What should mom do with $200k inheritance?

Reader says...
My mum was given an inheritance to the tune of $200k.

Not knowing what to do with the money, my mum deposited it in the bank without our knowledge and of course, she was “invited” to speak to a bank’s representative and...






I experienced some difficulty convincing her to put a significant portion of the remaining sum into her CPF as she is apprehensive that the money will thereafter be “locked up” for life and she can only get a small portion of it every month.

I do not think the sum in her CPF RA is anywhere near the BRS.






Unfortunately, every individual is only limited to a maximum of $100k in SSB.

What do you think are good alternatives for someone like my mum (62 this year) to park her remaining sum?

I take it upon myself to find out more about the most logical way to optimise the growth of this sum of money while still keeping it safe for her later years.





AK says...
I think you have to explain to her the importance of an annuity and CPF LIFE.

We will not always make the most prudent financial decisions in our old age.

Having a dependable monthly income for life in her golden years will provide peace of mind for her and the family.


"What if I live longer than expected?"







Related post:
Retirement adequacy for late bloomers 101.

Voluntary contribution to CPF MA in 2019.

Reader says...

AK sifu.. Wah next year MA up to 57200...

Excited siah..

Can top up again to get tax relief.

Can I ask u if the interest from the existing MA for 2018 will flow back to MA to meet the 2019 BHS?

If yes then sian.. Cos I cannot top up in cash in Jan 2019 to MA.

Many ppl said why increase nearly 5%..

I think if they don't increase..

Health care inflation in Singapore will eat up our BHS eventually.

I do welcome such increase. Give me a chance to earn more interest n tax relief. 😂






AK says...

Interest earned this year in MA will go to SA if MA is full and will go to OA if MA and SA full.

So, beginning of 2019, you can top up the MA $57,200 - $54,500 = $2,700 😀


Reader says...

Song song Gao jookoon

It's your fault..

Make me so excited every Jan lol








AK says...

Sorry for giving your heart stress. 😛

Bad AK! Bad AK!


Reader says...

I also say.

Nvm I got sufficient MA to do body checkup and buy free insurance 😂






So, do you want free medical insurance in Singapore?

If you still don't know how, read the related posts at the end of this blog.

If AK can do it, so can you!




Related posts:
1. Medisave voluntary contribution in 2018.
2. How to get free medical insurance in SG?