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Monday, September 18, 2017

Renovation cost - 4 bedrooms (Waterfront @ Faber) Revision 03

Revision 03: updated on October 10, 2017
Revision 02: updated on September 22, 2017

This is our 4th renovation, followed by minor renovation & touch up at the existing HDB unit before pushing it to the rental market (the 5th renovation) and the 6th renovation in November 2017 (TOP expected to be the end of October 2017), Citrine service apartment at Sunway Iskandar. The first one was 5-room flat at Toh Guan, followed by 4-room flat at Toh Guan, then Nusaheight service apartment at Gelang Patah, Nusajaya. It is a stone throw away from the future bullet train station at Nusajaya. So, armed with 3 renovation experiences, I know exactly what we want and the price too. We set a target of S$10,000 for renovation and S$20,000 for furniture furnishings for Waterfront@Faber unit. It will be our self-stay unit and probably our future retirement home, why not? Here are the updates, let’s go!

I changed my ID last minute due to the huge price variance of up to S$8,000 and that caused me a delay of 2 weeks.
July 12: Key collection
July 15: Defect list submitted.
August 7: Defect rectification completed and singed off.
August 19: Renovation ID finalized with Weiken, cheque issued to ID to start work immediately after management approval.
August 24: Master bedroom wall hacking completed.
August 25: 75% lightings installation completed.
August 28: All L-box structures completed.
August 29: Hacked wall was made good.
September 4: Whole house painting completed.
September 5: Hacked floor was made good.
September 7: Clear all floor protection.
September 8: Whole unit cleaning completed.
September 12: Carpentry installation completed.
September 15: Paints touch up done, renovation completed.

The renovation took me 4 weeks to complete.

September 18: All bedrooms oak flooring were matt varnished by the developer's contractor.

September 30: LG Smart TV, sound bar delivered. Store room racks delivered.

October 3: Simmons mattress/ bedframe delivered. Blinds installation completed.

October 7: Commune sofa delivered. Dining table/chairs from Mondi delivered.

October 14: Mover starts to move house from Toh Guan at 8.30 A.M.


October 14, 2017 is the date we move to Waterfront @ Faber. :)

(1)    TV feature wall/cabinets: (S$4,025)

Carpentry Works

(Design and fabricate of full height TV storage cabinet with solid compressed plywood, selected laminates, inner colored PVC and ABS trimming doors. Cabinet is installed with Blum’s anti-slam hinges.)

The biggest item of the renovation got to be built-in-furniture, which is our full height of 2.85 meter, length of 3.3 meter of TV feature wall with a lot of cabinets. We finally engaged Weiken ID at Tradehub 21 for our renovation. Their quoted price is subjected for 7% GST but they are giving out 7% discount at the final price too. It means the 7% GST is waived and you have a minor discount of 0.49% to be exact. So, all the prices listed in this blog (Weiken ID) are the prices BEFORE the 7% discount. In this case, the TV cabinets is S$4,005.28 NETT instead of S$4,025.
I sent this exact picture for 7 quotations at various ID firm and carpentry shops.

Filip Janssens designs

 
Filip Janssens's Asper project in year 2011

 
My renovation cost (Weiken) : S$9,229.55


We bumped into the above design from Google search, with keywords, "huge TV cabinets design" and we love the full height massive cabinet storage designs with style. Then, a carpenter ID told us it was actually a Belgium furniture designer masterpiece, called Filip Janssens ( http://www.filipjanssens.be/ ). No wonder, it looks gorgeous to me. I used the same photo for 7 quotations (4 ID firms and 3 carpentry shops) and I have good price benchmark. There are 4 quotations about the same range and I picked Weiken, of course, why? It is the largest ID firm in Singapore and I saw the show unit at Tradehub 21 and I want my TV cabinets to be the same quality as show unit, so it is a very good benchmark. It is no brainer for me to quickly pick Weiken ID. I have no idea why their price could be so competitive. I have 7 quoted prices range from S$3,900 to S$7,430. Many (included me) have a mindset that their price must be premium as they engaged celebrities for advertisement, hence, a lot of marketing costs spent and the cost might be transferred to the customers. I think the price quoted is fantastic, same for the rest of the items too!

We picked “NOT pure white” laminate as it will turn yellowish easily in the future and the light color will give you a sense of bigger space. Dark colors on the cabinet will give you a beam (column) structure in the living hall especially you have a massive length/full height TV cabinets, you also need to make sure the width is not too large. The final finished product is exactly what we have expected. I give 10 out of 10. I got nothing to complain.

Price benchmarking

 
This is the final drawing we sent to ID for "execution".
 
 
 
The final finished product. :)
 
 
The view while you sit at the center of the sofa.
 
 
Plenty of storage space.
 
 
Panorama shot. :)
 
 
(2)    L-box for cove lightings
Plastering & ceiling works
(a)    Design, supply labor and materials to construct cove light L-box in living area
(Length 3500 x Width 3300 mm): (S$550)
(b)   Design, supply labor and materials to construct cove light L-box in dining area
(Length 2000 x Width 3000 mm): (S$500)
(c)    Design, supply labor and materials to construct cove light L-box in master bedroom area
(Length 2600 mm):  (S$250)
Cove lighting is a MUST in my design. I love the lighting ambience with downlights, cove lighting or both if I want the brightest atmosphere. That’s just me, love the cove lighting effects.

So, I pay around S$1,300 for cove lightings.
 
T shape cove lightings
 
 
 
Dining hall and living hall L-box
 
 
Master bedroom L-box

 
Dining hall and living hall cove lightings

 
Master bedroom cove lightings

 
Simply love cove lightings effect

 
(3)    Master bedroom wall hacking
Hacking & Dismantle works
(a)    Hack new entrance opening between master bedroom and bedroom 2 (length 1200 x height 2400 mm): ($300)
We want to have a bigger master bedroom, hence, we knock off a new entrance opening between master bedroom and bedroom 2, the length is only 1.2 meter as there are some water piping below the air con at the master bedroom wall, that’s the biggest we can go but it still serve our purpose. I believe some of the miscellaneous works come with this wall hacking, for example, clearing the debris, and laying cardboard for protection, general cleaning, make good the existing floor and wall.

Item 5 & 6 are shared cost with other works, so it is about right to say it costs me S$1,500 to enlarge the master bedroom. Good deal.
 
Hacking completed.
 
 
Make-good completed.

 
PE endorsement
 
 
  
The wall hacking required PE endorsement. We got our colleague to do it for us FREE, else it will cost S$750.
(4) Miscellaneous works
(a)    Supply labor and tools to carry out haulage and debris disposal works. S$550
(b)   Supply and laying of corrugated cardboard for protection.S$300
(c)    Supply labor, tools and materials to carry out general cleaning upon handing over. $350
(d)   Paint all internal walls and ceiling with Nippon Emulsion Paint (we used 6 colors at the end) $1,950
(e)   Supply labor, tools refurbish of existing flooring affected by hacked wall between master bedroom and bedroom 2. (Oak flooring provided by developer). S$250
(f)     To supply labor and material to make-good/patch up to hacked wall area between master bedroom and bedroom 2. S$250.

All right, this is the area I can actually save few hundred dollars but I didn't. That is to paint the whole unit. I shall be able to engage Nippon paint directly to get the job done. Oh well, the coordination works had reached my maximum capacity. Too bad!

Do I hit the target? Not too bad.

Renovation cost:
S$9,229.55 + electrical wirings cost S$1,400 = S$10,629.55

Furnishing cost: S$17,716.33

I have spent a grand total of S$28,345.88, still well below my target of S$30,000. Buy more!

 
My lightings cost is S$690, all from Philips.
My lights distribution is shown below.

Trunkable Linear LED for all cove lightings


Down lights for all the bedrooms, toilets, dining, living, kitchen
 

 
 Ceiling lights for loft , store room and balcony (IP65)
 

 

Details of electrical wirings cost : S$1,400 

 
I think I know why he charged me differently for creating one 13A x 2 power point.
 
Create one at the DB switch box is the easiest task, so, that's S$45.
Create one at the new TV living hall is tougher , so, that's S$65.
Create one at the kitchen cabinet wall is the difficult one, he has to hack a lot of wall and that's S$85.
In average, I pay S$65 for 2 power points. Cheap!
 
Window Blinds
As for the windows blinds, we get the Unislat for living hall, Premium Combi (full blackout) for master bedroom and the rest of the bedrooms, Combi Aurora. All are Korea blinds.

You may contact Blinds Guru at 8777 5717.

Windows blinds full cost: S$3,523 
 
Unislat (opened)
 
Unislat (closed)
 
 
Unislat. Net pattern (gray)
 
 
Unislat. Line pattern (Ivory)
 
 
Master bedroom : Premium Combi (full blackout)
 
 
Master bedroom : Premium Combi (full blackout)

 
Loft room: Combi Aurora

 
Loft room: Combi Aurora

 
Guestroom 1: Combi Aurora

 
Guestroom 2: Combi Aurora

 
Combi Aurora versus full blackout
 
 
 
Song-Cho stainless steel items are LIFETIME warranty.
Solid quality.
 
One time installation fee of S$53.50 is a GREAT bargain.
We spent S$1,154.41 for Song-Cho products.
 
Standalone dish rack
 
LG Smart TV
I bought a LG UJ750T – 55” UHD TV 4K on July 21 with a price of S$2,299. It comes with:
     FREE LG 32” Smart TV worth S$599 (can do trade in with them for S$300)
     FREE Swivel bracket worth S$300.
I have booked my delivery date on September 30.
On September 21, I chanced to know they have even better promotion and I decided to upgrade my TV “FREE”. Hence, I am now getting a LG SJ850T. It is actually a SUPER Ultra HD TV 4K.
The key differences are:
(1)    Refresh rate is double at 100 HZ
(2)    Super Ultra HD versus Ultra HD
(3)    Advanced local dimming versus local dimming
(4)    2.2 channel 40 W speaker system versus 2.0 channel 20W speaker system
(5)    SUHD has additional one USB 3.0 port
(6)    SUHD design has sleeker stand and the TV screen has no silver plate border.
Both resolution is the same at 3,840 x 2,160, 55” size.
 

The price is S$2,599. It seems like the price is $300 more but it comes with:
      FREE LG 43” Smart TV worth S$1,199 (can do trade in with them for S$500, so, the price difference drop to S$100)
      FREE Swivel bracket worth S$300
      FREE LG Blue-Ray Player (BP450) worth S$139
      FREE Digital Antenna (Funke 2.0) worth S$49
 
 
With this TV purchase, you can get buy the S$899 LG SJ8 Wi-Fi speaker bar at special bundle price of S$499. With this, you also get:
     FREE LG Music Flow Speaker H7 (NP8740) worth S$599
 
 
 
Pretty good deal, isn’t it?
A quick check of the market selling price of the FREE items:
(1)    NP8740 wireless speaker selling at S$546
(2)    SJ8 Wi-fi sound bar selling at S$599
(3)    Blu-Ray disc player BP450 selling at S$87

I sold the 43" smart TV back to Best agent at S$500 and NP8740 wireless speaker at S$400.

So effectively, my 55" TV is S$2,099 nett and SJ9 sound bar is S$99 nett.

 
All items fit perfectly within the allocated space.



 
 
 



Store room rack

I got the L-shape store room racks from SG Shelving at S$399.

You may contact Vincent at 9826 2379.

 Empty HS space
 
 
L-shape storage racks


Grille Gate

I installed a grille gate at the main door entrance. It costs S$650.

Why? It is definitely not for the security reason. I love to open the main door to let the wind flows through the whole house. I cannot imagine I can just open the main door wide without a grille gate. :)

You may contact Lynda at 9007 7274.

 
Brown color grille gate


Commune Sofa
I love almost every items at Commune. In particularly, this Commune Windsor L shape sofa. It is comfortable and you enjoy 10% discount during the Great Singapore Sale only and it is now back to the original price. As our TV cabinet is full length of 2.85 meter, I hope this 2.60 meter length fabric sofa will not look too big in the living hall, we shall see! If you love wooden furniture, Commune is the best shop.

Designer furniture with reasonable price.


 




 


 

All furniture delivered on Oct 7, 2017.

 


 
The L-shape sofa size is still OK.

 
Dining table size is just all right too.

 
My beloved sofa. :)

 
BOSCH Kitchen appliances

The kitchen appliances supplied FREE by the developer are worth S$8,742 at the current market right now.

 
TDK DC ceiling fan

I bought a TDK DC motor ceiling fan (short rod) for living hall at Tampoi Lighting Centre, Johor. It is selling at RM 499 = S$159 only and I got additional fan hook at RM 3.

It is good to mention the installation cost for one fan is S$80, done by my electrician. The cost is 50% of the fan cost!

With the LED lights, it is selling RM 699 in Malaysia. Singapore is selling S$648, it costs RM 1,329 more !! Isn't that crazy?

Address:
No.2, 4 & 6 Jalan Titiwangsa 3/1,
Taman Tampoi Indah,
81200 Johor Bahru, Johor.
Tel: 607-2418999, 2418990, 2418963

K14ZW model

 
K14ZW specification (the only model comes with 4 blades)


Finn Avenue Home
We bought 4 mirrors product from Finn Avenue Home. They are all handmade.
You may contact Grace at 6753 3466.
Wall Mirror at the dining hall
 Simple Perfection Mirror location at the living hall
Mirror at the master bedroom hallway 
2 meter x 1 meter Hermes Wall Mirror , weighted 54 KG.
 Side profile

My best model
Simple Perfection Mirror (double) with Fayette Chesterfield
2-Seater Loveseat Sofa- Sky Blue
  

Harriette Mirrored Chest of Drawers
 

 
One more item to be delivered , Cristal Mirrored Console Table

 
Find Grace!

 
Additional 5% discount if order is above S$5,000.
10% discount if the order is above S$10,000.

To be continued....


Monday, August 14, 2017

Projecting Your CPF figures (Revision 11)

Revision 11 (last paragraph): updated on January 1, 2021
Revision 10 : updated on April 16, 2020
Revision 09: updated on February 25, 2020 
Revision 08: updated on January 8, 2020
Revision 07: updated on October 22, 2019
Revision 06: updated on August 24, 2019
Revision 05: updated on April 18, 2019
Revision 04: updated on August 29, 2017
Revision 03: updated on August 21, 2017
Revision 02: updated on August 18, 2017
 
Have you projected your CPF figures? It is interesting to find out.
 
There are some important figures below and assumptions (of course).
 
(1) I have to emphasize that S$6,000 monthly income and S$30,000 monthly income, both the CPF contributions are all the same. With 13th month bonus included, you will contribute at least S$28,860 into the CPF account every year. If you have more bonuses, your CPF figures will be more than the below figures. This calculation takes 13 months contribution only.
 
 
(2) To simplify the presentation, this is what happen. Always transfer OA to SA, hence, OA account is S$0 balance at all times.

(3) No further S$7,000 SA top up in the table below, yearly contribution of S$28,860 go straight into the column of (SA+MA).

(4) Why 4.3% interest? SA and MA interest are 4% but the first S$60,000 will attract additional 1% interest, which is 5% interest in total. With my magic formula, you just calculate the total sum as 4.3% interest will be close to (the first S$60,000 sum enjoying 5% interest, remaining balance 4% interest).

(5) Steady increase of FRS by S$5,000 per year.

(6) Steady increase of 4% in BHS per year.

(7) By the age of 55, the full retirement sum will be S$256,000 and basic healthcare sum will be S$105,342. Total (FRS + BHS) of S$361,342 will be locked at age 55.

(8) FRS of S$256,000 will yield monthly pension of S$2,081 from age 65 until death.

(9) If you die earlier, they will calculate the total monthly pension you have received, then minus from ( the FRS sum of S$256,000 + interest earned for the 10 years , while you are age 55 to age 65 and beyond), the proceed will be given to your spouse and children.

(10) The table below shows that you stop working at age 55, which is quite unlikely for me. I would love to continue to work even up to age 65 if my health allows. So, the table below would be dramatically different as you will have monthly contribution yet again.

(11) Even if you don't work at age 55, you will still see a cool S$1.028 million cash by the age of 58 and you have all the absolute right to withdraw that cash from the CPF. Why withdraw? Just leave it for the fat compound interest. Let it rolls, baby! CPF is the best retirement scheme in the world. Trust me.

This section is for workaholic. Some may not want to retire at age 55, they want to work until age 65 or even age 70. Assuming the monthly income is still at least S$6,000, you will see:
 
(a) S$1.047 million cash in the CPF account at the age of 57.
 
(b) S$1.747 million cash at the age of 65.
 
(c) S$2.321 million cash at the age of 70.
 
With that figures in the CPF account, please don't work anymore.
Give chance to the younger generation.
 
 
 
Updated on August 18, 2017
=====================
 
Reality check. Hitting the first milestone, (SA+MA), S$200,000 mark broken.
 
Re-cap, my age 55 (SA+MA) requirement shall be: S$361,342.
 
 
 
Additionally, I have utilized OA account of S$103,552.04 for HDB flat, accrued interest is S$15,088.48 as for today, total : S$118,640.52 shall be in OA account IF I DO NOT USE IT for housing loan. If I sell the flat TODAY, the sales proceed of S$118,640.52 will be returned to CPF OA account first, then remaining balance of sales proceed goes into my bank account.
 
I also have small portion of investment in CPF OA amount to S$1,668.10 (too small figures, negligible).
 
If I never use CPF OA money for housing loan and investment, the balance of OA account will be S$120,308.62, after transfer all OA balance to SA account, the total (SA+MA) will be S$322,345.66.  The yearly interest (~=4.3+%) is S$13,860 ! 
 

 
 
Updated on August 21, 2017
=====================
 
I made a phone call to CPF hotline today and realized I made a BIG MISTAKE on the calculation above.
 
(This mistake is corrected and updated in Revision 06)
 
Once your CPF SA account reaches Full Retirement Sum, e.g. S$166,000 (year 2017), you are NOT able to do CPF OA transfer to SA. Please take note.
 
If you use SA money to buy unit trust/ insurances and the balance of SA account drops below FRS (for example, below S$166,000 this year), you are able to transfer CPF OA to SA as well as CPF SA S$7,000 TOP UP to enjoy tax relief.
 
In other words, CPF strictly looks at the SA account balances only.
 
Same for your MA account, if your MS reaches the BHS and SA reaches FRS, then, your MA contribution will flow to OA, not SA !
 
Key takeaways:
 
(1) SA reaches FRS, you cannot do CPF SA S$7,000 TOP UP to enjoy tax relief. You cannot transfer CPF OA to SA account.
 
(2) If MA reaches BHS and SA reaches FRS, CPF MA contribution will go to OA account.
 
 
 
 Updated on August 29, 2017
======================
 
One reader alerted me that there is one error in the posting above.
 
Hence, the CPF hotline operator is wrong then.
 
The amount withdrawn from Special Account (SA) for investments are counted as Full Retirement Sum , do take note! See the information below for clarity.
 
 
Updated on April 18, 2019
=====================
 
Some milestones achieved.
 
I finally hit FRS (S$166,000) in CPF SA account on 3rd January 2018.
 
With the new FRS figure (S$171,000) in year 2018, I only able to top up S$5,000 into CPF SA on 3rd January 2018.
 
With the new FRS (S$176,000) in year 2019 and subsequent years, I no longer able to top up CPF SA to enjoy any tax relief. I see that as a good problem.
 
 
 
 
How to accelerate CPF contribution ?
 
(1) More bonuses ! Thankfully, I received pretty good bonuses in year 2018 and 2019 (credited in March 2018 and March 2019). 

(2) 13th month payout which was credited in December every year. 
 
(3) Annual Leave (AL) en-cash, which was credited in September 2018, for example.
 
Well on target to hit S$1 million goal in CPF! 

 
 It will be really great if you have good bonuses. It can speed up your CPF balances hugely! 

 
Updated on August 24, 2019 (Revision 06)
===============================
 
There are two big news announced during the National Rally 2019 on August 18, 2019.
 
(1) The retirement age goes up to age 65 from age 62.
   

 
(2) Raising CPF contribution rates
 
National Rally 2019
 
 
The current CPF contribution rates
 
 
The new CPF contribution rates
 
 
Basically,
 
from age 56-60 , contribution rate increased from 26% to 37%
 
from age 61 to 65, contribution rate increased from 16.5% to 26%
 
from age 66 to age 70, contribution rate increased from 12.5% to16.5%
 
What is the increased quantum with the above changes?
 
 
 
Firstly, let's tabulate all the magic numbers (shown below).
 
 
Take note:
 
(1) Once the SA account hits FRS sum and the MA account hits BHS sum, the monthly MA account contribution will flow to OA account, not SA account.
 
(2) Once you hit the age of 55, the FRS sum will be deducted from the SA account to RA account. Hence, there is a big drop in SA account at the age of 56.
 
 
 
By the age of 45, OA: S$209,247, SA: S$294,187
 
By the age of 50, OA: S$359,665, SA: S$395,240
 
We can take out all the monies from the OA and SA accounts at the age of 55 after putting aside FRS to the RA account.
 
By the age of 55, S$792,706 can be withdrawn.
(OA:S$515,142 , SA: S$277,564 as S$256,000 will be transferred from SA to RA)
 
By the age of 60, S$1,081,442 can be withdrawn.
(OA: S$691,049, SA: S$390,393)
 
By the age of 65, S$1,369,982 can be withdrawn.
(OA: S$877,464, SA: S$492,518)
 
By the age of 70, S$1,665,029 can be withdrawn.
(OA: S$1,052,656, SA: S$612,374)
 
With the old existing contribution rate:
 
By the age of 60, S$1,033,685 can be withdrawn.
By the age of 65, S$1,272,838 can be withdrawn.
By the age of 70, S$1,534,004 can be withdrawn.
 
The quantum increment with the NEW CPF contribution rates are :
 
S$47,757 more by the age of 60.
S$97,143 more by the age of 65.
S$131,026 more by the age of 70.
 
That is a big increment!
 
If all circumstances stay, I would like to work until age 65 as well.
  
Last but not least, there are no changes to the CPF withdrawal policies with the new CPF policies change.
 
(1) After putting FRS aside at the age of 55, you can take out all the CPF monies if you want.
 
(2) The monthly CPF payouts will still start from age 65. No change at all. Great !
 
 
 
Updated on October 22, 2019 
 
======================
 
Please read this good article, "Four ways to optimize your CPF savings" on The Sunday Times, published on October 20, 2019.
 
 
There is a good tip here to maximize CPF Special Account (SA) savings, namely, right before you turn age 55, after setting aside S$40,000 in SA (CPF Board's requirement), you withdraw all the SA savings and invest them temporarily in a low cost and stable investment vehicle, for example, bond fund as a "parking facility fund", and have them transferred back to SA account after you turn age 55 once your RA account has been created.
 
Why doing so ?
 
FRS figures would be S$256,000 for me when I reach age 55.
 
CPF Board will first deduct SA account first before touching your OA account. In other words, they will deduct S$256,000 from my SA account to form RA account. By doing the above strategy, CPF Board will then deduct S$40,000 from the SA account (as your SA account now turn S$0 balance) and S$216,000 from OA account instead of SA account.
 
That says, you now have S$216,000 earning additional 1.5% compound interest .
SA pays 4% while OA pays 2.5%.
 
How much more will you gain by doing so ?

 
 
By the age of 55, S$792,706 can be withdrawn.
(OA:S$216,000 & SA: S$40,000 = S$256,000 ) will be transferred from OA/SA to RA)
 
By the age of 60, S$1,099,855 can be withdrawn.
(OA: S$435,575, SA: S$627,683)
 
By the age of 65, S$1,413,216 can be withdrawn.
(OA: S$586,113, SA: S$780,625)
 
By the age of 70, S$1,741,201 can be withdrawn.
(OA: S$721,584, SA: S$962,478)
 
With the deduction of S$256,000 (FRS) all from SA account only:
 
By the age of 60, S$1,081,442 can be withdrawn.
By the age of 65, S$1,369,982 can be withdrawn.
By the age of 70, S$1,665.029 can be withdrawn.
 
The quantum increment with the strategy of S$40,000 from SA & S$216,000 from OA)
 
S$18,413 more by the age of 60.
S$43,234 more by the age of 65.
S$76,172 more by the age of 70.
 
Not bad !!! 
 
 
 
Updated on January 8, 2020
=====================
 
My SA balance finally hit S$200,000 mark on 2nd January, 2020.
 
Net amount used in OA for stocks : S$13,500.24.
Net amount used in OA for HDB : S$103,552.04.
Accrued interest : S$22,374.21.
Missing opportunity of OA stood @ S$139,396.49 (due to stocks & HDB)
 
FRS for year 2020: S$181,000.
BHS for year 2020: S$60,000.


 
Updated on February 25, 2020
======================
 
The FRS (Full Retirement Sum) figures are announced for year 2021 & 2022.
 
FRS for year 2021: S$186,000.
FRS for year 2022: S$192,000.
 
The FRS will be increased by 3% each year.
 
 
Updated on April 16, 2020
======================
 
There are 3 ways to increase monthly CPF contribution:
(1) JUL 2019 - Annual Leave en-cash
(2) DEC 2019 - AWS (13th month)
(3) MAR 2020 - Yearly Bonuses
 
 
MA account finally hit the new BHS (for year 2020) : S$60,000 cap.
 
 
Total S$18,918.41 withdrawn from OA account to purchase stocks in year 2019-2020.
 
 
 
 Updated on January 1, 2021
======================

CPF interest received for year 2020 is : S$12,493.53.


Year 2021 FRS is S$186,000 and BHS is S$63,000.

Friday, April 14, 2017

How to plan for your baby's future? (My Complete List versus CPF article)

CPF interviewed me and the article was published on Feb 27. 2017.

The link is shown below.

https://www.areyouready.sg/YourInfoHub/Pages/Views-How-to-plan-for-your-babys-future.aspx?utm_source=Outbrain&utm_medium=Article36&utm_term=Retirement&utm_content=Headline2&utm_campaign=CPF_BAU_1701

How to plan for your baby's future?

Some of my points are not published at CPF website. This is the complete version. 


(1)   Do not touch your child CPF MA account (S$4,000 now) that was given by the government.

CPF Medisave account (MA) has 5% interest (cap at the first S$60,000 and 4% thereafter). Use all your CDA account money (S$12,000) as it attracts only max 1.20% interest from the bank, not child CPF.

Note (1):
http://jkfund.blogspot.sg/2015/05/cpf-versus-whole-life-insurance-for-kids.html


(2)   Buy Whole Life Insurance while he/she was 1 day old.


The earlier you purchase, the cheaper it is. The shorter payout period, the cheaper it is.

S$500,000 sum assured whole life insurance with 5 years payout period cost me total S$33,010. Good money spent! My child does not need to purchase whole life insurance when he starts to work. If he wants more coverage, he can buy himself.

Note (2):
http://jkfund.blogspot.sg/2012/10/buy-life-insurance-as-early-as-possible.html

(3)   Contribute S$2,000 annually into your child CPF SA account.

CPF Special account (SA) has 5% interest (cap at the first S$60,000 and 4% thereafter). This can be your child’s Chinese New Year red packets. This is to help to build a strong head start for your kid in CPF accumulation. His/Her full retirement sum (FRS) can be easily above S$500,000 in the future. 


For me, it would be S$250,000, 18 years from now (year 2035).

Note (3):

http://jkfund.blogspot.sg/2015/03/age-1-baby-has-cpf-account-do-you-know.html

(4) Buy Investment-Linked Plan (ILP)   

Many people do not like whole life insurance, investment-linked plan and endowment plan.


This is something extra I did for my little one. I bought one ILP, monthly payment of $100 (S$1,200 per year) into Singapore Growth Fund and Emerging Market Fund (50% allocations each). As ILP has a 7 years break-even threshold, he has all the time to witness the compound growth of the surrender values. This is one good retirement income for him especially Singapore and emerging countries will do great in the next 20, 50 years.

Note (4):
http://jkfund.blogspot.sg/2012/10/investment-linked-fund-for-infant.html

(5) Buy equities (stocks)

I have not done that just yet for the little one but I will do so by Q1 next year :)

In fact, I invested equities for myself for income through SRS account and cash.

For child, we should buy solid blue chip counters only, DBS, OCBC, ST Engineering, SINGTEL or even REITs, CapitaLand Mall Trust, Cache Logistics Trust, SUNTEC REIT, etc. We buy the shares, frame the stock purchase certificates and hang them nicely at his/her bedroom. I read this idea from magazine. It is a pretty cool thought. :)

We can witness the capital appreciation of the good stocks, at the same time, enjoy the stable fat dividend payouts. Such dividend yield is easily in the range from 3.5% (stocks) to 8% (REITs).

Raising kids in Singapore is fun. It shall never be a burden or pressure for the parents. 
Enjoy the process and be happy. God blessed and good luck!





Our CPF at the maximum ...

A Singaporean household of 3. 2 working adults, age 46 (1980s) and 1 young adult age 14. Voluntary Housing Refund (VHR) all monies back to C...