Hi,
I understand the magic of compounding interest from SA and benefit of topping up SA to gain from tax rebate.
I am 43yo, currently OA: $59.6K, SA: $165.8K, MA: $48.5K. I am still using my OA to service my
HDB which has balance outstanding of $103.5K.
As I have hit the MS SA limit and would not able to top up further from this year onwards (
CPF typically increase MS SA by $6-$7K, my SA and contribution interest would have exceeded the yearly increase), may I ask how do you return the money from property to your OA account?
Did you sell your property and subsequently purchase your property in cash, or downgrade to a smaller property and paid in full?
Should I repay my current outstanding loan of $103.5K by cash instead from deduction from OA?
Thanks for sharing your tips and I am looking forward to
CPF money standby for my retirement.
Quote:
Originally Posted by Unregistered
I think many people would be incredulous if you tell them that you have $1m in your CPF (total of OA, SA, MA and RA).
As i will be 55 soon, I checked my CPF accounts and was pleasantly surprised it crossed $1m total, with my MA maxed at $48,500 and SA at $218k.
So it is possible to accumulate $1m or perhaps more in your CPF accounts over a lifetime of employment. The current annual contribution limit that a person can put into CPF is $31,450. So if that person works over 30 years and contributes $31.45k pa into his CPF, he will accumulate $1m (with interest of 3% average from CPF).
Of course, the amount will be lower if you use your CPF money to pay for your housing.
For my case, I did 2 things to boost my CPF amount. One was to top up my SA to the max allowed in the early days and let it compound at 4-5% annually - for many years already. The second thing I did was to return money into CPF account - the money that I used to buy my property when I was younger.
I think CPF is a solid standby option with reasonable interest returns and you can draw out the interest to spend upon reaching 55 yo. |