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hi all,
thanks for the replies.
hi wj888,
what you mentioned is indeed true. But have to note that one paying his loan tenure is guaranteed but having the correct/right tenant to live with you harmoniously is not. To get someone paying your loan via their rent, have to give up some privacy or maybe endure some idiocracies...
hi koh_52,
haha..Spore Inc is definitely nt stupid!! What i meant was, let's say a couple needs to pay 1k in monthly instalments, and they have 1.5k each in monthly free cash flow and CPF OA contributions, they should try to minimise using their CPF OA to pay for the instalments.
I am nt very sure of the rules (because i m still a long way off from 55) but logically, i know CPF will nv let anyone near 55/over 55 to take advantage of the 'risk free' interest rates. It will be an arbitrage opportunity, compared to like putting it in fixed D (because u can nv get such generous interest rates here for a comparatively similar tenure)
hi yeokiwi,
my comment on using 'rich dad, poor dad' is just a tongue in cheek comment, due to my own frustration of missing the chances to learn financial planning earlier.. 
It does not mean that i fully agree with everything inside the book and i do not know whether it is really fiction or fact. But i do recognise that there are some deep lessons that an average guy like me can take away, n hopefully become 'above average'...
hi temperament,
you are not suffering from dementia. Shaolin monks, all thanks to their CEO abbot who commercialized them, maybe has no liability!!
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06-11-2011, 08:13 PM
(This post was last modified: 06-11-2011, 08:38 PM by aspeed.)
(05-11-2011, 04:38 PM)koh_52 Wrote: Careful the CPF is not that stupid...if your Medisave has reached the limit of $40,500, then it NOT safe to transfer your cash to OA and enjoy 2.5%, risk free.....a friend of mine recently transfer cash into his OA but realised that a bulk of the cash kenna eaten into the medisave account, only that after Medisave ceiling is hit than the balance is only go into OA.
Take note, medisave money is not your money you have no chance to touch this money, it keep on passing down to your next generation medisave...
Another case, recently my retired relative passed 55 yrs old, sold his 5 room flat for 580k, wanted to return the proceed back to CPF account but the authority refused to allow him to put back into CPF being reason that he is over 55 yrs and had drawn out the cpf and not allowed to put back. However, he may put it in his retirement account if they has not reach the minimun sum limit...which is only $99,600 peanut...
HENCE, what im trying to tell u if u have $1 million i dun think CPF board allow u to put inside their board.... Hi,
some mistake:
1. Medisave money, upon a person death, will form part of CPF pool for distribution by Public Trustee, and it is in cash form, and not go back to someone else Medisave acc. Medisave cap is now $41K.
2. when a property is sold after age 55, need to top back the lower of either 1) amount used from cpf include accrued intest or 2)min sum short fall. It is not a choice want or don't want to put in CPF.
Lastly, CPF is not a bank account where you can deposit money. Unless contribution from employment or self employed and declare as income.
Personally I will prefer to hold cash at hand, even if CPF offer 10% interest, cos you never know when policy is going to change.
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All your CPF's money will go to your nominee if he is more than 18 years old. If he is less than 18 than i think Public Trustee will administer your CPF's money for your nominee. Your CPF's money will not be covered by your will even if you have one. (i am not sure whether CPF BOARD has changed the rules of nomination)
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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CPF is still by nomination. If no CPF nomination made, the Public Trustee will do the distribution according to the intestacy laws.
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07-11-2011, 10:13 PM
(This post was last modified: 07-11-2011, 10:21 PM by koh_52.)
(06-11-2011, 08:13 PM)aspeed Wrote: (05-11-2011, 04:38 PM)koh_52 Wrote: Careful the CPF is not that stupid...if your Medisave has reached the limit of $40,500, then it NOT safe to transfer your cash to OA and enjoy 2.5%, risk free.....a friend of mine recently transfer cash into his OA but realised that a bulk of the cash kenna eaten into the medisave account, only that after Medisave ceiling is hit than the balance is only go into OA.
Take note, medisave money is not your money you have no chance to touch this money, it keep on passing down to your next generation medisave...
Another case, recently my retired relative passed 55 yrs old, sold his 5 room flat for 580k, wanted to return the proceed back to CPF account but the authority refused to allow him to put back into CPF being reason that he is over 55 yrs and had drawn out the cpf and not allowed to put back. However, he may put it in his retirement account if they has not reach the minimun sum limit...which is only $99,600 peanut...
HENCE, what im trying to tell u if u have $1 million i dun think CPF board allow u to put inside their board.... Hi,
some mistake:
1. Medisave money, upon a person death, will form part of CPF pool for distribution by Public Trustee, and it is in cash form, and not go back to someone else Medisave acc. Medisave cap is now $41K.
2. when a property is sold after age 55, need to top back the lower of either 1) amount used from cpf include accrued intest or 2)min sum short fall. It is not a choice want or don't want to put in CPF.
Lastly, CPF is not a bank account where you can deposit money. Unless contribution from employment or self employed and declare as income.
Personally I will prefer to hold cash at hand, even if CPF offer 10% interest, cos you never know when policy is going to change.
CPF info can easily be verified with the board (it figures keep on changing i have lost track), me do not have intention to misled anyone.....which of his own to comment.
What the point only after you go into the coffin then form cash and inherited to yr nominees.....to comment is easy then to contribute....I remembered there a forumer nick Big Bearish in Wallsraits forum, specialized in this...
Medisave paid an interest rate of 4% and with $41k the annual interest received will be $1,640 p.a., for me I prefer to re-invest this money to upgrade my Income-shield to an enhance plan ( think the capping is $800 p.a. you can utilize from medisave) and balance you can use for purchase of elder-shield...young man below age of 40 please ignore this info...use your cpf for housing loan
Once you stop work you will realized the important of hospitalization insurance.
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(07-11-2011, 10:13 PM)koh_52 Wrote: CPF info can easily be verified with the board (it figures keep on changing i have lost track), me do not have intention to misled anyone.....which of his own to comment.
What the point only after you go into the coffin then form cash and inherited to yr nominees.....to comment is easy then to contribute....I remembered there a forumer nick Big Bearish in Wallsraits forum, specialized in this...
Medisave paid an interest rate of 4% and with $41k the annual interest received will be $1,640 p.a., for me I prefer to re-invest this money to upgrade my Income-shield to an enhance plan ( think the capping is $800 p.a. you can utilize from medisave) and balance you can use for purchase of elder-shield...young man below age of 40 please ignore this info...use your cpf for housing loan
Once you stop work you will realized the important of hospitalization insurance.
Hey, just want to correct some misconception that all. I find a lot ppl has this misconcept of medisave get pass on to another medisave.
What do you mean by "to comment is easy then to contribute"?
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I agree with aspeed that cash in hand is better than cash placed in CPF, no matter how "guaranteed" the returns are. As he mentioned (and I agree with), policies can change anytime and at the whims and fancies of the PAP Govt. Now we have CPF Life - wonder what's next? By the time I hit 55 the whole scheme may look unrecognizable compared to today.
But I do concur with Koh_52 - H&S insurance is very very important. I got it for my entire family and never regretted it.
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