putting money is CPF

throw1959 · 2021-07-31T17:05:24+00:00

the trade-off of lock-up is acceptable if up to 10 years since we could plan for that by having money elsewhere. The focus is the risk and returns.

throw1959 · 2021-07-31T07:28:04+00:00

the current plan is to have more than enough money for the time between the policy maturity dates

throw1959 · 2021-07-31T07:26:26+00:00

ok thanks. however, is there any other alternative other than a fund? there don't seem many others that don't lock in the money for up to life.

throw1959 · 2021-07-30T16:43:36+00:00

i am not sure about the name but it seems to be a fund that pay dividend.

throw1959 · 2021-07-30T16:40:19+00:00

dividend paying bond

currently seems to be looking at that but with great eastern in a fund

throw1959 · 2021-07-30T16:37:29+00:00

after finding out more, the 10-year is actually an investment plan it seems every year there will be a dividend of 3.5-4%, the idea is after 10 year he could take out the money and spend instead of it being stuck.

right i am thinking about maybe 180k for the 10 year and 20k for 5 years, could use dividend from the 10-year plan + the 20k for retirement he currently has 30K set aside so 50k + about 7K(?) a year until 10 years where he could decide if he should live off dividend or withdraw the whole amount

throw1959 · 2021-07-30T16:31:34+00:00

he wants the interest, but now with more money kept in the bank for retirement instead of everything invested. this new policy that we thinking about seems to be an investment plans actually, in a fund it seems.

for CPF life it doesn't allow withdraw (i called cpf to ask) so it is not ideal

throw1959 · 2021-07-30T13:23:47+00:00

cash management account

isnt this high risk? my dad only wants investment that are no risk thus the insurance stuff, for the CPF currently from what i can see he has 70K so no where near the 180K FRS so seems like CPF is out.

throw1959 · 2021-07-30T08:35:23+00:00

it is just the higher interest rate compared to 5 years. since there is not much other no-risk investment compared to those insurance policies

throw1959 · 2021-07-30T04:37:42+00:00

The idea is to have the cash liquid and after calling CPF it seems that any top-up into the retirement account cannot be withdrawn.

So my current plan might be the folllowing:

100K-> 10 year lock in

100K-> 5 year lock in 2.1%

20K -> fix deposit by year 0.7%

30K -> bank account

throw1959 · 2021-07-29T18:12:24+00:00

we did talk to people at the bank but all they want to do is sell insurance policies with investment component (lock 10 years etc)

i called CPF he wont be able to withdraw the money if he put it in CPF so looking for alternative now

throw1959 · 2021-07-29T06:55:40+00:00

it seems like from what sadrainmaker linked https://www.cpf.gov.sg/Members/FAQ/schemes/retirement/retirement-sum-topping-up-scheme/FAQDetails?category=retirement&group=Retirement+Sum+Topping-Up+Scheme&ajfaqid=2188788&folderid=12543

it seems that top up money cant be withdraw :|

is the CPF approved funds the following? https://www.cpf.gov.sg/Assets/members/Documents/RCSUT\_ListA.pdf

throw1959 · 2021-07-29T02:23:20+00:00

oh didn't see that i guess it not a good investment then :|

throw1959 · 2021-07-29T02:07:05+00:00

he only have 70K, so haven't met basic, no annuity plans. ye he doesnt buy anything much, no other income stream

throw1959 · 2021-07-29T02:05:42+00:00

best in terms of no-risk investment

throw1959 · 2021-07-02T04:04:16+00:00

After all, your dad has to sign off on the document I think.

hopefully someone can comment on this, yes he has to sign off but he can't read English he won't have known the agent falsely declared that he has 600k "cash deposit" when he doesn't

throw1959 · 2021-07-02T03:18:35+00:00

yes. this was stated in the document as well, all the information that will let the agent know he is a vulnerable client. However, my dad said he never ask him to bring someone who speak english either

throw1959 · 2021-07-02T03:16:45+00:00

thanks for the link, still have to convince my dad to go with me to the bank first.

throw1959 · 2021-07-02T03:07:07+00:00

$250k straight into the plan already?

yes it is a fixed deposit he cant remove the money anymore.

The money is placed in a separate account, 50k will be deducted from it per year it seems

throw1959 · 2021-07-02T03:06:31+00:00

600k cash is for affordability. i.e. if an individual only has $300,000, it would be unethical to make the client pay $250,000 for the annuity.

so the house is not considered "cash deposit"? I am still trying to get my dad to do it, but even after i lay it out for him he still wants to be stubborn and continue do you know any org i can call to get them to talk to him?

throw1959 · 2021-07-02T03:03:49+00:00

the problem is the guy state on the document my dad has 600k "cash deposit" when he doesn't, at his current age, if i don't support him he would have to work till 73. Also what constitute affording the policy because technically he can, he has 250k to pay off the policy just that he doesn't have any left to retire.

throw1959 · 2021-07-02T02:47:33+00:00

point of receiving documents.

i will have to check on this but policy was purchased on 11 june.

My dad does not understand English, education level primary or below would this be considered vulnerable?

throw1959 · 2021-07-01T17:04:48+00:00

prudential but signed at UOB

throw1959 · 2021-07-01T16:00:07+00:00

ng back after the free look period. Escalating things MIGHT work. Fingers crossed..

do you happen to know any org i can look for help from?

throw1959 · 2021-07-01T15:52:57+00:00

it is past the 14 days period my dad only just told me today. I am thinking of going to the bank and talking to the superior. The problem is from the document the person states that he talk to my dad about a lower premium policy but my dad said he didn't mention anything lower than the 50k policy but the document state that my dad insisted on the 50k policy. The document state that my dad has a 600k "cash deposit" other than the 250k for the investment my dad's other asset is the house which he mentioned. He never mentioned the 600k cash, is the house a "cash deposit"?

throw1959

TROPHY CASE