Read? Turning 55 - and enjoying financial freedom (6)
CONFIRMED!
We can withdraw our MONTHLY accumulated interests from Jan to Nov in CPF SA first; and then followed by CPF OA in the month of Dec!
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4 hours ago
How about the interest earned in OA and SA for mth of Dec 17 ? Can withdraw in Jan 18 ?
ReplyDeletetemperament,
ReplyDeleteGreedy yield hog you!
You were thinking of interest on interest right?
Luckily you remembered!
Big daddy and me would wish for more greedy yield hogs who enthusiatically let their annual $20K interests compound till infinity nirvana!
Only cashflow in; never out ;)
Even better if they had chosen the default CPF Life plan!
I can see CW taking the $20K to blow it on makan trips to JB, romantic getaways with his darling to Taiwan, Korea :)
See? No need to collect frequent flyer miles some more!
If CW is naughty, he can even write blog posts on his "free" travel excursions - all paid for by big daddy!
LOL!
Wait, let me double-check... Is it better to spend more to get "free" stuffs, or to earn more to get "free" stuffs?
Yup yup, this is the tactic used by many retirees for many years liao (those that have enough & don't want to touch the capital in OA & SA). I got an uncle who started using this slightly over 10 yrs ago.
ReplyDeleteCPFB still using old-fashioned policies of the 1980s .... monthly interest computations based on lowest balance of previous month. I guess they're still running the ancient Cobol mainframe batch programs that my uni classmates used to maintain in the 1990s (written in the 80s by our seniors!!).
Imagine if CPF calculates daily interest .... there will be thousands of retirees lining up at CPF Branches on New Year's Eve to withdraw their 364 days worth of interest!! Hahaha!!
With today's computers, CPFB can also do daily or monthly crediting & compounding of interests. But that would mean no more ability to withdraw lumpsum accumulated interest .... if want to withdraw anything from CPF, it will be direct from SA account then followed by OA account!! Hohoho!!!
Monthly accrued interests can be withdrawn; but monthly interest credited will become principal for compounding.
DeleteMay be we need accountant or auditor to explain in laymen term. ha ha
Accrued monthly interests
DeleteCorrect
DeleteQuestion at 55, can you continue to top up SA when it falls below the mandatory limit
ReplyDeleteJust to share a conversation that I had with CPFB:
ReplyDeleteQ: If I wish to withdraw the interest earned from my OA and SA from Jan to Dec of the year, please advise what I should do. Thanks.
A: If you would like to withdraw the interest earned from January to December 2017, you can apply to withdraw in January 2018. For your information, CPF interest earned in the preceding year will be credited to members' CPF accounts by the 4th working day in January.
:-)
DeleteYou didn't state specifically leaving principal in CPF SA and CPF OA untouched. Pls try again
What will happen if I state that ? Please enlighten. Thanks!
DeleteThe counter staff who processed my request is clear of my intention is not to touch any principal in CPF SA.
DeleteHer reply when I said this:
Uncle8888 told her next month he will come again to withdraw interests for Dec 2017. She replied that he can't withdraw any interests next month as in Jan 2018. All interests in CPF for 2017 will be credited and become principal in Jan 2018.
If we have zero balance in CPF SA then no issue. LOL!
DeleteI see. Look at it this way - This means interest earned in OA and SA for Dec 17 are compounded for 2018. This means that when you withdraw the interest in OA & SA earned b/w Jan 18 to Nov 18, it will be higher than $23,000. Take it as an escalating annuity plan from CPF. Console ownself. LOL!
DeleteExactly! Thumb up for Big Daddy!
DeleteBy retaining every Dec interest for compounding; it will have an escalating factor of 0.2% per year for interests withdrawal. Tiny consolation
Delete