Passive income!!!
After 39 years of mandatory CPF contributions as full-time employee, 20 years of CPFIS refund and with the power of compounding interests.
Total passive income from CPF (OA, SA, MA, and RA) in 2019 = $37,425
Withdrew $24K on 5 Dec 19 i.e. 22.5K (OA) + 1.5K (SA)
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Congrats uncle! Well done. I aspire to be like you. Mine is $25,664.25 - 10 years younger than u
ReplyDeleteYou will surpass me at 60. Ha ha
DeleteCongrats Uncle8888 , Yes , power of compounding interest !! Cheers :D
ReplyDeleteThose who understands the power of compound interests is unlikely to hate CPF scheme. Cheers!
DeleteUpdated with the table above.
ReplyDeleteSo far, I can't withdraw interests from MA as it hasn't hit max BHS cap. Next year; probably can withdraw on certain month when BHS hits $60K BHS limit.
Hasn't reach 65; can't touch RA
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ReplyDeleteIf MA hits BHS, can the interest earned in MA be withdrawn?
ReplyDeleteYes. On the month when MA is still holding at BHS level. On some other month there may be deduction of premiums for e.g. Medishield then MA will drop below BHS
DeleteSo when you go to CPFB in Dec, you can ask to withdraw interest earned in OA, SA and MA from Jan to Nov ?
DeleteThe first two year, I done at the branch to ensure that I understand and clarify the CPF withdrawal formula.
DeleteThe last two I did online with PayNow.
If we know the right amount to withdraw without touching the principal, then we can DIY online, otherwise go to branch to withdraw. The counter staff will calculate the amount to withdraw without touching principal. Staff counter will emphasize ESTIMATE, probably a few times to get the message through it is an ESTIMATE
Uncle, can u share the CPF withdrawal formula please ?
Delete1. Interest from MA
DeleteIt is based on month by month basis whenever that month ending is BHS level, interest can be withdraw. If that month drops below BHS level due to any deduction from MA, there is no interest or pro rated interest s
2. Interest from SA
3. Remaining amount from OA
For retiree without mandatory CPF contributions, it is easy to calculate 11 months of interests to be withdrawn on first week of Dec probably after 5 Dec
ReplyDeleteSA at Jan x 4% x 11/12 = $X
OA at Jan x 2.5% x 11/12 = $Y
You round down to nearest thousands $ X + $ Y = $Z,000
If one don't mind to deplete SA; then can do monthly OA payout
ReplyDeleteU mean interest in MA can be withdrawn from any particular month if MA reaches BHS..
ReplyDeleteThanks
Yes. That was told by CPF. Next year, I will know since likely this year my CPF MA will reach BHS with voluntary MA contribution as self-employed.
DeleteCan CPF OA proceeds from sales of property be partially withdrawn in the same month of OA refund. Do we apply at CPFB for this ?
ReplyDeleteRead? CPF Housing Refund to CPF OA
Delete