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What is behind hitting the FRS and what is our plan?

Friday, August 24, 2018

In the last few days, I have been sharing stories of young readers hitting the FRS in their CPF-SAs.

Although it is meant to be encouraging, it has also caused some readers anxiety.

I guess it is just like getting mixed response from readers after sharing my own CPF numbers over the years.

"One type of rice feeds hundred types of people."

Direct translation of a Chinese saying.

How we respond to something depends on our own beliefs and situation.

However, there is no doubt that all of us need to be financially secure in our retirement.

It is a basic requirement for a worry free retirement.

So, take inspiration from what others have achieved but we must have our own plan which means doing what we are capable of doing.

There is no point in emulating or trying to emulate what others have done if it is going to cause us distress.

If others are faster in achieving a common goal, congratulate them and we simply soldier on.

I am very pleased to share this message from a reader:

Reader says...
2 years ago, in my early 30s, after reading your wonderful blog, i decided to just pump in 10k into my CPF SA, never mind there is tax relief for the first 7k only.

I do it because i have a bit of spare cash, and to enjoy more interest that ah gong will be giving me.

Never mind about the tax relief (because i dont earn a lot so i dont need to pay much tax in the first place).

Heartfelt thanks to you, AK.

You deserve the praises and appreciations that we readers are giving! 🙂

Keep up the good work AK.

So rare to find someone like you, so rich in love for all of us strangers by sharing your "secrets". Kudos!

The aim is always to become financially stronger over time.

The aim is not to be the fastest in our cohort to become financially stronger.

The important thing is to make personal progress.

Trying to hit the FRS in our CPF-SA is basically trying to save money for our retirement.

That is the purpose of the CPF-SA.

Like depositing coins in a piggy bank when we were kids, every contribution to our CPF-SA, big or small, adds up.

It will take time for us to hit the FRS.

Some of us will need more time than others.

Financial freedom is not a race and neither is meeting the FRS.

Related post:
FRS in CPF-SA at age 30?


Fong said...

Thank you for this timely post!

I too was a little surprised with the recent posts sharing how people from early to mid 30s could hit their FRS at such a young age when myself(mid-30s) have "only" half the FRS in my OA+SA. It was what made me check my cpf throughly and "discovered" the 80k(exc. 8k of accrued interest) parked away under my home mortgage.

If I haven't used my cpf for my mortgage, I too would have hit the FRS! Then again, if I didn't take up the mortgage(and property), I also wouldn't have the life and family I have now. This further demostrates that while we all have a similar end goal, we each have different priorities and pace of accumulation. A timely reminder and encouragement to be discplined and keep working towards your goal!

AK71 said...

Hi Fong,

What makes the stories of the 30 and 31 year old readers more amazing is that they met their FRS in their CPF-SAs only without any help from their CPF-OAs!

There is a lot of determination backing their ability to make their CPF savings work harder.

However, we must not think that everyone should do what they did. :)

AK71 said...

Reader says...
Hi AK, thanks for sharing the reader's story of how he hit frs at age 30... it has motivated me to do oa to sa transfer for half of my oa funds!

I'm keeping 20k in oa just in case I need to buy a house.

That reader's story is very inspiring and it's always nice to read about what people my age (i'm 27) have done to secure their retirement. Thanks again!

AK says...
Yes, we should not copy a strategy wholesale.
We should do what is sensible for us.
Peace of mind is priceless. 😀

CL said...

Hey Fong, thank you for sharing that you are mid-30 (as I am) and it seemed like we took similar path. These few days I have been scanning through this blog digging out the hidden gold beneath tons of pages and comments. I came across a common theme in that (1) there will be people asking AK for specific investment direction to which he will always remind them that he won't give a direct buy/sell advice; (2) those young ones (early to late twenties) who have achieved what most people in the 80s and earlier only achieved in their mid-40s.

It looks like anxiety is in grained in singaporean genes ah.
Good job Fong.

To AK, would it be ridiculous to think that I would need to spare about 10 years before I see the next mega bloodshed in the market? I mean before the GFC, were you simply hoarding cash (beside doing trading once a while) in anticipation for the next crash? (GFC in 2008/9; Asian Financial Crisis in 1997)

AK71 said...

Hi Chris,

I cannot predict.

I can only prepare.

I am always invested but I also have a war chest ready. ;)

AK71 said...

Wait for a big crash to pick our durians?

CL said...


What does it mean by you are always invested?

AK71 said...

Hi Chris,

If you do a bit more digging, you will find more posts on my quarterly passive income. ;p

If I am not invested all the time, how to have passive income like that? ;)

AK71 said...

If you are a CPF member and have yet to max out the benefits of your membership, read this blog.

AK71 said...

Yi Sarah says...

Hi AK, thanks to your blog which helped me to achieve the FRS.

A journey which took me 5 years to achieve.

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