Boost elderly parents' CPF-RA or CPF-MA?

Reader:
Since reading your blog last year (if i only had done so when i first started working years ago!) i have transferred some of my OA to SA and did some cash top up to my SA.

Would appreciate if you can advice on a a dilemma i am facing with regards to whether i should top up CPF for my mum. 





My mum is 63 yro and has almost nothing in her CPF. I had asked CPF Board for advice but it would take a very significant top up (>$50k) to even reach BRS.

i) should i top up my mum CPF's RA? I will not be able to help her reach BRS before she's 65.

ii) Should i top her Medisave instead? My consideration is that this can help go towards MediShield premiums and for any possible medical bills in the future.

I am thinking whether i should put the money in investment say REITs to obtain a potentially higher return than 4% (albeit with higher risks)





AK:
If we do have some spare cash, topping up our elderly parents' CPF accounts (whether RA or MA) is a good idea. 

We can think of this as making the government help us do a better job of taking care of our parents or that the government is helping to lessen the weight on our shoulders.

If you do not have ample resources to top up both the RA and MA, I would imagine that the MA has priority over the RA. 






We do fall sick and this is likely to get more serious with age. 

Having the cost of insurance covered and then some will give peace of mind.

For the elderly with limited financial resources, it should not be about what they could potentially gain. 

It should be about securing returns which are guaranteed. 

Peace of mind is priceless and more so for them.







Related post:
Upsizing parents' retirement adequacy.
You might want to see this recent blog:
http://singaporeanstocksinvestor.blogspot.sg/2017/06/what-should-i-do-with-my-bonus.html

Shoebox apartments in Singapore need planters?

Reader:
I have been thinking of getting a shoebox apartment for a while and your blogs on tiny living resonate with me. I have been looking around and I have two options now. Both are about the same size but one of them have a planter that is about 3 meters long by 1 meter wide while the other one does not have a planter nor balcony. I know you have a planter in your apartment and wonder if you would have preferred more indoor space instead.

AK:
Welcome to tiny living! To be honest, before I bought this place, I thought planters and balconies were a waste of space, especially in a tiny apartment.

Hey, less than 500 square feet of space and almost 10% of that that is outside (and the percentage could be even higher for some other projects which is just the developers taking buyers for a ride, I feel)?

Alamak. Singapore so hot and humid. I rather switch on the AC and stay indoors, right?

Anyway, that was before I actually moved in.

After moving in, I realised just how important that outdoor space is.

From a pragmatic angle, it gives me a space to dry my laundry. I get a folding rack and place it in the planter when I need it. After use, rack gets folded flat and stored indoors. 

I could use the dryer function in my washer/dryer but that consumes a lot of electricity and it feels like evaporating money together with the moisture. Don't like that.

From a recreational angle, having some outdoor space is a good idea especially if you are at home a lot like I am. My planter gives me a place to do some gardening and to spend some time outside without leaving home especially on breezier and cooler evenings. 

I have to say that it helps that I am on a high floor and unblocked from all angles. If I could clearly look into my neighbour's home from my outdoor space, I am less likely to use the space. If we can see other people means other people can see us too.

OMG!

You have to remember what a planter in a condo means here. URA wants us to help green Singapore vertically and that is what planters are for. 

Installing some decking over the planter that makes it the same height as the floor of the indoor space is illegal. I know many do it but I don't want to do anything illegal. 

My solution?

I got these from IKEA and lay them on the floor of the planter. It probably costs 5% of what an illegal decking job would have cost too. Cheap and practical just like me. 

Bad AK! Bad AK!

Anyway, whether having a planter makes sense or not for a tiny apartment probably depends on your lifestyle. 

If you go out a lot and are hardly home, maybe, it is not as essential.

Related posts:
1. Shoebox apartment living.
2. Saving on outdoor lights.