Talking Point >>> Is your CPF enough for retirement?

[Tjkbeluga]

  On 12/12/2012 at 4:29 AM, Mustank said:

Use CPF buy property got 4 big advantage:

1) Capital appreciation of property > 2.6% OA rate

2) You retire already, can rent out your HDB / property and move in stay with your kids = Passive Income

3) You buy property today, you enjoy today, whether in the form of self stay or rent out. OA withdrawal policy is based on prevaling policy at that time when you old

4) Rental > 2.6 OA rate

2.5% guaranteed interest is still better than nothing. Who would give you such interest now?

[Darryn]

The policy of CPF for SECOND property is flawed.

 

Can use CPF to pay mortgage, but then get rental in CASH.

 

Adds to the housing bubble, if the money instead had to go back into CPF then would be "better" (at least from a retirement savings perspective)

 

I also feel that using CPF for property should be more closely managed for HDB

[Tjkbeluga]

  On 12/12/2012 at 4:36 AM, Darryn said:

I also feel that using CPF for property should be more closely managed for HDB

It is quite adequate IMHO.... How is it not?

 

- You can't use CPF more than the valuation, (except if it is an HDB loan)

- You can only own 1 HDB

[Mockngbrd]

i rather hav my parents be around then to see their cpf $$$ given to me

[Darryn]

  On 12/12/2012 at 4:39 AM, Tjkbeluga said:

It is quite adequate IMHO.... How is it not?

 

- You can't use CPF more than the valuation, (except if it is an HDB loan)

- You can only own 1 HDB

 

The current system encourages you to maximise the use of your CPF on property, to buy the biggest house you can get.

 

It distorts the market a little bit, but more to the point, you can't "spend" a house. If all you want to get the maximum benefit from your CPF today, then you will use it for a condo so that you feel like you are getting "your"money, while it may well be more prudent to stay in HDB and then have cash for retirement.

 

I think also that the way it is structured adds into this idea of high property ownership in Singapore, which is a little misleading when it comes about due to compulsory savings

[Tjkbeluga]

  On 12/12/2012 at 4:58 AM, Darryn said:

The current system encourages you to maximise the use of your CPF on property, to buy the biggest house you can get.

Looking at the current ever shrinking HDB, it only make sense to buy the biggest unit. I feel, if there is a need to curb, they should make withdrawal of CPF lower for 3rd timer...

[Kangadrool]

  On 12/12/2012 at 3:29 AM, 13177 said:

Must inform the cpf in order to get the money? Or cpf automatic will know?

 

Will does not cover CPF savings; need to make nomination. If no nomination, according to law.

[Kangadrool]

  On 12/12/2012 at 3:33 AM, Speak_listen said:

anyone experience how long the process?

coz ever here takes very long (more then a year?) for the process complete

 

My experience is less than 3 months without nomination. Consider super fast.

 

 

[PorkChong]

when i see my CPF account,i feel very rich.

not i say one,it's some ministar said it.

[Kangadrool]

  On 12/12/2012 at 3:29 AM, 13177 said:

Must inform the cpf in order to get the money? Or cpf automatic will know?

 

Of course must file in if you want to get the $$$ fast.

 

Think if your next of kin never claim after certain period from death, CPF regularly advertised in the major papers for unfiled claims.

[Little_prince]

  On 12/12/2012 at 3:38 AM, EricTeh said:

that is where you are COMPLETELY WRONG

 

your kids will not SEE CASH

 

but will roll over to their CPF account

 

like that also can

 

 

how to enjoy the fruits of our hardwork when we are old

 

dont think so leh.

 

http://mycpf.cpf.gov.sg/CPF/my-cpf/Losing-Loved-One/LO2.htm

Edited December 12, 2012 by Little_prince

[Lala81]

  On 12/12/2012 at 4:58 AM, Darryn said:

The current system encourages you to maximise the use of your CPF on property, to buy the biggest house you can get.

 

It distorts the market a little bit, but more to the point, you can't "spend" a house. If all you want to get the maximum benefit from your CPF today, then you will use it for a condo so that you feel like you are getting "your"money, while it may well be more prudent to stay in HDB and then have cash for retirement.

 

I think also that the way it is structured adds into this idea of high property ownership in Singapore, which is a little misleading when it comes about due to compulsory savings

 

i do agree with u. But i want to get a 2nd property too

[Darryn]

  On 12/12/2012 at 5:34 AM, Lala81 said:

i do agree with u. But i want to get a 2nd property too

 

I also wanna use CPF for second property.

 

And part of the reason is so that I can "monetise" my CPF

 

 

[Alpha78]

  On 12/12/2012 at 6:02 AM, Darryn said:

I also wanna use CPF for second property.

 

And part of the reason is so that I can "monetise" my CPF

 

You must be an elite.

 

In order to use your CPF for second property, you need to meet the full minimum sum in OA without pledging your property. How many people can do that?

 

Also, with an outstanding loan, you need 40% downpayment.

[Jman888]

  On 12/12/2012 at 6:16 AM, Alpha78 said:

You must be an elite.

 

In order to use your CPF for second property, you need to meet the full minimum sum in OA without pledging your property. How many people can do that?

 

Also, with an outstanding loan, you need 40% downpayment.

 

 

maybe he has a fully paid HDB, then he sell and down grade to a fully paid smaller HDB, cash out the profit, then down for 2nd property... yah i hate this type of elite too

[inlinesix]

  On 12/12/2012 at 6:02 AM, Darryn said:

I also wanna use CPF for second property.

 

And part of the reason is so that I can "monetise" my CPF

Same here when 2014 comes. The only problem is OA limit. Damn!!!!!!!!!!!!!

[Speak_listen]

  On 12/12/2012 at 5:30 AM, PorkChong said:

when i see my CPF account,i feel very rich.

not i say one,it's some ministar said it.

 

if can withdraw in lump sum, then can feel very rich.

if need to be installment until ... how?

 

it is our own money, but not fully control it :(

[Dumb]

  On 12/12/2012 at 3:21 AM, Speak_listen said:

anyone experience, when the parent die, the children (example only 1 child) get cash from the parent cpf?

in lump sum or installment ?

 

Depend on whether got nomination. If no nomination, cpf money will be distributed according to the law.

 

If got nomination, cpf board will inform nominee/s in less than a month to apply to withdraw the entire fund. Partial withdrawal not allowed.

 

If no nomination, the process of law will easily take a year.