Read? Turning 55 - and enjoying financial freedom (8)
Read? Unlocking SRS At 62 And Avoiding Being Taxed (2)
This morning, Uncle8888 withdrew $24K CPF OA+SA interests via PayNow and received the money almost immediately.
Sources of Cash In for 2019 :
SRS + CPF Interests (Tap 1) +
Cash Dividends and divestment gains (Tap 3) +
Extra side income (Mini Tap 4) from freelance B.M.W. activity roaming across the island of Singapore.
CPF Interests Withdrawal
1) Deducted interests from SA first i.e. Jan to Nov (11 months) is 1,529.77
2) Remaining balance deducted from OA i.e. $22.470.23
Posts
CPF PayNow limit daily limit is $200K.
ReplyDeleteWill CPF approve transfer immediately or they need to check and verify before transfer?
Current service standard is up to 5 working days
Delete"Care to share why 1st week of Dec?"
ReplyDeleteProb coz CPF doesn't pro-rate for partial month, hence no diff 1st Dec or 31st Dec.
This the dilemma if still got substantial portion in SA, coz of CPF tiered withdrawal.
Else if only OA, then better to wait for full 12 mths interest to be credited in early-Jan, & withdraw that amount from OA in Jan.
CPF counter staff told in Jan. The interests earned on previous year will be consolidated as principal. Since there is no interests earned in Jan, withdrawal will be deducted from principal SA and followed by OA
DeleteYa lorr ... that's why if still got SA, would be better to withdraw interests in Dec ... sacrifice the small compounding effect in Dec in order to preserve SA principal. ;)
DeleteHi, maybe I miss out something. Does it matter if it is interest or principal? Say you have $100 and earn $4 interest this year. If you withdraw $4 on Dec 31 it is called interest withdrawal; if you withdraw $4 on Jan 1st next year, it is called principal withdrawal. But in either way, your financial situation is the same right? (neglect the interest of the one day difference)
DeleteAs principal withdrawal starts from CPF SA first; it only matters to those members who wish to preserve that 4% interest generating scheme in CPF SA.
DeleteOnce CPF SA is depleted; it doesn't matter anymore. We can do monthly withdrawal from CPF.
Congrats !! Uncle CW8888 , money keep flowing in from multiple Taps ...wow , time flies, is time to calculate the interest from CPF again... :D
ReplyDeleteCheers !!
Count interests no stress! LOL!
DeleteGovernment is encouraging people to top up CPF so unlikely this goal post will shift
ReplyDeleteOn this topic, one of my friend shifted a large portion of his SA to buy a product before 55 and sold it after 55. Hence, he got a large SA after 55 to earn interest on. Real story.
ReplyDeleteTo beat SA compounding interests of 4% is not easy. I thought investing SA is quite limited.
DeleteHmm unless one can already meet the Min Sum or half-Min Sum w/ Prop Pledge, else when sell that product, CPF will auto xfer from SA to RA to meet the Min Sum shortfall?
DeleteYou can't use the same loophole as for HDB housing loan & OA :O
CPF has greatly reduced eligible investments for SA. And the only one i find acceptable should be invested using SA only during recessions when most stock mkts have alrdy dropped by 40% or more. Hoho!
wont wont mai lun, steady poon pipi.
DeleteHi uncle, I thought oa + sa go to ra at age 55? How come you still have oa and sa? Can explain. Thank you
ReplyDeleteRead? Turning 55 - and enjoying financial freedom
DeleteAs I turned 55 this year, a sum of $161,000 - the so-called Full Retirement Sum - was transferred from my CPF Special Account to the newly created CPF Retirement Account. After this sum has been set aside for my basic retirement needs, I can choose to take out whatever remaining balances I have in my CPF Ordinary and Special Accounts if I want to.
congratulate, just.wonder.why ypu never opt for enhanced retirement sum to max out the annuity portion. do u consider cpf life as one.of.ur.tap?
ReplyDeleteCpf life is one of the taps.
DeleteNo enhancement for me. It is not worth due to medical condition
oic, knowing oneself is the.most important😃
Deletealready got enough money than enhanced mah, just in.case lived.until 105, the problem with cpf is those who.have, want to prolong earning fixed interest and does not.withdraw, and.those who.dont are begging the government to release it.
ReplyDelete