The Ordinary Wage (OW) Ceiling limits the amount of OW that would attract CPF contributions. The OW Ceiling is capped at $6,000 currently. For example, if an employee’s OW for a calendar month is $6,500, his CPF contribution would be computed based on an OW of $6,000; CPF contribution is not required on the remaining $500.
Read? CPF Contribution and Allocation Rates
Median Income in Singapore
Read? Income growth slows in Singapore; median salary now above S$4,500: MOM report
Read? Summary Table: Income
The nominal median income of Singapore residents on full-time employment increased this year to S$4,563 from the S$4,437 recorded in 2018, the Ministry of Manpower (MOM) report said.
How big is our CPFIS as war chest for market timing for the next few STI crashes?
Assuming $6K monthly CPF cap and 2 months bonus i.e. total 14 months of CPF OA and 35% of CPFOA to grow CPFIS as war chest.
From the numbers, it seen that most of us may not have high 6 digits in CPFIS as war chest.
So what is the other strategy to deploy our CPFIS fund into the SGX other than investing in managed fund as retail investor?
Read? Relating to CPFIS
Uncle8888,
ReplyDeleteWhen there's major recession, even putting all available CPF-OA into high cost UTs can still get triple digit returns over 1-2 years. A big bear market is when it's actually feasible to put even CPF-SA into one of those balanced UTs! (sell & refund back to SA after 1 year of recovery though) 😉
Unfortunately; for those in their 30s or early 40s this wait has been far too long! Sianz and then give up!
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