ฝัง
- เผยแพร่เมื่อ 11 พ.ค. 2024
- The Complete Overview of CPF's Changes in Budget 2025; and a sobering message from Mr Loo.
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![Should you still top up CPF with Cash after all the latest changes? [Chills165 Ft @1m65 Founder]](/img/n.gif)
CPF is a shifting goal post. The rules today will be very much different 20 years from now. Given today's fast changing world, i don't see the benefit of converting cash into extremely non liquid assets. The interest rate is perhaps attractive, but I rather have control of my wealth than leaving it to someone to decide for me.
only $ in the ATM/bank account is your $.
I sincerely hope that 1m65 community can succeed as it has put in so much effort. Govt changes policies many times. Anyway once reach 55, time is more important than money. Preferably withdraw money and enjoy life. Statistically it is not possible for every Singaporean to reach 65. Alot of people I know have already passed on. They are not even reaching 45. So many people got cancer or die early due to sudden deaths. The hospitals now are so filled with patients. Many people have unhealthy lifestyles. That is the reality. If want more money, should invest consistently. Do not count on CPF as main investment vehicle. No one can be rich if just a normal employee and not management staff. Can only do just enough to cope with life and its every day harshness.
The financial advisory/ insurance industry is the most happy to hear this. They have trouble finding products that can match the CPF SA returns in the same stability class. Their common argument is that govt will change CPF policies. And now it has happened, in a rather distasteful way handled by Mr LW. Is like hitting under the belt, in the name of closing a "loophole."
Maybe this video should not be named as death of 1M65, but 'death of trust in the CPFB'.
The central bank needs the cash to ramp up the banks' reserves. The last thing they want is for the banks to go down. Everyone knows the global equity market has peaked and the only way forward now is down. Not to mention the hundreds of millions that were lost by Temasek back in 2023. The relatively recent interest rates rise has also been draining the banks and the money for topping up has to come from somewhere. Where else can you find billions of liquid assets in Singapore? CPF. I suggest everyone to hold the fort and stay in CPF even if SA is lost. I have a bad premonition that once enough of the cash has gone out from SA into the banks, the interest rates will be slashed and there is no turning back to even 2.5%.
I understand what Mr Loo said due to he and his 1M65 team unselfish sharing/educating to tbe public. Thank you Mr Loo.
I think the government should target the high cost of living, especially food and property prices. I was shocked a 4 room resale bto flat now selling at 1.2 million sgd. In the outlying area near mrt, a 7 plus year old 4 rm hdb resale flat asking for 1m sgd. Young couples how to start a family in Singapore? Retirees are suffering in silence due to the high cost of living.
These buyers are older and cash/cpf rich folks … for the young buy within your mean and they will be ok
th-cam.com/users/shortsNWJ0O3S5bFk?si=zRCxUvWTNscwYPyq
@@nictyy2679I think u missed the point. No self respecting seller would sell below market once $1m plus is established. It is not about cash rich older folks buying.
They think cost of living is affordable as stated by media
@@dl703 then there must willing buyers …. The pool is not big
Thank you Mr Loo for sharing your thoughts
I am an avid follower of your youtube channel and watch every one of them , I want to say a big thank to you for clarifying things for us especially about the recent CPF policy change . Continue your good work ........
I am 55 last year and I still need the extra money from the monthly contribution under SA to help pay for my house loan as my OA has used up completely. 😢😭 This 2024 budget has ruin me
Hi Mr Loo,
For those fully utilised OA for their housing and only rely on SA to reach FRS, I don’t think will be affected also, for example middle class who purchase private property. Although 2.5% interest does not look attractive, but not forgetting it is still compounding.. Change of mindset that CPF is only a supplement and we must also look into other means of retirement. So, still not too bad after all
Thanks Mr Loo and all 1m65 expert volunteers. You all indeed have been helping many people in navigating and discovering our investment journey.
Thks Mr Loo for the motivation and solutions. 👍👍
best advice in this video.....learn to let it go👍
Paying out interest to CPF members comes from the government balances as expenses. Similar to how banks operate. Higher interest payments mean higher expenses. So, when the government suddenly encounters a reduction in return of investments, it has to reduce expenses to maintain the net surplus balance. One way to reduce expenses is to reduce interest payouts. Closure of the SA to stop the CPF shielding loophole is one of them. I am very sure this is not the end of it. When we see the ROI of our large investment corporations decrease over time, there will be more interest reductions to come. We, as the people, just have to bite the bullet and think of other ways to earn our money, and not be dependent on CPF.
Today I learnt a new word… *Decheeminize*… 😂.
Thanks Mr Loo for this video. Appreciate your sharing. 😊
Yeah was initially confused when he said it lol
th-cam.com/users/shortsNWJ0O3S5bFk?si=zRCxUvWTNscwYPyq
Thank you 🎉
Financial literacy is a necessity in this fast changing era. You shouldn't need anyone to tell u to learn and try master something if that something will affect 20-30 years of your life. Else it's a case of "who dare move my cheese?"
Listen from 8 mins onwards. Best advice is learn to let go, move on. It's a wake up call for the unprepared but don't give up. Stay blessed.
Never put all eggs into one basket. Especially in CPF where God knows when we can get to take it out before we exit from this earth. Live your life fully, spend the money, eat the cake. Buy all the things that one desires and keep a portion of your money for retirement in biscuit tin. At least one gets to count them before they reach 65. The saying goes, the money is not yours if you don’t get to spend it.
Yes, he and his team work diligently, professionally to help the 30K members, especially some question are repeated at different time of writing.
Thank you
Why all the complications? government takes away SA, build your own SA account outside CPF, u can get more than the 2.5%
Agree. CPF is at most a supplement for retirement, and it’s best to be able to rely on passive income generated from our own savings and investments.
well explained, thanks...
Nothing is cast in stone in this changing global environment. Policy changes. Just learn to understand the changes, make alternative plans n move forward. 😊
This is the ideal mindset that lets them walk all over you.
@@eyecandyfactory The house always wins.
No point sugarcoating, the policy changes are both disruptive and harmful to retirement planning. There must be something large happening in the background to compel them to sacrifice substantial political goodwill just to implement these goalpost shifts.
1M65 is kaput because not everyone has a channel like this making money or side hustles to plonk into CPF to perform the self fulfilling prophesy to augment the perceived achievability of 1M65. 95% of people are just average Joes/Janes contributing to CPF via their regular monthly salaries. It is therefore wrong for him to use his own achievement as a target for everyone else when everyone else is the reason why he is reaching his target. That said, his intentions are not ill. But perhaps he needs to change his position. Instead of targeting 1M65, he can change it to 500K55. And for goodness sakes use the average Joe/Jane's contribution instead of constantly expecting everyone to be able to top up or have secure jobs throughout their lives. Because before you can even top up, you need to first have the money!
As for your point 'something large happening in the background', the answer is the central bank needs the cash to ramp up the banks' reserves. The last thing they want is for the banks to go down. Everyone knows the global equity market has peaked and the only way forward now is down. Not to mention the hundreds of millions that were lost by Temasek back in 2023. The relatively recent interest rates rise has also been draining the banks and the money for topping up has to come from somewhere. Where else can you find billions of liquid assets in Singapore? CPF. I suggest everyone to hold the fort even if SA is lost. I have a bad premonition that once enough of the cash has gone out from SA into the banks, the interest rates will be slashed.
Truth is the PAP govt consistent policy is to prevent people from being wealthy as wealth is power. Further the govt is facing difficulties in weak global economic situation to generate high interest rate moving forward. The govt prevent high withdrawal of cpf fund due to loss from investment by Temesek and GIC.
The cpf is not difficult to understand but it has evolved more and more complicatedly.
Cpf remains part of our sources of retirement but not the only source, this remains factual.
It’s also my reply to the government’s survey that i can’t further comment until more changes, i reckon, are introduced in 2025
Too many cheap estate from Malaysia , got worry those elderly hv balance cpf money will pour over there !
Just go with the flow. Nothing is permanent. Money is not the only wealth.
Invest in health too. It is not right to focus our mind and energy on CPF only. My point above.
Great advice on “letting go” ! This is a good eg of a growth mindset rather than wallowing in a victim mentality 👍
My 66 yo friend is concerned how the SA closure will affect me. She thought the changes only affect those age between 55 to 65.. As she is still working and contributing to CPF monthly, I told her since there is no more SA component to earn 4.08% interest, she will earn lesser next year as OA only pays 2.5% ...but I think she still don't get it 😅
Ultimately, we have to depend on ourselves. There maybe more shocking moves in future
1M65 community members should give an appreciation lunch to the unsung heroes in the community who went all out to help decheeminise CPF rules for all of us
🤣
th-cam.com/users/shortsNWJ0O3S5bFk?si=zRCxUvWTNscwYPyq
I will still continue to self-continue to my homemaker wife to grow her CPF SA faster before it closes at age 55.
Singapore's ageing population is a ticking 'time bomb. It sees more cases of Parkinson's disease. Most young people are not emotionally or financially preparing to take care of old age parents who has Parkinson or Dementia. Prolong stress without help for caregivers can cause burnout. So having much more retirement fund at old age so that my children will have less financial burden.
I did top up my wife's SA for many years till FRS . Currently she had BHS in MA, and ERS in RA. Together with eldershield and basic integrated shieldplan, I think we are ready to face almost all of the unforeseen events during old age.😅
Stress from work can be harmful.....for the old.
What is the optimal ERS amount (3x or 4x of BRS)to go for at 55 years old ?
Let's think. How much would a SA balance be, for one to be worried this way? If u have $300k in SA, abt $100pm (the 2% var) additional collectible interest affected after the RA200k cut out... Need to put in perspective while sensationising. Numbers count.
Alot of CPF info out there, just need to read to manage own money. CPF is clear if one make efforts to click and read. I feel. Stop panicking and do be careful to not trust investment platform easily. Once they are gone, u r robbed.
If we can cleared our hdb housing loan and start to save money into CPF around 40 yo, with a steady income above CPF monthly salary ceiling for at least 10 years, we are able to hit 1 million in CPF (OA+SA+MA+RA) before 57 yo.😉 (I am almost there, and last time the CPF salary ceiling was 4500 per month.)
Mr. Loo, I think it's about time for Spore govt to consider giving out monthly "state pension" to all senior citizens at whatever age the govt think is appropriate to receive. Spore being a 1st world country, the only lacking piece of financial security for senior citizens is a proper state pension and old age benefits for them. It will really help them with high cost of living.
Yes, you are right. While so many people are helping the Seniors, the Government just abdicate part of their role and wash their hands off high handedly. They want us to put in RA is for their advantage, not for the welfare of the Seniors and future Seniors. Hope that the Seniors will be careful with their money or else there will be many social problems which ultimately the Government has to solved.
Just like our education and work life. You should realise most are simple but made difficult. Try to think and live a simple life!
Hi Mr Loo
Do u knowWhy is the monthly payout for man is lower vs woman different despite women having a longer lifespan, all bein equal ?
Can understand but they keep shifting the goal post… is v hard for middle class people like us to plan… We are near retirement age and job security is an issue… retrenchment pay is also not a legal obligation in sg.. we also don’t know what is the next change? Instead of 65 -70, we can only withdraw after 75? And at a certain age, when you have kids to feed and elderly to take care, you will not want to take much risks… else you can see high level of jumping …
I’m surprised that the people who don’t understand is making noise.
Let that sink in for awhile.
Don’t waste money on task forces. The task force might need to improve on communication as well.
It is no consolation and govt telling people that money move to RA also enjoy high interest is misleading as interest earn in this bucket goes to common pool and not to thier acct
It is NOT THE SAME..
I don’t understand why you call CPF Rich. Many people are earning salary below $6,000 where they will get max CPF contribution.
Do you call those who earn $6000 rich people ?
I believe the real rich people do not care about CPF.
So those affected are the low income class.
Loo is the PAP supporter. Yet pap screw his plan.
yet he still cannot condemn them...LL
No confusion. Just park ur money to alternative investment like s&p etcs
Will the 20 & 40 % withdrawal affect my monthly payout ?
When announcement of SA closed, I believe Govt is trying to narrow the income gap between the rich and poor. This is redistribution of wealth in the society: macroeconomics policy
Most unfortunately, the ONLY way you can hedge against inflation and constant policy changes for CPF is RENTAL INCOME from property...unless one is agile and astute enough to find other alternatives
For those who had been invested in local equities, is it advisable to have them sold and move over to US equities? perhaps VOO etc.
yes but there is many things to learn and read up before u do that. estate taxes, knowin which etf to buy, how to buy, when to buy, the emotional behind it. all needs conviction. u need to educate yourself first before doing this. else you risk losing money.
It will become worse. The next phase will be changing cpf ra account to 75 yrs old has become very real.
so that payout will more...LOL
Is CPF payout after 65-70 taxable? As in revenue source , liken out salary?
Not taxable. In fact you can even run your SRS alongside CPF life without paying tax.
Retiree already paid their taxes in the form of GST.
❤
The real reason why CPF closed the loophole? Is it because the CPF policy maker have no confidence in the GIC making a return of more than the SA rate with the “extra money” kept in the SA?
CPF dont have money to PAYOUT lor
Never put $$ voluntarily in cpf funds, diversify across stocks, property, crypto, businesses so nothing can hit you should one asset class is hit.
Been listening to your channel for some time but I think your comment that this policy change affects a sizeable number of ppl is bit flawed.
According to ST article based off a parliament speech.
"At the time, the Manpower Ministry said only 2 per cent of CPF members did that."
This is in relation to CPF shielding. It's not middle income as a cohort nor 2% being a sizeable group of people.
My humble 2cts 😃
Vested interests that’s why the negative response is magnified
Mr Lu， i have a question here. Right now i am 45yeasrs old . Recently after the new policy was announced, my husband told me to put my OA (quite some amt) there to SA to gain the higher interest rate in SA.
I never done this move before since my day of working life started 20 years ago.
Can i say this is ok right now till i am 55 year old then i close my SA ? 🙏 thank you for your reply sir
Ask this question in our telegram channel pls.
I think CPF now studying to “plug” the property pledge ( use property to meet FRS)policy.. dangerous..
It was very clear … just the noise of the cpf rich peeps who don’t want this “loophole” to be plugged
Aiyah I thought got something new. Repeat same thing. We know all this already.
Can one pledge HDB? Even fully paid? Any idea?
No
Tks god, 1m65 finally gg
yes. because now its 4m65 already
Wow, it took 1 week to be clear. I thought the spoken English were simple enough.
I am confused if the payout start from 65-75, is there any more payout after 75 yrs old mark if i am still healthy. Anyone can advice ?
CPF LIFE payment after 65 gives a monthly payout for the rest of yr life...not sure where u got the info that the payout is only from 65 - 75
@@Xamael666 thanks.
This is different from your Q ..One can choose the payout at age 65 or 70. At age 70 one gets a larger payment. I would take at 65, also remember u r collecting 5 years earlier n u never knows when any CPF policy will be changed again.
when AH KONG say one means one.
no more risk-free 4% yearly payouts with option to withdraw lumpsum at will for retirement. good for the older folks who enjoyed the 4% before this loophole was closed. not so good for the later gens. they will be exposing themself to financial products of higher risks.
Mr loo, what's your opinion on Joshua giersch's book?
Rich By Retirement: Simple 3 ETF strategy in Singapore's context
They keep changing the goalpost , making life hard for common folks unfairly.
The people ask for this plight.
Just another approach to ensure the old cannot fully retired, this help to further enhance the policy of work until die quietly....especial money not enough due to inflation.
Yup, gov doesnt want its citizens to get "too comfortable" cos at the end of the day, businesses are the kings here & we must be slaves until death
change your 1M65 TH-cam name to No-More-55-Special. 🤭
CPF most use for hdb housing; many will not have much in there for SA.
I am very upset! It hits the middle class real hard!
don't be upset only. get even.
Why upset? Use the OA to buy property la.
Knowing CPF contribution rate for 55-65 will increase by 1.5% with closure of SA then it'll be easier to understand... Work to earn it that's the msg : )
Very blur to me too
Hi Mr Loo. I watched many of you 1M65 TH-cam videos. Many times you highted to use CPF fund to make investment and become millionaire. See lah. How Lang? CPF found the loophole. That is the end of 1M65.
Well, clearly you didn’t know how to harness the SA and CPF to make millions. I have done it before 55 years old and the new policy have not changed that.
What are talking about?
This closure of SA cpf account is like Malaysia mm2h, clarity? 😂. Option: give up SPR or Singapore citizenship, immediately can withdraw all cpf accounts and live happily in our neighbouring countries. Now, sg dollars very strong.
Recently Spore Govt announced closing the CPF account of all non Sporeans. Guess it was time to do so for myself at 57yo & promptly withdraw it back to Msia for my retirement. Spore Govt saving on the interest payout now.
@@patricklee2799hard to believe but anyway please go your country needs you
the intent of CPF SA removal that was from the horse's mouth was policy rationalisation/ based on principle (liquid withdrawable balances vs non withdrawable balances).
there was no mention of redistribution.
there was no mention of
help for middle/lower class who has SA balances pre 55 yo.
remember the U-turn from SimplyGo?
Thank you for de-cheeminizing
another word adding to singlish dictionary... LOL
Brain washing?
Brain wash you? 😂
@@Longtermalwayswins Haha, no way!
🌹 Promo>SM
Always prata 😂