Wednesday, 1 January 2020

My Passive Income From CPF


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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18 comments:

  1. Siew Mun1 January 2020 at 12:51:00 GMT+8

    Congrats uncle! Well done. I aspire to be like you. Mine is $25,664.25 - 10 years younger than u

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  2. STE1 January 2020 at 20:49:00 GMT+8

    Congrats Uncle8888 , Yes , power of compounding interest !! Cheers :D

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    Replies
    1. Createwealth88881 January 2020 at 20:54:00 GMT+8

      Those who understands the power of compound interests is unlikely to hate CPF scheme. Cheers!

      Delete
  3. Createwealth88882 January 2020 at 18:22:00 GMT+8

    Updated with the table above.

    So 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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  4. xiehong201013 January 2020 at 19:44:00 GMT+8

    This comment has been removed by the author.

    ReplyDelete
  5. Betta man6 January 2020 at 17:56:00 GMT+8

    If MA hits BHS, can the interest earned in MA be withdrawn?

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    Replies
    1. CreateWealth88886 January 2020 at 18:24:00 GMT+8

      Yes. 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

      Delete
    2. Betta man7 January 2020 at 09:18:00 GMT+8

      So when you go to CPFB in Dec, you can ask to withdraw interest earned in OA, SA and MA from Jan to Nov ?

      Delete
    3. CreateWealth88887 January 2020 at 09:27:00 GMT+8

      The first two year, I done at the branch to ensure that I understand and clarify the CPF withdrawal formula.

      The 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

      Delete
    4. Siew Mun7 January 2020 at 12:28:00 GMT+8

      Uncle, can u share the CPF withdrawal formula please ?

      Delete
    5. CreateWealth88887 January 2020 at 13:39:00 GMT+8

      1. Interest from MA

      It 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

      Delete
  6. Createwealth88889 January 2020 at 19:30:00 GMT+8

    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

    SA 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

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  7. Createwealth88889 January 2020 at 19:32:00 GMT+8

    If one don't mind to deplete SA; then can do monthly OA payout

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  8. Adrian9 April 2020 at 12:16:00 GMT+8

    U mean interest in MA can be withdrawn from any particular month if MA reaches BHS..

    Thanks

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    Replies
    1. Createwealth88889 April 2020 at 13:05:00 GMT+8

      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.

      Delete
  9. Adrian9 April 2020 at 12:18:00 GMT+8

    Can CPF OA proceeds from sales of property be partially withdrawn in the same month of OA refund. Do we apply at CPFB for this ?

    ReplyDelete