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

[cowbellc]

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It is certainly no mean feat because Janet (not her real name) not only refunded all the money she had withdrawn from the CPF when she was younger, such as for a mortgage, she is still doing something that few retirees would consider - making further contributions.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

Propaganda scent fills the air

 

[Leongsam]

Propaganda scent fills the air

It's not propaganda if the figures are accurate and I see no reason why they should be doubted as I too had almost $1 million in my CPF account.

 

[borom]

It is this type of article that is causing umbrage and lack of respect/readers/subscription for ST
Who in their right mind would reveal their CPF balance, not to talk about telling the whole world!

What is the true purpose of publishing such trash when millions are suffering from the effects of covid 19.

 

[eatshitndie]

It is this type of article that is causing umbrage and lack of respect/readers/subscription for ST
Who in their right mind would reveal their CPF balance, not to talk about telling the whole world!

What is the true purpose of publishing such trash when millions are suffering from the effects of covid 19.

attract more talented nigerian studs to sg?

 

[sweetiepie]

It is this type of article that is causing umbrage and lack of respect/readers/subscription for ST
Who in their right mind would reveal their CPF balance, not to talk about telling the whole world!

What is the true purpose of publishing such trash when millions are suffering from the effects of covid 19.

KNN it is similar to what my uncle posted https://www.sammyboy.com/threads/leetirement-formations-4-4-2-3-2-2-3.295531/post-3374434
To let the world know that it is achievable to have 1mil in cpf before age 55 leespite earning $3.5k KNN my uncle posted becas most sinkie think it is impossible KNN

 

[tobelightlight]

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

You make this effort of sharing thoughts or teach is already admirable because of the fact ( i presume) that the users here dun really get that or even understand what you are trying to say. Their limiting thoughts and negative thinking do them a great disservice.

They can achieve whatever you can in terms of being rich, anyone can do it. But it is just their limiting and negative thoughts that block them from achieving it.

 

[winners]

The biggest disadvantage is that if she will up lorry at 75 years old, then only her beneficiaries will benefit from her accrued wealth. She only managed to spend a partial of her savings in her CPF for just those 5 years between the age of 70 to 75 years old. And the amount of her monthly payout is already pre-calculated by the CPF to stretch/deplete only at about the 20th year after her first drawout, meaning she'll have to live till beyond 90 years old in order to breakeven her funds in the CPF. So, how many can live beyond 90 years old and only thereafter, does it truly mean that the CPF is supporting and paying for your monthly drawout because whatever monthly accumulated drawout before the 20th year are simply just your own savings.

So, I think it is foolish to leave that vast amount in your CPF because the chances of living beyond 80 years old, not to mention 90 in her case (in order to breakeven), is very slim.

 

[sweetiepie]

It's not propaganda if the figures are accurate and I see no reason why they should be doubted as I too had almost $1 million in my CPF account.

KNN cpf is indeed a gods sent gift to people like my uncle who is a non investment savvy KNN sit shake leg collect money without any risk KNN

 

[Leongsam]

The biggest disadvantage is that if she will up lorry at 75 years old, then only her beneficiaries will benefit from her accrued wealth. She only managed to spend a partial of her savings in her CPF for just those 5 years between the age of 70 to 75 years old. And the amount of her monthly payout is already pre-calculated by the CPF to stretch/deplete only at about the 20th year after her first drawout, meaning she'll have to live till beyond 90 years old in order to breakeven her funds in the CPF. So, how many can live beyond 90 years old and only thereafter, does it truly mean that the CPF is supporting and paying for your monthly drawout because whatever monthly accumulated drawout before the 20th year are simply just your own savings.

So, I think it is foolish to leave that vast amount in your CPF because the chances of living beyond 80 years old, not to mention 90 in her case (in order to breakeven), is very slim.

Assets aren't supposed to be "spent". They are accrued so that they can be put to work when the owner no longer has an income from a job or a business.

 

[winners]

Assets aren't supposed to be "spent". They are accrued so that they can be put to work when the owner no longer has an income from a job or a business.

I don't buy the idea of putting that S$1.2m into the CPF. A better and proven alternative is to buy blue chips stocks and shares to earn annual dividends (which can easily equaled to what the annual S$55,000 which you are only allowed to draw out from your CPF) and don't forget that there's still capital appreciation from the blue chips stocks and shares. In case of being strike with a cancer or chronic illness, the required funds needed for the treatment can be obtained within 3 days upon the liquidation of your stocks and shares. CPF is not going to tell you: ok, so you need S$200k for your treatment and we will allow you an advance withdrawal next month of this amount for your medical treatment. NO. CPF will tell you: you die is your problem.

Even some of you may say that blue chips stocks can also fail and go bust. Then the next alternative is to use that S$1.2m to fully pay for a freehold apartment. Thereafter, it can be tenanted for a S$2k to S$3k monthly income, not to mention capital appreciation of this property in the long term and there's no worry about having to pay any mortgage for it in case of periods when there is no tenants to rent out to.

So, I still think that to leave such a vast amount in the CPF is not only foolish, but also not cost effective, unless you can predict that you can live beyond 20 years (or 85 years old) from the day of your first CPF payout. But the truth is how many can survive beyond 80 years old?

 

[sweetiepie]

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.

My uncle always tell those with this template do not lie to yourself KNN even bored and want to find a work or get to know people go for those own time own target kind and not a job that need to adhere to leeporting time lunch time and knockoff time KNN

 

[sweetiepie]

My uncle always tell those with this template do not lie to yourself KNN even bored and want to find a work or get to know people go for those own time own target kind and not a job that need to adhere to leeporting time lunch time and knockoff time KNN

Some sinkies uncle auntie have $500k in cpf with not much cash in pocket dare to claim now I'm semi leetired while still holding to that full time job wtf KNN just becas their pocket is not so tight anymore becas they will make withdrawal from cpf as and when they like doesn't mean is semi leetired becas they still need the income from the full time job KNN

 

[Leongsam]

I don't buy the idea of putting that S$1.2m into the CPF. A better and proven alternative is to buy blue chips stocks and shares to earn annual dividends (which can easily equaled to what the annual S$55,000 which you are only allowed to draw out from your CPF) and don't forget that there's still capital appreciation from the blue chips stocks and shares. In case of being strike with a cancer or chronic illness, the required funds needed for the treatment can be obtained within 3 days upon the liquidation of your stocks and shares. CPF is not going to tell you: ok, so you need S$200k for your treatment and we will allow you an advance withdrawal next month of this amount for your medical treatment. NO. CPF will tell you: you die is your problem.

Even some of you may say that blue chips stocks can also fail and go bust. Then the next alternative is to use that S$1.2m to fully pay for a freehold apartment. Thereafter, it can be tenanted for a S$2k to S$3k monthly income, not to mention capital appreciation of this property in the long term and there's no worry about having to pay any mortgage for it in case of periods when there is no tenants to rent out to.

So, I still think that to leave such a vast amount in the CPF is not only foolish, but also not cost effective, unless you can predict that you can live beyond 20 years (or 85 years old) from the day of your first CPF payout. But the truth is how many can survive beyond 80 years old?

My assets are divided as follows :

3 million in property 6% yield plus capital appreciation of 10% per year historically.

500,000 in bare land in a SEA country. 0 yield at the moment.

2 million in managed funds. I leave it to experts to decide what stock to buy. 8% yield historically.

1 million cash.... currently yielding pittance 0.9% but used to yield 3% to 5%.

Another 2.5 million worth of property is currently a liability is because I am using the premises for living/working.

There's a bit more here and there but I've kind of lost track of what I did with it.

 

[whoami]

My uncle always tell those with this template do not lie to yourself KNN even bored and want to find a work or get to know people go for those own time own target kind and not a job that need to adhere to leeporting time lunch time and knockoff time KNN

Tats the problem with sinkies. Only want to receive n dont wish to give. I mean can always give back to society by doing volunteer work. Mix n socialise. But knowg sinkies nothg is free. Sinkies also want to be remunerated ya (even though teres $500k in CPF). So kill two birds with one stone. Work n socialise n get paid. Cleaning also can.

 

[whoami]

My assets are divided as follows :

3 million in property 6% yield plus capital appreciation of 10% per year historically.

500,000 in bare land in a SEA country. 0 yield at the moment.

2 million in managed funds. I leave it to experts to decide what stock to buy. 8% yield historically.

1 million cash.... currently yielding pittance 0.9% but used to yield 3% to 5%.

Another 2.5 million worth of property is currently a liability is because I am using the premises for living/working.

There's a bit more here and there but I've kind of lost track of what I did with it.

Loaded sia..

 

[Leongsam]

Loaded sia..

I'm not loaded by any measure. It's a pretty poor result considering the amount of effort I put in to get there. Most of those I know are far more wealthy. In Singapore many of my cohort I now worth $20 million or more.

 

[Kee Chew]

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

i worry if we all become like Janet then there will no more Poor Mary ...

 

[Kee Chew]

 

[winners]

My assets are divided as follows :

3 million in property 6% yield plus capital appreciation of 10% per year historically.

500,000 in bare land in a SEA country. 0 yield at the moment.

2 million in managed funds. I leave it to experts to decide what stock to buy. 8% yield historically.

1 million cash.... currently yielding pittance 0.9% but used to yield 3% to 5%.

Another 2.5 million worth of property is currently a liability is because I am using the premises for living/working.

There's a bit more here and there but I've kind of lost track of what I did with it.

Thanks for your declaration. At least now I know for sure that this forum won't be closed down due to insufficient funding.

 

[Leongsam]

Thanks for your declaration. At least now I know for sure that this forum won't be closed down due to insufficient funding.

If I wasn't reasonably secure financially it would never have carried on for so long it has lost money since day one.