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Whats your net worth

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  #2601 (permalink)  
Old 25-05-2018, 10:12 PM
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Most likely the poster did the following :

flip property

or

trade shares

Or

(most likely case) - BLUFF lah...

Quote:
Originally Posted by Unregistered View Post
How many years have you worked and contributed to CPF? If you are Singaporean and have served NS, and a degree graduate, you would at most be working for 3 years. Your CPF would at most be $113k after 3 full years of contribution, contributing the maximum amount each year.

The CPF is a unique savings scheme where even if you want to put in more money, it is not allowed. Each year, you are allowed to contribute a maximum of $37,740 and not more.

That said, there are ways to build up your CPF.

One of the challenges my friends and I gave to ourselves (besides attaining certain networth by certain age) was to achieve $1m in our CPF OA by 55.

One of our friends achieved that target at 55 yrs 4 months. My OA hit $1m only when I was 56yrs and 10months old!

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  #2602 (permalink)  
Old 26-05-2018, 08:29 AM
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Originally Posted by Unregistered View Post
is your car fully paid?
Yes fully paid. Second car just got it few months ago during CNY

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  #2603 (permalink)  
Old 26-05-2018, 08:31 AM
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Quote:
Originally Posted by Unregistered View Post
How many years have you worked and contributed to CPF? If you are Singaporean and have served NS, and a degree graduate, you would at most be working for 3 years. Your CPF would at most be $113k after 3 full years of contribution, contributing the maximum amount each year.

The CPF is a unique savings scheme where even if you want to put in more money, it is not allowed. Each year, you are allowed to contribute a maximum of $37,740 and not more.

That said, there are ways to build up your CPF.

One of the challenges my friends and I gave to ourselves (besides attaining certain networth by certain age) was to achieve $1m in our CPF OA by 55.

One of our friends achieved that target at 55 yrs 4 months. My OA hit $1m only when I was 56yrs and 10months old!
I have been contributing since 2008 (so slightly more than 10 years?) and I do CPF top up to SA and MA as well.



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  #2604 (permalink)  
Old 26-05-2018, 08:51 AM
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Quote:
Originally Posted by lazyplane View Post
Most likely the poster did the following :

flip property

or

trade shares

Or

(most likely case) - BLUFF lah...
No reason for bluff. As previous poster has mentioned, based on the CPF contribution limit, it is possible to achieve this amount.

Just consistent and diligent CPF contributions and top ups. I also do transfer from OA to SA so that helps in compounding at higher interest rate. Below is my CPF balance as of today. I have maxed out MA and almost hit FRS in SA. The reason that I have some amount in OA is to act as a buffer for my upcoming property purchase and I intend to transfer the OA funds to SA if I do not need it for my property (highly likely).

As an additional fun fact, I have attached my first CPF contribution in Jun 2008 prior contribution was from my part time job in JC. Lol. Based on my projection, I should be able to reach 1mil CPF by 50 (albeit a conservative estimate). Being able to reach such an amount like the previous poster is one of my retirement goals.

PS: I am a strong advocate of using CPF for retirement planning. That being said, I think I have got some room to brush in terms of my portfolio as I am holding on to too much safe assets which may impede my portfolio growth.



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  #2605 (permalink)  
Old 26-05-2018, 11:31 AM
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Be true to yourself
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  #2606 (permalink)  
Old 26-05-2018, 10:42 PM
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Quote:
Originally Posted by lazyplane View Post
Most likely the poster did the following :

flip property

or

trade shares

Or

(most likely case) - BLUFF lah...
There are a few ways to build up your CPF amount, but flipping properties is NOT one of them. That's because when you sell your property, you are only required to return the amount you withdrew PLUS the accrued interest to your CPF.

You get to keep any profits in excess of what you withdrew from your CPF and the accrued interest.

Trading shares through your CPFIS account is however a valid way to build up your CPF - ie if you can beat the CPF interest (of 2.5% compounded yearly) trading shares on a consistent basis.

Anyway the poster did not claim to have traded in shares using the CPFIS. He said he started contributing to CPF 10 years ago when he was 18!

He said he also topped up his SA and MA along the way. He may not fully understand the CPF scheme. Lets leave it at that. Like I said in my earlier post, the CPF is a unique savings scheme which sets a maximum amount that a person can put in each year. Once that limit is hit, you cannot top up your SA and MA any more even if you wanted to, and even if your SA and MA limits are still not reached!

There is nothing to gain for him to be bluffing here. Don't understand why would anyone want to bluff here. Does it feel good to boast non-existent wealth ??
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  #2607 (permalink)  
Old 27-05-2018, 01:22 AM
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Quote:
Originally Posted by Unregistered View Post
There are a few ways to build up your CPF amount, but flipping properties is NOT one of them. That's because when you sell your property, you are only required to return the amount you withdrew PLUS the accrued interest to your CPF.

You get to keep any profits in excess of what you withdrew from your CPF and the accrued interest.

Trading shares through your CPFIS account is however a valid way to build up your CPF - ie if you can beat the CPF interest (of 2.5% compounded yearly) trading shares on a consistent basis.

Anyway the poster did not claim to have traded in shares using the CPFIS. He said he started contributing to CPF 10 years ago when he was 18!

He said he also topped up his SA and MA along the way. He may not fully understand the CPF scheme. Lets leave it at that. Like I said in my earlier post, the CPF is a unique savings scheme which sets a maximum amount that a person can put in each year. Once that limit is hit, you cannot top up your SA and MA any more even if you wanted to, and even if your SA and MA limits are still not reached!

There is nothing to gain for him to be bluffing here. Don't understand why would anyone want to bluff here. Does it feel good to boast non-existent wealth ??
There is absolutely no reason for me to bluff here. I have not used it for property nor stocks. Ive only topped up till the tax relief limit for SA and MA and also transfer funds from OA to SA to gain on the higher interest rates.

Question to previous poster, why do u have 1 mil in your OA? Wont it be more prudent to transfer to SA for the higher yield? Thatís $15K of interest forgone if you left the 1 mil in OA.
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  #2608 (permalink)  
Old 27-05-2018, 08:05 AM
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Quote:
Originally Posted by Unregistered View Post
There is absolutely no reason for me to bluff here. I have not used it for property nor stocks. Ive only topped up till the tax relief limit for SA and MA and also transfer funds from OA to SA to gain on the higher interest rates.

Question to previous poster, why do u have 1 mil in your OA? Wont it be more prudent to transfer to SA for the higher yield? Thatís $15K of interest forgone if you left the 1 mil in OA.
Just a question, do you top up SA so that you could invest the funds?

But can you withdraw the money in SA before 55?


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  #2609 (permalink)  
Old 27-05-2018, 10:25 AM
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Quote:
Originally Posted by Unregistered View Post
There is absolutely no reason for me to bluff here. I have not used it for property nor stocks. Ive only topped up till the tax relief limit for SA and MA and also transfer funds from OA to SA to gain on the higher interest rates.

Question to previous poster, why do u have 1 mil in your OA? Wont it be more prudent to transfer to SA for the higher yield? Thatís $15K of interest forgone if you left the 1 mil in OA.
I will be 58 soon. As far as I can remember, I hit the SA limit when I was 40 yo. With the yearly 4% interest and regular monthly contributions from salary deductions, my SA amount was always above the limit for each new year. There was no way I could top up to my SA from age 40 onwards. Same goes for my MA. Only difference was the excess in MA is transferred to your OA each year.

When I turned 55, they took a sum equivalent to the FRS from my SA to form my RA. Should you not have enough in your SA to form the FRS, they would also take from your OA.

For my case, as my SA amount was always above the yearly limit, I still have quite substantial amount left in my SA after my RA was created with the full amount - FRS. From there I further upped my FRS in my RA to the ERS. And each year, I topped up the RA to the new ERS limit. For this year 2018, the ERS is $256,500. Together with the accumulated interest, my RA now is $280k.

After your RA is created when you turned 55, there is no way to top up your SA. Your SA can still grow from salary contributions or voluntary contributions subject to the yearly limit of $37,740 and according to the allocation to the various CPF accounts. In other words, you cannot transfer money from your OA to your SA when the limit is hit or when your RA is created.

But you can top up your RA.
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  #2610 (permalink)  
Old 27-05-2018, 11:06 AM
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Hi,

I learnt something new from you. I am mid-40's and my current SA is $210K.

Based on my estimation, my SA would reach $356K and the ERS would increase to $345K by then.

You mentioned that once RA account is created or SA FRS limit hit, we are not allowed to top up.

That's means I could lock in my RA based on FRS est $230K in year 2027, keep the balance of $126K in SA to continue earning interest. And top up $155K in cash to my RA when I am 55yo to enjoy the CPF Life higher payout? The top up must be at one go at age 55yo or can be spread over years?

Thanks


Quote:
Originally Posted by Unregistered View Post
I will be 58 soon. As far as I can remember, I hit the SA limit when I was 40 yo. With the yearly 4% interest and regular monthly contributions from salary deductions, my SA amount was always above the limit for each new year. There was no way I could top up to my SA from age 40 onwards. Same goes for my MA. Only difference was the excess in MA is transferred to your OA each year.

When I turned 55, they took a sum equivalent to the FRS from my SA to form my RA. Should you not have enough in your SA to form the FRS, they would also take from your OA.

For my case, as my SA amount was always above the yearly limit, I still have quite substantial amount left in my SA after my RA was created with the full amount - FRS. From there I further upped my FRS in my RA to the ERS. And each year, I topped up the RA to the new ERS limit. For this year 2018, the ERS is $256,500. Together with the accumulated interest, my RA now is $280k.

After your RA is created when you turned 55, there is no way to top up your SA. Your SA can still grow from salary contributions or voluntary contributions subject to the yearly limit of $37,740 and according to the allocation to the various CPF accounts. In other words, you cannot transfer money from your OA to your SA when the limit is hit or when your RA is created.

But you can top up your RA.
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