View Full Version : CPF special account what to do??
Frustrating looking at the $$ in special account and cannot touch any suggestion what to do...:confused:
Frustrating looking at the $$ in special account and cannot touch any suggestion what to do...:confused:
dont look. coz its special. ;)
dont look. coz its special. ;)
aiyo frustrating looking at it...see NO touch:banghead:
aiyo frustrating looking at it...see NO touch:banghead:
Thats why its SA. Silently Accumulating:sleep: , you cannot use but in the meantime what happen to the money? what you see is just a number.
Thats why its SA. Silently Accumulating:sleep: , you cannot use but in the meantime what happen to the money? what you see is just a number.
ya i kind of realize that:rolleyes: :doh:
It is reserved for you to buy a GOLDEN coffin, cannot touched! Otherwise you have no Coffin! Remember to set aside GST for coffin! :p
Frustrating looking at the $$ in special account and cannot touch any suggestion what to do...:confused:
sit and suck thumb. that's for Temasek and GIC to squander off in some stupid investment again.
Annual deposit for SRS does not go into SA?
ya i kind of realize that:rolleyes: :doh:
Aiyah is a force saving. with interest. take it as long term fix deposit.
Annual deposit for SRS does not go into SA?
No. SRS is even worse, you cannot touch it out until 62(65 now?).
but, you can use it to buy shares.
Frustrating looking at the $$ in special account and cannot touch any suggestion what to do...:confused:
Good question! What is SA for har??? Asked so many ppl with no answer!
shareidiot
21-05-13, 13:23
Some more when your MA hits the ceiling, the spillover of the monthly contribution will go to SA. Yes, Silently Accumulating ..... :sleep:
Always wonder what can we do with it (SA) during when we are ALIVE .... die also cannot spell it
The money is for our next of kin or nominee when we pass on.
The money is for our next of kin or nominee when we pass on.
is the monies given in cash to the nominee or merely transferred to the nominee's CPF account?
thomastansb
21-05-13, 14:36
Ya, agree. All the older folks say SA and MA is for coffin.
Anyway, don't take it out. No point. 5% interest is pretty high and is guaranteed. Just relax, earn interest, hope Singapore do well in the next 20-30 years and enjoy your CPF LIFE.
It is reserved for you to buy a GOLDEN coffin, cannot touched! Otherwise you have no Coffin! Remember to set aside GST for coffin! :p
is the monies given in cash to the nominee or merely transferred to the nominee's CPF account?
SA can take out cash (presently), MA transfer to nominee's CPF MA ac
thomastansb
21-05-13, 14:39
It is for your retirement.
After the age of 65 (they might raise it to 70, 75, 80 or 100 :D, who knows), you can start drawing a monthly annuity called CPF LIFE.
So at the age of 55 or 60 (can't remember), they will pool your remaining OA + SA into CPF LIFE. This CPF LIFE will last you for your entire life. So if you live until 200 years old, good for you. If you die young, then too bad. Whatever that is unused, your family will get the remaining back lor (depends on the plan you choose also).
Good question! What is SA for har??? Asked so many ppl with no answer!
No. SRS is even worse, you cannot touch it out until 62(65 now?).
but, you can use it to buy shares.
can take out wat.. 5% penalty . but u get tax off. so u want something u have to give something. no free lunch.
It do help people plan for tax. the middle income folks who want to defer some tax. and invest .
Thus its call retirement saving ba.
I called up cpf and they said assuming you have more than 70K in SA, you can pledge using your property and the sum in excess of 70K can be used for property. So if you have 100K in SA, you can use 30K for property. Correct?
I called up cpf and they said assuming you have more than 70K in SA, you can pledge using your property and the sum in excess of 70K can be used for property. So if you have 100K in SA, you can use 30K for property. Correct?
Too good to be true.
Regulators
21-05-13, 18:28
Send more opposition into parliament next election to fight for your money. No point putting money in useless cpf
Frustrating looking at the $$ in special account and cannot touch any suggestion what to do...:confused:
phantom_opera
21-05-13, 21:18
I called up cpf and they said assuming you have more than 70K in SA, you can pledge using your property and the sum in excess of 70K can be used for property. So if you have 100K in SA, you can use 30K for property. Correct?
i think u made a mistake ... like that our property price will be 20% higher ... many ppl at age of 40 their CPF SA already > 139k (CPF SA min sum) still cannot touch
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"In general, if you have a personal annuity or a pension that provides a higher payout than from CPF LIFE, you need not be placed on CPF LIFE."
http://mycpf.cpf.gov.sg/NR/rdonlyres/09EA0C05-C8E9-4705-9D91-E8BD1D12CF1E/0/LIFEBrochure.pdf
So if you buy a private annuity paying something like S$1.5K per month, you can take out all your CPF SA money at age 55. (Check with CPF Board to see whether you annuity is considered as sufficient.)
i think u made a mistake ... like that our property price will be 20% higher ... many ppl at age of 40 their CPF SA already > 139k (CPF SA min sum) still cannot touch
Hmm. The example I gave was what the person from cpf told me. Perhaps I understood wrongly. What about those that hit the age of 55? They only need to keep half of minimum sum and can withdraw the rest. Does it mean they can take out everything except 50% min. sum and medisave? In that case, anyone with say 200K SA can withdraw approx. 130K upon reaching 55. They can then use the 130K for anything. This is also what I heard from cpf and perhaps I may have misunderstood this as well?:confused: :confused:
phantom_opera
21-05-13, 23:23
Hmm. The example I gave was what the person from cpf told me. Perhaps I understood wrongly. What about those that hit the age of 55? They only need to keep half of minimum sum and can withdraw the rest. Does it mean they can take out everything except 50% min. sum and medisave? In that case, anyone with say 200K SA can withdraw approx. 130K upon reaching 55. They can then use the 130K for anything. This is also what I heard from cpf and perhaps I may have misunderstood this as well?:confused: :confused:
i thought your SA min sum will be auto commit to annuity .. do they give any choice at all?? I am more than happy to have a choice in that case
NorthernStar
21-05-13, 23:29
I called up cpf and they said assuming you have more than 70K in SA, you can pledge using your property and the sum in excess of 70K can be used for property. So if you have 100K in SA, you can use 30K for property. Correct?
I guess it is when ur combined SA + OA > 50% of the required min Sum. U can draw the money out from OA account for ur 2nd property. So if u hv > 70k in SA but $0 in OA. U can't use it.
For 1st property, u can use full amount of OA.
SA cannot used to buy property.
I guess it is when ur combined SA + OA > 50% of the required min Sum. U can draw the money out from OA account for ur 2nd property. So if u hv > 70k in SA but $0 in OA. U can't use it.
For 1st property, u can use full amount of OA.
SA cannot used to buy property.
I think I must have misunderstood then. From several responses here, I think the bottomline is SA cannot be used.
Does anyone by chance withdrew your cpf in excess of 50% of minimum sum upon reaching 55? Can share whether it's true that you can take out everything (including SA) in cash except leaving behind 50% minimum sum and medisave?
i thought your SA min sum will be auto commit to annuity .. do they give any choice at all?? I am more than happy to have a choice in that case
Yes, they told me minimum sum is auto commit to annuity but I am referring to the excess of minimum sum. Regardless, the responses here indicate that regardless of minimum sum, SA cannot be used for 2nd prop.
felicia_sg
22-05-13, 00:09
aiyo, all private ones will peg to CPF Life, back to square one, all very lousy return!
"In general, if you have a personal annuity or a pension that provides a higher payout than from CPF LIFE, you need not be placed on CPF LIFE."
http://mycpf.cpf.gov.sg/NR/rdonlyres/09EA0C05-C8E9-4705-9D91-E8BD1D12CF1E/0/LIFEBrochure.pdf
So if you buy a private annuity paying something like S$1.5K per month, you can take out all your CPF SA money at age 55. (Check with CPF Board to see whether you annuity is considered as sufficient.)
Yes, they told me minimum sum is auto commit to annuity but I am referring to the excess of minimum sum. Regardless, the responses here indicate that regardless of minimum sum, SA cannot be used for 2nd prop.Not sure 2nd property or 1st property but heard that if you OA has insufficient funds to deduct for mortgage loan, cpf will activate the SA to take over OA. Not too sure about the details! :rolleyes:
NorthernStar
22-05-13, 07:39
I think I must have misunderstood then. From several responses here, I think the bottomline is SA cannot be used.
Does anyone by chance withdrew your cpf in excess of 50% of minimum sum upon reaching 55? Can share whether it's true that you can take out everything (including SA) in cash except leaving behind 50% minimum sum and medisave?
I think there is a chance that you can leave 50% min sum in CPF and take out the rest if you pledge your house with CPF @ age 55. This depend on whether is the house fully paid or still have outstanding loan, values of the house, and your CPF contribution into the house.
http://ask-us.cpf.gov.sg/efa/cs/idcplg?IdcService=GET_FILE&RevisionSelectionMethod=LatestReleased&dDocName=EFA_000046&Rendition=Primary&allowInterrupt=1&noSaveAs=1
NorthernStar
22-05-13, 07:49
Not sure 2nd property or 1st property but heard that if you OA has insufficient funds to deduct for mortgage loan, cpf will activate the SA to take over OA. Not too sure about the details! :rolleyes:
From CPF:
Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:
- Your property is bought before 1 October 2003; and
- The balance in your Ordinary Account has been used up.
So, i guess NOPE if u bought property after Nov 2003..
phantom_opera
22-05-13, 08:30
overflow of mortgage payment by CPF SA has cap I think 2xx only monthly
overflow of mortgage payment by CPF SA has cap I think 2xx only monthly
Not sure about this. I have had 6xx or 7xx deducted from the SA for mortgage sometimes.
From CPF:
Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:
- Your property is bought before 1 October 2003; and
- The balance in your Ordinary Account has been used up.
So, i guess NOPE if u bought property after Nov 2003..
blady joke policy better say if you bought your property before 1950:doh:
why must put all these stupid dates property is property la:doh:
From CPF:
Q: Can I use the savings in my Special Account to pay my monthly housing instalments?
A:
From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes, provided you meet the following conditions:
- Your property is bought before 1 October 2003; and
- The balance in your Ordinary Account has been used up.
So, i guess NOPE if u bought property after Nov 2003..Thanks for the information. Did something major happened on 1 Oct 2003?
http://mycpf.cpf.gov.sg/cpf/news/InTouch/NL_042003.asp
From 1 October 2003, the employer’s CPF contribution rate will be cut by 3 percentage points.
Minimum Sum was introduced in 2003.
blady joke policy better say if you bought your property before 1950:doh:
why must put all these stupid dates property is property la:doh:
Guess you are "young" man. We need to go back in time to slightly before 1 Oct 2003. The cut off date is to provide policy continuity. Before that, there was no such thing called Minimum Sum.
Every much like SSD has a cut off date. Before that, there was no SSD.
http://mycpf.cpf.gov.sg/cpf/news/InTouch/NL_042003.asp
From 1 October 2003, the employer’s CPF contribution rate will be cut by 3 percentage points.Thank you for your valuable revelation... :cheers6:
phantom_opera
22-05-13, 22:20
there is definitely a cap which is linked to that 3% point of lowered employer contribution
but u know there is CPF contribution ceiling of 4.5-6k back then ... so 4,500 X 3% = 135 (or $6,000 x 3% = $180)??
how can it be as high as 600-700?
phantom_opera
22-05-13, 22:26
bloody hell ...
http://mycpf.cpf.gov.sg/NR/rdonlyres/BF2EA249-5936-45C3-BFA7-A3AFC0D25842/0/CPFChange3.gif
phantom_opera
22-05-13, 22:34
I checked out my 2008 cpf statement .. there was once my CPF OA dropped to zero so they deducted 201 from my CPF SA ... so my cap was 201 (and I remembered I paid cash for the shortfall that month)
Really don't know how they calculate ... :beats-me-man:
Ha ha ha!
Isn't this similar to telling people implement GST to help the poor?
Ok ok, help the poor or not we don't know for sure, but 2 things are certain:
1) Top earners and businessmen saved 13% taxes.
2) Majority middle-incomers who get hit and become the "new poor" get nothing (definitely pay more GST than get they get anything)! :doh:
bloody hell ...
http://mycpf.cpf.gov.sg/NR/rdonlyres/BF2EA249-5936-45C3-BFA7-A3AFC0D25842/0/CPFChange3.gif
Hope Office Boy can share some thoughts on this CPF SA.
I also thought of finding ways to make better use of this monies.
So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.
To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.
Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?
DKSG
http://therealsingapore.com/sites/default/files/field/image/demon-cratic-singapores-page-cpf.jpg
Hope Office Boy can share some thoughts on this CPF SA.
I also thought of finding ways to make better use of this monies.
So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.
To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.
Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?
DKSG
I don't think it's worth it at this point in time.
However, there have been opportunities in the past to make significantly higher than the 4%. For example, during SARS period, if one had bought certain CPF-SA approved funds, example NTUC Trust Fund (now renamed Singapore Managed Fund) or Franklin Templeton Global Balanced Fund, it was possible to have made good gains in the following years. I can't remember the history for the FT fund, but for the Trust Fund, if you continued to hold it through and beyond the Lehman period, it would still have been OK and beaten the 4% compounded of the SA.
Those who are keen to beat the guaranteed 4% of the SA, wait for a deep deep crisis, then buy a balanced fund with a decent track record and hold on for the rebound. It is "safer" if you are younger, therefore having a longer period of time for the recovery and upturn. If you are near retirement, then it is prudent to hang onto the "guaranteed" 4%.
My :2cents:
Another tip: Don't buy Capital Guaranteed Funds. Their returns are miserable, not much above the amount guaranteed. And after factoring in the sales charge, you could be in the red when they mature. And you have no control over their maturity date.
Furthermore, please read the fine print of so-called Capital Guaranteed products and try to figure out how they are invested. The notorious "Mini-bonds" were touted as some sort of capital guaranteed product (I remember being stopped outside DBS and given this kind of spiel about it).
The 4% guarantee rate will be gone soon right? When are they pegging to 10 years gov bond?
Hope Office Boy can share some thoughts on this CPF SA.
I also thought of finding ways to make better use of this monies.
So I contact some fund managers, insurance agents, etc to see what can they do. Of course, they were elated and came up with various products.
To cut the story short, after evaluating all their products, I decide that for me to take out something that is 4-5% Guaranteed, Die Die Will Get Risk Free Rate to invest in something risky (like shares - remember Lehman?), I will need at least another 5% to make it worth the while. But at 10% return, you will not be able to find anything decent.
Also remember this, some shares or even Reits are paying slightly higher than 4-5% return only! So why give up a 4-5% interest to buy something risky that pays you only 2% more ? Worth it ?
DKSG
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