The email address in "Contact AK: Ads and more" above will vanish from November 2018.



Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

ASSI's Guest bloggers

More funds came in as yield hits 3.78% p.a.

Thursday, March 14, 2024

The latest 6 months T-bill auction saw a cut-off yield of 3.78% p.a. 

Pretty decent although it dipped slightly from 3.8% p.a. we saw in the auction before this. 

Better than the 3.4% p.a. offer from CIMB for a 6 months fixed deposit. 

So, good enough for me. 

Around 96% of non-competitive applications, total S$2.5 billion, were allotted in the latest auction.

Fortunately, I applied for the T-bill not only with funds that came back from a matured T-bill, I topped up with fresh funds. 

So, I got to strengthen my T-bill ladder nonetheless. 

Money from the partial sale of my investment in Sabana REIT is in. 

The plan is to deploy the funds when there is a pull-back in the stock prices of our local banks. 

I will park the money in upcoming T-bills for the time being. 

Just AK talking to himself, as usual. 

If AK can do it, so can you!


SnOOpy168 said...

Curious as to whether you bid a lump sum or split it into bite-size like $10k each?

A painful lesson I learned is that if using CPF OA funds, the fees of buying, holding and redemption are almost $10 (i.e $5 for buying & redemption, $2/qtr x 2 per T-bill).

So, if I have to buy, it has to be something generous size and not every $1k that I can muster and apply.

Sad that they will close the SA when we reach 55. Hoping to use that as a cash cow income stream. What other steps can we look at to derive some cash flow or generate more income during the 55-65 years.

AK71 said...

Hi SnOOpy168,

I have a T-bill laddering strategy.

So, I will strengthen each rung of the ladder with additional funds, if possible, so that returns are not lumpy.

As for CPF OA savings, I have only used to buy T-bills and only two.

Both pretty significant in size.

If what we want is to generate reliable cashflow during retirement, then, we could possibly consider a larger annuity with is the ERS for CPF LIFE.

This is risk free and volatility free like the CPF SA.

If we want a "savings account" like the CPF SA that pays 4% p.a., unfortunately, there isn't anything available.

SnOOpy168 said...

With that shielding loophole closed, there isn't another guaranteed stream of 4% instrument. Sad lor

The back of the napkin calculation says that the new ERS should be within sight for me. If I understand the game plan correctly, each subsequent ERS increase after the "55" mark, could be generously topped up by the interest. With or without some cash top-up from us.

Q1: Post 55, I can transfer from OA to RA until that year's ERS right?

Q2: If the interest earned and credited to the RA, rises the balance to ERS or beyond. What happens to the extra amount of ERS? Parked at OA or still credited?

Q3: Should we still be in the workforce, then CPF contribution post-55 will be OA, RA & MS or just OA + MS ? blur here.

I am following the T-bill laddering using OA, cash & SRS. Just trying to earn extra $ with OA while I can. Every cent counts. While your OA quantum scale mountains, mine barely goes beyond 2nd level of a double-decker bed. heheheeh

SnOOpy168 said...

Nice to learn that our discussion made it to the YouTube broadcast.

AK71 said...

Hi SnOOpy168,

I have been taking it easy with social media in recent months. ;p

Apologies for the slow reply.

Q1. Yes, we can transfer OA to RA. I mean we can withdraw money from OA and then top up the RA. It means the same thing. :)

Q2. Interest earned in the RA stays in the RA to fund our retirement through CPF LIFE.

Q3. Now, if we are still working and already past 55, our mandatory contributions still go into OA, SA and MA. Nothing into the RA. So, under the new system, it should be just the OA and MA.

You are right about making hay while the sun shines which includes using money in CPF OA to buy T-bills while yields are higher. :D

SnOOpy168 said...


I had a quick chat with CPF Hotline this morning.

They say that after 55, it's only OA & MS that will be allocated from the salary CPF contribution. There will be an option somewhere on the dashboard for us to transfer the OA to SA until that year's ERS. Also somewhere on the dashboard will also show us, what is the amount that we can top up for ERS. they need to update the allocation table vs age group chart on their website.

The interest earned in RA on 31st Dec, doesn't add to the ERS ceiling calculation. Notepad calculation shows the RA interest earned, is more than the ripple effect from the BRS annual increase. So, even if I don't make employment contribution, I should still be able to reach the prevailing ERS....

Good lah. Loose the SA shield but gain a fatter payout from the bigger pot of gold. Now I need the health and willpower to live past 99 years

Huat ah....

AK71 said...

Hi SnOOoy168,

Thanks for doing the legwork and sharing your findings! :D

Yes, live long and prosper! Huat ah! :D

Monthly Popular Blog Posts

All time ASSI most popular!

Bloggy Award