I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed 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!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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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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Saturday 8 August 2020

CPFIS after 55. To close or NOT to close? (2)

Read?  CPFIS after 55. To close or NOT to close?

The decision to close CPFIS after 55 can be based on dollar and cents in order to make financial sense.

Every counter held in your  CPFIS account incurs $8.56 custodian fee per year so there is cost or saving involved to compute.

How to decide to close or not after 55?

Your size of CPFIS really matters!

Any money refund from your CPFIS will earn 2.5% interest p.a. Does annual interest earned far exceeded the total custodian fees?

Yes or no?

You need to do your own Maths! Bo pian!


  1. No hurry to close your CPFIS after 55. Just take your time since you can close any time. Any time is a good time. LOL!

  2. Dividends from shares are also autocompounded at 2.5%?

    1. All refunds from CPFIS including return of capital + P/L continue to earn 2.5% as 65% fixed income and 35% war chest for re-investing. May be this is the down side of refund i.e. forced asset allocation.

    2. 65% is safety net, if you screwed up on 35%

  3. I've sold a bit of paper gold to get my allocation back down to 15%. The recent move is too parabolic; maybe a painful correction in the sort term (in terms of 2-3 months).

    But I think the big crazy moves in precious metals (silver is crazier) will be over the next 1-2 years, but with big -20% corrections along the way.

    If so, other risk assets like emerging markets, Asia, Singapore stocks will be chionging too.

  4. If you close CPFIS, and there is still money in the OA since you only use 35% to buy shares, you still earn the 2.5% interest for the remaining 65% and can withdraw the intetest anytime. Tio bo?
    If tio, then as long as the dividend from the shares that was moved from CPFIS to your CDP pays a dividend higher than 2.5%, where is the loss? I sometimes get the impression that closing CPFIS is a big NO NO.
    I am not 55 yet so no experience and hope to learn and clarify.

  5. There are many GLC amd banks corporate bonds that pays more than 2.5% coupon. Keppel, Sembcorp, Mapletree, Ascendas, etc, if one subscribe it at launch. 2.5% a big deal? I sometimes get the impression that withdrawing from CPF to invest is another No No. Goalpost can change while corporate bond has a liquid market. Condition is $250K to subscribe 1 tranche.

  6. More of Barbell investing strategy i.e happily earning bond like 2.5% ROC while waiting for bigger investing opportunity by Mr Market for N X 2.5% ROC.

    If we are happy with anything above 2.5% ROC then it is better to withdraw CPF SA and OA after 55 and invest on our own.

  7. Uncle x2, I am just exploring and sharing since I have invested in bonds which I find more flexible and liquid when I suddenly need to "run road".😂 No right or wrong as long as the strategy suit the person. 5 taps of early retirement. 🤣

  8. Uncle Temperment, OA is still there after you withdraw everything. Confirm boh ? Or need to leave $1 inside ? 😂

  9. You can withdraw investments from cpfis and transfer to cdp right? Then you will save the custodian charges.


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