Read? Don't Laugh At Precision Two Decimal Points Investment Returns! (2)
With FY 21 final dividends declared and counted and also assuming FY 22 H1 dividends are not drastically cut; Panda can look forward an easier ending for 2022!
The good thing about investing for income; we can roughly count the chicken before they are hatched and prepare to take remedial actions if some eggs are rotten!
Read? DBS : Round 23-2 : Sold @ $35.02
Bought back to suck Panadols again!
War escalating or peace talk?
Fu Yu (new 2020 add in) looked like HODL candidate for Panda retiree for his passive income!
LOL! Uncle8888 has already done CPF SA to CPF RA transfer after publishing the post on buay song CPF shifting Goal posts. Now, it also makes more sense to withdraw $2K CPF OA earned interests on monthly basis starting from Jan 2023 instead of lump sum withdrawal of 11/12 months of interests earned since 2017.
Spur22 February 2022 at 23:13:00 GMT+8
Uncle8888,
U are in better position than most to make lemonade out of this lemon.
Since most of your interest comes from OA and you're starting RSS payouts soon, one solution can be to transfer your SA to RA and let it be amortized via the 25 year payouts. You'll still be getting the 4% interest plus the extra 1% and 2%.
Then every Jan, just withdraw the credited OA interest. Or you can withdraw smaller sums, every couple months or so, thus allowing more interest to be earned. Since the RSS payouts are already larger.
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I was initially thinking whether can use SA shielding to preserve the SA.
i.e. shield the SA, then withdraw OA interest, then unshield the SA, do all in Jan.
But I think the $40K CPFIS-SA threshold still applies even if 55+ and already meet the retirement sum?
Cest la vie! Shit happens! 🤣
Good luck to those who have good faith in our CPF scheme and how many more shifting Goal posts waiting down the Road for you!
Read? Another New CPF Shifting Post Without Informing Affected Members!
Thursday, 22 December 2016
Read? Turning 55 - and enjoying financial freedom (5)
CW: Pls help to check how much interests I can draw out without touching my SA and OA.
CPF: Wah! You have lots of interests to draw out. It is $XX,XXX. Do you want to draw out now?
CW: :-)
CW: No. Not now. I will withdraw next year on January.
CPF: No. You can't withdraw your interests on January. Your interests credited on January will become your principal. You have no more interests to withdraw. You have to be careful as you will be withdrawing your principal in CPF SA first and then principal in CPF OA. CPF SA is 4% interests. Be careful! You better withdraw now in December. Your interests for November has been credited! Do you want to withdraw now?
CW: No. I will withdraw next year in December.
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Uncle8888 clarified farther ...
Thank you for fast reply!
Quote from your reply : "As part of the Board’s ongoing efforts to ensure our administrative practices are aligned with the market practice, we have revised our practice such that only the savings in your CPF accounts can be withdrawn."
With the change of CPF administrative practices are aligned with the market practice in 2022; I can only withdraw CPF SA and CPF OA interests earned for 2022 on Jan 2023 instead of Dec 2022. Pls help to confirm my understanding is correct as below :
Estimated numbers for withdrawal from
CPF SA = $1,691 and CPF OA = $24,000 - $1,691 = $22,309. Total $24K.
It is NOT $24K from CPF SA! Right?
Thank you!
CPF''s reply ....
We refer to your enquiry via My Mailbox of 21 February 2022.
Please allow us to clarify. As explained in our replies of 17 February and 21 February 2022, if your SA balance is equal to or more than the withdrawal amount of $24,000, the full withdrawal amount will be from your SA and there will be no deduction from your OA savings.
The interest earned for 2022 will be credited to your SA and OA respectively on 1 January 2023, forming part of the principal balances and will be deducted from the principal balances upon withdrawal.
With reference to your example given, if you were to make a withdrawal after 1 Jan 2023 and your SA principal balance is sufficient for the withdrawal, the withdrawal amount from each account will be as follows: SA = $24,000 and OA = $0.
We hope the above clarifies, thank you.
Read? CPF Shifting Goal Posts. Did Merdeka Generation See It Coming???
Uncle8888 has never voluntary top up a single cent into his CPF as he kena CPF shifting goals from CPF withdrawal from 55 to 60; 60 to 62, and 62 to 65. How to trust CPF when he kena so many time!
2022; kena again! Luckily; thank to reader's alert for me to check with CPF!
It will be a SHOCK and WTF if he is not aware of new rule change and continue to withdraw $24K on Dec 2022 like past 5 year as retirement income for life! $24K outright from CPF SA instead of 11 months of earned interests! WTF!
Did Uncle8888 really miss out that communication of CPF's latest administrative practices that are aligned with the market practice in CPF News alert email to him?
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Why change?
Hmm .. previously; we can just withdraw 11 months of CPF SA earned interests and then compounding the remaining 1 month in CPF SA at 4% rate! Now, ZERO compounding rate in CPF SA if you choose to withdraw earned interests! Hmm ...
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CPF's next reply to my question
As part of the Board’s ongoing efforts to ensure our administrative practices are aligned with the market practice, we have revised our practice such that only the savings in your CPF accounts can be withdrawn.
This means that while interest is earned every month, it is only credited into your CPF accounts to form part of the account balances at the beginning of each year, and withdrawable from then on. If you make a withdrawal, savings from your Special Account (SA) will be paid first followed by your Ordinary Account (OA).
Based on your example given, as at December 2022, if your SA balance is equal to or more than the withdrawal amount of $24,000, the full amount will be withdrawn from your SA. If your SA balance is less than the withdrawal amount, your OA savings will be withdrawn to make up the balance.
As of today, your SA balance is sufficient for the full withdrawal of $24,000.
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!
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CPF's reply to my question:
As part of the Board’s ongoing efforts to ensure our administrative practices are aligned with the market practice, we have revised our practice such that only the savings in your CPF accounts can be withdrawn.
While CPF interest is earned every month, it is only credited into your CPF accounts to form part of the account balances at the beginning of each year, and withdrawable from then on. This is similar to market practice, where your bank interest is only withdrawable after it has been credited into your bank accounts. Hence, if you make a partial withdrawal, savings from your SA will be paid first followed by savings from your OA.
Avanda Investment Management's assets have more than doubled to around US$10 billion since it was co-founded by Ng in mid-2015 - soon after he retired from sovereign wealth giant GIC as its chief investment officer following a 42-year career in the public service.
Ng, who was GIC's group CIO from 2007 to 2013, said a love of investing and belief that you get better at it with age were among his main reasons for starting Avanda; finance oracles Warren Buffett and Charlie Munger are his inspirations.
Long focus
The firm has earned a 7.5 per cent annualised rate of return before fees from its inception to December 2021. That's higher than the 5.9 per cent average return on the Eurekahedge Multi-Strategy Hedge Fund Index between 2016 and 2021. Avanda is also bigger than any Singapore-based hedge fund; the largest one manages US$7.7 billion, according to With Intelligence data.
Ng sees Avanda as an asset manager and not a hedge fund, partly because it's a long-only investor. Management fees average at around 0.5 per cent with a performance fee above pre-agreed target returns.
Real life lesson as retiree depending on dividends and trading profits in SGX!
Somehow; we hardly hear it loud and clear from dividend investing gurus/trainers that investing for dividends for FIRE or retirement is not that difficult. It is nothing more than a Game of Capital and War Chest against your expected household expenses during FIRE or retirement across future market cycles.
It is how you calibrate your war chest to generate sustainable cash flow from investment portfolio is critical. In short; it is about Method, Mind and Money Management!
What we can control and manage is our Mind and Money (deploy or accumulate war Chest) to build sustainable investment income across market cycles!
One picture tells the lesson learnt! Large war chest deployment into the market JUST to maintain past year investment income!
It is NOT that simple narrative or advert for FIRE movement that passive income exceeds expected expenses can FIRE across future market and economics cycles! Chun bo?
Let see how STI performs today!
Terrible or terrific?
What time now?
How near to 12 Midnight when the Party ends?
A new ATH from 188%, 189%, 191%, 193%, 196% and 198%!
Shiok man!
Panda and Koala also got their chance to dance and smile while clock hasn't strike 12!
How high? What time now?
Finally, Singapore Terrific Index touches 3,400! A strong resistance!
Let see it is terrific or terrible in Tiger 2022?
A new ATH from 188%, 189%, 191%, 193% and 196%! Shiok and enjoy while happiness lasts! Learnt from Bull 2007! Whatever wealth in the stock market is an illusion until we can safely realize these wealth into non-volatile asset class!
Read? Kep Corp HODL for more than 20 yrs since Sep 2001
Will yield loving Panda/Koala be attracted to this smelly stock besides S-REITs for income investing?
One of those 5% yield blue chips!
Read? Mee Siam 17% Inflationary Rate Over Mee Rubus
Mee rubus also followed up with 17% inflation hike!
Yesterday, bought fish soup and saw the new price list on top of CNY surcharge of 0.50 cts!
New price list increase from $5.50 to $6.00 i.e. 9% inflation rise!
Mee pok still maintain at $3.50 as of yesterday!
Less mee siam and mee rubus and more mee pok to fight inflation. :-)
For fish soup; needs to wander around nearby kopitiam to compare! Retiree has more spare time to wander around to fight inflation! Possible to fight inflation? LOL!
Walau!
STI so steady!
Three consecutive days of new ATH from 188% to 189% to 191% to 193%! First-ever over 22 yrs in SGX local market!
Time to take some profits off the table? Headache liao!
Another shiok day for Panda and Koala in boring Singapore Tolerable Index in 1st opening workday in SGX market!
A new ATH @ 191% from 189% on last Friday CNY Eve! Huat Ah!
Another nice memory of shiok day in the year of Tiger 2022 and also collected a small Ang Pow from Mr Market to start "work" in SGX! LOL!
Read? Wilmar : Round 13-2 Sold at $4.38
Collected small Ang Pow for opening trading workday for Tiger 2022!
Round 14 : ROC +2%, 185 days, B $4.28 S $4.38
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