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Withdrawn CPF money in excess of the Minimum Sum.

Wednesday, November 25, 2015

If we have planned well, we should be able to meet and even exceed the CPF Minimum Sum when we reach age 55.

If we should exceed the CPF Minimum Sum at age 55, we would be able to withdraw probably much more than a token $5,000 then.

Hi AK
 
Where is the best place to keep the “untouchable” portion of our retirement money (ex-CPF money)
 
Would be delighted to hear you “talk to yourself”
 
Thanks for a great blog
 
R





Hi R,

It would depend on whether it is our only source of retirement funding. If it is our only source of retirement funding, then, we should not take much risk with it. Fixed deposits with promotional interest rates (e.g. 1.8% interest per annum) are safe options.

If we have other sources of retirement funding, then, this could be seen as extra money. Then, it might not be that "untouchable". We could take a bit of risk investing in REITs and dividend paying blue chips then.

We could always opt to buy annuities too, of course.

You might want to search ASSI for the blog post
"Is it too late to plan for retirement at age 57?" which was published recently.

I am glad you like my blog. :)

Best wishes,
AK


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6 comments:

Goh said...

hi AK!
what do you think about keeping the excess in cpf until its needed, since tgat cpf rates are currently better than fd rates?

AK71 said...

Hi Goh,

I like that idea very much and that is exactly what I would do if I were 55 today. :)

Siew Mun said...

My thoughts, 1. Decide what you want BRS, FRS or ERS. 2. Use the excess CPF to pay off the your home mortage if any 3. Retain the remaining amount in CPF as a war chest.

AK71 said...

Hi Siew Mun,

Always a voice of reason. :)

To be prudent, we should have paid off our housing loan by age 55. I see how some people stretch their home loans till age 75 (not possible now due to property cooling measures) and it is not because they want to take advantage of "good" debt, if you know what I mean, it simply boggles my mind. -.-"

SMK said...

Good chance to accumulate accordia golf trust for you ak. Now 57 cents. Are you buying at this price?

AK71 said...

Hi SMK,

I have the exposure I want to Accordia Golf Trust. So, there is no urgency for me to add. The next distribution is 6 months away and if the unit price should decline more significantly during that time, all else being equal, I could add more.

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