(28-12-2012, 08:39 PM)AlphaQuant Wrote: [ -> ]for those who do not know what this is:
http://mycpf.cpf.gov.sg/Members/Top-Up_LO.htm
personally i think this is a great deal. do it before 31dec.
Good deal for the govt or pp? The retirement age seems to increase every few years.
the goal post keep shifting!!
ur better off investing the money urself if you can! :O
for those who pay income tax, top up your own CPF-SA with cash and you might be handsomely rewarded with a free ipad.
For example, you're paying Singapore income tax and your chargeable income is S$87k for FY12.
For first 80k, you'll pay S$3350 tax.
next 7k, you'll pay S$805 tax.
Suppose, you top up 7K to your CPF-SA, you'll saved S$805
aka free Ipad - a gift/nice gesture from Singapore Government.
I wish that you're qualified for this gift... may be not this year but sometime soon....
If i am 30 years old today, and i top up money into the SA, to earn an interest of 4%, it doesnt sound like a good deal. I can only withdraw this money around the age of 60++. Isnt it like buying a 30 year bond with interest of 4% with no potential of a capital gain? It sounds very silly to buy a 30 year bond at 4% today, buying the shares of uob or ocbc would make more sense to me.
personally it is a decent deal for me
i did the full 7k personally and also 7k for my mum (who is 70yrs old and umemployed)
so i get tax savings on 14k which is a fair bit.
since my mum is retired, the money goes into her retirement account which in turns streams back into her account every mth.
4% risk free rate (this is not guaranteed though, there's no guarantee that the cpf rate will be given a 4% floor forever) is actually quite decent for me, given the other exposures i have.
Would you like to share how much tax you saved ?
(30-12-2012, 01:14 PM)AlphaQuant Wrote: [ -> ]personally it is a decent deal for me
i did the full 7k personally and also 7k for my mum (who is 70yrs old and umemployed)
so i get tax savings on 14k which is a fair bit.
since my mum is retired, the money goes into her retirement account which in turns streams back into her account every mth.
4% risk free rate (this is not guaranteed though, there's no guarantee that the cpf rate will be given a 4% floor forever) is actually quite decent for me, given the other exposures i have.
Well done for topping up ur mum's account. She should be proud.
What is the maximum allowable amount in SA, beyond which, cash top up is not allowed.