Happy New Year 2022

Yup, on the first day of the new year 2022, we topped up our CPF accounts. We topped up maximum of S$3,000 each in our CPF MA account to reach Basic Healthcare Sum (BHS) of S$66,000 for year 2022. That will give us a good tax saving for year 2023. 

We also topped up S$6,428.44 into our kid CPF SA account to make the SA sum to be S$40,000.00 It will yield an interest of S$2,000 by the end of this year. 5% interest. Sweet! 

S$29,767.04 total CPF interest received today... 

0.82M41 for now...

Little CPF warrior in the making ...

Next windows to top up in MA to enjoy tax relief will be in March & October 2022 (for me).

That's your H&S insurance and Careshield Life.

PMI : Private Medical Insurance

MSL: MediShield

CSL: Careshield Life

Next to top up maximum of S$15,300 each in our SRS account. The biggest tax saving is here. 

I have one good suggestion to do SRS S$15,300 top up if you want to preserve your cash for rainy days.

It is called "SRS Shielding". LOL. : )

It is defined as: sell your stock that was purchased in the cash account and re-purchase it immediately with SRS account.

The strategy is like CPF SA shielding just before the age of 55. 

You take out the CPF SA monies and park them elsewhere for few days then put them back to CPF SA account once the RA account is formed.

For example, if you have 1,000 DBS shares that you had purchased with cash in the past and the DBS stock price today is S$32. You can just use cash from your saving account (S$15,300) to top up into SRS account and you buy DBS shares at S$32. At the same time, you sell your DBS shares ( that you had purchased in cash) and the sale proceed goes back to your saving account. Done! 

So, literally you are transferring your DBS shares from cash account to SRS account and you enjoy good tax savings! Why not? You do this ONLY IF you don't have enough extra cash to top up into SRS account.

Of course, one will argue that it incurs the buying and selling charges but that amount is so small compared to the massive tax saving you are going to celebrate the following year. : )

I have re-invested close to S$160,000 into equities through SRS account.

I have yet to top up S$15,300 into the SRS account for the year 2022 but will do so soon.

Appendix: Latest CPF rules effective on January 1st, 2022.

HAPPY NEW YEAR 2022 !

The CPF warriors

There are few CPF warriors on social media. We can learn from them.

The number 1 CPF warrior shall be ASSI ( AK71, born in 1971 probably).

He is so famous until many had used him as the benchmark. The graph below shows the graph of the OA balances. 

I don't know why the author only focused on OA balance but I would love to see the graph for the total balance of the entire CPF account instead.

AK71 CPF balance is astonishing. He received S$31,207.95 interest in year 2021.

That's S$1.08 million at the tender age of 50, 1.08M50 (alone). Very impressive.

Another folk born in year 1975. 

Good amount of monies in CPF OA, probably use cash only for housing loan?

It is quite weird that the MA account has not reached the basic healthcare sum (BHS) of S$63,000. 

SMK couple, 1.27M57

Mr. Loo has a pretty good homerun at his CPF OA by turning S$300,000 in OA to be S$423,000++ in just about a year plus. 

He basically dumped the CPF OA during the COVID era (April, May, June 2020) through Endowus platform by buying S&P 500. A very good catch indeed. 

1.27M48 achieved with combined S$470K+ in OA, S$590K+ in SA and S$127K+ in MA.

Two OA millionaires here, said to be age 56, and 57. (Retirement Account had been formed).

It is quite obvious that they both selected Enhanced Retirement Sum (ERS), that's why the RA account now is about S$300,000++. 

They did not do the SA shielding at the age of 55 as they both have low figures at SA account. 

If they have done the SA shielding, they will earn much more interest in the SA account instead of leaving S$1 million ++ in OA account.

Their CPF balances had further accelerated to S$1.762 million and S$1.619 million. 

Both of them are 2 years younger than PT, so PT is 59 then. :)

PT has a CPF balance of S$1.787 million.

The PT couple, probably the KING of the CPF Warriors, 3.26M59

He published a lot of information on social media which are good for our reference/benchmark. 

This ah boy reached FRS sum at SA at the age of 30. You can watch his video clip at Chris-HoneyMoneySG. Basically, you just follow the main first two procedures as early age as possible and you will be there (reaching FRS sum at SA) at the soonest.

(1) CPF SA & MA top up every year (to the maximum limit for tax relief).

(2) CPF OA to SA transfer.

(3) Do not use CPF OA to pay housing loan (if you own one).

One more CPF millionaire spotted. 

PB, 1.3M59 ( alone ) or 2.9M59. 

1M47 (alone) spotted. 

This is the best achievement seen so far. 

March 11th, 2022 will be her 48th birthday. CC.

Who will be the next CPF warrior? 

I would love to kick start my son CPF balance at the higher ground, currently S$44,515 @ age 9.

It is a good racing game, a rat race. LOL.

P/S: We are on track to achieve 4M65. 

Currently at 0.85M42 (as of July, 2022).

Or 1.13M42 (CPF Regrossed Balances, including the OA monies paid to the HDB private housing loan, Endowus/stocks purchase).

CPF year 2022

December 2021 CPF balances.

Total net amount used in housing & accrued interest.

Magic 4.3% interest calculation for SA and MA, OA remains as 2.5%.

It came to the end of year 2021. as of December 18, 2021, our CPF balances stood at S$780,904.

On December 31st, 2021, I expect the CPF balances to be around S$810,366.

Total amount used in housing S$252,701.

CPF Regrossed Balances currently: S$1,056,964 (1.05M41).

As for my 9 years old boy, I still prefer the OLD CPF presentation as follow:

It is not difficult to predict the CPF interests as both SA and MA currently drawing the maximum 5% interest, which are S$1,600 interest in SA and S$215.02 in MA.

9 years old boy's CPF account balance: S$36,300.41.

Why I top up the child CPF in SA account instead of MA?

Technically, there are no differences as both account (SA and MA) yield up to 5% interest. 

He received the FREE S$3,000 from the government in MA account once he was born in September 2012. I would like to see the compound interest effect on the S$3,000 in CPF MA account by leaving the MA account untouched. 

That says all the MA account monies are FREE from the government. That's the reason.

The new CPF child account statement looks like this now:

Everyone must know your own expected/projected Full Retirement Sum (FRS) figure.

My FRS will be S$282,000.

My boys' FRS will be S$726,000.

Given FRS of S$250,000 gives S$2,000 per month from age 65 to life.

FRS of S$282,000 will give S$2,256 per month.

FRS of S$726,000 will give S$5,808 per month instead.

That's using the linear algebra extrapolation.

Understood that it is not perfectly linear, the estimated monthly sum is close/good enough for our knowledge and it is a good quick calculation. : )

National rally speech in year 2014.

You still can watch the full speech below:

PMO | Prime Minister Lee Hsien Loong's National Day Rally 2014 Speech (English)