67-year-old retiree has more than $1.2 mil in her Ordinary Account, $400k in Retirement Account, $50k in annual interest from CPF

[UltimaOnline]

A 67-year-old retiree holds a record of sorts that most of us would yearn for - she has more than $1.2 million in her Ordinary Account (OA) of the Central Provident Fund (CPF).

If that's not impressive enough, she has another $400,000 in her Retirement Account and over $50,000 in her MediSave account.

These savings allow her to enjoy close to $50,000 in annual interest from the CPF alone.

The obvious million-dollar question is how she achieved such high savings.

It is certainly no mean feat because Janet (not her real name) not only refunded all the money she had withdrawn from the CPF when she was younger, such as for a mortgage, she is still doing something that few retirees would consider - making further contributions.

She is putting in the maximum allowed every year - $37,740 - even though she has been retired for about four years.

Thanks to her own contributions, her Special Account, which was initially depleted after the funds were moved to the Retirement Account, has grown to over $15,000.

In addition, she uses only cash savings for her expenses because she is keen to grow her CPF money further before she starts to draw down when she hits 70, as part of her long-term planning.

Janet, who attached a photograph of her CPF statement in an e-mail as proof of her balances, shared her experience with Invest because she wants to inspire younger Singaporeans so that they can similarly plan for the same outcome.

The key is to start monthly contributions as early as possible, because any monthly income above $6,000 will not be eligible for contribution. So such balances have to be gradually saved over three to four decades.

"I have shown that it can be done," Janet wrote in her e-mail.

She can easily withdraw over $30,000 of interest annually now without affecting her principal sums. She can also access a further $2,000 or more a month from her Retirement Account, but chooses not to do so until she is 70 so that the payout then will be higher.

"I am not trying to show off or anything like that, but to reiterate the point that it is possible to accumulate your savings in CPF and achieve your million-dollar status even at age 55," she notes.

"Like what they say, compounded interest is the eighth wonder of the world and this is particularly true in the case of CPF. This is especially so if you start working from age 25 and then save and grow the money there for the next 40 years."


https://www.straitstimes.com/business/invest/how-retiree-saved-over-16m-in-her-cpf

 

[sweetiepie]

She can easily withdraw over $30,000 of interest annually now without affecting her principal sums. She can also access a further $2,000 or more a month from her Retirement Account, but chooses not to do so until she is 70 so that the payout then will be higher.

KNN KNN KNN the big question my uncle posed to her is leave so much in cpf for fuck KNN she want to bring her principal sum to spend in hell ? That means she must have a verlee kiam siap person all her life KNN my uncle shared a 400-400-200 formation is much more idealistic KNN

 

[Leongsam]

Wow you really have to thank the PAP for this wealth generating marvel.

 

[tobelightlight]

another brain washing article brainwashing others on how great it is to have money in the cpf. IF that is her cash in her own bank, then i am impressed.

 

[sweetiepie]

KNN KNN KNN the big question my uncle posed to her is leave so much in cpf for fuck KNN she want to bring her principal sum to spend in hell ? That means she must have a verlee kiam siap person all her life KNN my uncle shared a 400-400-200 formation is much more idealistic KNN

Seriouslee my uncle cannot understand some people 65 yo and above feel so fearful of touching their principal sum KNN they seemed to forget about human lifespan else it means they want to work hard to give other people their money KNN

 

[sweetiepie]

another brain washing article brainwashing others on how great it is to have money in the cpf. IF that is her cash in her own bank, then i am impressed.

KNN after 55 yo having money in cpf is defintelee way better than having in bank KNN

 

[sweetiepie]

Wow you really have to thank the PAP for this wealth generating marvel.

KNN my uncle fullee agreed on this KNN

 

[face the facts]

so what?, still need to die eventually.......
on average a normal person probably spends 20-30 bucks a day on food........

 

[Leongsam]

Seriouslee my uncle cannot understand some people 65 yo and above feel so fearful of tiuching their principal sum KNN they seemed to forget about human lifespan else it means they want to work hard to give other people their money KNN

So you advocate dipping into your assets after a certain age and that is fine provided the spending serves a particular need or desire without putting youself in the poor house.

However for the majority of those who are just comfortably well off with assets between $4 million to around $8 million there is actually very little that can be achieved by biting off a chunk of your income generating assets on a regular basis.

I speak from personal experience. I live off the 4% yield from about $5 million in productive assets. That's about $170,000 per year after taxes. This enables me to live a very comfortable life and day to day living is well taken care of without having to skimp on anything plus there is enough left over annually for any emergency.

So let's say I buy into your recommendation and decide to splurge by taking a chunk of my assets for conspicuous consumption what exactly could I afford?

A $1 million yacht would be nice to have but 10% of a million will be consumed annually on maintenance that's $100,000 per year which means I suddenly only have $70,000 per year to live on unless I start spending $100,000 per year of my capital.

I'd like a nice private jet too but that poses the same problem the upkeep is astronomical unless I charter it out to pay for the upkeep. If I do that I might as well charter a jet myself whenever I need to instead of owning one.

So let's see what I can get if I spend $500,000 of my assets. A Ferrari, Mclaren etc would be nice but after a couple of months I'd lose interest and the car would just sit around depreciating.

What about spending $250,000 of my assets? Hmmm you don't get much for $250,000 nowadays and I honestly can't think of anything I actually want in that ballpark.

However when it comes to spending $25,000 to $50,000 there's lots of things I can buy which will actually make my life easier and or make me happier.. eg new bicycle, new camera gear, remodel my kitchen, take a nice holiday travelling business class (once Covid is over), fucking cute whores regularly and so on. However I don't need to dip in to my principal for this sort of expenditure I take it from the income generated by my assets.

$2 million to about $10 million is neither here nor there. Too rich to be considered poor. Too poor to behave like a millionaire. In my opinion those who want to live it up need at least $30 million in productive assets. Spending a couple of million on a yacht and a private jet becomes affordable.

 

[tobelightlight]

So you advocate dipping into your assets after a certain age and that is fine provided the spending serves a particular need or desire without putting yourself in the poor house.

However for the majority of those who are just comfortably well off with assets between $4 million to around $8 million there is actually very little that can be achieved by biting off a chunk of your income generating assets on a regular basis.

I speak from personal experience. I live off the 4% yield from about $5 million in productive assets. That's about $170,000 per year after taxes. This enables me to live a very comfortable life and day to day living is well taken care of without having to skimp on anything plus there is enough left over annually for any emergency.

So let's say I buy into your recommendation and decide to splurge by taking a chunk of my assets for conspicuous consumption what exactly could I afford?

A $1 million yacht would be nice to have but 10% of a million will be consumed annually on maintenance that's $100,000 per year which means I suddenly only have $70,000 per year to live on unless I start spending $100,000 per year of my capital.

I'd like a nice private jet too but that poses the same problem the upkeep is astronomical unless I charter it out to pay for the upkeep. If I do that I might as well charter a jet myself whenever I need to instead of owning one.

So let's see what I can get if I spend $500,000 of my assets. A Ferrari, Mclaren etc would be nice but after a couple of months I'd lose interest and the car would just sit around depreciating.

What about spending $250,000 of my assets? Hmmm you don't get much for $250,000 nowadays and I honestly can't think of anything I actually want in that ballpark.

However when it comes to spending $25,000 to $50,000 there's lots of things I can buy which will actually make my life easier and or make me happier.. eg new bicycle, new camera gear, remodel my kitchen, take a nice holiday travelling business class (once Covid is over), fucking cute whores regularly and so on. However I don't need to dip in to my principal for this sort of expenditure I take it from the income generated by my assets.

$2 million to about $10 million is neither here nor there. Too rich to be considered poor. Too poor to behave like a millionaire. In my opinion those who want to live it up need at least $30 million in productive assets. Spending a couple of million on a yacht and a private jet becomes affordable.

Sir, i admire your patience to teach here.

 

[SexOClock]

 

[Leongsam]

Sir, i admire your patience to teach here.

I'm not exactly teaching just sharing my thoughts regarding what being "rich" actually means.

 

[sweetiepie]

So you advocate dipping into your assets after a certain age and that is fine provided the spending serves a particular need or desire without putting youself in the poor house.

However for the majority of those who are just comfortably well off with assets between $4 million to around $8 million there is actually very little that can be achieved by biting off a chunk of your income generating assets on a regular basis.

I speak from personal experience. I live off the 4% yield from about $5 million in productive assets. That's about $170,000 per year after taxes. This enables me to live a very comfortable life and day to day living is well taken care of without having to skimp on anything plus there is enough left over annually for any emergency.

So let's say I buy into your recommendation and decide to splurge by taking a chunk of my assets for conspicuous consumption what exactly could I afford?

A $1 million yacht would be nice to have but 10% of a million will be consumed annually on maintenance that's $100,000 per year which means I suddenly only have $70,000 per year to live on unless I start spending $100,000 per year of my capital.

I'd like a nice private jet too but that poses the same problem the upkeep is astronomical unless I charter it out to pay for the upkeep. If I do that I might as well charter a jet myself whenever I need to instead of owning one.

So let's see what I can get if I spend $500,000 of my assets. A Ferrari, Mclaren etc would be nice but after a couple of months I'd lose interest and the car would just sit around depreciating.

What about spending $250,000 of my assets? Hmmm you don't get much for $250,000 nowadays and I honestly can't think of anything I actually want in that ballpark.

However when it comes to spending $25,000 to $50,000 there's lots of things I can buy which will actually make my life easier and or make me happier.. eg new bicycle, new camera gear, remodel my kitchen, take a nice holiday travelling business class (once Covid is over), fucking cute whores regularly and so on. However I don't need to dip in to my principal for this sort of expenditure I take it from the income generated by my assets.

$2 million to about $10 million is neither here nor there. Too rich to be considered poor. Too poor to behave like a millionaire. In my opinion those who want to live it up need at least $30 million in productive assets. Spending a couple of million on a yacht and a private jet becomes affordable.

The $x amount you generate from the interest also cannot let you buy a yacht KNN the moment you buy a yacht using the principal sum also will kill your interest KNN is lppl scenario KNN I.e what My uncle means is that if that person can spend say $50k per year from the interest generated there is not much diff to dip into the principal to spend once they hit about 70yo becas the year to go left not many KNN

 

[bobby]

A more accurate reporting would be to state her annual income when she was working.

 

[Leongsam]

The $x amount you generate from the interest also cannot let you buy a yacht KNN the moment you buy a yacht using the principal sum also will kill your interest KNN is lppl scenario KNN

Which is why I don't touch my principal. It's my security blanket. I may have 2 more years or I may have 30 more years. If I do find out I only have a couple of years left there's no big ticket item I'd want to acquire for that short period anyway. I'd be happy to live it up within my means and then set up a trust to help my favorite charity.

 

[Leongsam]

A more accurate reporting would be to state her annual income when she was working.

There's a cap on CPF contributions beyond a certain income so does that actually matter?

 

[orh mee suah]

She could be one of those who sold their HDB units for a million bucks.

 

[syed putra]

Probably a single woman,

 

[whoami]

Seriouslee my uncle cannot understand some people 65 yo and above feel so fearful of touching their principal sum KNN they seemed to forget about human lifespan else it means they want to work hard to give other people their money KNN

Same like asking those useless PG/MG why are they still working instead of relac at home? Probable answer would be they are bored staying at home. Work, exercise mah, free fm dementia and get paid too. As for Withdrawal of CPF....hey they are still working. They dont see the need to withdraw. Unless its really necessary.

 

[sweetiepie]

Which is why I don't touch my principal. It's my security blanket. I may have 2 more years or I may have 30 more years. If I do find out I only have a couple of years left there's no big ticket item I'd want to acquire for that short period anyway. I'd be happy to live it up within my means and then set up a trust to help my favorite charity.

My uncle leespect your way of thinking KNN the outcome for most people doing it this way is still either go to their children or charity KNN my uncle is looking towards dying as neither a rich nor poor chap in exchange for earlier freedom and adopt the can spend don't waste mantra KNN