More like if u transfer too much to SA, your window to do RSTU (able to qualify for tax relief) for ur SA is lower, since u can’t RSTU when FRS is reached. If u wanna get tax relief, don’t transfer too much to SA
Hi Kelvin, thank you for your informative videos on CPF. I would like to check on your opinions regarding cash top ups to SA / MA. If there is still an option to top up the MA, would you recommend topping up to MA instead of SA? From what I understand, direct cash top ups to SA cannot be "shielded" at 55. Aside to the above point, is there any disadvantage for choosing to top up MA instead of SA?
On the topic of topping up SA ourselves, IIRC that the amount we top up into our SA (and their compound interest over the years) is reserved and cannot be invested, hence cannot be shielded at age 55. So that means the option of topping up SA ourselves to reduce taxable income will come with a side effect of giving up most of CPF SA shielding. That's still the case right?
usually people top up their retirement fund so that they pay less income tax. transfer OA to RA , i wouldnt do it if i still need money for buying a property
depends in tax bracket. But if tax bracket is low, likely the person have lower income and lower liquidity. OA provides more liquidity than SA. Tax relief is also compounding btw, put in the tax savings to invest for 1% also better than pax tax
Kelvin, great video as always. Pls note that for balance in OA or SA/MS you won't get 2.5% & 4% respectively on the full amount inside these accounts. The interests are capped at a certain amount - or else CPF will lose money.. If its for full balance I will park all my Money in SA - 5% is better than rental anytime.
8:53 Even if you yourself hit the FRS cap early, you can still benefit from the tax reliefs by topping up into your parents'/childrens'/spouse's SA right?
MAny don’t understand money..money is a tool for transactions,,no transactions means is a piece of toilet paper..in cpf, is even worst..u can’t touch at all..is not a money..doesn’t matter how many percent increases..it doesn’t concern one at all since u can’t even transact a cup of kopi. Some say when hit 60+ u reap the rewards..no.. dollar value for old age is different, many things u use at 65 is different u use as a young adult..is pointless u enjoy at 65 then die at 75..if 10 years is a shiok period,,what’s the point u slave now to 65 for a life ? Don’t believe me go do a survey for those age 65 and above, ask them they enjoy life or ??
Haha! That affordable facade enforced by the gov to trick the dumb ones since they didn't calculate the currency inflation rate and compound interest rate.
@@KelvinLearnsInvesting Thanks for the helpful reply! I also noticed that the 37,740 annual contribution limit applies for some top up but not for others (e.g. RTSU). Do u know if it applies to medisave top ups?
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😊 2:50
Do note that CPF transfers do not qualify for tax relief unless cash top-up
More like if u transfer too much to SA, your window to do RSTU (able to qualify for tax relief) for ur SA is lower, since u can’t RSTU when FRS is reached. If u wanna get tax relief, don’t transfer too much to SA
Thanks Kelvin for the insightful video! Could you pls do a video on whether we should pay back CPF used to pay housing loan? Thanks!
you only need to pay back the CPF accured interest when you sell your property. Otherwise it is just a paper interest.
im almost used full cash to buy HDB 2 years back, after sold my EC.
Hi Kelvin, thank you for your informative videos on CPF.
I would like to check on your opinions regarding cash top ups to SA / MA.
If there is still an option to top up the MA, would you recommend topping up to MA instead of SA? From what I understand, direct cash top ups to SA cannot be "shielded" at 55.
Aside to the above point, is there any disadvantage for choosing to top up MA instead of SA?
Topping up Ma will help to super charge sa
If your sa is below frs top up Ma first
Where are all the calculators you've used in the first portion of the video?
make use of the last 20-year window. by age 35, transfer + top ups.
CPF Shielding done. 😎
Kelvin, pls teach a tutorial on investing in stocks with OA. Once the stocks are sold, the cash go back to OA or..?
Yes
ah yes! I will love to learn about this @kelvinlearnsinvesting, please do a full guide on this and what are the recommended ways
ua-cam.com/video/J8MEEKnKisE/v-deo.html
@@holypunk12 No, it doesn't. It goes into your CPFIA with the bank.
@@stevenyip2631 then how we suppose to put back into OA ? 🤔 bank transfer ? Need to ask cpf the amount + acrued interest we suppose to owe ?
Thank u for the balanced, level-headed and always funny approach, @kelvinlearnsinvesting!
On the topic of topping up SA ourselves, IIRC that the amount we top up into our SA (and their compound interest over the years) is reserved and cannot be invested, hence cannot be shielded at age 55. So that means the option of topping up SA ourselves to reduce taxable income will come with a side effect of giving up most of CPF SA shielding. That's still the case right?
Yup. That’s why its better to topup MA instead
usually people top up their retirement fund so that they pay less income tax. transfer OA to RA , i wouldnt do it if i still need money for buying a property
Reach FRS too early also not good. Cannot benefit from higher tax relief from 8k cash top up when tax bracket higher
I think the extra interest compounded will be more than the tax saved. Plus after shielding you get to transfer more from OA to RA.
depends in tax bracket. But if tax bracket is low, likely the person have lower income and lower liquidity. OA provides more liquidity than SA. Tax relief is also compounding btw, put in the tax savings to invest for 1% also better than pax tax
Yes as per my perspective.
Uhoh... Chris too haolian, Kelwin calling him out!
Uh oh :0
@@KelvinLearnsInvesting Chris can go fly kite already. OA go SA cannot touch until 55. LOL. then he now regret transfering. GG MAX
Did he regret?
Actually once go SA cannot touch at all, Gomen give u back SA piece by piece from 65
Chris doesnt have to touch cpf. Why gg?
Or unless buy house , top up when it need for deposit? Now I scare because since you said cpf cannot be withdrawn
Kelvin, great video as always. Pls note that for balance in OA or SA/MS you won't get 2.5% & 4% respectively on the full amount inside these accounts. The interests are capped at a certain amount - or else CPF will lose money.. If its for full balance I will park all my Money in SA - 5% is better than rental anytime.
8:53
Even if you yourself hit the FRS cap early, you can still benefit from the tax reliefs by topping up into your parents'/childrens'/spouse's SA right?
Topup to children no tax relief. Spouse n parent, u will only get relief if their annual income less than $4k a year, or if they are handicapped
@@KelvinLearnsInvesting Top up to parent no income requirement for tax relief.
If your parent hit the FRS, u don't get relief.
Can still siam tax using srs
Max income tax relief using cpf is 8k
Hi, may I know how to.invest dividends from small amount and top.up monthly
Honey love investing checked in ....
MAny don’t understand money..money is a tool for transactions,,no transactions means is a piece of toilet paper..in cpf, is even worst..u can’t touch at all..is not a money..doesn’t matter how many percent increases..it doesn’t concern one at all since u can’t even transact a cup of kopi. Some say when hit 60+ u reap the rewards..no.. dollar value for old age is different, many things u use at 65 is different u use as a young adult..is pointless u enjoy at 65 then die at 75..if 10 years is a shiok period,,what’s the point u slave now to 65 for a life ? Don’t believe me go do a survey for those age 65 and above, ask them they enjoy life or ??
Kelvin, can tr fr oa to ra for abv 55 tq
CPF-OA interest rate didn't match up to our currency inflation rate.
Because they want to to keep hdb loan affordable. So it make fully paid hdb owner paid....
Haha! That affordable facade enforced by the gov to trick the dumb ones since they didn't calculate the currency inflation rate and compound interest rate.
Wa lau er. Can commercial be shorter?
Mon, Wed,Fri + Sat 加班?
Is it true money top up to SA is not allowed to be withdrawn at age 55? Does this also apply for transfers from OA?
Money directly topped up to SA is "reserved money", can't be withdrawn.
OA to SA not reserved
@@KelvinLearnsInvesting Thanks for the helpful reply!
I also noticed that the 37,740 annual contribution limit applies for some top up but not for others (e.g. RTSU).
Do u know if it applies to medisave top ups?
Hi Kelvin, i notice your video lately seems to be blurry. Is it just me?
Hm, lemme check what’s happening
Change to 1080
Anyone will earn 5% even each acct is 60k and above? 70k oa. 70sa. 70 ma.
Wont. Only 60k balance will earn the additional interest. Anything more than that will earn normal interest
if we use OA for mortage loan, is it possible to repay the CPF accrued interest during the loan?
Yes!
Lol Chris kena shot liao😂
Friendly fire :0
This guy Malaysian is it?
Can SA be used for HDB house loan?
Cannot
@kelvin.earnsliving Where are all the calculators you've used in the first portion of the video?
First !
Yayy!
@honeymoneysg
Where are all the calculators you've used in the first portion of the video?