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A reader said he shared my update on my CPF-SA with his elder brother and his brother was not only incredulous but called me a show off.
I consoled the reader by saying there are many different people in this world and they will not all react in the same way.
Of course, for the recent blog post on my CPF-SA savings (here), the most important message was that the magic of compounding takes time to work and giving it a boost by injecting more funds in the early years, it gets even more magical.
Having said this, I must say that it took a lot to get me out of my comfort zone to share the numbers. They should be confidential.
However, because AK's identity remains largely a secret, he has some protection. With all the numbers out in the open, AK will need his anonymity even more.
When I share personal numbers and they could be my passive income, my CPF-SA, OA, MA or even my body weight, I am sharing important messages.
What people wish to focus on and how they want to interpret the blog posts, I have no control over.
Now, at risk of being labelled a show off once more, I am sharing numbers for my CPF-OA and MA. Again, there are important messages here:
What are the important messages? I won't repeat myself. If you are interested:
See my message on the CPF-OA: here.
See my message on the CPF-MA: here.
Of course, for the recent blog post on my CPF-SA savings (here), the most important message was that the magic of compounding takes time to work and giving it a boost by injecting more funds in the early years, it gets even more magical.
Alamak, I just repeated myself.
I am glad that talking to myself has helped many people. I used to feel somewhat sad but I guess I have to accept that there will always be many more who ASSI cannot help because they refuse to help themselves.
I am glad that talking to myself has helped many people. I used to feel somewhat sad but I guess I have to accept that there will always be many more who ASSI cannot help because they refuse to help themselves.
So, go ahead, share the messages but don't feel down if the reactions are negative. At least, you have tried.
Related post:
Bloggy Award
43 comments:
Well done. This is a good example, of gaming the Government and making them work hard for you by paying you about $20,000 in 2015. This results of having a fat base.
Hi Siew Mun,
I know I can never do everything myself. I always appreciate high quality assistance. ;)
Although I am trying not to be fat, I certainly have no problem with having a fat CPF account. ;p
Well done, AK. Thanks for sharing your numbers in a humble manner.
Those people who can't understand or are far behind in financials will tend to use the words "show off" and when they cannot see hard evidence, they will say "吹牛".
I once try to guide some of my old schoolmates on how to manage finance by sharing some numbers of mine. They quote me as ”大炮". Feeling dishearten, I just stop sharing my investment knowledge.
For you, to be able to share freely behind your mask is really a smart move. At the same time, you benefit so many readers.
Applause!
Hi AK71,
I was inspired by your post to share that the total interest earned by our (wife and I) CPF monies have equaled/exceeded the total deductions for housing and medishield premiums for 2015.
Cheers!
Regards,
FFE
Hi AK
I always like to read your posts because I can learn a lot from you.
Thank you.
Happy New Year AK!
Long time no "ka chiow" you. Just saying hi to spread the man love!
Eh? You now moving from proselytizing to evangelism?
I think you need to provide your apostles more than consolation...
Young men don't know the art of foreplay (monkey anxious). Must remind them so they don't rub others the wrong way (giggling like a girl at my pun)
How would you feel if some do-gooder come to you and slap it in your face:
"AK, you're fat! Must diet you know? If not sure die early one! Higher risk for diabetes, stroke, heart attack..."
Choy!
If it were me, I would emulate our Cantonese friends and send "my regards" to that "meant well" person in my most melodic and poetic Cantonese!
LOL!
Dear AK,
I guess your 400k OA is from property and SA comes from topup and govt interest.
I really salute you! You are power!
Hi,
My MA is at $48,500 and all the interest for 2015 has been accrued to the OA, as it seems has also happened in your case. Do you know why this is so when the BHS from 1 Jan 2016 is supposed to be $49,800? I was expecting the 2015 MA interest to contribute to the increase in the BHS in 2016.
Thank you.
Hi AK, there is one line called the TRF from MA to OA. Can i know what is that? I didnt know we can do a transfer from MA to OA though. Would be good to know.
Hi AK, i think i know why. Because your MA has reached the max of 48,500. Hence the excess will be transferred back to the OA account. Am I correct?
Anyway please dont call this a show off. Thanks for sharing real numbers as a form of motivation :)
Regards,
Happy Doggy
Hi Andy,
I know what you mean. I guess we can bring the horse to water but we cannot force it to drink. Well, at least we bring it to water, right? ;)
Hi FFE,
Very well done! Congratulations and thanks for sharing. :)
Hi starlight,
Please remember that I am just talking to myself in my blog. So, please stay critical as you listen in and analyse if what works for me would work for you. ;)
Hi SMOL,
It is good to hear from you again. :)
Simi prosely-simi and evangeli-simi? :o
I am only talking to myself in my blog lah. People are welcome to eavesdrop and also gossip with friends and family if they like. Something so simple you say until like got dragon got tiger like that. -.-"
Hi OT,
Long time no hear. ;)
If you are interested to know why I have so much in my CPF-OA, read this:
http://singaporeanstocksinvestor.blogspot.sg/2015/01/how-did-ak-amass-so-much-money-in-his.html
As for the relatively large amount of money in my SA now, it is possible mostly because of OA to SA transfers in the first 4 years of my working life. The government did the rest over the last 20 years. Anyone could have done it. ;)
AK, is part of the sum in your OA capital gains from property investments? Even if my salary contributions to CPF for the next 20 years are maxed out, I still can't achieve your numbers lol (even after compounding!).
Hi ABC,
It would be considered interest earned in 2015 and the MA ceiling for 2015 was lower. 2016, we start all over although with a higher MA ceiling. :)
Hi temperament,
Oh, but I did.
You might have missed this:
http://singaporeanstocksinvestor.blogspot.sg/2015/12/my-food-bill-grew-in-size-but-my-weight.html
Enjoy. ;)
Hi HD,
You understand the situation correctly. :)
I am glad you feel that the blog post is motivating. Gambatte! :)
Hi talesteller,
You might want to refer to my reply to OT and the link which I provided.
Even if we had made money from selling a property which was bought using funds in our CPF-OA, we only need to refund the money we utilised plus the accrued interest when we sell the property in question. So, there are no gains from property investment in my CPF-OA.
The secret lies in hitting the contribution limit each year as much as possible. ;)
Hi ASSI,
While we are on the topic of CPF savings. I think I remember reading somewhere that if one were to intend to transfer from OA to SA. Doing so on a certain month(start/end of the year) would maximize the effect.
Hi AK,
Nice, inspiring post! After reading it, I had to go check how much I have in my CPF accounts.
Not a lot of $$$ inside yet but hopefully one day I can reach your numbers... then I gotta wear mask go out just like you.
Hi MaTa,
I don't think it matters much although making a transfer early in the year will earn more in interest. :)
Hi BfGf,
Investors who are Singaporeans and PRs have the opportunity to make the CPF the investment grade bond component of their portfolios. Unless we do not believe in having such an asset class in our portfolio, we should make good use of the CPF fully.
holy cow.
are you 54 years old ?
your OA is huge.
Hi AK, happy new year to you and well done - amassing such a significant amount shows you've been both disciplined and skillful, as I believe you've mentioned that you used 20% of your CPF-OA during the depths of GFC to invest in stocks and then sold them for a profit. Well timed!
Hi ho,
I was 44. I will be 45 this year.
Can't stop time, unfortunately.
Hi Serendib,
Oh, yes, thanks for reminding me. I have not done anything to my CPF-OA for so many years that I have forgotten about that. Yes, I did use some of my OA money for stocks during the GFC. :)
Dear AK,
I am an avid reader of your blog, through your blog i had learnt many financial tips to better my financial situation.
I don't think you posting CPF balance as show off but rather a wake up call for all readers to think about our CPF balance.
After reading your recent post of 70K passive income, I also started to accumulate REITS.
I hope 15 years later these investments will bear fruits and allow me to retire.... like you
I hope you will continue to share your thoughts and would definitely like to have a conversation with you
Cheers
KW
Hi AK,
As usual, u did well for urself and u r willing to share how u did it... It is truly admirable.
I am always inspired by ur sharing. Even though I am unable to follow everything u do to improve my own financial health....
A country is made up of various kinds of people, it'll be very absurd if Singapore is made up of just financially savvy people like AK...
Please continue talking to yourself.... I like many who follow your blog, love ur thoughts and sharing.... Every detail is greatly appreciated...
Hi,
I was wondering how it's possible for AK to amass so much OA, then I went to read on ur OA story... U actually return ur money after u sold ur property and u used mainly cash to finance ur next property....
It explains a lot that we can all have a lot of OA if we didn't use cpf to buy property.... So, it's not magic that AK amass so much in his OA.... It's purely financially sound thing to do, if u have cash in hand to do so....
Thank you for sharing AK. I have been learning & following your lead over last few years. I have just hit my MS in my special account but I am a few years older than you. Next plan is the contribute consistently to my love one's SA.
Cheers.
Hi AK, HNY to you! I've been following your blog for quite some time and recently just knocked some sense to myself to start managing my CPF. I'd like to ask if I now transfer some monies from my OA to SA to earn the additional interest (after hitting 20k in OA), will I still be able to transfer the monies back to my OA if later on I am short cash to purchase a house? I couldn't find the same answer in CPF Q&A. Pls guide, thanks!
Hi KW,
I am very glad that you have found my blog useful. :)
I always say that, for most of us, our financial health could be and should be better. It is about becoming aware and doing the right things. :)
Hi Julian,
All of us have different circumstances, for sure. :)
However, if we share the same philosophy and have the same goals, even though the methods and degree of application might not be totally the same, we will be moving in the same direction. ;)
Hi Chris,
That sounds like a plan. Gambatte! :)
Hi Shu Jun,
Transfers and Top Ups to the CPF-SA is irreversible. So, you should consider your circumstances carefully before doing so.
AK 1 noobie question, how much maximum one can have in SA account maximum, MA max is 48500, unlimited in ordunary acct?
Hi Newbie,
There is no maximum imposed for the CPF-OA and SA. ;)
i love it when simple peasants get all excited over making a godly amount of interest from cpf,20,000!!!omg we are making the government work hard here!!!what they tend to forget is behind that godly amount of interest is an even more ungodly amount of money generating that interest.we are talking more than 600k cash here,and the opportunity cost of having that cash sit in a cpf account.if the government allowed,u could have taken that 600,000 and bought 2 hdb flats in cold hard cash,or if u were adventurous or even entrepreneuristic and risky like donald trump,u could easily leverage that 600k in to 4 or 5 hdb flats with ample equity in each,and be generating easily 2k per month per flat or 48k to 120k rental income from hdb flats per year.thats 48k of interest right now,that u can touch spend or reinvest,not 48k of interest 30 years down the road,when inflation and god knows what the state of the economy would be like would have turned ur dollar purchasing power into confetti or toilet paper.one bowl of prawn mee would be costing $15 per bowl 30 years from now.
Read:
To be a happy peasant.
@Unknown: "u could have taken that 600,000 and bought 2 hdb flats in cold hard cash,or if u were adventurous or even entrepreneuristic and risky like donald trump,u could easily leverage that 600k in to 4 or 5 hdb flats with ample equity in each,and be generating easily 2k per month per flat or 48k to 120k rental income from hdb flats per year."
Can buy more than 1 hdb flat? Please share how.
You know that AK lives in condo?
i said if the PAP government allowed,in other countries,real estate investing is much easier as theres a huge array of low and middle income housing for u to choose from as opposes to only hdb flats and the more unreachable and costly "private" housing in Singapore which is kind of a joke,i mean LKY and PAP says u own ur own flat,arent all homes and houses supposed to be "private" property?sg the only country i know that people are willing pays more than a quarter million for "public" housing subject to terms and conditions of the HDB board.i know AK makes 160k a year from dividends excluding capital gains and cpf,his networth is probably somewhere in the range of 3m to 5m.
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