secret behind $33K CPF accounts interests on Jan 2017?







Doing yearly voluntary CPF contributions?

No!


The secret is  ......













Buy a smaller home when you can comfortably afford a bigger one with your CPF OA balance at the time of purchase and then LIVE (not stay) happily in that home till your retirement.


No need for any voluntary CPF contributions and that is Uncle8888's secret!

Nothing extraordinary about it!













11 comments:

  1. Bravo Uncle CW !!๐Ÿ‘๐Ÿ‘๐Ÿ‘๐Ÿฝ๐Ÿ‘๐Ÿฝ
    Compounding Effect... The eighth wonder of the world !!! :-)
    Cheers !!!

    ReplyDelete
    Replies
    1. That prove even with low single digit 2.5% CAGR over 40 years can work wonder too

      Delete
  2. Even better if can afford to use take home pay for mortgage instead of CPF! Kekeke!!!

    But may be too much for most young couples now...

    2nd secret? Having a long career that pays well!! Hahaha!!! :) :)

    ReplyDelete
    Replies
    1. 2nd secret? Having a long career that pays well <--- First path in our journey of saving/investing

      Delete
  3. Wow thats a nice huge interest every year.

    ReplyDelete
    Replies
    1. I think some people or most people never anticipate this type of "self annuity"

      Again how much can you withdraw from this Total Interest per annum?

      I am sure a lot of people like to know.

      CW care to confirm with CPF again.

      The last time, CPF seemed to give conflicting answers from different CPF's Branches.

      Delete
    2. The asnwer will be clear in Dec 2017 and Jan 2018. Patiently wait for another 6 and 7 months

      Delete
    3. Kekekeke!!! Uncle CW should have already met the Minimum Sum for his cohort!! :)

      So whatever left in his SA & OA can be utilized to milk the annual interest.

      If do partial CPF withdrawal, they will withdraw the interests from SA & OA first, and then from the main balance in SA, and lastly from OA.

      From CPF Website, they said the interest will be from start of the year till the previous month.

      So if go in Dec, the interest will be from Jan-Nov only.

      So to get full year interest from Jan-Dec, have to go in Jan???
      But how to stop CPF from crediting the interests into the main balances of both SA / OA on 31st Dec????

      If go in Jan will basically be extracting the interest credited into the main balance of SA only??

      Cannot extract from OA becoz need to clear SA before can touch OA???? Aiyoh blur liao!!! Hahahaha!!!!

      Delete
  4. Quote ...No need for any voluntary CPF contributions and that is Uncle8888's secret!

    Nothing extraordinary about it!...unquote

    It is extraordinary because you need will power to withstand the material needs even you can afford to do so (wife nagging as well).

    ReplyDelete
  5. May I do some ball park calculation of $33K interest?

    Assume SA 148K, MA 40K; interest is $6.6K and $1.6K respectively.

    Remainder interest $24.8K is from OA. Thus, OA amount is $992K.

    W O W !!!


    ReplyDelete

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