tag:blogger.com,1999:blog-7944902213075756335.post300561962535011566..comments2024-03-28T23:00:40.055+08:00Comments on A Singaporean Stocks Investor (ASSI): Voluntary Contribution to CPF MA in 2021.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger43125tag:blogger.com,1999:blog-7944902213075756335.post-69651255692149904862021-11-27T16:26:01.626+08:002021-11-27T16:26:01.626+08:00Hi coffeeplusmilo,
Thanks for sharing the update....Hi coffeeplusmilo,<br /><br />Thanks for sharing the update. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-87535804870095725372021-11-26T15:56:43.527+08:002021-11-26T15:56:43.527+08:00https://www.cpf.gov.sg/member/infohub/news/news-re...https://www.cpf.gov.sg/member/infohub/news/news-releases/cpf-interest-rates-from-1-january-2022-to-31-march-2022-and-basic-healthcare-sum-for-2022WongKenhttps://www.blogger.com/profile/00086281409943530880noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-44526621817394342052021-01-07T09:17:43.462+08:002021-01-07T09:17:43.462+08:00H Claire,
I think that all CPF members should max...H Claire,<br /><br />I think that all CPF members should max out the CPF Annual Contribution Limit if they can.<br /><br />If there is some room left after Mandatory Contributions have been made, they should consider Voluntary Contributions.<br /><br />In my retirement, this is what I am still doing.<br /><br />I used to do VC to MA to hit the BHS in early Jan each year before doing VC3A.<br /><AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-11534603209216069232021-01-06T23:01:34.377+08:002021-01-06T23:01:34.377+08:00hi AK,
thanks so much for the insight, it inspire...hi AK,<br /><br />thanks so much for the insight, it inspired my CPF journey. <br /><br />Can i please check, if FRS and BHS have both reached already, and the mandatory contribution is less than annual limit, should i top up to the 3 CPF accounts voluntarily despite not having any tax relief from it?<br /><br />Is there anything else I should be looking at/ thinking of to maximise my nest egg? Clairehttps://www.blogger.com/profile/01779870925178166204noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-84576286353461708162021-01-06T11:29:35.824+08:002021-01-06T11:29:35.824+08:00Hi Pete,
Always nice to hear CPF savings success ...Hi Pete,<br /><br />Always nice to hear CPF savings success stories like yours. :D<br /><br />I would not invest with my CPF savings unless all my other war chests are depleted and that is even during a crisis.<br /><br />I know that it is tempting but when I think of my CPF as the AAA bond component of my portfolio, it falls in place nicely because all good investment portfolios should have a AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-6213502026219675022021-01-06T11:14:42.620+08:002021-01-06T11:14:42.620+08:00Hi AK,
Thanks for the reply! Wanna say a big than...Hi AK,<br /><br />Thanks for the reply! Wanna say a big thank you to you for influencing my SA. I topped it up during my earlier years and now I have hit the $183k already. Gam Xia!<br /><br />On another topic, regarding investing the CPF OA. While SA is too good to invest elsewhere, I was thinking if we invest our CPF OA in the indexes like the SP500 for the long run, it should overtake our 2.5%Petehttps://www.blogger.com/profile/17237283788412083937noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-17042950022269710702021-01-06T11:05:37.761+08:002021-01-06T11:05:37.761+08:00Hi Pete,
Mandatory Contributions are mandatory. ;...Hi Pete,<br /><br />Mandatory Contributions are mandatory. ;)<br /><br />However, Mandatory Contributions (MC) + Voluntary Contributions (VC) cannot exceed the Annual Contribution Limit of $37,740.<br /><br />So, excess VC you have made this year will be refunded to you next year without interest.<br /><br />You might want to use your MC from last year as a guide to estimate how much VC you mightAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-72804389654200221902021-01-06T10:59:12.261+08:002021-01-06T10:59:12.261+08:00Hi AK,
Quick question. If we do VC to the 3 accou...Hi AK,<br /><br />Quick question. If we do VC to the 3 accounts in Jan (like now), and hit the Annual Contribution Limit ($37k).<br /><br />How will that affect our normal CPF contribution for the rest of the year? Our employers then don't have to pay us CPF? <br /><br />I ask this because my understanding is that the maximum contribution is the Annual Contribution Limit. So if I max it out Petehttps://www.blogger.com/profile/17237283788412083937noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-88992961163710153392021-01-04T10:13:30.226+08:002021-01-04T10:13:30.226+08:00Hi Ms J,
Sounds like you have a "first world...Hi Ms J,<br /><br />Sounds like you have a "first world problem" which is a good thing. LOL. ;p<br /><br />Reminds me of this blog:<br /><a href="https://singaporeanstocksinvestor.blogspot.com/2017/06/earn-350k-year-and-on-track-to.html" rel="nofollow">Earn $350K a year and on track to financial freedom.</a><br /><br />Gong xi gong xi! :DAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-16380252650432491832021-01-04T10:07:44.102+08:002021-01-04T10:07:44.102+08:00Just to clarify, the refunds I got in Jan/Feb 2020...Just to clarify, the refunds I got in Jan/Feb 2020 pertained to the MA contributions I made in Jan 2019 (a year ago) based on the new MA limits. So I had forfeited 1 year of interest of this amount as I had exceeded the annual contribution limits in 2019. :PCay_Jayhttps://www.blogger.com/profile/06500148026785497163noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-90601403438161998382021-01-04T10:05:23.540+08:002021-01-04T10:05:23.540+08:00Hi Ms J,
The refunds I received from the CPFB in ...Hi Ms J,<br /><br />The refunds I received from the CPFB in the past were always for excess contributions made in the preceding year.<br /><br />Here is another blog about me over contributing again: <br /><a href="https://singaporeanstocksinvestor.blogspot.com/2016/02/the-cpf-is-really-national-ponzi-scheme.html" rel="nofollow">THe CPF is really a national PONZI scheme!</a><br /><br />That was AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-5641755979698109942021-01-04T09:56:57.815+08:002021-01-04T09:56:57.815+08:00Oh, so you are saying when I topped up in early Ja...Oh, so you are saying when I topped up in early Jan 2020 (last year), and saw the refund made in late Jan and Feb 2020, those are pertaining to the top ups I did in Jan 2019?Cay_Jayhttps://www.blogger.com/profile/06500148026785497163noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-17169426392248247472021-01-04T09:13:10.419+08:002021-01-04T09:13:10.419+08:00Hi Ms J,
Assuming that our Mandatory Contribution...Hi Ms J,<br /><br />Assuming that our Mandatory Contributions in 2021 will be the same as 2020, it should work.<br /><br />If we should over contribute, the money will be returned to us without interest.<br /><br />Easy. :D<br /><br />Reference:<br /><a href="https://singaporeanstocksinvestor.blogspot.com/2015/02/the-cpf-is-national-ponzi-scheme.html" rel="nofollow">The CPF is a national PONZI AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-20510716610089338102021-01-04T09:02:33.325+08:002021-01-04T09:02:33.325+08:00I realise you can just sum up all the transaction ...I realise you can just sum up all the transaction entries (contribution) in your 2020 statement and determine if you still have any more room to top up, capped at $37,740, if you are considering the voluntary MA contribution. Cheers!<br /><br />Ms JCay_Jayhttps://www.blogger.com/profile/06500148026785497163noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-81636447751281218912021-01-04T07:45:43.082+08:002021-01-04T07:45:43.082+08:00Hi SC,
VC to MA is a VC and so it is part of the ...Hi SC,<br /><br />VC to MA is a VC and so it is part of the CPF Annual Contribution Limit (VC + MC) of $37,740.<br /><br />I blogged about how I did VC to MA and VC3A last year in this blog:<br /><a href="https://singaporeanstocksinvestor.blogspot.com/2020/01/voluntary-contributions-to-cpf-in.html" rel="nofollow">VC to CPF in January 2020.</a><br /><br />Happy VCing! :DAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-9879853196156667222021-01-04T00:38:33.908+08:002021-01-04T00:38:33.908+08:00Hi AK, thanks for the article. enjoyed reading it....Hi AK, thanks for the article. enjoyed reading it. I have a question:<br /><br />Is VCMA contribution (eg $3K from $60K to $63K) considered as part of the VC3A $37740 limit ? or independent?<br /><br />thanks<br />SCUnknownhttps://www.blogger.com/profile/04326287525747924378noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-22923399330551464512021-01-02T09:20:06.723+08:002021-01-02T09:20:06.723+08:00Hi Winnie,
That is good news!
AK is an IT idiot ...Hi Winnie,<br /><br />That is good news!<br /><br />AK is an IT idiot and has always made contributions using the CPF website with his laptop.<br /><br />Phone app? Simi lai eh? Can eat or not?<br /><br />I know.<br /><br />Bad AK! Bad AK! ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42659274127872323822021-01-01T23:41:21.137+08:002021-01-01T23:41:21.137+08:00Thanks AK. Realise I can’t top up MA via the myCPF...Thanks AK. Realise I can’t top up MA via the myCPF app, can only be done via e-services on cod’s mobile desktop website. Got it sorted now! Thanks for the reminder! Winniehttps://www.blogger.com/profile/05010548890335354335noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-51944880774542124262021-01-01T10:30:35.590+08:002021-01-01T10:30:35.590+08:00Hi Winnie,
Once you have hit the prevailing FRS i...Hi Winnie,<br /><br />Once you have hit the prevailing FRS in your SA, you are not allowed to do any top up to the SA anymore.<br /><br />As for the MA, yes, at the start of the new year, the MA should only hold the BHS of the year before which was $60,000.<br /><br />This means you can do a voluntary contribution of $3K to your MA which will also enjoy income tax relief.<br /><br />Happy new AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-4235039870130863672021-01-01T09:22:18.929+08:002021-01-01T09:22:18.929+08:00Also just to add, in my dashboard the MA amount is...Also just to add, in my dashboard the MA amount is still only 60k, after 2020 interest earned in MA flowed to OA.<br /><br />Happy new year! Winniehttps://www.blogger.com/profile/05010548890335354335noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-64281241617156341052021-01-01T09:20:09.771+08:002021-01-01T09:20:09.771+08:00Hi AK
My annual contribution in 2020 is 31k, less ...Hi AK<br />My annual contribution in 2020 is 31k, less than the CPF Annual limit of 37,740. I have already reached the FRS amount.<br />Am I still able to top up the 3k today? I tried in the myCPF app but it does not allow me to do so. Under the ‘Top up to SA/RA’ section, the amount is 0. I am not able to top up any amount more that 0<br /><br />Winniehttps://www.blogger.com/profile/05010548890335354335noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-522522552981579432020-12-30T14:03:23.617+08:002020-12-30T14:03:23.617+08:00Hi Aa,
Yes, for high income earners, they are not...Hi Aa,<br /><br />Yes, for high income earners, they are not able to do any voluntary contribution as their mandatory contribution would already hit the annual contribution limit.<br /><br />They can still consider topping up their CPF SA, however, if they have not hit the prevailing Full Retirement Sum.<br /><br />References:<br />1. <a href="https://singaporeanstocksinvestor.blogspot.com/2017/AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-73523370707945692342020-12-30T13:53:55.274+08:002020-12-30T13:53:55.274+08:00Hi Ms J,
Ah, mystery is solved. :D
The magic of ...Hi Ms J,<br /><br />Ah, mystery is solved. :D<br /><br />The magic of compounding interest for the win! :D<br /><br />Reference:<br /><a href="https://singaporeanstocksinvestor.blogspot.com/2017/11/how-to-turn-60k-into-332k.html" rel="nofollow">How to turn $60K into $332K?</a>AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-39842202229765445512020-12-30T13:01:50.657+08:002020-12-30T13:01:50.657+08:00Maybe because her Dec contribution with bonus desp...Maybe because her Dec contribution with bonus despoited to her CPF before she contributED to her SA.If her salary plus bonus portion to ma is more than 3k then her contribution is rejected.Aahttps://www.blogger.com/profile/18186093600650134093noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-39999564916938511842020-12-30T11:54:48.001+08:002020-12-30T11:54:48.001+08:00Hi Hynyosan and AK
Yes, I believe it's due to...Hi Hynyosan and AK<br /><br />Yes, I believe it's due to the annual CPF cap, hence I also cannot use the voluntary contribution to MA. Same for Jan2021 as well.<br /> <br />Anyway, I just realised that through the simple compounding effect of the max SA amount (current FRS amount) and with continued mandatory contributions to it (while I am working), it will almost reach the ERS amount by theCay_Jayhttps://www.blogger.com/profile/06500148026785497163noreply@blogger.com