As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Friday, 10 July 2020



Henry 10 July 2020 at 16:09:00 GMT+8

Hi. I am confused and pardon me if I asked stupid questions. Why do we want to refund the CPF used to buy property? Is it to earn the 2.5% interest?

I thought Cash is King esp now? And invest?

Not 55 yet. House fully paid. Met ERS. What is best?

Pretty blur and only start reading and thinking near 55. 🤣🤣🤣

Reply Delete

How to turn your Cash is King before 55 to handsome King after 55 under current low interest rate?

Congratulate yourself on lucky birth year if you are near 55 now! LOL!


  1. Exactly. After 55 we can treat cpf as high yield account.

    If we want we can withdraw $10 to buy McDonald's happy meal.

    Or the whole lot to buy another condo. Up to you!

    I'm sure there're retirees who conscientiously dump in $37,740 (or lesser amount) into their cpf every Jan.

    Of course if this is some country in South America or Africa or central Asia, then I don't think it'll be very wise.

  2. Alamak Uncle CW, dont make fun of me lah. Really quite lost, cpf so complicated.
    Different people have different advise. Buy STI ETF, pledge property & withdraw maximum using BRS, buy annuity to supplement cpf, draw interest every year for living expenses, better take all out and put in bank before goalpost shift, etc, etc. Alamak, I become more confused. 😅 Your blog is good with more advise from those who have walked the path. Hopefully I dont mess up.

    1. Why confusion? Thought the Picture is clear. One month or weeks before 55 and still have Spare cash not invested yet; can do partial housing loan cash refund to CPF. This is the best saving account as War Chest in SG under current low interest rate. Your Spare cash is still handsome King in CPF as war chest.

    2. Hi Henry, not to worry, things will become clearer as you get nearer to 55 yo.

      I have young colleagues who were also bewildered as to why I want to keep so much money in my CPF accounts. They feel the "low" interest rates paid by CPF will not keep pace with inflation. And they are not wrong!

      It all depends on your stage in life (ie your age and career runway) and your wealth (networth). For example, if you are in your early 30s, and you have $500,000 networth, you would want to "chiong" a bit more to grow that wealth. With a long career runway ahead of you, you can take some failures along the way to recover and continue on. So keeping all that $500,000 in your CPF might not be good way to grow your wealth.

      On the other hand, if you are much older, say 55 yo and above, where your career runway is much shorter or no more runway, you would want to preserve your wealth. And if at this stage, you have amassed a few millions in networth, it becomes crystal clear why you would want to put some of that millions into the CPF. The CPF should form one of your asset classes as a form of AAA bonds (your OA & SA), a sort of medical insurance (MA) and an annuity (RA & CPF Life).

      If you build up your CPF savings well, you can actually depend on it for your retirement sustenance.

      Good luck on your wealth building journey.

    3. Hi Mysecret
      Thanks for providing a balance view. Only concern is they have shifted the goal post before. Will it happen again? This is on the mind of those who are near withdrawal age including some friends. If one still has (decent) employment income, its fine. But not for those who dont. I dont have hindsight.

    4. So far. PAP govt only shifts CPF RA goal post from 55 to 60 to 62 to 65. Next will be 67, 70, 75 etc. CPF OA and SA intact. If PAP dares to shift this CPF OA and SA goal post; next GE PAP becomes NCMPs. LOL!

      Don't do voluntarily top up then no need to worry on future goal osts shifting. ha ha!

    5. PAP also shifted goal post for Pioneer & Merdeka generation RA(MMS).

      Compulsory withdrawal age at 70.

      Use to be no age limit, tio boh?

    6. Compulsory withdrawal age at 70.

      This one is let those who kpkb CPF eats money win lor!

    7. So nothing in this world is absolute or suit everybody lol.

    8. Ya lol.

      Don't think anything can suit everybody.

      As long it doesn't, U, KPKB is normal lol.

    9. Hi Temperament, the compulsory payout at 70 yo only applies to the RA / CPF Life / MMS.

      Your money in the other CPF accounts (OA, SA and MA) you can keep them there as long as you like and continue to earn 2.5% or 4% interest compounded annually.

      Thats how we are building up our CPF to sustain our retirement, live off the interest from our OA & SA and the monthly payout from our RA/CPF Life. Our target, combined for couple, as follows:

      From now till 69
      Interest from OA&SA (based on 11 months) : $50k pa

      From 70 onwards
      Interst from OA&SA (based on 11 months) : $50k pa
      Payout from RA/CPF Life : ~ $55k pa

      As long as no change to CPF interest rates. And the rest to come from our other "taps" - dividend and rental) which are not so reliable as they are highly dependent on the economy and Mr Market.

      And at the end of it, the principals bequeath to next generation.

    10. Withdrawal age was 50 for my father, a super PG. He took out everything and keep in FD. Back then interest rate was higher. OA / SA rates too.

  3. PAP in power. No change in CPF for next 4/5 years

    1. Hopefully things more or less the same even after the Lee's family is not in power in another 1 or 2 years time (to retire at 70?)

      PAP is only like a brand only.


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