tag:blogger.com,1999:blog-7944902213075756335.post1226589223798022576..comments2024-03-28T23:00:40.055+08:00Comments on A Singaporean Stocks Investor (ASSI): Tea with Vic: Transferring funds from OA to SA?AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-7944902213075756335.post-50074273595760039572014-04-12T03:21:00.051+08:002014-04-12T03:21:00.051+08:00"The amount of L-Bonus that a member is eligi..."The amount of L-Bonus that a member is eligible for is dependent on his age, the balance in his Retirement Account which would be committed to CPF LIFE, his annual Assessable Income (AI) and the Annual Value (AV) of his home."<br /><br />what i can deduce is, if you have better rental property and has good income before RA, get a little less per month ... but the difference seems very Coryhttps://www.blogger.com/profile/18166646368324976318noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-16771358336995340872014-04-11T23:01:04.471+08:002014-04-11T23:01:04.471+08:00Hi Izydata,
Thanks for this. I checked up on the ...Hi Izydata,<br /><br />Thanks for this. I checked up on the L-Bonus:<br /><br />"The amount of L-Bonus that a member is eligible for is dependent on his age, the balance in his Retirement Account which would be committed to CPF LIFE, his annual Assessable Income (AI) and the Annual Value (AV) of his home."<br /><br />Read more:<br />http://mycpf.cpf.gov.sg/NR/rdonlyres/AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-91401193117179336542014-04-11T22:43:09.242+08:002014-04-11T22:43:09.242+08:00Um, I think the Annual Value of Property and Annua...Um, I think the Annual Value of Property and Annual Assessable Income are only used to calculate the L-Bonus that certain people are eligible for. Otherwise it should not play a part in the calculation.lzyDatahttps://www.blogger.com/profile/15048717550148913082noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-62010682826977003232014-04-11T08:56:36.733+08:002014-04-11T08:56:36.733+08:00I remember when the life scheme just introduced, t...I remember when the life scheme just introduced, those past a certain age had a choice to withdraw even without meeting the minimum sum.<br /><br />so I believe that's the reason why he said he couldn't withdraw, because he chose to opt in for CPF Life.BPhttps://www.blogger.com/profile/16909857149096270885noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-48128052485551997332014-04-11T07:57:04.379+08:002014-04-11T07:57:04.379+08:00Hi Cory,
I suppose AV helps to determine how well...Hi Cory,<br /><br />I suppose AV helps to determine how well to do a person is while assessable income tells whether a person needs more supplementary income or not. My guess is that CPF Life tries to give what is an optimum amount to each CPF member but I am pretty sure the yardsticks and whether they do a good job are debatable.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-73830186791879479352014-04-11T00:04:16.486+08:002014-04-11T00:04:16.486+08:00When i try to calculator, I am surprise that
1. A...When i try to calculator, I am surprise that<br /><br />1. Annual Value of Property <br />2. Annual Assessable Income<br /><br />play a part in how much you can get monthly ... interesting. not sure why CPF includes them. should they base it purely on how much you have with them ?Coryhttps://www.blogger.com/profile/18166646368324976318noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-30560574019995014142014-04-10T00:16:09.335+08:002014-04-10T00:16:09.335+08:00After 55, let say at 60, if you have money in OA, ...After 55, let say at 60, if you have money in OA, you can withdraw any excess if you have set aside Minimum Sum and Medisave Minimum Sum. <br /><br />The important thing to note is that Medisave Minimum Sum is not cohort-based. Now it is 40.5K, but when it increases in future, the new amount applies to you even though you belong to the cohort that turned 55 some years ago. <br /><br />That's Endinghttps://www.blogger.com/profile/13602454800887924997noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-1181324467626929002014-04-09T23:57:46.569+08:002014-04-09T23:57:46.569+08:00Anyway, there's also distinction to be made be...Anyway, there's also distinction to be made between ra and sa.. Always thought about ra being oa plus sa after we turn 55.. Cpf board are also not stupid and kind enough to let people utilize this 4% p.a. As oa is the last to be drawn. We should all ask for more.. I think vic would need to check whether it meant ra or oa and sa too.. :) Hahahahydrogenperoxidehttps://www.blogger.com/profile/07946165075007364161noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-2700802648488213342014-04-09T22:46:21.052+08:002014-04-09T22:46:21.052+08:00Hi Derek,
I think Vic is using the example of his...Hi Derek,<br /><br />I think Vic is using the example of his dad for the purpose of showing how the CPF is restrictive when it comes to withdrawal of funds in our old age but I think Endrene just solved the mystery. ;)<br /><br />Vic is probably against a 100% transfer of OA funds to the SA for the few reasons he listed in the first half of his email. They are valid reasons.<br /><br />All of us AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-68209466315214684302014-04-09T22:40:59.768+08:002014-04-09T22:40:59.768+08:00Hi Endrene,
You are a lady of many talents and I ...Hi Endrene,<br /><br />You are a lady of many talents and I just discovered another tonight: forensics accounting! ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-76866407059356683102014-04-09T22:05:35.089+08:002014-04-09T22:05:35.089+08:00Hi AK,
I'm a bit confused. Am I right to say ...Hi AK,<br /><br />I'm a bit confused. Am I right to say that Vic is cautioning the 34 yr not to transfer his entire OA into SA and Vic is using his father as an example?<br /><br />If you are unable to set aside your full MS in cash, your property, bought with your CPF savings, will be automatically pledged for up to half of your MS. I'm not sure how this will affect the payout though.<brTheFinance.sghttps://www.blogger.com/profile/11016651993435034511noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-91060237197745592982014-04-09T22:01:52.312+08:002014-04-09T22:01:52.312+08:00Hi AK, Pero and IzyData,
IzyData is right that V...Hi AK, Pero and IzyData,<br /><br /><br />IzyData is right that Vic's dad would have set aside $80000 as the minimum sum when he was at 55.<br /><br />I just did a calculation using CPF Life Payout Estimator based on $80000 MS at 55 and that gives a payout of $605 - $668 from 65 onwards. The total amount reflected in the RA would have been the compounded amount plus some bonus, I suppose. <brEYhttps://www.blogger.com/profile/07808509235536260830noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-86374469588057677952014-04-09T21:44:42.366+08:002014-04-09T21:44:42.366+08:00Hi pero,
I believe Endrene is most probably right...Hi pero,<br /><br />I believe Endrene is most probably right on this. :)<br /><br />You have a long way to retirement lah. No hurry. ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-21781217329783836062014-04-09T21:43:44.437+08:002014-04-09T21:43:44.437+08:00Hi IzyData,
I think the best thing for Vic to do ...Hi IzyData,<br /><br />I think the best thing for Vic to do is to make a trip to the CPF Board with his dad one day to find out more. Hopefully, he will share with us his findings after the visit. ;p<br /><br />Indeed, where to find a savings account that pays 4% per annum in interest income? My parents have both chosen to leave their CPF money more or less untouched with this consideration in AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-22872245890666426122014-04-09T21:30:38.595+08:002014-04-09T21:30:38.595+08:00Ak, 144k is def below ms. As what endrene mentione...Ak, 144k is def below ms. As what endrene mentioned. I think currently the amount above ms is probably the 620? Might be wrong though.. Cpf need to be more youngster friendly.. Hahahahydrogenperoxidehttps://www.blogger.com/profile/07946165075007364161noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-4765537489226380532014-04-09T20:42:26.744+08:002014-04-09T20:42:26.744+08:00If I am not wrong, different minimum sums apply fo...If I am not wrong, different minimum sums apply for different people who have already turned 55. According to this table, your reader's father's applicable MS should be $80k. If his balance is $144k and he is no longer working, he should be able to withdraw the excess. Of course, why he would want to is the more pertinent question. Where else can you find a "savings account" lzyDatahttps://www.blogger.com/profile/15048717550148913082noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-18908622979234255502014-04-09T19:49:23.699+08:002014-04-09T19:49:23.699+08:00Hi Endrene,
You are most probably right. It solve...Hi Endrene,<br /><br />You are most probably right. It solves the mystery of why Vic's dad is not able to do any withdrawals. <br /><br />Vic sent me an email after reading this blog post and using the CPF Life estimator. He was scratching his head. LOL.<br /><br />I have asked him to read the comments that this blog post has attracted. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-37099009911102101742014-04-09T19:47:49.645+08:002014-04-09T19:47:49.645+08:00Hi pero,
Point number 2 is what I need to flesh o...Hi pero,<br /><br />Point number 2 is what I need to flesh out this blog post. Thanks! :)<br /><br />Actually, my mom told me this before but it stayed at the back of my mind buried under tons of random thoughts. I have a consultant at home whom I could have asked but I didn't. -.-"AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42101689213279940682014-04-09T19:25:19.500+08:002014-04-09T19:25:19.500+08:00Hi AK,
I suspect the reason why Vic's father ...Hi AK,<br /><br />I suspect the reason why Vic's father can't withdraw his money is because he hasn't meet the minimum sum of $148000. MS does not include Medisave balance.<br /><br />And for the sample computation that you provided, the payout is based on $148000 transferred to the RA at 55 and drawn down from 65. Meaning that there is a 10 year period lock-in of 4% compounded EYhttps://www.blogger.com/profile/07808509235536260830noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-52044562960239194002014-04-09T19:08:21.470+08:002014-04-09T19:08:21.470+08:00Hi AK,
Correct me if I am wrong, the process shoul...Hi AK,<br />Correct me if I am wrong, the process should go as follow when you reach 55:<br />1. Creation of RA account.<br /><br />The RA would be created from SA Account + OA Account (SA would be transferred first and later OA), it would stop once it reached minimum sum.<br /><br />Copied from CPF Q&A<br /><br />Q: Why are members 55 and above not eligible to transfer Ordinary Account(OA) hydrogenperoxidehttps://www.blogger.com/profile/07946165075007364161noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-31658252619111362052014-04-09T19:07:10.684+08:002014-04-09T19:07:10.684+08:00From a reader on FB:
"148,000 is a huge sum ...From a reader on FB:<br /><br />"148,000 is a huge sum for most blue collar workers to accumulate by 65 if they had used it to purchase HDB."<br /><br />My reply:<br /><br />"Definitely a challenge and I can understand why they might feel pessimistic which was what a reader recently highlighted to me and I shared it in a guest blog too. However, if they were to manage their AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-54441797258131114912014-04-09T16:37:31.793+08:002014-04-09T16:37:31.793+08:00The Annual Value (AV) is the estimated annual rent...The Annual Value (AV) is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is estimated based on market rentals of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. <br /><br />Source: http://www.iras.gov.sg/irashome/AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-79441954663908067612014-04-09T14:10:49.928+08:002014-04-09T14:10:49.928+08:00Hi Mike,
I can always depend on you to keep a loo...Hi Mike,<br /><br />I can always depend on you to keep a look out for me. Thanks! :D<br /><br />I think Vic might want to discuss this with his dad and to find out if he has money in the CPF account which could be withdrawn since the impression I get is that this is what he wants to do.<br /><br />Of course, if all that the dad has in the CPF is what is required as the minimum sum, then, no lump AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-60825414707964727652014-04-09T13:58:49.027+08:002014-04-09T13:58:49.027+08:00Hi AK,
I think there is a mistake in the post. Yo...Hi AK,<br /><br />I think there is a mistake in the post. You can still withdrawn the excess after 55. Copy from website:<br /><br />If you do not withdraw your CPF savings immediately at 55, you can still withdraw later!You can withdraw the amount you are eligible for every year on or after your birthdays. For example, if your first withdrawal was at 57, you would then be able to withdraw every Anonymousnoreply@blogger.com