ฝัง
- เผยแพร่เมื่อ 19 ก.พ. 2024
- SA shielding was a minority implemented concept
For today's Video, the Editor/Researcher/Slide Maker, with the help of Mr Loo, drank much coffee and lost much sleep to understand the Retirement Account and how to work around it
Any questions? Direct them over to the 1M65 Tele Group :D
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1M65 Tele Group: t.me/Loo1M65
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Disclaimer: loo.money/disclaimer
Helping Ordinary People lead Extraordinary Lives - บันเทิง
Thanks for exploring and sharing one more option for us to understand and consider. We been told in the telegram group to just accept the new rule and move on. Glad that there's still options to explore rather than surrender and move on like nothing can be done.
If you have FRS in RA, and intended to topup RA to ERS to earn 4% interest, and want to property pledge before 65 to withdraw max BRS amount, I was advised that the property pledge was subject to approval.
Thank you very much Mr Loo
Kudos to the creative editing! Entertaining!
Thanks for staying close to our concerns and doing the research for us . Kam sia.
Thanks Loo. Feel better now. Appreciate it
Thks Mr Loo and Ben. The solutions are helpful. 👍👍👍
Thanks, Mr Loo amd Ben for the insights. What do you think is a good time to do your property pledge to maximise your interest and 1/2 of FRS withdrawals?
Thank you very much ❤
you are very welcome!
Good stuffs Mr Loo and Ben. The passion and vigor are most impressive
For ppl like me in the 40S might face again more policy risk before we reach 55
Can I check - based on the video, it was mentioned at 65, it's possible to pull out $41k - how will this affect the CPF payout thereafter on a FRS amount - the before amount and after amount? Will it be significantly difference if the person lives to a long life assuming standard plan?
Hi Mr Loo if i set aside ERS 426k at 55, how much can i withdraw if i pledge my property at 65? is it still half of FRS or ERS?
Thanks Mr Loo! But just to highlight when you withdraw from CPF (such as property pledging) your CPF LIFE payout will drop quite significantly
Property pledging is a good navigator, and it has been around since last time.
One thing to note is, you guys must execute the property pledge before your CPF payout either 65/70 years old.
And your maximum withdrawable amount is limit to the BRS max ceiling.
thanks... can I ask if the BRS amount is that year say when I am 64 years old?
@@lukeeong it’s the year you turn 55 :)
It is possible that they rule change again then cannot withdraw the sum at 65/70.
Mr Loo, Applauding you and Ben and team for the great efforts to alley our fears and shock. Next could you continue to advise what we should do with the shield amount to make up for the "loss" opportunity to earn the 4% SA. Thanks once again!
These are not loopholes, they were already in place as options for CPF members to choose for quite sometime now.
Exactly.
Mr Loo, BEFORE 55, CPF will send letter for us to pick BRS, FRS or ERS. If we pick BRS, we MUST pledge property. So, once pledged, RA created will have only BRS sum. Choosing FRS at 55 then pledge just before 65 to pull out half needs written approval.
Hi, after 55, can we repick? Make changes?
Without taking out of RA, cpf life gives out a sum every month. My question is, if we pledge the property, and take out some money, will the amount given through cpf life be reduced?
When talked to cpf, the response was that if u do property pledge, yr cpf life payout will be reduced from 2.6k to 800. This amount is before cpf changes were announced. This is a serious downside to this option!
Yes, agree. This point you made is the glaring omission in this video.
I having been thinking over the past few days on the pledging of property approach and instead, will it be applicable to top up RA from FRS to ERS (max) from 55yo to 65yo. Thereafter at 65yo, withdraw ERS(max) to leave only 1/2 FRS through pledge of property. Then cash will be back on hand just like SA back then.
Benard, CPF will send letter BEFORE 55. You must inform of property pledge before RA creation. If we pick FRS/ERS at 55 then change our mind to pledge just before 65 .... need special written approval.
@@hbu8012 do u know what is required for the special written approval? Is it just possible with just a property that qualify on all CPF criteria or there are other criteria to be fulfilled such as a medical emergencies etc? Honestly, I think many rich people will be exploring this which may cause them to tighten the "loophole" making it difficult for them to do so.
@@Fiona20238 better dont takeout a lump sum just before turning 65. The monthly payout will drop "relative" to how much withdrawn. I will do so IF terminally ill at 64 with short life expectancy. Also, CPF will not send another letter before 65 ... so u need to go to them to enquire.
In the sprit of transparency, would like a video explaining post 65yo, the 4% interest RA earned no longer belongs to you and goes to the annuity pool. Therefore, topping up to 2x FRS only allows more of our CPF to pay for the annuity for ALL CPF holders. Would like to understand if there’s any real benefit since all we are getting back is our own $ back be it BRS, FRS or ERS.
It is only about age 80yo where we so call “break-even” on our own contributions over our working life and if we passed on then, there’s no bequest (based on standard plan) since the 4% interest earned do not belong to us.
The monthly payments thereafter, comes from the annuity pool and based on CPF LIFE estimator will exhaust around 88yo and we only start benefitting from CPF Life thereafter.
Can only withdraw 1/2 of FRS but cannot withdraw the accrued interest , right?
Good find, 🎉, still have policy risk though, things ,may change from 55-70 age
Yes, I can’t do anything about policy risk
Wife & I pledge our HDB 10 yrs ago. This option was in placed a long time ago.
We did that when interest rate kept going higher & spoke with CPF officer on the procedure to ensure we are able to use that $ for property payment. It does helps a lot especially when interest rate is getting higher & want to have debt free at that age asap. I only hope our gov. doesn't remove that just to tackle those abusers for those who sincerely wanting to use for that purpose.
Cpf may change its policy again about pledging property for cash. Thus, the latest idea may not work in the future.
But government rules change anytime. What if government change rule after you top up RA to maximum.
The world is changing. We need to accept, adapt and evolve. Isn’t it true that there are so many great empires of the past but today they are falling. To be a winner we need to make sure SG is strong and win. If SG lose even if we have SA shield we are not going to survive.
If I am not wrong, you can shield both SA and OA b4 age 55 if you only want BRS amount to go into RA (instead of deducting FRS amount)... btw, you cannot fully empty SA for investment, need to keep a balance of $40k.
That's right. He is wrong again.
yes, but the point is not about moving money out. It's more about how to have a 4% zero risk return.
@@lukeeongAgree with you. Can't find financial product which is highly liquid and giving a guaranteed 4.08% p.a.
1:20 to answer your question: Lorna Tan, former ST journalist now working for DBS. She coined the term ‘CPF Shielding’ in an article she wrote when she was working as ST journalist. I’m not sure if it was her original idea though.
Thank you! I did not know that
Lorna Tan was the one who wrote about it publicly in 2019, but she did not come up with this term because the real savvy pple already knew about it some years before that.
@@peterlo7491 I won’t be surprised because there are many financially savvy Singaporeans but I’m pretty sure she coined the term ‘shielding’. Interestingly CPF has a short video explaining this hack and even credited Lorna Tan as such.
"Shielding" is just a term used. In yr 1999 when HDB required flat buyer to empty CPF OA, many "shielded" OA to prevent HDB from emptying it. Same as SA "Shielding". It was done in 1990s. Not sure if was done earlier than 1990s. Currently think HDB allows 20K to remain in OA.
@@tgfss4166 why would HDB require you to ‘empty’ your OA? You have the option of ‘shielding’ your OA by simply paying cash.
Thanks Mr Loo & Ben, it feels like taking a panadol to relieve the headache...lol
Is it true pledge property only available for BRS scheme ?
Wait cpf see this as loophole and want to cover again 😂. Anyway thanks for the idea. But between 55 to 65 many policy changes can happen to plug this “loophole”
Hi Mr Loo. 1M65 dream to become a millionaire or multi millionaire was spoilt by new CPF SA scaling.
Is not new. If you withdraw 41k cash and also more through property pledged, then wouldn't your monthly cpf payment after 65 dropped ? significantly ?
But pledge property means withdraw the amount from FRS, RA drops, CPF payout also drops? Where's the hack btw? And the property pledge I think existed for quite long already. Pls enlighten me 😮
Yes. FRS drop to BRS means monthly payout also drop. Also yes, this property pledging is around for a long time. This is TH-cam, he needs a “click bait” title
it's for people who do not want FRS or ERS yet want to earn 4.08%p.a. until they reach 65/70 I guess.
Nothing new, this option was in placed a long long time ago. What new Discovery?
Yes, high risk high return and low risk low return. Don’t expect NO risk for high return, such as SA shielding at about 55, particularly for the (very) rich! Why should millions of taxpayers (ultimate losers) contribute to the rich in such manner?! Paying high interest rate to these SA balances and yet allowing for withdrawals at any time above 55 is a serious loophole - it is long overdue and must be plugged!! There is no free lunch in this world!!!
H Mr Loo, curious to know if you are going to top up your RA to the new ERS of 426000 in 2025?
GOV going to invite you for coffee and might give you a position help them plan policies for them to cover or really seal any loophole for policies that benefits .. hahaha
The property pledged must be funded by CPF before? If my property funded by Cash only can still pledge?
isnt those options already existing even way before the CPF shielding hack was closed?
Yes, that’s why we are still ok.
Don't jump into this without thinking critically: What if you top up to ERS and before you can pledge the property, government changes rules again (for property pledging) and your money is now stuck inside. Wont be surprised about this understanding that government changes rules so often. If everyone starts doing now, you might just be the one holding onto the timebomb when it explodes
What about interests incurred from RA? Is it visible to you and does it belong to you?
Interest incurred from RA is yours between 55-65, after that all goes into a common pool, for the government to look after the Aging population and people who live past their expected payout age
@@goldenretrieverboyI’m not sure your interpretation is correct. My understanding is this (still researching this topic):
(1) the RA and accrued interest are not pooled (meaning, can be bequeathed upon demise of CPF member).
(2) Part of RA fund will be used to pay for CPF Life premiums (amount depending on Basic, Standard or Escalating).
(3) Upon demise, remaining CPF Life premium (pro-rated from the annual payment) is returned to member’s nominees.
(4) All accrued interest from the CPF Life premium will be pooled for the benefit of all remaining living CPF Life members.
I am very certain about (1) & (4) but still researching (2) & (3). Anyone can help clarify? Thanks !
As usual....still advocating topping up to cpf...lol. policy can change again and people never learn. Best advice i can give is max MA and stop there. Let ur job do the top up to cpf(which will be auto). Use extra money invest somewhere else instead of topping up to cpf.
Does this apply if our RA is maxed to ERS?
If your RA is max to ERS, you can still execute this as long as you haven’t started withdrawing monthly income from CPF LIFE. Since property pledge is capped at one full FRS, your ERS will become FRS and monthly income will change accordingly.
So this withdrawal has to be executed before they start monthly payments? Once payments are started, no longer able to withdraw this lump sum portion?@@goldenretrieverboy
@@goldenretrieverboy with property pledge, isn't it capped at BRS instead of FRS?
@@Fiona20238 you can pledge 1 BRS worth of money. So means if you are in ERS, you pledge down to FRS
Yes, it is a good idea!
There are advantages and disadvantages to move more money into RA.
SA Shielding is also within the rules
Transfer all bal out ( 20k in OA) (40K in Sa)
Top up 145K in cash for the RA account upon opening ..
145k x20 % + 5k
29K will be able withdrawn upon 65 or continued
As All the Balances in OA are earning 2.5%
Draw down from OA first..
Mr Loo, the Minister and policy makers and advisors must have watched your videos and learnt about hacks. And patched them.😂
by the time u all find out any loopholes, in a few years govt is gonna do something abt it.
you cannot run away from policy risks when talking about money in cpf.
So ultimately you are going into property right? Which means you deem property as a safety net for Singaporean.
This deviates from the original intent to earn high interest from cpf and ultimately drawing higher mthly payout which you advocates all along. Hmmm….
It will never be the same again compared to CPF Shielding. 😢
I rather use money to invest earn more income in a few years. compound interest wait 20-30 years can beat inflation but still won't be a big amount the time you withdraw. Hold stocks but can't liquidate and money lock up in cpf until you die for what? Just invest to earn more income
We will top up with cash to 4xBRS next year, and decide which annuity plans to take when we are 65. No withdrawal from RA in our mind yet.😄
pledging your flat is at 55 or you can pledge your flat when reaching 65 to withdraw 50% from FRS ?
At 65
Someone tag CPFB to help explain/clarify 😆
Then after that Some clever people Will complain abt this and then what happen again ?!!
Are you looking for a video editor?
Ben is doing that for me.
@@1m65 oh that's nice but I think I can make your videos look more engaging and professional. I have shoot one mail to you, do checkout 😄
@@1m65 nice but I think I can make your videos more enganing and professioanl. I have send one mail to you regarding this, do checkout. 😄
End of the day at 55 u still can’t relax your life with more liquidity yet . They die die want u reach 65 then bit by bit give u . Then by 65 I also cannot enjoy moving around driving car or having my dream
You can if you move to Malaysia or somewhere else for retirement 😊
145k Compounding
10yr 71K interest 4.915%
15yr 119K interest 5.466%
20yr 177K interest 6.100%
25yr 250K interest 6.920%
Mr Loo at age 80 after this ..Will 🎉😂
At 68 72 enjoy your golden yrs
Just CDA snp500 la, people like to complicte their lives
Sg govt sibeh keng-ster... Own citizen also meed to hack
Where got such free lunch.? Basically you are saying top up RA up to 400+ k earn the 4% then before draw down say you only want to pledge BRS or FRS to join CPF life then withdraw whatever balance. Better have black and white from cpf board before trying this .
Last video you said the CPFLIFE payout is a 7% "dividends" and you want to put more into RA and live until 100 year old to maximise your return. This video you say the opposite.
Come on..! Wake up.
I think Loo is just giving us options. One man's meat, another's poison. You decide which one suits you better.
@@pangarans I have my own options. Don't need his.
This policy change shock all those who just turn 55. I am submitting feedback to ask the govt to exclude the current 55 yrs old from Sa closure. Start from those 54 as they can decide how much they want to put in. Last time there was a cut off date. Nowadays it came as a shock.
I understand they are only going to shut the SA early 2025.
@@Buttercookies0 what wrong with earning more money? Quoting a civil servant.
@@crichardwc You are talking abt cut off date. I am giving you the info. I am not arguing with you on whether it is right or wrong to earn more money.
@@Buttercookies0 I mean cut off age like 55 yrs old above retain Sa account as they cannot reverse decision. 54 yrs old below will have Sa remove when they reach 55 as they can make a decision especially on whether they want to have ra or move them out to other investments .
@@crichardwc You will have a RA once you reach 55. Can you choose not to have??
The blind lead the blind… 1M65 slap himself once again.
Stop listening to 1M65 he don’t understand policy risk
Very rude. Says alot about your lack of decency.
@@cathhl2440 if he can’t accept criticism then don’t be a TH-camr or so call “finance guru”. Nobody force him to be
He is just giving a suggestion, u don't have to take it if u don't like the risk.
So complicated, just take out all excess SA and open a Singapore Currency FD account in MY, get about 4% interest . My MY bank has FD tenures from 1 month to 1 year.
Yeah and the MYR keeps dropping against the SGD.
what bank? My stupid MY bank keep telling me foreigners cannot put FD. Also, the MY exchange rate kept dropping, quite worrying.
Lan sai la, pledging property is not same as losing 4% @ 200k in sa.😢
I'm confused... Isn't 1M65 about achieving 1Mil in CPF at 65yo? Shielding was good in a sense that more money can fall into the 4% interest bucket (SA and RA with flexibility of withdrawal from SA), but now the 4% bucket is only in RA. For the mass majority who are not investment savvy, wouldn't it be better if all goes into RA? Try to aim for ERS... lar! If you are thinking about shielding in the first place, you are CPF rich, why not put more into RA? So if you ask how about 55 to 65? That means you are not in the 'shielding category' in the first place...
rather aim for 1M in cash, tyvm. CPF is illiquid and subject to govt's policy risk.
SOLUTIONS now to get more money are 3: Firstly, instead of starting CPFLife at 65, start at 75 or better still start at 95, can get ALOT more money. Secondly, SELL/Re-mortgage your house back to the Government at the end just use what is left to buy your own coffin and say bye bye, Third option, make videos like this and get your channel to get some side hustle money. No more 1M65, now its 1M95, provided you live up to 95.
70 will force the payout already
@@petiachoo1615 Which means 1M is no longer possible.
@@petiachoo1615 govt will amend the rules again cos our lifespan is increasing 😂
the changes do not affect the 1M component at all@@marvelcomiks8078
Good. Discover all the loopholes so that the govt can patch them all up. Thank you.
Nothing to do ?
Not new..
No free lunch. High returns, high risk. No such thing as getting high returns by just sitting here and shaking legs and taking little or no risk. If you are not sure how to invest elsewhere, pay some money to get someone to help you.
No offence,,, your options are already in place long time ago. Not something new. Thanks anyway
Yes, doesn’t mean these options are not useful in unusual times like this.
I will not put in a single cent of cash to top up CPF. Policy risk is proven 10001% real, and you people still want to toss money down a one way street.
Uncle. Stop posting all these loopholes.. CPF monitoring.. they will plug all ur loopholes.. next gen will suffer..
People who don't understand CPF rules call it loophole. People who under the rules, manage their funds according to the CPF framework. No laws are broken.
Civil service personal can start to withdraw at age 60, the earlier the better.. y wait.
There ia no loop hole, gov are keeping these cpf money as their reserve money. Is not our people money, is gov money. Sg is belong to PAP. Vote them out if you do not like it