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today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

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malcontent
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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by malcontent » Fri, 25 Nov 2022 10:52 pm

PNGMK wrote:
Fri, 25 Nov 2022 3:28 am
Current contribution limits:
CPF: $37,740
SRS (SC/PC) $15,300 (None SC/PR) $35,700

For tax deductions keep an eye on the overall cap of $80,000 (Which I think is BS).

The new 2023 CPF retirement limit for ERS is probably going to be $298,200 (more BS).
The $8k top up is generally worth doing, but you can no longer top up MA beyond this $8k if your MC’s are under the limit, which is also BS.

SRS is generally only good if you’re late career and sure you’ll retire here — otherwise the extra fees for investing locally can eat up all of the tax savings if enough time passes.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Sat, 26 Nov 2022 2:02 am

malcontent wrote:
Fri, 25 Nov 2022 10:52 pm
PNGMK wrote:
Fri, 25 Nov 2022 3:28 am
Current contribution limits:
CPF: $37,740
SRS (SC/PC) $15,300 (None SC/PR) $35,700

For tax deductions keep an eye on the overall cap of $80,000 (Which I think is BS).

The new 2023 CPF retirement limit for ERS is probably going to be $298,200 (more BS).
The $8k top up is generally worth doing, but you can no longer top up MA beyond this $8k if your MC’s are under the limit, which is also BS.

SRS is generally only good if you’re late career and sure you’ll retire here — otherwise the extra fees for investing locally can eat up all of the tax savings if enough time passes.
Mal - you can buy Singapore T Bills and SSB with SRS. That's a low fee option for SRS.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by malcontent » Sat, 26 Nov 2022 11:10 am

PNGMK wrote:
Sat, 26 Nov 2022 2:02 am
malcontent wrote:
Fri, 25 Nov 2022 10:52 pm
PNGMK wrote:
Fri, 25 Nov 2022 3:28 am
Current contribution limits:
CPF: $37,740
SRS (SC/PC) $15,300 (None SC/PR) $35,700

For tax deductions keep an eye on the overall cap of $80,000 (Which I think is BS).

The new 2023 CPF retirement limit for ERS is probably going to be $298,200 (more BS).
The $8k top up is generally worth doing, but you can no longer top up MA beyond this $8k if your MC’s are under the limit, which is also BS.

SRS is generally only good if you’re late career and sure you’ll retire here — otherwise the extra fees for investing locally can eat up all of the tax savings if enough time passes.
Mal - you can buy Singapore T Bills and SSB with SRS. That's a low fee option for SRS.
Agree, the rates an T Bills are attractive at the moment. However, that is a short-term investment in a long-term account, and rates might drop if we see a recession next year.

I have continued to buy S27 in my SRS; my last purchase was 20 shares at $358.31 on Oct 3. The IRS has been refunding the 30% dividend withholding on S27 when I file my US taxes, so my only ongoing expense is the 9bps — not great, but I can live with it.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Sat, 26 Nov 2022 1:18 pm

malcontent wrote:
Sat, 26 Nov 2022 11:10 am
PNGMK wrote:
Sat, 26 Nov 2022 2:02 am
malcontent wrote:
Fri, 25 Nov 2022 10:52 pm


The $8k top up is generally worth doing, but you can no longer top up MA beyond this $8k if your MC’s are under the limit, which is also BS.

SRS is generally only good if you’re late career and sure you’ll retire here — otherwise the extra fees for investing locally can eat up all of the tax savings if enough time passes.
Mal - you can buy Singapore T Bills and SSB with SRS. That's a low fee option for SRS.
Agree, the rates an T Bills are attractive at the moment. However, that is a short-term investment in a long-term account, and rates might drop if we see a recession next year.

I have continued to buy S27 in my SRS; my last purchase was 20 shares at $358.31 on Oct 3. The IRS has been refunding the 30% dividend withholding on S27 when I file my US taxes, so my only ongoing expense is the 9bps — not great, but I can live with it.
I should add that you need a CDP to do so and SGX are completely overwhelmed and broken at doing so right now.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Tue, 06 Dec 2022 4:35 pm

We are in the the last 20 odd working days of the year. The deadline for top ups is 31st Dec but it is a Saturday this year so top up earlier to avoid a last minute glitch. SRS tops ups sometimes have to be done manually.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by malcontent » Thu, 08 Dec 2022 12:10 pm

PNGMK wrote:
Tue, 06 Dec 2022 4:35 pm
We are in the the last 20 odd working days of the year. The deadline for top ups is 31st Dec but it is a Saturday this year so top up earlier to avoid a last minute glitch. SRS tops ups sometimes have to be done manually.
Yes, especially if you don’t have a non-SRS account with your SRS operator. I just dropped a check into the check deposit slot at my SRS operator and it took several days before I saw it credited to my SRS.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Fri, 23 Dec 2022 9:04 am

One week left guys. You may wonder why I remind you but too many times someone has mentioned they missed the cut off dates.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Sun, 01 Jan 2023 8:28 am

CPF Interest paid in this morning. Total of $23,535 in interest paid. Total balance is ~$715,000.

I'm not sure what my plan is for this year with VCs given my work situation and the interest rates. I most likely will pay in monthly a VC of $3k per month rather than a hard hit on the VC in Jan. CPF VC limit is still $37,740 I believe. I had immediately topped up RA by $10,500 (the new limit) this morning with a CPF transfer as it is a cost less exercise and pulls in more interest immediately.

Can I get to the 1 Mill by 65 mark? Yes! With interest and VC totaling > 60k pa. it should only take another 5 years which would be 1Mill62.

When the ignorant pie eyed sinkies complain about CPF tell them they don't know what they are talking about.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Sun, 01 Jan 2023 9:46 pm

In speaking to my wife I've decided to hold off VC's and SRS contributions until Q4 23. The lost interest is not worth the opportunity cost for having cash on hand.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Wed, 04 Jan 2023 11:16 am

Below is a 10 year record (all that is easily available online) for my CPF conts and interest received. Interest is slowly tracking upwards (it really is a concern now in the high interest rate environment). What is important for younger people to note is that I stopped using CPF OA for housing in back in 2013 (hence why contributions jumped back up in 2014) and then I paid it all back in 2020 {I started in 2018 with smaller amounts} - both of those actions had a big impact on total CPF and interest. I do think it's a mistake to allow people to use excessive amounts of CPF OA for housing.
CPF_10yr.jpg
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by malcontent » Wed, 04 Jan 2023 12:58 pm

Only my spouse has CPF and I try to leverage it to the max. We have never used it for housing and have transferred the entire OA balance to SA, which is now approaching FRS. I’m planning to SA shield at age 55 and use cash to top up RA to FRS, eventually ERS.

Despite what interest rates may do in the short term, a steady long-term 4%+ rate of return is fantastic. Everyone needs some level of retirement income security and CPF is unquestionably the best tool available (locally) for the job.

The one thing I find people overlook the most with CPF is how the security it provides can allow you to increase returns on non-CPF investments because you can afford more risk.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Wed, 04 Jan 2023 1:09 pm

malcontent wrote:
Wed, 04 Jan 2023 12:58 pm
Only my spouse has CPF and I try to leverage it to the max. We have never used it for housing and have transferred the entire OA balance to SA, which is now approaching FRS. I’m planning to SA shield at age 55 and use cash to top up RA to FRS, eventually ERS.

Despite what interest rates may do in the short term, a steady long-term 4%+ rate of return is fantastic. Everyone needs some level of retirement income security and CPF is unquestionably the best tool available (locally) for the job.

The one thing I find people overlook the most with CPF is how the security it provides can allow you to increase returns on non-CPF investments because you can afford more risk.
You will be able to go past the ERS (interest pushes it past ERS levels as the RA top up annual limit does not take into account the RA balance). I don't top up the the RA with cash at present. MY concern right now is the OA at 2.5% - I have over 300k there and am not sure how to deal with it except maybe buying SSB or T-Bills.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Wed, 16 Aug 2023 10:04 am

For those of you in SRS and CPF, we are now in the third quarter of the year and you should have your SRS money plans sorted (if not yet deposited). For CPF by now you should have some idea of any bonuses that came in Jan (if at all) and where your contribution rate is for this year. I myself don't plan to contribute to SRS this year as my Singapore derived income is very low and there is no tax benefit. I have already hit the maximum limit for CPF VC as well. While there is a lot of attaction to invest in T1 or SSB or whatever, CPF is still a safe, solid and fee free investment.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by malcontent » Wed, 16 Aug 2023 7:49 pm

I would just caution that SRS is not always the best for expats, it depends how long you will stay, what tax bracket you are in and how you will withdraw… it’s not a no brainer.

If you have CPF and don’t need to use your OA (for housing, etc.), consider irreversibly transferring OA to SA for the higher interest. The annual $8k top-up (to your own account and loved ones) should usually go to MA if possible, also earning a higher interest rate.

For tax deduction purposes, CPF top up should take priority over SRS contributions, because CPF is always tax free on withdrawal.

SRS has never been an attractive option for me and I only opened an account recently because my employer insisted on it. I invest 100% of the money in S27 which is SPY (S&P 500) shares cross-listed on SGX — one of the only non-PFIC options for US persons holding an SRS account.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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Re: today is the last day for topping up CPF/SRS and Jan 1 is the first day to top up again

Post by PNGMK » Mon, 04 Dec 2023 11:52 am

This is my annual reminder that you have limited time to top up CPF VC ($37,740) and SRS ($15,300 / $35,700) for 2023 as we have only 20 odd working days left in the year. Cheques take time to clear.

I have topped up CPF VC but for this year I am not topping up SRS as I have had very little income that is taxable in Singapore so there is no tax savings available.

Jan 2nd I intend to withdraw most of my OA (after topping up my RA) and invest it in an account that pays far more than 2.5%.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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