Upon reaching 65 in Oct 2021; Uncle8888 can depend on his CPF for passive income with draw-down strategy to spend all his CPF money starting from $60K and factoring 2.5% yearly inflation to $100K in 2041 @ 85 years old.
Read? 1M65 CPF OA Possible Or Not???
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I will turn 65@2030. I plan to start off with $1m @55. Let the interest compound and draw down @65. What do you think?
ReplyDeleteGood idea. With fixed income as draw-down, we can sleep better through market and economic cycles and can also focus on investing with less emotional fear
DeleteThis only on plan.
ReplyDeleteBaring any serious/major health problem minor no sweat, I don't see why U need to spenddown so much.
Ants are like that. Planning and sometime too much
DeleteBut my wife still have CPFIS.
ReplyDeleteAND i don't think it is necessary to close down and withdraw all money from CPF unless Banks FD is much more higher than 2.5 % OA's rate.
Not necessary to close cpfis as dividends from cpfis can be withdraw from cod is when necessary while earning 2.5% interest rate
DeleteCpf
ReplyDeleteI kaypo here...
ReplyDelete1. With fully paid flat and no more children tuition fee, why you need so much ($5K) for living expenses as compare recent benchmark of $1.38K or $2.76K for 2 pax?
lol
Lol. No need 5k
DeleteWithout owning a car, most senior citizens can survive decently with less than $5K. Re-schedule meal time and groceries for discount.
DeleteCongrats Uncle8888!
ReplyDeletePretty sure you already computed your CPF drawdown back in 2015! ;)
For your RA payout, it's based on MSS?
I suppose CPFLife (Basic plan) may be smaller amount, although it will be for life.
I go for MSS since I have option to choose
Deletei never like CPF Life too.
ReplyDeleteBut after delay until 67, i found CPF LIFE's monthly payment is higher than if i remain on MSS.
And it is for life.
What do U think i did?
But my wife remains on MSS got higher payment than CPF LIFE even delay until now.
Even projection until 70 years old, compulsory withdrawal age, MSS still beats CPF LIFE.
Why like that?
i suppose CPF LIFE actuary's calculations base on statistics show woman lives much more longer than man.
So my wife will definitely be on MSS comes 70 years old.
Why like that?
How many years different of living till sayonara between man & woman?
MSS is neutral as is taking back own money
DeleteYa!
DeleteHave U checked like me monthly payment is higher than MSS at age 67 and for life.
O. K. the bequest is gone by i think by 80.
I didn't compare. Taking back own money is good enough
DeleteActually CPF LIFE benefits people who are quite healthy at 65 to 70, and have parents and grandparents who all lived beyond 90+.
DeleteAnyway CPF LIFE is open to us Medeka Generation until age 80.
By that time i wonder what are the terms to join?
What is MSS?
ReplyDeleteMSS is Minimum Sum Scheme but not applicable anymore other than Merdeka geneation
DeleteAccording to statistics, woman lives 5 years longer than man.
DeleteSo woman on MSS will get higher monthly payout than on CPF LIFE.