They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

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"E-book" by AK

Second "e-book".

Another free "e-book".

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ASSI's Guest bloggers

Understand the function of each tool in personal finance.

Saturday, July 30, 2016

People get confused sometimes what the CPF is supposed to do. We should be clear what each tool in personal finance is supposed to do for us. Don't be confused.


... May I know how much should I top up my SA cpf by cash if I want to avoid paying tax?

Assi AK
Assi AK

You could do MS Top Up to your SA. Tax relief will be given for the first $7K of top up per year.


Thanks. Tax relief meaning the entire tax payment is waived or only partially waived?

Assi AK
Assi AK

Well, if you taxable income is $20K and you do MS Top Up of $7K, your taxable income becomes $13K.


Alright thanks. Most ordinary folks will not be taxed so much so I think there is no point in topping up. I would also like to learn investment. Where can I start? I am risk averse though.

Assi AK
Assi AK

Risk free? CPF.

Tax savings from CPF MS Top Up is just a sweetener. It should not be the primary motivation.

Learn how to invest? You can start by reading some books. Go to my blog's right side bar and look for the box with the heading "Food for thought".


Thanks AK. Am I right to say that if if I hold the stocks long term e,g. More than 10 years, I will not be making losses?

Assi AK
Assi AK

I don't think anyone can guarantee that...

Related post:
Build a cornerstone in retirement funding.


SMK said...

very nice answers nowadays from ak.

less categorical "1 size fits all" prescriptions.
more fact-based sometimes opinionated but always informed answers.

the above is a compliment.

AK71 said...


I want people to know that I don't have all the answers or at least not the type of answers they often want from me...

STE said...

Nowadays , seems AK's side is having more and better info of Q& A section than CPF Board's website ,,, Gambateh !!!
Cheers ! ๐Ÿ‘๐Ÿฝ๐Ÿ‘๐Ÿฝ

AK71 said...


Alamak. Dun liddat say. I got all the info from CPFB's website de.

SMK said...

there's a whole lot more info from scheduling a meeting with a CPF officer than the CPF website which is archaic to say the least.

Anonymous said...

I believe C has confused taxable income with actual payable income tax.

Dennis Ng said...

Ak is a ambassador from CPF, good job!

AK71 said...

Hi Dennis,

I didn't receive any letter of appointment from CPFB.

So, I am just a kay poh...

Kah May Wong said...

Dear AK,

I salute you for your patience!!

AK71 said...

Hi Kah May,

I am not always patient but I hope I am getting better at it as I age. :)

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