1. Channeling all our CPF-OA into CPF-SA to capitalise on the higher returns, especially when you haven't been hit by the financial bombs.
Yes, you do get higher returns but SA is not good for much use until years later down the road. In the meantime, there is the present to deal with. What happens if you run into employment issues and have problem servicing your loan? The transfer is irreversible. You can run a very tight and efficient ship but you need to be a very experienced captain who can foresee problems years before they crop up. If not, you sail fast but the moment a severe storm hits you, you're going to have a big issue.
CW8888: For compounding our FUTURE money @1.5% more for some higher MONTHLY payout starting from 65/67 over the rest of our life is efficient; but be careful. Do the Maths, do we really have that EXTRAs to be put away as FUTURE money.
We can't follow someone's idea without knowing how FAT is their CPF OA.
FAT men can lose some fat; but can THIN men also do so? The gap of laying our hand on CPF OA at 55 is 10/12 year to 65/67. It can be in lump sum or anytime once yearly, but the higher CPF Life pay-out is on monthly basis.
What if; tio Big C after 55?
Our thinking of future money of higher monthly CPF Life pay-out after 65/67 will change. May be we will regret that we/beneficiaries get so much lesser if we can't make it to 65/67?
Uncle8888 has been through the Big C and knows that CPF Life is not for him!
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.