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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Sunday, 30 January 2022

Adding Variable CPFIS Life As An Extension To Fixed Income CPF Life For Singapore Panda/Koala Retirees

 








This is seldom mentioned by Singapore investment bloggers!

We can invest our CPFIS fund for long term retirement planning i.e. market timing and time in the market.

Dividends & interests withdrawal from CPFIS Refund as an extension to our CPF Life fixed income!

Read? Kep Corp : The Good, The Bad And The Ugly!

Looking forward to DBS and SCI FY 21 H2 dividends announcement. :-)







Posted by Createwealth8888 at 09:09
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10 comments:

  1. Spur30 January 2022 at 13:00:00 GMT+8

    Uncle8888,

    Singapore is going the way of other developed countries, where the basic national pension is supplemented by individual's investments, plus various national insurance schemes.

    For us, the basic old age pension is CPF Life. Investments can be from CPFIS, SRS, and/or cash. Plus Medishield Life and Careshield Life.

    ReplyDelete
  2. Unknown31 January 2022 at 13:03:00 GMT+8

    Hi Mr Createwealth8888
    You're 65 year old. Just wondering you in RSS or opt for CPF Life?

    I heard from 1M65 group that CPF has set the sequence of withdrawal after 55 year old is:SA must be fully utilized then go to OA. No longer allowed to withdraw earned interest from Jan to Nov in SA & OA. Hence, dividend investment is important for old age.

    ReplyDelete
    Replies
    1. Createwealth888831 January 2022 at 13:40:00 GMT+8

      As a cancer survivor; it is better for me to stay in RSS!

      "No longer allowed to withdraw earned interest from Jan to Nov in SA & OA"

      To avoid touching the principal in CPF SA; we must calculate the maximum interests withdrawal from Jan to Nov in the first week of every Dec as follows

      Interests withdrawal = 4% X CPF SA on Jan x 11/12 + 2.5% x CPF OA on Jan x 11/12 (Round down to nearest dollar for both CPF SA and OA interests)

      For those who are still maintaining their CPFIS account after 55; we are indirectly taking out total or partial dividends refunded to CPF OA from our CPF investment stocks by the way of interests withdrawal as retirement income on top of our cash dividends from CDP.

      Read? Passive Income From My CPF For 2021. PayNow!!!

      Delete
  3. mysecretinvestment5 February 2022 at 18:31:00 GMT+8

    Hi CW,

    The CPF has changed the rule on withdrawal on 9 Jan 2022 as pointed out by the reader (unknown).

    They no longer follow the sequence of taking out interest earned from the SA and then interest earned from the OA.

    Now under the new rule, when you make a withdrawal, they will :

    1) take from the contribution to your SA for the month
    2) take from the contribution to your OA for the month
    3) take from SA principal
    4) take from OA principal

    So for those unemployed and retirees with no contributions to their CPF, the withdrawal will come out from their SA first (step 3). Only when the SA is depleted then the CPF will take out the money from their OA (step 4).

    So in this new rule, no need to calculate how much interest earned, and no need to restrict to withdrawing 11 months of interest. They will just take from your SA first!

    ReplyDelete
    Replies
    1. Createwealth88885 February 2022 at 19:55:00 GMT+8

      Walan! How come affected members are not informed as I am on CPF News email alerts?

      I have written to them to find out!

      Delete
    2. mysecretinvestment6 February 2022 at 00:16:00 GMT+8

      Yes, good to get confirmation.

      In the 1M65 telegram group, a member also wrote to CPF Board about it and he shared the reply from the Board. Thats how we knew about this new rule.

      Delete
    3. 陈春辉 Tan Choong Hwee6 February 2022 at 14:41:00 GMT+8

      Hi @CW8888,
      The previous 6-step sequence wasn't published on CPFB webiste at all, but only in CPFB email reply to members who asked about withdrawal. Not many CPF members know about it, therefore not many members affected by the change. Therefore CPFB chose not to inform members about this change.

      Delete
    4. Createwealth888811 February 2022 at 08:07:00 GMT+8

      Wah! Unexpected delay in providing "standard" answer in 5 business days!

      Thank you for your enquiry

      We need more time to address your enquiries, and will reply to you as soon as possible.

      Thank you for your patience.

      We need more time to address your enquiries, and will reply to you as soon as possible.

      Thank you for your patience.

      Delete
    5. Createwealth888820 February 2022 at 09:51:00 GMT+8

      Walan! CPF is really a complex scheme even CSO doesn't have the answers!

      You have not replied to my questions. If you don't have answers, pls help to escalate to your experts to answer.

      Every month of Dec since 2017; I have been withdrawing $24K. from CPF. Last year; the withdrawal from CPF SA and CPF OA is as followed : CPF SA : $1,545 and CPF $22,455.

      Please help to confirm if there any changes when I withdraw $24K from CPF in Dec 2022
      How much withdrawal from CPF SA and CPF OA? Pls help to provide the numbers as follows:
      CPF SA = ? and CPF OA = ? Total withdrawal from CPF = $24K
      Thank you!

      Delete
  4. 陈春辉 Tan Choong Hwee6 February 2022 at 14:32:00 GMT+8

    Actually it was a 1M65 member who shared what he read about the change in withdrawal sequence from HardwareZone forum:
    https://forums.hardwarezone.com.sg/threads/cpf-after-55.6601194/page-13#post-139266760

    It was the HardwareZone member, not 1M65 member, who shared his email exchange with CPFB on the withdrawal sequence. And the revised sequence should be:

    1) Contributions/refund to the SA in withdrawal month
    2) Remaining SA balance
    3) Contributions/refund to the OA in withdrawal month
    4) Remaining OA balance

    Contributions refer to Mandatory Contributions (MC) and Voluntary Contributions (VC), refund refers to Voluntary Housing Refund (VHR).

    ReplyDelete

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