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The best way to prepare for retirement is to use less CPF $$


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Turbocharged

in the new era ... not just wipe out OA monthly contribution ...

every month still need to top up cash in order to service loan ...

and still proudly says ... top up few hundreds nia ... ok la

 

 

I find it very risky. One retrenchment come in die Liao.

I was told by my younger colleague that it is compulsory now to wipe out all CPF OA money to reduce the Housing loan.

Whether this requirement still applies now I dunno.

Wipe out is complusory if u take loan from HDB. But monthly installment don't need to wipe out mah.

 

high income earner spotted~! [laugh]

 

60%?!?

kawan, with a $2000 salary, that is not even enough for the installment for a 3 room flat today lah.

and that is using 2 x salary to service the loan leh.

60%... wow... pipe dream for many.

 

at the kinda exorbitant prices today (even direct from HDB), getting a 4 room, if can stay within the contribution without having to fork out cash to service the loan, tao cio until bak mi mi liow loh~! [laugh]

My house a 4room at jurong west extension which I bought at 360k. U say need to wipe out or not.

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Those looking to buy HDB with the maximum amount of CPF they have / monthly CPF contributions are not wrong, just not planning well for retirement. (Yes, I have always looked upon CPF as a tax, so when I can't use it for certain things, I don't feel bad about it.) These are the people I think LSS is targeting with his words, however it sounds hollow because of the way he says it.

 

I wholeheartedly disagree with welfare, as I believe that as humans, we should take care of ourselves. (And also in the survival of the fittest principle.)

 

The error, other than the fact that many MPs / Ministers are not great at communicating with the ground, is that property prices have risen too quickly in the past decade.

What I wish for, is that instead of all the crap subsidy scheme that is being given out, the government / HDB sells new flats at reasonable prices. Argh.. /Rant a little

 

Survival of the fittest principle? Alamak, as I am getting old, I haven't been exercising regularly and you

 

would like me not to survive just bcos I am not so fit?

 

:D

 

Since you say you don't believen in welfare you cannot ask for the government to build you new flats at

 

reasonable prices. This is socialism and the birth of socialism. In 1876 Joseph Chamberlain used tax

 

payers money to buy land to build affordable housing for poor people and he also use tax payers (rich

 

people's money as the poor don't pay tax) to build free public libraries.

 

Since you don't believe in welfare you should just buy private property and not from the HDB at

 

the prevailing market prices. If you cannot afford that just too bad as public housing build by the state

 

is a form of welfare. Do you really think a hard working guy like me should pay income tax so that

 

a person like you can buy cheap housing so that you can sell in a few years and make lots of money?

 

:D

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Supercharged

even salary is $25K per month ...

CPF contribution is capped at $1,000 (employee) + $800 (employer) = $,1800 only leh

 

 

 

if you hit the cap, any HDB in SG is affordable in some sense. no?

imagine, cap is $1000. that means, salary is $5000. so total contribution to OA is $1150.

assuming spouse is earning same amount. total OA available per month for housing is $2300.

can buy a house of up to $500,000 leh. THAT is a lot of options to choose from~!!!!

 

at the lower end of the salary scale, if the monthly salary is only $2000. spouse also earning the same. the OA available per month to service a loan is 920.

buying a $200,000 house will fall within the OA contribution.

but if you look at the prices of houses today, even direct from HDB, 4 room flat is >$200,000 liow leh.

still need to top up cash~!

 

so what the hell is zorro trying to say about not using CPF monies?

pay cash for house?

if that is the case, prices of houses may not be what it is today liow loh. [laugh]

if not pay cash, then zorro is maciam like (the hokkien saying) putting a cigarette in the mouth, not lighting it up and blowing hot air.

(chiak hoon pun hong)

amounts to nothing more than making meaningless noises.

no? :blink:

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I find it very risky. One retrenchment come in die Liao.

 

Wipe out is complusory if u take loan from HDB. But monthly installment don't need to wipe out mah.

 

My house a 4room at jurong west extension which I bought at 360k. U say need to wipe out or not.

 

Not wipe out cos you say you and your friend will only use 60% of your OA.

 

So if 360k is just 60% of your OA then you have a balance of 40%

 

or 240k in your OA.

 

:D

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Supercharged

...

My house a 4room at jurong west extension which I bought at 360k. U say need to wipe out or not.

 

brudder, read my post properly. that is exactly what i am trying to say.

it is IMPOSSIBLE not to wipe out the monthly contribution. unless you are prepared to pay the loan by cash~! [laugh]

especially if you are earning in the jiak-buay-pah-yeow-buay-see range. [laugh]

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agree... ban use of CPF on housing

 

and give 80% discount on current HDB BTO pricing

 

does PAP have the political will to push through this bitter medicine?

 

:D

this has to be one of the stupidest ideas i ever read on this forum.

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i think what he meant was ... 60% of "monthly" contribution in the OA so that 40% remain as saving till 55

just like if you have $2500 salary, try to save 40% every month

1st time OA wipe out to buy hdb is ok ... anyway this is standard

 

 

Not wipe out cos you say you and your friend will only use 60% of your OA.

 

So if 360k is just 60% of your OA then you have a balance of 40%

 

or 240k in your OA.

 

:D

 

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Supercharged

NOT convincing at all. Somehow, i got a feeling this idiot could be voted out next.

 

ha ha ha ha ha... that will depend on where he is deployed for the elections. no?

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actually there is a huge "misconception" that worrying me

 

people feel that wipe out the cpf to buy property is better than leaving the money in cpf because cpf give low interest but property price skyrocketing with enormous capital gain

 

they never think of the $1.5M mickey mouse 99LH condo or $600K hdb value can drop as much as 20% 30% ...

 

at the end of the day ... they risk gambling away their cpf instead of leaving the money in cpf that hearsay immune from global financial crisis

 

too big to fail ...

 

If you bought a flat at $600k and it dropped 30%, what difference does it make if you used your cpf

 

or a bank loan? Its probably better if you used cpf as a private bank loan will ask you to top up

 

the difference or risk a force sale.

 

:D

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Supersonic

i took a $300k loan 20 yrs ago. Was retrenched a few years and now paying what's remaining in my cpf.

Soon, I will have to pay cash.

 

People who chiong for the highest price they can pay now is probably going to regret when the day of reckoning comes.

 

New hdb flat is holding the bottom price. As its price goes up, everything goes up in tandem.

 

You loan more and more, but your life span is fixed and not extended.

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I was told by my younger colleague that it is compulsory now to wipe out all CPF OA money to reduce the Housing loan.

Whether this requirement still applies now I dunno.

 

As far as I know this is still true.

 

:D

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(edited)

i'm not comparing about cpf vs commercial bank loan for that matter

 

i'm saying many cheong to buy property even $1200psf at jurong just because got $$ in cpf

imagine buy at the high point in property cycle and 10 years later sell at the same price or breakeven

how much has the person lost in terms of leaving the money in cpf earning 2.5% interest for 10 years

 

this means anyone who buy a property and sell at 10 years ...

the property capital gain must at least exceed the 2.5% compound interest in cpf hor (1 - the initial lump sum and 2 - the monthly contribution in OA)

 

 

If you bought a flat at $600k and it dropped 30%, what difference does it make if you used your cpf

 

or a bank loan? Its probably better if you used cpf as a private bank loan will ask you to top up

 

the difference or risk a force sale.

 

:D

 

Edited by Wt_know
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Supercharged

this has to be one of the stupidest ideas i ever read on this forum.

 

actually, if you really think about it, it is not exactly a bad idea.

it is actually a HUGE paradigm shift.

 

our neighbors across the causeway has been dealing with their housing loans without touching their EPF. and they still managed to get by on their monthy salary (dun compare exchange rates, their salary range is very similar to ours ie, an engineer earning SGD2500 will earn roughly about RM2500 for a similar job). and i am really amazed, given that their cost of living is so much higher. (ie one tin of Milo cos about SGD16, but there, it cost around RM28.)

 

i'd be all for it if the CPF returns with higher interest rates. (comparing to EPF, our returns are shit~!)

 

back in the days when our grandparents cannot use CPF to buy house, they managed to put our parents thru school till graduation, set up a family and still afford a car... ALL ON ONE SINGLE salary.

today? try telling your spouse not to work. i can bet you, 8 out of 10 couples will say you siao ah?!? how to afford a house and a family on one single salary?!?

 

agree? share your view. [:)]

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Turbocharged

"Everyone must remember, first is that CPF is your money, nobody can take that money away from you. You have your money, you have the account, and you receive the statement, the account on a regular basis. So, you know how much money you have in the CPF,” he said.

Play with words AGAIN. Nobody is disputing that CPF is not the person's money or whether it is taken away from that person. The issue is when that person is allowed to use it and how much. I am not suggesting that those clamouring to be allowed to take out 100% at 55 is right, what I am saying is all the official responses, comments, BS etc do not address the concerns on the ground, which is the "So Close Yet So Far" feeling that those at 55 have. Owner of the CPF money in name only, not in substance.

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You buy new or resale?

 

360K for JWext 4-room???? [bigcry][bigcry][bigcry]

 

I bought at 170K for premium unit somemore. Already hiam kwee liao lor. If just 1 or 2 years earlier, I could have gotten it 100K niah. 200Kish could have gotten the executive flat..... Regret not hooting it then..... But, was too conservative...... thinking of retrenchment, job loss, etc......

 

 

I find it very risky. One retrenchment come in die Liao.

Wipe out is complusory if u take loan from HDB. But monthly installment don't need to wipe out mah.

My house a 4room at jurong west extension which I bought at 360k. U say need to wipe out or not.

 

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i think what he meant was ... 60% of "monthly" contribution in the OA so that 40% remain as saving till 55

just like if you have $2500 salary, try to save 40% every month

1st time OA wipe out to buy hdb is ok ... anyway this is standard

 

 

 

Oic, so his salary must be quite big that he only needs to use 60% of his monthly contribution

 

to pay for his housing and the balance 40% goes into his OA.

 

So the best way to save for retirement is having a big salary.

 

:D

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Turbocharged

CPF should be "wiped out" for property purchase. At least that is my perspective because I don't foresee getting the money back in one lump sum unless I get the f*ck outta here.

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