A few points
a. You can still top up your SA provided you invest your SA despite hitting the cap. The min sum applies to the remaining SA that is not invested.
So just invest your SA and you can top up again.
b. You should be paying down your
HDB loan first before seeking to return money to your OA . why leave money in OA when you have
HDB loan cost slightly higher ?
c. You can still "top back/pay back" OA to earn 2.6% interest for the
HDB loan paid by your
CPF OA previously. Conceptually,
CPF keeps a record of all OA monies drawn used to pay
HDB loan + interest . You should be able to determine that sum by logging in via your singpass and checking your statement.
Few people take option c due to the fact that monies kept in
CPF do not have the flexibility like cash. You can earn good interest these days in the market. Eg, with the saving bonds that SG gov is launching, that seems to be a better option that putting your monies in
CPF OA as the monies is really "locked up" until retirement or purchase of property/
CPF investment.
Quote:
Originally Posted by Unregistered
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. |