Read? CPF Special Account (SA) Shielding: How You Can Perform This
Uncle8888's ex colleague who turned 55 this year did CPF SA shielding with his FA; and after 55 he sold his CPF SA shielding fund and returned the money back to his CPF SA.
His immediate loss from this SA shielding is -2.7%.
Never mind! It just needed 2 years of additional 1.5% in CPF SA to recover this loss and; then from 57 yrs old onwards; every year gets additional $2K interests! Shiok!
GSTV - Cash : $600
GSTV - Medisave : $450
Total Uncle8888 will receive in 2022 is $1,050
Assuming personal expenses in 2022 = $14,400 or $1,200 per month
GSTV can offset 7.3%
Assuming personal expenses in 2022 = $18,000 or $1,500 per month
GSTV can offset 5.8%
No wealth tax! No Capital Gains tax! I am OK!
LOL!
Lucky; Uncle8888 was given Cry Got Sound life lesson by old days "Siva-like" right at his face and never forget!
We are firmly shaped by our own personal experience on the ground! Same like investing.
Investing is like sports, hobbies or daily or weekly exercise. We choose our very own sports, hobbies or exercise; or you are the type who will follow the most popular ones. Investing; same same. We choose own Game to play!
Should we be easily influenced by the most popular Game of the Day; and then give up our own Game even it is scoring well just to follow the popular ones?
Read? Encountering At Least One Major Economic or Market Crisis Is Good For Our Future Prospectives!!!
Most of monthly expenditures are now through Tap and Go i.e. pay wave and credit card payments so the current month expenditure is more or less known when received billing notice for the previous month from credit card. It is a good tool for monthly budgeting to live below our means! Over-spent last month so tighten a bit for current month so that next month will help to lower it! :-)
Read? S$3 billion in CPF top-ups made last year, 40% more than 2019
Wah! Juicy pots of Gold in CPF waiting for fund managers to convince CPF members that they are generally not good at DIY investing!
Come, come, come to us to secure your retirement planning.
Did you see more such Big Ads to invest your CPF at many MRT stations?
COVID-19 may be appeared at the right time for some of us to learn reality on the ground for both investing and living our life especially retirement life.
You may have heard of this grand idea of retiring overseas at cheaper costs and funded by "passive" income from dividends and rental income from our Singapore assets and CPF.
COVID-19 Real People. Real Story!
He spent most of his time as retiree in his JB's security guarded landed property in JB; but some time he will travel back to Singapore's "home" for short stay.
COVID-19 scared the shit out of him; and luckily he has made quicker decision to move back to STAY in his Singapore's "home" before border shutdown at midnight! But his doggie is still stuck at JB's home!
Luckily; his JB neighbor is kind enough to take care of his doggie!
When is COVID-19 ending; and his retirement life in JB will be back to old days?
Finally; he realized he can't carry on asking for his neighbor favor to take care of his doggie for such a long time. He applied for Doggie Passport to bring back his doggie "home" in Singapore!
What is the moral of the story?
Last GE 2020; what were hot issues from Oppo? FTs and PRs stealing good jobs?
When our public hospitals were also fill up by more sick PRs and FTs; then you will know what Singaporeans will be shouting loud and clear at MIW!
Like it or not! Our citizenship will made us Priority Class in times of COVID-19 or COVID-XX? No?
Second class residents at overseas for limited medical services during crisis! You can shout at their politicians and kpkb?
For retirement planning; we should be preparing to retire at FUTURE cost of living in Singapore; and now we have articles telling you that you can retire cheaper at overseas as second class resident and funded by "passive" income from assets in Singapore.
Read? CASH REFUNDS FOR CPF SAVINGS USED FOR PROPERTY PURCHASES. (3)
Real CPF member. Real conversation!
In the financial and investment blogosphere; we always hear Top up CPF to secure our retirement plan, 1M65, 4M65, blah blah!
He is 47 and already fully met FRS in his SA and has no intention to sell or downgrade his residential condo home. He will be taking less talk about which is BRS!
Both, couple will be taking BRS and pledge their property!
For one simple reason.
Why let Government control your money and pay you back in monthly instalments from 65?
My money. Okay!
They want to have better control over their own money and decide how best to use it for whatever reasons e.g. better health and medical care!
LOL!
No snake oil so real life and true heart conversation with Uncle8888! We are all different! Ha Ha!
Data point of one? Think it should be more data points out there!
You have fully met FRS and has fully paid up residential property and no intention to sell. FRS or BRS?
No right or wrong! LOL!
Despite this, Mr Zaqy asked Dr Lim to spell out WP's minimum wage standards.
"Could I just confirm once again that the Workers' Party's S$1,300 minimum wage benchmark is gross income so that we could settle this and come to an understanding?" he said.
Dr Lim at first said that was correct and a "fair characterisation", but later said that WP's stand was for the S$1,300 minimum wage to mean take-home pay.
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Hmm ... based on WP's definition of minimum wage of $1.3K take-home pay!
Present batch of CPF OA1M65 in 2021/2022 can depend on passive income from their CPF up to 3 times of minimum wage from 65 to 88
CPF OA initial withdrawal at 4.5% giving $3.8K per month and adjust for yearly inflation at 2.5% from 65 to 88 i.e. $6.5K per month!
CPF RA and MA used for medical care!
Even CPF Millionaire couples are living slightly above the minimum wage baseline if they don't have other sources of retirement income other than CPF. So can we still don't invest to build up investment income for life when we are much younger?
Think, think and think!
Read? CASH REFUNDS FOR CPF SAVINGS USED FOR PROPERTY PURCHASES. (2)
A shop assistant who is few weeks before reaching 55 and his real conversation with CPF 过来人
Assistant : Can I ask you sensitive question on CPF as I am reaching 55 in a few weeks. You are CPF 过来人 ?
Uncle8888: Of course, you can!
Blah blah ....
He is single and both parents had passed away and currently living in three room HDB with one room rented out. But, over the years; he doesn't like the "ma fan" with tenants and thinking of downgrading to 2 room HDB; but he heard that the money has to be refund back to CPF. He asked Uncle8888 chun bo?
He said he doesn't bother to read on CPF and also didn't bother to attend zoom session with CPF on "Reaching 55 session".
Ask CPF 过来人 better!
Walau!
1. He doesn't invest and unlikely to invest too!
2. He is not into digital! No PayNow! Counting paper money best!
3. He has few FDs with banks!
4. As shop assistant, he works over weekends and long hours! The shop only closes for 5 days during CNY! i.e. 360 workdays with leaves and rest days in the weekdays!
Uncel8888 broke the news of Best 55th Birthday Present from CPF; but he got a few weeks to seriously about it before reaching 55 to get the current saving rate in Singapore!
CPF after 55 is his best saving bank in Singapore! His eyes open wide and looking at Uncle8888 like Chun Bo?
First thing first. Ask him to get a PayNow and will receive his money from CPF after 55 within 10 seconds!
Before the clock strikes at midnight at 55; he can consider refunding any amount of his housing loan back to CPF and treat it as his saving bank to earn the best rate now and any time; he can withdraw the refunded money!
BTW, he also doesn't bother with what is 4% compound interest in CPF SA and NOT so interest CALCULATIVE! LOL!
Probably; he is a simple man with simple needs and works long hours and so left with little energy and time to think too much!
Too much time on hand; we may tend to think and worry too much! True right?
Hmm .. should CPF sponsor Uncle8888 with T-shirt : Ask Me Anything on CPF! LOL!
Read? When Your Bank RM Called??? (2)
Spur 24 October 2020 at 21:46:00 GMT+8
Hi Uncle8888,
The interesting part is the 2 statements of the "Disclaimer" in very fine print. ;)
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Read? Singapore Three Month Interbank Rate1995-2020 Data
After 55, money in CPF is Uncle8888 Best Saving Bank while money in POSB is his Worst Saving Bank.
To continue leaving extra cash in his Worst Saving Bank or having 27% more fixed income on top of his CPF RSS since the gross return is same as 2.5% CPF OA CAGR?
In the worst case; just redeem the $144K loan and paid penalty. The penalty may or may not end up with cut losses after X or XX yrs.
Ant really thinking too much on Maths! LOL!
Saturday, 21 March 2015
Read? When Your Bank RM Called???
Wah! The last call from bank RM was 5 years ago!
This time, bank RM introduced him Premium Financing to increase his retirement income by leveraging on the next decade of possible lower interests rate environment of 1% to 3%.
Gross XIRR over 20 years Annuity Plan is 2.5% CAGR without leverage!
2.5% CAGR is comparable to CPF OA! Decent return for fixed income with death benefits. Right?
Time to take advantage of low interest rate environment and leverage up?
Uncle8888 also joins in the Fun!
Assuming you have the flexibility to pay home mortgage with either CPF or Cash; Uncle8888 will vote for CPF. Why?
If you are decades away from 55; your CPF is just Rich Asset making you feeling good! Every year you smile when you login into CPF online to check CPF interests. Passive income!
Passive income?
Chun bo?
Unfortunately; you kena retrenched and month after month still cannot find a job. Your CPF interests still passive income?
Before 55; CPF is NOT King. Your Cash is King!
You can use your Cash to invest 100% or less! Up to you! Your skills and investment outcome should be telling you whether you should continue to be investing MORE or saving MORE!
During emergency or unfortunately kena retrenched; your Cash is Handsome King!
When your investment outcome clearly indicates that you should be taking up the Saver route; then you start to refund your housing loan back to CPF OA. Finally, one day you realized your mistakes of listening to investment warriors in the cyber world to invest to become rich. Instead of becoming rich in the market; you are slaves in the market making them richer!
By this time of awakening; you should be nearer to 55 when you started to refund your housing loan to CPF OA.
When you reach 55; your CPF is Handsome King!
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