PRIVACY POLICY

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Saturday, July 30, 2016

Understand the function of each tool in personal finance.

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.


C

... 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.

C

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.


C

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".


C

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...



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10 comments:

  1. SMKJuly 30, 2016 at 12:26 PM

    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.

    ReplyDelete
  2. AK71July 30, 2016 at 1:24 PM

    Hi SMK,

    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...

    ReplyDelete
  3. STEJuly 30, 2016 at 1:37 PM

    Nowadays , seems AK's side is having more and better info of Q& A section than CPF Board's website ,,, Gambateh !!!
    Cheers ! 👏🏽👏🏽

    ReplyDelete
  4. AK71July 30, 2016 at 1:43 PM

    Hi STE,

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

    ReplyDelete
  5. SMKJuly 30, 2016 at 8:22 PM

    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.

    ReplyDelete
  6. AnonymousJuly 31, 2016 at 2:56 AM

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

    ReplyDelete
  7. Dennis NgJuly 31, 2016 at 1:05 PM

    Ak is a ambassador from CPF, good job!

    ReplyDelete
  8. AK71July 31, 2016 at 1:12 PM

    Hi Dennis,

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

    So, I am just a kay poh...

    ReplyDelete
  9. KMayJuly 31, 2016 at 4:47 PM

    Dear AK,

    I salute you for your patience!!

    ReplyDelete
  10. AK71July 31, 2016 at 4:50 PM

    Hi Kah May,

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

    ReplyDelete