The best way to prepare for retirement is to use less CPF $$

[Wt_know]

without interest from from 65 or 55?

$$$ is transferred from SA to RA from 55 and interest start to accumulate from 55.

what happen if the person bye bye at age 65 before cpf life start to payout?

zero interest for 10 years start from 55

anyway, ah gong can move goal post anytime as he wish .... LLST

Edited October 31, 2017 by Wt_know

[Kusje]

While CPF life allows one to draw a monthly payment for as long as a person is alive, there is a draw back as well. When a person pass on at early age, say at 70 years old, the balance in his CPF life account would be paid to his nominees without interest(refer to the diagram below). I find this sentence very interesting so i went to ask CPF, their explanation is that , without interest starting from age 65, so meaning after deducting whatever paid out monthly to the CPF member, the balance will consider no interest earned from day one at age 65.

that means, those who live a longer life would benefit from the interest earned from those who pass on earlier. So we better ensure we can live long long under the CPF life scheme.

Like I said, it is an annuity.

 

An annuity is like the reserve of life insurance. You buy life insurance because you are scared you die young and your dependents have no money to survive.

 

You buy an annuity because you are scared you refuse to die. Then you and your dependants will have problems paying your living expenses.

[Ct3833]

without interest from from 65 or 55?

$$$ is transferred from SA to RA from 55 and interest start to accumulate from 55.

what happen if the person bye bye at age 65 before cpf life start to payout?

zero interest for 10 years start from 55

anyway, ah gong can move goal post anytime as he wish .... LLST

From 65.

[Spring]

While CPF life allows one to draw a monthly payment for as long as a person is alive, there is a draw back as well. When a person pass on at early age, say at 70 years old, the balance in his CPF life account would be paid to his nominees without interest(refer to the diagram below). I find this sentence very interesting so i went to ask CPF, their explanation is that , without interest starting from age 65, so meaning after deducting whatever paid out monthly to the CPF member, the balance will consider no interest earned from day one at age 65.

that means, those who live a longer life would benefit from the interest earned from those who pass on earlier. So we better ensure we can live long long under the CPF life scheme.

 

Tks for sharing, good info!

If that’s the case, better don’t take the basic plan cos if one were to die young then your beneficiary wont be able to get that much, at least not correspondingly vs standard plan if you were to compare 2 persons dying at the same time, one with Basic vs one with Standard. This my theory but i suppose need CPF to confirm.

 

The other thing is what age is considered young?

[Throttle2]

I confirm will take out every cent that i legally can, and invest it, use it on my own.

[Lala81]

Tks for sharing, good info!

If that’s the case, better don’t take the basic plan cos if one were to die young then your beneficiary wont be able to get that much, at least not correspondingly vs standard plan if you were to compare 2 persons dying at the same time, one with Basic vs one with Standard. This my theory but i suppose need CPF to confirm.

 

The other thing is what age is considered young?

 

don't understand what u meant.

 

If u have 200k in your RA and say the basic CPF Life takes 160k into the annuity. The other 40k u can withdraw what. If u put in 200k, then more money not accruing interest if u say pass on at 70.

[Lala81]

I confirm will take out every cent that i legally can, and invest it, use it on my own.

 

I will just leave the minimum or maybe something slightly more at the most.

[Spring]

don't understand what u meant.

 

If u have 200k in your RA and say the basic CPF Life takes 160k into the annuity. The other 40k u can withdraw what. If u put in 200k, then more money not accruing interest if u say pass on at 70.

Sorry for poor explanation, what i meant was 2 guys having $160k, one on Standard n another on basic, both die at the same time. The standard guy had taken out say $100k by the time he died so his bene should collect approx $60k vs the basic guy taking out say $60k cos his is lower payout, his bene should collect abit more than $100k** if they died at “not so young age”.

 

**It is my understanding that gross payout for basic plan ie monthly + eventual payout to bene in total is more than gross payout for standard plan ie monthly + eventual payout to bene in total, reason being more interest is accrued in basic plan due to the lower monthly payout.

 

But this would not apply if its true that interest is not accrued from 65yrs anymore if one were to die young. I stand corrected if what I post is not correct n i hope u understand what i meant. The more i post, seems like I’m going round the bush lol!

[Throttle2]

Tks for sharing, good info!

If that’s the case, better don’t take the basic plan cos if one were to die young then your beneficiary wont be able to get that much, at least not correspondingly vs standard plan if you were to compare 2 persons dying at the same time, one with Basic vs one with Standard. This my theory but i suppose need CPF to confirm.

 

The other thing is what age is considered young?

I would take the most basic plan and withdraw as much cash as i possibly can.

Becos neither me nor my dependants will be depending on CPF life for maintenance.

To me its just money stuck there due to our national policies.

[Showster]

I think even put in any bank shares is better leh. Lifetime dividend not including stock gains. Minimum also will hit 4% every Year just on dividends.

 

The rest can buy collectors item like Rolex or Art pieces.

[kdash]

without interest from from 65 or 55?

$$$ is transferred from SA to RA from 55 and interest start to accumulate from 55.

what happen if the person bye bye at age 65 before cpf life start to payout?

zero interest for 10 years start from 55

anyway, ah gong can move goal post anytime as he wish .... LLST

 

garment can always shift the goalposts, CPF withdrawal age as they wish, to get the max out of the current population trend. 

 

we can only make our decision based on the current scheme. 

 

if we have something better to do with our money (investments etc), and the time to manage, then can always take out from CPF when the time comes. 

[Enye]

I think even put in any bank shares is better leh. Lifetime dividend not including stock gains. Minimum also will hit 4% every Year just on dividends.

 

The rest can buy collectors item like Rolex or Art pieces.

 

which bank shares now give min 4% dividend

 

share share pls boss?

 

let peasant cari makan a bit please

 

[Wt_know]

of course own pocket is better than ah gong pocket - scare the goal post is shifted to MARS ... unreacheable

i would rather cash out (one lump sum, to the last cent of the limit) at 65 and never look back

cpf life payout treat it as pocket money for chap chai peng + kopi-o ... lol

 

I would take the most basic plan and withdraw as much cash as i possibly can.
Becos neither me nor my dependants will be depending on CPF life for maintenance.
To me its just money stuck there due to our national policies.

 

Edited November 1, 2017 by Wt_know

[Kusje]

I think even put in any bank shares is better leh. Lifetime dividend not including stock gains. Minimum also will hit 4% every Year just on dividends.

 

The rest can buy collectors item like Rolex or Art pieces.

 

Stock gains. Or stock losses?

 

4% dividend is guaranteed? 

[Lala81]

Sorry for poor explanation, what i meant was 2 guys having $160k, one on Standard n another on basic, both die at the same time. The standard guy had taken out say $100k by the time he died so his bene should collect approx $60k vs the basic guy taking out say $60k cos his is lower payout, his bene should collect abit more than $100k** if they died at “not so young age”.

 

**It is my understanding that gross payout for basic plan ie monthly + eventual payout to bene in total is more than gross payout for standard plan ie monthly + eventual payout to bene in total, reason being more interest is accrued in basic plan due to the lower monthly payout.

 

But this would not apply if its true that interest is not accrued from 65yrs anymore if one were to die young. I stand corrected if what I post is not correct n i hope u understand what i meant. The more i post, seems like I’m going round the bush lol!

 

Ok understood.

 

Say u still earning a living at 60+.

 

Then CPF ask u whether u want to start payout at 65 but lower amount, say 600 per month vs start at 70 but get 800 per month. Even if u had the financial resources to start at 70, i think most of us will choose age of 65 right lol. 

[Wt_know]

yes. the way ah gong move goal post scare the shit out of everyone

 

Ok understood.

 

Say u still earning a living at 60+.

 

Then CPF ask u whether u want to start payout at 65 but lower amount, say 600 per month vs start at 70 but get 800 per month. Even if u had the financial resources to start at 70, i think most of us will choose age of 65 right lol. 

 

[Showster]

which bank shares now give min 4% dividend

 

share share pls boss?

 

let peasant cari makan a bit please

 

Sorry I had used yesteryears buy price and today’s dividends to get >4%.

 

Inflation factored in.

 

Not guaranteed but most years gain more than 5% excluding share price gain.

 

Every time they say until Bank gonna collapse just buy. Simple strategy.

 

Want guaranteed cannot be high yield. Want high yield cannot be guaranteed.

Edited November 1, 2017 by Showster

[kdash]

which bank shares now give min 4% dividend

 

share share pls boss?

 

let peasant cari makan a bit please

 

 

if it's good stuff, he won't share haha... ownself makan.