Using CPF as fixed deposit after age 55

Hello Temperament

That info was obtained by calling CPF's hotline. (I called yesterday and today, and both times the staff told me the same thing)
I admit I cannot find the same information on CPF's website.
If you plan to make multiple withdrawals, I definitely recommend that you call them up and verify for yourself.

(04-09-2014, 12:56 PM)Temperament Wrote: I am puzzled by why you keep on saying, "you can withdraw as many times as you want"??? - Even all conditions are met.

Have CPF relax their rules and regulations of after 1st withdrawal (AGE 55 onwards), you are allowed to withdraw as many times as you want and at anytime too? Correct me if I read you wrong.

Quote:Basically, you can withdraw as many times as you want, as long as you meet the following conditions:
1) You are 55 or older.
2) You already set aside the minimum sum in RA.
3) You are not working.

Ha! Ha!
Who is that CPF staff?
Ought to be #@&^*$, or promoted outside standing, isn't it?
i believe in official WEBSITE's "B&W".
Always CE. you know.

(04-09-2014, 01:24 PM)gzbkel Wrote: Hello Temperament

That info was obtained by calling CPF's hotline. (I called yesterday and today, and both times the staff told me the same thing)
I admit I cannot find the same information on CPF's website.
If you plan to make multiple withdrawals, I definitely recommend that you call them up and verify for yourself.

(04-09-2014, 12:56 PM)Temperament Wrote: I am puzzled by why you keep on saying, "you can withdraw as many times as you want"??? - Even all conditions are met.

Have CPF relax their rules and regulations of after 1st withdrawal (AGE 55 onwards), you are allowed to withdraw as many times as you want and at anytime too? Correct me if I read you wrong.

Quote:Basically, you can withdraw as many times as you want, as long as you meet the following conditions:
1) You are 55 or older.
2) You already set aside the minimum sum in RA.
3) You are not working.

(04-09-2014, 01:33 PM)Temperament Wrote: Ha! Ha!
Who is that CPF staff?
Ought to be #@&^*$, or promoted outside standing, isn't it?
i believe in official WEBSITE's "B&W".
Always CE. you know.

http://mycpf.cpf.gov.sg/Members/CPFSchem...arsOld.htm

Do I need to withdraw my CPF savings at 55 years old?

The withdrawal of your CPF savings is optional. If you do not withdraw at 55 years old, you can do so anytime later.

After that, you may withdraw every year on or after your birthday. For example, if your first withdrawal was at 57 years old, you would then be able to make withdrawals every year on or after your 58th birthday.

Also, you don’t have to take out the full amount at one go. For example, if you are eligible to withdraw $10,000, you can choose to make a partial withdrawal such as $2,000. You can withdraw the remaining $8,000 (if available), when you are next eligible to withdraw your CPF savings.

Well I cannot think of a reason why they would want to lie to me.
If you are over 55, you can try doing a test.
After you have done your planned withdrawal for the year, wait a week and try to withdraw another $100 to see what happens.

(04-09-2014, 01:33 PM)Temperament Wrote: Ha! Ha!
Who is that CPF staff?
Ought to be #@&^*$, or promoted outside standing, isn't it?
i believe in official WEBSITE's "B&W".
Always CE. you know.

(04-09-2014, 01:24 PM)gzbkel Wrote: Hello Temperament

That info was obtained by calling CPF's hotline. (I called yesterday and today, and both times the staff told me the same thing)
I admit I cannot find the same information on CPF's website.
If you plan to make multiple withdrawals, I definitely recommend that you call them up and verify for yourself.

(04-09-2014, 12:56 PM)Temperament Wrote: I am puzzled by why you keep on saying, "you can withdraw as many times as you want"??? - Even all conditions are met.

Have CPF relax their rules and regulations of after 1st withdrawal (AGE 55 onwards), you are allowed to withdraw as many times as you want and at anytime too? Correct me if I read you wrong.

Quote:Basically, you can withdraw as many times as you want, as long as you meet the following conditions:
1) You are 55 or older.
2) You already set aside the minimum sum in RA.
3) You are not working.

Well, there is no reason for me not to believe you either.
As investors, we are or should prepared for any eventuality.
Always Caveat Emptor when someone try to sell you "anything" any time of the day.
It's when i let my guard down, i would get shot or trapped.

But i think if that CPF's staff did give you that kind of info, he and his supervisor should be ticked off. No wonder so many people confused about CPF lol!

(04-09-2014, 01:51 PM)gzbkel Wrote: Well I cannot think of a reason why they would want to lie to me.
If you are over 55, you can try doing a test.
After you have done your planned withdrawal for the year, wait a week and try to withdraw another $100 to see what happens.

(04-09-2014, 01:33 PM)Temperament Wrote: Ha! Ha!
Who is that CPF staff?
Ought to be #@&^*$, or promoted outside standing, isn't it?
i believe in official WEBSITE's "B&W".
Always CE. you know.

(04-09-2014, 01:24 PM)gzbkel Wrote: Hello Temperament

That info was obtained by calling CPF's hotline. (I called yesterday and today, and both times the staff told me the same thing)
I admit I cannot find the same information on CPF's website.
If you plan to make multiple withdrawals, I definitely recommend that you call them up and verify for yourself.

(04-09-2014, 12:56 PM)Temperament Wrote: I am puzzled by why you keep on saying, "you can withdraw as many times as you want"??? - Even all conditions are met.

Have CPF relax their rules and regulations of after 1st withdrawal (AGE 55 onwards), you are allowed to withdraw as many times as you want and at anytime too? Correct me if I read you wrong.

Quote:Basically, you can withdraw as many times as you want, as long as you meet the following conditions:
1) You are 55 or older.
2) You already set aside the minimum sum in RA.
3) You are not working.

(04-09-2014, 01:47 PM)yeokiwi Wrote:

(04-09-2014, 01:33 PM)Temperament Wrote: Ha! Ha!
Who is that CPF staff?
Ought to be #@&^*$, or promoted outside standing, isn't it?
i believe in official WEBSITE's "B&W".
Always CE. you know.

http://mycpf.cpf.gov.sg/Members/CPFSchem...arsOld.htm

Do I need to withdraw my CPF savings at 55 years old?

The withdrawal of your CPF savings is optional. If you do not withdraw at 55 years old, you can do so anytime later.

After that, you may withdraw every year on or after your birthday. For example, if your first withdrawal was at 57 years old, you would then be able to make withdrawals every year on or after your 58th birthday.

Also, you don’t have to take out the full amount at one go. For example, if you are eligible to withdraw $10,000, you can choose to make a partial withdrawal such as $2,000. You can withdraw the remaining $8,000 (if available), when you are next eligible to withdraw your CPF savings.

Yes! That's what i understand for sometime already. Not only that if you have "excess" in your OA account, it will be transfered to your MA yearly until MA reach it's MAX limit. Whatever is the limit our G likes very much lol! And this is not high-lighted anywhere, i think. (There were people who found out too late and KPKB in internet).
In other words, there is no completely "free lunch" for leaving your money in CPF after 55+. But it's O. K. if you can take our G's "ROTI PLATA".
i am getting a bit worried if G no more the majority, what will happen to our CPF & Singapore? Maybe that's why most Singaporeans so 4Ks. No???

Well, I guess you already made up your decision, so no matter how hard I'll try will not dissuade you from doing what you intend to do.
Anyway, good luck to your venture. ( sincerely, no pun intended. )

To me, misconception or not,
I will not put my hard earn blood money ( especially cash ) into the CPF.
Mr Lee Hsien Loong can promise us that there will only be one more increment in the minimum sum and it will be keep steady subsequently.
But what if someone take over the job of PM in a few years time, and decided to change the policy overnight, then how ?

(04-09-2014, 08:13 AM)gzbkel Wrote: Today I called up CPF again to verify the withdrawal frequency allowed.
Basically, you can withdraw as many times as you want, as long as you meet the following conditions:
1) You are 55 or older.
2) You already set aside the minimum sum in RA.
3) You are not working.

Based on this, I think the CPF liquidity is very good, if you meet the above conditions. There is a 5-day processing time for each withdrawal, but this should not be a problem unless you are trying buy something during a flash crash.
So it still makes sense to me to use CPF to store the cash part of my portfolio to take advantage of the better interest rate, unless CPF decides to change the rules.

(03-09-2014, 07:25 PM)Layman A Wrote: Ok, on a serious note, you have set aside 30% of your total fund as cash.
I presume this 30% hard cash is for emergency purpose, or opportunity fund should the 2009 worldwide stock market crisis should appeared again.
So this portion of cash should be as liquid as possible, even though it is earning miserable interest rate at our local banks.

In my opinion, if this portion of cash is parked into CPF, which carries many restrictions and uncertainties, it can never be considered as hard cash anymore. And therefore it contradict your original purpose of keeping 30% of your portforlio as cash !

Even Warren Buffett is setting aside a big portion of his funds as hard cash. I'm sure we have something to learn from him.

(03-09-2014, 04:17 PM)gzbkel Wrote: Hello Layman

I am currently also vested in some REITs and pref stock.
I am taking about moving the cash part of my portfolio from Fixed D to CPF after 55. (I do not intend to top-up before 55)
Since you can withdraw from CPF at least once a year after 55, interest rate risk is not a problem I think.

My main concern is change of CPF policy, and how fast the MA minimum sum will grow (since you are force to top up MA before each withdrawal.

(03-09-2014, 02:36 PM)Layman A Wrote: No offence, but I find it difficult to understand why you want to use CPF as an FD instrument , as much as why people want to invest in zero coupon convertible bond in a junk company .

The similarity :

Your case :
1. You earn peanut difference in the interest rate, but risk locking up the whole entire sum when there is major change in policy.

2. Maybe tomorrow when you wake up from you dream, you find that interest rate already start ticking up, and may be in a year or two the interest rate offer by the bank could well beat the miserable 2.5% by CPF board .

The zero coupon convertible bond case :
There is nothing to gain except risk risk and risk. Default risk, company wind up risk etc.

In conclusion :
You are taking on overwhelming risk just to gain the miserable interest difference. Is it worthwhile ?


And since you are toying with the idea :
1. I presume you are reaching 55 soon.
2. I presume you are cash rich CPF rich uncle who could easily beat the minimum sum set by the CPF board.

For me, I park a portion of my cash in bank preference share, Genting perpeptual 5.125%, and REITs .
( yes REIT. Since I'm taking risk, I might as well going for the highest interest possible in the market ! )

On the other hand, if this a just a technical TCSS scenario just for discussion purposes, then it's a different story !

(04-09-2014, 10:44 AM)sgd Wrote:

(03-09-2014, 09:46 PM)funman168 Wrote: Sgs bond only abt 2.5%
The bonds listed on sgx all hv certain risk associated with it.
That y I am contemplating putting in cpf.
My idea is just to set aside all my hse $$, and try to earn the interest rate difference
I am thinking of buying another ppty in 2020 with my cpf...

you see this 4% it's until 2018

http://infopub.sgx.com/Apps?A=Cow_Corpor...AfNTBYfMo5

you see this 3.5% it's until 2027

http://infopub.sgx.com/Apps?A=Cow_Corpor...AfN8xYfMo4

so sgs bonds there are higher than 2.5%

You buy other bonds yes there's risk and I read briefly somewhere there's income tax on other bonds but sgs is tax free and I believe cpf also buying these at slightly higher special interest.

I can only assume you transferred a lot of money from your private bank account into cpf if you did that only time will tell if that was a right decision to do as they keep on roti prata and flipping the rules.

If I am not mistaken, the 3.5% and 4% are the coupon rate. The indicative yield of the 4% bond is only about 1% so it is actually much lower than the 2.5%. Besides, the sgs bonds are thinly traded and not liquid.

Take note that the Medisave min sum is increasing every year. Even though you have reach the SA min sum (for any particular group), and if your MA MS is not met, then CPF will transfer balance money in OA to top up.

Q: Upon my CPF withdrawal, I only have to meet my applicable CPF Minimum Sum which is a fixed amount. Why do I need to meet the prevailing Medisave Minimum Sum each time I withdraw?

A:
You need to set aside a CPF Minimum Sum (MS) that is fixed for the group turning 55 in a particular year. The MS serves to provide you a basic regular retirement income for your living expenses and is adjusted for each group to account for increases in overall inflation. As overall inflation tends to be more stable as compared to medical inflation, we can fix the MS for each group.

In comparison, the Medisave MS is meant to ensure you have sufficient Medisave to meet your healthcare needs during retirement. The prevailing sum is adjusted annually because with continued advancement of medical technologies and standards, medical inflation tends to outpace overall inflation. Furthermore, one tends to spend more for healthcare needs in the later years.

CPF MA Min Sum

(04-09-2014, 12:17 AM)brattzz Wrote:

(03-09-2014, 07:58 PM)funman168 Wrote: I am only in my late 30s but I hv the below in my accounts
Cpf OA: $500k
Cpf ma:$50k
Cpf sa:$70k

500K in your CPF OA??! oh my goodness! how did you get that?!
u brought 100K of OSIM at 9cts in 2009 using CPF?

Actually, I'm more curious about funman's MA - the current MA ceiling is only $48,500. I suppose $50k is a rounded number?