Quote:
Originally Posted by lazyplane
Since i started this :
Nope. there is still a cap even if the bequest go CPF. And you cant specify the CPF account for bequest to go to. Pls give CPF a call. And as i said before, we are all CPF fans.
I am not sure about the point you said you can hold 2 jobs and for both jobs to contribute to 37.4k . Why ?
While i didnt hold 2 jobs, i had sign on bonus when i joined a competitor firm and the sign on bonus attracted CPF contributions. From there, my excess CPF from my new job was returned to me in cash. Hence i think there is a max cap of 37.4k (ie annual limit) no matter how many jobs you hold that contribute...And if you hold 2 jobs and both contribute CPF , it will still be capped to annual limit. Anything above will be refunded. And if you are figuring how this can happen, i changed job in dec.
Finally, The idea of business man registering the sons over multiple companies and contributing CPF to the max just to beat the game and get interest is ridiculous lah. Why ?
because if you do it, then the business man basically is declaring that their children is earning income of 102k per year per job. You cant contribute to CPF by stating it is employment income yet declare later to IRAS that all income was paid in CPF only. MOM employment regulations dont allow this. [Of course, if you wish to make false declaration then that is another story]
Imagine the income tax that the business man have to pay just to earn such miserable interest on CPF for their children..... Not a very smart business man.
As i said, i dont doubt you can earn 40k in interest... but as seen in AK71,
it is difficult.. and wife + you have achieved this.. meaning you have a lots of monies in CPF... around 3 m based on rough calculations
And since you got me started... i started to re-read your post.
You mentioned 9 years ago, you had 3.3m .. now above $7m.
With a $3m CPF, your non CPF networth is 4 m.. I dont know how much you had in CPF 9 years ago, but like this discussion thread - everything is possible. So using simple maths to calculate and assume no bequest etc, then it is possible your CPF grew by $800k for both you and wife in last 9 years. That means your non CPF investments 9 years ago $1.1m with CPF at $2m. If you want to share, share about how you grew your non CPF investment from 1.1m to 4m in 9 years. Cos that is truly impressive and will like to learn from you. |
This discussion is getting convoluted and complicated because there are at least three different respondents here.
But first, thanks for the clarification on the fact that one CANNOT bequeath
CPF monies to your beneficiaries' OA, but only to their SA (if they are below 55, and capped at prevailing FRS), or their RA (if they are above 55, and capped at the prevailing ERS) and MA (capped at the prevailing BHS).
I was not the one who suggested that businessmen contributed monies into their children's
CPF accounts although this is a common practice not just among business people but ordinary executives who have spare money left over.
However I was the one who stated that although the maximum
CPF contribution per year is $37,740, a person can actually contribute more that amount if he works two or more jobs at the same time. This is a fact. Just call the
CPF office or better still write in for a black & white reply.
About my networth growing from $3.3M to over $7M in 9 years? I did mention we suffered paper losses during the GFC. With the strong property & stocks recovery, we made back the paper loss amount and then some. I also accumulated more stocks during the recovery process and the value just grew.
If you read carefully, I also mentioned that although my wife and I were not holding top management positions, we were earning comfortable remuneration. These have allowed us to purchase our rental property with cash and still be able to return to
CPF the amounts that we used for our primary residence purchase.
Now, knowing the fact one cannot receive bequests into one's OA, it makes us OA millionaires an even more special achievement.
To be a
CPF millionaire is already quite an achievement, but to be a
CPF OA millionaire is an even rarer achievement. CW8888 achieved this at 62, I did it at 56.
Just looking at the
CPF growth trajectory of AK71, at 48 with $845K in his combined
CPF accounts, if he continues to contribute maximum of $37,740 into his
CPF, by 55, he should hit $1M in his
CPF OA. His overall
CPF combined amount would then in the region of $1.3M