As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

Currently; it about 54% to destination!

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Tuesday, 16 June 2020

CPFIS after 55. To close or NOT to close?

Can you write to CPF Board for advice or you ask your favorite post 55 investment blogger?

Q : For CPFIS, it incurs custody fees, and technically the shares are not under my name. I thought it may be a better idea to move it to pay a one time transfer fee and move it to CDP? It's also better for bequest reasons I think. But I am thinking if you are thinking transferring the shares to CDP means closing the CPFIS account completely?

Uncle8888 didn't close his CPFIS after 55 as he likes to think that his CPFIS is a 2.5% compounding interests War Chest waiting for market crash!

Dividends NOT spent yet in bank account earns 0.5% in current low rate environment; but CPFIS  earns 2.5% in CPF OA.

Uncle8888 withdraws his CPFIS dividends in the month of Dec every year after retirement in Sep 2016. Earning 2.5% is still much better than 0.5%.  Multi-bagger gains. LOL!

Let hear what other post 55 readers' view on their CPFIS here!


  1. I am turning 55 in September and treating CPF as a high interest savings acct. I will cash to top up ERS, retaining as much money as possible in OA+SA. I will continue to retain my CPFIS too with CPF offers the best ratesn currently. I am a CPF lover.

    1. Thank you on the behalf on this reader here so that he can have more other people's views.

  2. I passed 55 two years ago. I even transferred more cash to CPF to enjoy the 2.5% interest which is much higher than any banks, while I can withdraw the CPF anytime I need. Thanks to the great CPF scheme which is really great for retirement!

  3. It is also depends on U believe in Majulah Singpaura or ever ready to abscond from Singapore at the first sign of doom?

    Most people got no choice unless they got so much money they don't want to sacrifice for anyone or any thing in this life.

    They will abscond on the first sign of doom.

    Maybe some people will not abscond outright but will still prepare for back doors for their family, in case "Majulah Singapura" really fails.

    Any way, i am glad i am a Singaporean and not an American or ?

  4. But some people are not old enough to know when bank's FD rate was 5 to 6 % CPF was and is always 2.5% for OA so far.

    At one time(some of the years) it was so high FD rate, that U did not need to do anything to have a high saving for old age.

    My late mother was one of the beneficiary.
    She did not have to use of any of her sons's money at all for all her hospital(throughout the years) and funeral fees.
    Her savings and CPF's Medishield was slightly more than enough.
    She lived until 89 or 90.

    So Majulah Singapura after all we are ordinary citizens born here.
    Unless U have a lot of money, "No money, No talk" the Cantonese saying.

    Who can disagree otherwise with the Cantonese?


  5. And less U think otherwise, my mother was a housewife from quite low income family.

    Anyway how many families got money in those times.

  6. You either hate the CPF or love it. Either way, it is a topic that can stir people's emotion.

    I started to appreciate the CPF as a good savings scheme only after I turned 50. Before that, I was thinking of ways of how to use up my CPF money as if the money wasnt mine. Together with my wife, we tried to use as much of it as possible to buy property, as rental income comes to us in cash. We did not use our CPF money to invest in shares as the dividends or trading profits still get retained in the CPF.

    After we turned 50, we started to return to CPF the money we used for the property purchased together with the accrued interest. It became clear to us that it was better the CPF give us the 2.5% rather than we try to earn that 2.5% interest outside and pay it as accrued interest to our CPF. It took us a few years to return back all the money to our CPF but we finally did.

    Not only that, after we turned 55 we also did voluntary contributions and top ups to our RA to the new ERS every year.

    For those who 'love' the CPF, these are the various targets they could strive for:

    1. CPF Millionaire (combined amount from OA, SA, MA and RA)
    2. CPF OA Millionaire eg. our dear CW here.
    3. 4M65 ($4M in combined CPF accounts for couple by 65) - as espoused by Mr Loo Cheng Chuan

    To reach 4M65, a couple must have at least 3M60 (combined). That is, $3M combined in the couple's CPF by age 60.

    Happy saving!

  7. My mother is a pure Hakka.
    She was very thrifty and hardship tolerance.

    i am actually a Teo Chew Hakka because my grand father's married a Teo Chew.

  8. Thanks for the sharing. Actually i wrote to CPFB before to ask about the interest rate after 55. Even that is confusing; 2 different person gave me different answer. Goal post like not fix make me scare. LOL...

    1. It shows our CPF scheme is complex and their CSOs are younger than 55 and they themselves have no hand-on experience on CPF withdrawal schemes. They may find it match standard answer with non standard questions raised by members.

      BTW, CPF interests rate has never being fixed! Just that most CPF members have short memories. ha ha!


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