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most of us have a property. in the event of unemployment, the 20k in OA can be used to pay property for nearly 6mth to 1 year. (depending on mortgage size). that why usually 20k reserves in OA is important

thank you for the clarification. could you please explain more on the CPF extra interest for 55+. Right now it's stated on the cpf website like this: "For members aged 55 and above, the Government pays an extra 2% interest on the first $30,000 of their combined balances (capped at $20,000 for OA), and an extra 1% on the next $30,000. The extra interest received on the OA balances will go into the member's Special Account (SA) or Retirement Account (RA)". What will be the scenario after SA is removed as of 2025?

Appreciate your clarifications, but in your explanation of the additional 1% you missed the most important thing, which is the order in which CPF balances computed: RA > OA > SA > MA.. Showing the order will make everything clear..

Thanks for providing a different option to gain more out of the interest. However, I don't think it is ideal for a few reasons: 1) The OA would be better off lowering the premium from the mortgage loan. Even if the interest you earn is more than borrowed from banks, the interest is not calculated monthly, CPF have a different calculation for interest rate (annually if im not wrong). Meaning paying back bank loan might be a better idea due to armotization; 2) it might reduces the use of cash for some household like you mentioned; 3) it is more flexible as you get to take back the money (back to ur cpf) once you sell the house say every 10 over years, maybe? 4) In order to build up another 20k from the transfer to SA, you will need, 20,000 / 600 extra interest = 33 years to accumulate (for simplicity sake I did not include compounding); all in all. For me personally, this is not a fit for my case.

great information chris, thanks

Hi Chris Thanks for the videos, just to ask how does this work if we are investing all of our OA into Endowus. Currently have 2.2k contribution from employer and have putting them into Endowus immediately. Should I instead max out my SA first?

I am surprised by the extreme example Chris gave that zero in OA , can still get the 1% for the 60k from the SA and MA!

Clear explanation of keeping 20k in OA before we can use the money for investment.

OA 30k SA 25K MA 55K SA and MA over capped of 60K as is 80K So the 20k base just 2.5 in OA no additional of 1%

@kelvingoh7746

4 ай бұрын

Christ did not touch on this point which is important

@Jinsh0

4 ай бұрын

The CPF balances is being computed in this order: RA > OA > SA > MA, while the OA is capped at 20k obviously.. And yeah Chris missed this most important pieace of information, the whole video seems to be focusing on this topic yet missed the important info..

@DerrickTay88

4 ай бұрын

@boonleongteo8683 hi I'm curious, does the extra 1% prioritises certain account over the other? E.g., if SA capped at a certain amount, then the rest of the account will not receive the 1%.

@boonleongteo8683

4 ай бұрын

@@DerrickTay88 SA will earn the max interest first..

@boonleongteo8683

4 ай бұрын

@DerrickTay88 SA will be around 5.3 to 6 % MA will be high of 4.75 to 4.35% as your medisave grows larger U will gain lesser of the extra 1% effect.. 30k Sa extra 1% on 10k effectively 4.5% on total of 30k 60k Ma extra 1% on 10k too but effectively 4.15% on total of 60k For self employed you may have outstanding medisave can opt to pay by installment 10k by 24th ...