I DON'T HAVE that much in My CPF ... Plans For 2023 Full Retirement Sum
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- เผยแพร่เมื่อ 9 มิ.ย. 2024
- Today you'd see my CPF statement and my strategies for 2023. You'd also hear an interesting flow chart on when to top up to CPF for full retirement sum and tax relief. Article on CARESHIELD LIFE UPGRADE - www.theastuteparent.com/2020/...
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0:00 Introduction
0:30 Inside CPF account
2:18 Explaining Basic Healthcare Sum BHS
Explaining full retirement sum in SA
3:05 What to do
For doing cash top up to CPF
5:41 Tax relief
From CPF cash top up
7:15 Limitations on cash top up
9:34 My own CPF
#cpf #cpfretirement #retirement #retirementplanning #medisave #cpfsa
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About Josh Tan:
Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips.
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► www.theastuteparent.com/josh-tan - บันเทิง
ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY
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Hey Josh, good video as always. Maybe have to clarify that any RSTU sums cannot be taken out at 55 also as it is only reserved for retirement when CPF Life begins at 65-70. Only if OA->SA then can take out at 55 above the prevailing FRS. I understand though, that perhaps you skipped that part cz CPF really so many criteria and that's not the focus of this video too haha.
Thanks Paul. Yes you are right.
Part two as long as SA flushes to RA first then OA flushes to RA (if needed).
As long as FRS is hit, the surplus can be withdrawn (from SA first then OA)
Good insights, Josh. Have a query- you sold your HDB recently, but your OA balance is at $10k only. Did you previously use Cash for HDB flat mortgage, thus it did not flow back into OA.
Transaction not completed yet. Its a 3-6mth process
You mention careshield life how about medishield life? Should one uprade to integrated shield plan?
Most definitely. The deeper question should be upgrade with rider or no need. Upgrade to private hospital or just govt.
Discuss with a qualified adviser k
Go for CPF enhanced retirement sum
Hi Josh. You can contribute to your CPF SA even after your SA is above FRS. How? Do a voluntary contribition. Of course it goes to SA, OA and MA. But if a person is nearer 55, little difference.
Hi Fabian, Im aware and interesting point raised.
SA can build above FRS from employment yes. VC also depends on what you've earned through employment already.
Note - VC for employed has no tax relief.
Not ideal also coz FD already give that 4%. No need to sacrifice the liquidit
Meanwhile, Im keeping the cash top up to SA for tax relief open. Cya around
For tax relief, there is another 8,000 available and that is to your parent's RA or MA. If you top up your parent's RA, the government will match top up with $600. There isn't for MA but if your parents MA is below the BHS, you can top up there as well.
Top up to parents if they dont earn income more than $4k/year.
Matching of $600 I think is the MRS scheme if below BRS only if rem correct.
Do double check but good points raised =)
Hi Josh, i am 57 year old now, I only achieved BRF for my SA. MA has reached the ceiling amount for last year. May I know should keep top up my SA until I fully retire?
For above 55 is top up to RA.
If you dont need the tax relief, fixed deposits offer than 4% now and its still liquid for you
@josh tan, do you advise that we start to top up the SA and SRS for tax relief 2023 at the start of the year?
Personally Im not a fan of doing at start of year. Im more for end of year. Interest in SA is not a priority over confirming income has been earned over the year already
@@joshconsultancy what if I already know my annual income from a fixed salary?
Hi Josh, if my annual income is less than $80,000 is it wise to top-up my CPF MA to max out BHS before moving forward to CPF SA?
Hi, income tax may not be large yet. The whether to top up depends on whether you feel you can get returns investing instead. This sharing may help - HOW YOU CAN USE 1M65 AND ALTERNATIVE TO BUILDING WEALTH THAT YOU MUST SEE! - th-cam.com/video/aliBqbHUKb4/w-d-xo.html
I think we cannot transfer from OA to SA if our SA already hit the FRS.
Cannot transfer and cannot top up
Is there tax relief on this 2.5k MA top up? (My SA & MA already at full levels)
Yes. Cash top up to MA has tax relief
How can we use MA to pay for insurance?
To clarify - Medical insurance (shield plan) and long term care insurance (careshield supplement) only
Should I fully repay the CPF amount used for housing? My idea is to refund a fixed amount monthly via cash top up…
Property Refund to CPFOA currently doesnt make sense coz FD interest is already 4%. Doesnt have tax relief also.
Suggest to reconsider strategy k =)
@@joshconsultancy Hmm actually Voluntary Housing Refund may not be a bad idea assuming if the member already has more than $20,000 in CPF OA....he/she can then use the excess to invest in S&P500 thru Endowus...probably the best time to get in now since it's bearish
Also, if the member has not hit FRS yet, he/she may transfer CPF OA to SA, to earn that 4% compounded interest
What happens to medisave account when turn 55?
No change. Still only for medical and insurance
Upon death, paid as cash to beneficiaries.
Hope it clarifies
Then I won't want to top up lor
This is a good suggestion to top up 2.5K to MA to get the tax relief. For the last few years I have been topping up my CPF OA using the refund method so that my OA has enough money to pay my monthly mortgage. Refund method does not have any tax relief. Topping MA has. Now that my MA is full, the monthly contribution will flow into my OA (my SA is already FRS).
Yeah good idea to finance the housing needs, proportionally maybe can cpf OA tbills short term as well, what do you think?
Yes in your instance it will eventually get to your OA.
I guess this year with fixed deposits at 4% level, there are little reasons to do mortgage refund to OA.
Happy it was useful, cya around
@@joshconsultancy good information! Thanks for sharing
The full 33k you top up can be tax relieved for self employed? I thought only 8k
VC of $37740 limit for self employed has tax relief.
Don't bother about what CPF interest they give you. Purchase a correct property and the capital gain plus rental far exceed whatever CPF can pay you. If you can even satisfied the FRS at 55 even upon selling the property, the gain far exceed whatever CPF could have paid you for as long as the property was brought with rental returns. Don't bother about what top up. I never bother about what tax here , tax there. The most important is upon retirement is...WHAT IS THE ACTUAL LIQUID ASSET..CASH can one get every month for certainty.
Hit it right. One would be able to retire with FRS payout plus rental from the property payout with minimum risk. Shares, bonds have far higher risk and FD does not pay out so well. Even if the property was sold, the amount returned to CPF far exceed the FRS, so the rest goes back to OA which can be withdrawn anytime after 55.
OA interest only 2.5%. Bank interest is 4% now
Yes indeed. Hence MAXIMISE YOUR CPF | 7 WAYS YOU NEED TO TAKE NOTE OF NOW! th-cam.com/video/GK7kUlkmu84/w-d-xo.html
I still do not understand why when "Both MA hits limits $66k and SA cross $192K already last year", YOU advice to quickly top up MA to new limit $68500 which could be only $2500.
The MA cap increases on every 1st of the year. In 2023 it is to $68,500. Top up $2,500 can be done for tax relief ($66k to $68.5k)
Example, if employment earns you $400 on 15jan23, your SA become will $66,400 on 15jan23. Remaining top up you can do then becomes only $2,100 to $68.5k cap. So on and so forth
Hope it clarifies
Hi Josh,
Alot has been mentioned about SA shielding at 55. In fact, I have successfully executed that last year. However, it has come to my knowledge that at age 65, there is a 2nd mandated OA & SA transfer to the RA.
Very little has been mentioned about this 2nd transfer. Is it to meet FRS or EHS amount? When FRS or EHS is mentioned at 65, is it referring to the values when we were 55, or the compounded value at 65?
Why I'm concerned is that whatever shielded in SA at age 55 is now at risk again to be pulled into the RA. In fact, I don't even want to participate in CPF Life at the FRS amount at 55. The lesser, the better. My target is to just have a $1K/ mth payout which equates to about 185K at the point of participation in that annuity. Is there anyway to go about this to avoid over participation amount?
Thank you for your time to assist.
Regards,
David
Hi David, 2nd mandated OA & SA transfer to RA at age65 may be incorrect. Do paste the source to verify.
Meeting FRS is only at age55. The CPFLIFE calculator payouts from age65 has the compounding factored in already assumes that amount exists at age55 there
It's in the straits times
I can't seem to paste any links here. Yesterday's article on changes in 2023. One section is on CPF
Agree with Josh. The transfer from SA/OA is one time at age 55, when RA is created.
@@jamesho7897 From what I've been googling, the 2nd mandated withdrawal to RA is confirmed. (Meet FRS). But other areas to form the bigger picture is not. Like fo we get to choose how much of RA to participate in the annuity and withdraw the balance.....
Guess it'll be a road of multiple rounds of shielding to be safe
Per CPF FRS for 2023 is $198,800, but you seem to be using 2022 rate. Can comment ?
Yes FRS 2023 is 198,800.
The MA interest flowing to SA then to OA takes place before the 198,800 is factored, hence the 2022 rate of 192,000
@@joshconsultancy Thank you !!
Yo Josh, if you upgrading your housing. Your SA must have a full retirement sum first if you going to reach 55. If not, when you purchase your new property. The money going to your OA will transfer to SA to fill up to match the retirement sum first, then what ever balance will be your OA and cash for the next flat, condo or house.
Hi there, no probs, I'm familiar. RA is filled up firstly by SA then OA. But im still 16years away from 55 haha
@@joshconsultancy young man
Can we withdraw interests earned from CPF?
Only if above age55 and have FRS inside. If not cant
I think it would be great if you can slow down when you speak.... haha.
I am holding mostly in cash and overseas pty, I don't trust cpf
!!!? Hmmm How to trust bank over CPF/govt?
@@joshconsultancy I mean I don't trust cpf for my retirement
Wow trust overseas property ... can buy easily difficult sell in the end🤔
@@laisowfong No need to sell, it is generating 8-10% returns annually so it is a cash cow. Almost recovered my capital just from rental.
$5,500 Monthly : 1. Pension $1,500 (35 Years) 2. Livelihood $2,000 monthly 3. Property $1,500 (35 Years) 4. MediCare $250 5. Emergency $250
Your monthly retirement income flow?