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Parents' CPF, voluntary refund to CPF and don't do silly things.

Tuesday, January 5, 2021

This blog was inspired by a comment from a reader.

Read SnOOpy168's comment: HERE.


Over the weekend, when I was spending time with my parents, I talked to them about their CPF savings and how they should try to put more into their RA and not leave money in their OA.


They will get bigger monthly payouts and enjoy 4% interest instead of 2.5% too.


My mom kept saying the OA money is going to us children when she passes on.


I had to keep telling her that we don't need the money. 


She and dad should not worry about us children.


I told her that if I were eyeing my parents' CPF savings as inheritance, I would be a sorry excuse for a human being.


I am not going to rehash and will do the easy (i.e. lazy) thing and share some of my old blogs here:

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

2. Improving my father's retirement adequacy.

3. CPF to help our retirement but what about our parents'?





On to the next topic which I told another reader I would touch on in my blog reply to SnOOpy168.


People don't realize what a big opportunity cost there is (i.e. the accrued interest) in the use of their CPF savings for everything they can use it for.


This is partially the government's fault for over liberalizing the rules on CPF usage.


It has also given the fake news mills plenty to scare people with.


This is a good example of the anxiety some feel about their CPF savings and the deficit caused by accrued interest for OA savings used:

Unemployed, almost 55 and worried about retirement.


In another blog, I shared that for those of us who are more conservative and who are financially able to, we could consider returning the money we used from our CPF-OA savings in the purchase of our homes to stop the accrued interest from growing:

How to stop accrued interest we owe from growing?





Not all of us are savvy investors and if statistics released by the CPFB is to be believed, most CPF members who invested with their CPF savings lost money.


They would have been better off leaving their money in their CPF accounts.


I would go for low hanging fruits first and CPF is a low hanging fruit and provides an unbeatable level of certainty.

1.  How to turn $60K into $332K?

2. An unbeatable level of certainty in wealth building.


I also shared the story of my CPF-OA because so many readers are incredulous when they see the figures and I did it also to stop the fake news mills from spinning fantasy stories about me:

How did AK amass so much money in his CPF-OA?


If we have plenty of cash sloshing around, we should invest with our cash first instead of our CPF-OA savings which earns a risk free 2.5% interest per annum which is very good especially in a low interest rate environment.


I like to think of my CPF savings as the risk free and volatility free AAA investment grade bond component of my portfolio and would like to end this segment by sharing this blog:

Don't do silly things and we can retire smart too.






I used to blog as much as I did because I really enjoyed it and probably too much.


After all, I did start the blog back in 2009 out of curiosity and boredom.


If by doing something we enjoy, we are able to do good, it is win win.


I still enjoy blogging but not as much as before.


So, blog I will but I cannot say if I will be as regular.


Related post:
Leaving a legacy and AK stops blogging.


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