Why I Am Topping To CPF Now

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0:00 - Intro
0:36 - Why I didn’t want to topup to CPF
2:06 - Why I changed my mind
7:06 - My plan
11:05 - Summary
None of this is meant to be construed as investment advice. It's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites.

[@leewai]

Even after your SA reach FRS, you still can use SRS account to achieve tax saving purpose, and money in SRS can be used to invest (for relative stable stocks/fund). Just a 5-cent.

[@fokerfakerfuker]

Very insightful video. Thx for the effort!

[@HoneyMoneySG]

The US Fed has not pivoted yet, but I'm glad Kelvin has pivoted

[@royalemakersupercell]

Honey money u have been successful in spreading the message. And also Mr Loo 1M65

[@wcweng1]

lol. pity im malaysian :X . dont see much malaysian finance youtubers

[@nicksim5035]

😂

[@darrenkwok84]

Must be Honeymoney

[@bryanttan8401]

@@wcweng1 can malaysia' epf be used the same as cpf?

[@sydralz]

Transfer from OA to SA, and keep transferring and try to hit FRS as soon as possible, then just let SA compound on its own. Not sure why you want to upgrade your house if you want FIRE. You want to be debt free when you retire. And live frugally, don't chase big houses. For tax relief, just top up to SRS and use it to invest. Also, it's great to admit your mistakes. Saw someone else in the comments say that you lack conviction and are easily rattled. I sort of agree with him. You really need to have a proper investment strategy, not keep flipping as the market goes up and down. Don't capitulate just because majority are fearful. All the best!

[@munster1404]

I never top up with my own idle cash is because idle cash can become emergency cash really quickly. Cash in CPF is basically locked up. I can’t afford that risk.

[@andylau13]

Will the age limit raise ? Will most of us live to that age as we can see 🙈 for suddenly raises

[@kohchongseng6470]

I’m 45 years old this year and I manage to achieve full retirement sum, so i don’t need to worry about retirement anymore and able to plan for other investment, steady pun pi pi.😊

[@asmineh55]

Love the way he admitted nothing is guaranteed in investing and learns from a mistake and advises us another way of his views of CPF, which he had done the study of 🙏😊

[@isakeng007]

I think topping up should only be done when you have reached 50 and want to preserve wealth. There is also still at least 15 years for it compound before you get your monthly sum. This top-up is also provided the prevailing interest rate environment is lower than that of CPF. Other than that, the market is better. This is just my opinion and not financial advice.

[@joeyboey9558]

its been a while since i watched your vids, and i forgot how much i love ur humour HAHA

[@investingtoolkits6053]

Great move! Risk reward is very much to your favour especially at a young age.

[@cgtinc4868]

Hey Kelvin, love your vids. About CPF. May I ask how to use amount for buying house and for kid’s education?

[@yili7347]

I do not think make a mistake in your earlier strategy. You had made the choice based on your personal situation at that point - SPR status, need cash to buy resale, etc. Having cash on hand gave you more options at that point. However, now that your personal situation has changed (with home bought + kid) and the cpf strategy seems more viable. It is ok to change your plans because your situation is now different. Cheers!

[@christeo1118]

I agree and also commented similarly - life stage change basically. Not sure if Kelvin mentioned in his video as a disclaimer, but the earlier strategy is still solid at its core.

[@caossoac4955]

I see cpf as a backup to FIRE and also to use to offset inflation when I hit 65. On top of cpf, you can also add in annuity to ensure a bigger payout or stack annuity to you can receive more at the start n lesser when u are older. My FIRE aim is basically just have enough to cover now till cpf payout age. I also get MA max out 1st so excess goes to SA.

[@buninthewind]

You can take more risk since you cover yourself from 65 onwards. 😆

[@renakwong2335]

Treat cpf as a bond & later treat OA ,SA as Hi-interest than savings account when FRS is met.

[@cheowlinlee6703]

If you have excess cash, you can consider topup your srs and use the funds to buy S&P 500, you save at least 7% on tax rebate, compare to use cash.

[@BomBomm12345]

Video by Eric Chiew on differing view on why we should not top up to CPF SA/MA: kzbin.info/www/bejne/m5iZnpJnqa-VbKs

[@temasekb]

Nice prata, anyway people should know the average 8 to 10% pa is via holding for 20yrs minimally and not 2 years. We most likely won't see the 0% rates ever unless US wants high inflation to come back. CPF is not a bad idea assuming you plan to use it in the future for either yourself/nok. (at least 30yrs later, can leave for kid but if single, abit pointless though)

[@linuxnewbie74]

@kelvin based on what u post last time on your incomes, I tot your income tax bracket should be 18-19.5% annually? So I assume you contribute to your own CPF to absorb the tax rebate shoul be quite high as well since you dont have NS tax rebate & etc. Did I got it wrong?

[@kys4160]

Hi Kelvin, Thanks for a good video on why and how we should top up CPF SA/MA. I have a question about investing with the help of a financial consultant. Appreciate it if you could give me your input on this question. I was told by a financial consultant that I need to pay his company a professional fee of about $1.5k for the services (ie advise on investment strategies, clarifying my questions on investments performance etc) they provided. Is charging the professional fee a common practice among finance consultant companies? My impression is they are already earning some form of management fees/commissions when they manage our funds for investments

[@lengrith]

Just FYI, money owl (NTUC services) offers fee-based, so the consultant got no conflict of interest since they don't earn on what they sell. www.moneyowl.com.sg/pricing/

[@jironghuang4895]

Create frs safety net first. Money outside cpf can be generated easily and deployed elsewhere.

[@R6ex]

Why not top-up SA directly? What are the chances of being able to finish using up one's MA (BHS limit) before he/she dies? LOL CPF best safety net though.

[@desmondcodes93]

Moving oa to sa allows you to hit frs faster which might deny you from achieving further tax relief in future if you want to top up sa. But at that time, can consider topping up srs for tax relief (and you would have benefitted from compounding higher interest of sa during that time)?

[@leewai]

same thought

[@christeo1118]

Basically both videos and both sides of the story has to be heard. Both are valid depending on your life stage and finances. In this video, it again illustrates CPF is the way if you are rich - CPF provides much much more playability for tax reliefs and if you don't need money and can tuck money away. Think of CPF (SRS, etc.) like a pay-to-win game. Only when you can spend on upgrades and features then you are giving a pleasing gaming experience. Kelvin has gotten rich enough to the point that CPF now works for him and the game features are now unlocked.

[@GoodThingMustShare]

If I top up $8000 to my MA last year November, should I top it again this year February? Or should I wait till next year Jan then top up?

[@JStarx6]

LOL omg i almost choked on prata king, sir u made me laugh so hard

[@jesslynnsh]

Why not topup to SA? Because MA got limit when you wanna use it for medical

[@techfactsglobal2571]

Are we hit the bottom already? Adam Khoo says about the bottom being in already but CGS says otherwise. Keen to hear from Kelvin your thoughts here.

[@mrlowSESguy]

This is bad advice similar to Chris! Topping up SA/MA before you hold a property > HDB is losing so much on real estate appreciation for that meagre 4% interest.....

[@phng8316]

how old are u now?the balance is not bad leh..

[@bensgoodeats1493]

Go for CPF enhanced retirement sum

[@southpawchad]

Hey Kelvin I have a genuine question, isn't it better for most people to focus on getting their 2nd property through their spouse name. Rent out 1st property and get tenant to pay down the loans for them, while living on their 2nd property. If that's the case, wouldn't the returns be better for most people not topping up to SA/transfer OA to SA. Using cash to top up SA should be done maybe only after getting a 2nd property? Only when too much cash laying around, not able to value create etc., then maybe locking up cash to SA is good? I think topping up cash to SA when market peaked for example 2021 is good, not when market is crashing and valuations are down and a lot of cheap durians laying around.. I do understand the point of diversification however. What are your thoughts?

[@seamuslam]

it may be better if u buy at the right timing, if not, once the market turn, u r dead with 2 properties. in other words, high cyclical and high concentration risk. potential high return but catastrophic if it goes the wrong way.

[@southpawchad]

@@seamuslam so topping up cash to SA and lock it in for years, come market downturn you have no cash. Is it better?

[@seamuslam]

@@southpawchad why would u top up till you have no cash?

[@lengrith]

just kaypoh, but i guess that scenario would work if your rental yield and property appreciation total exceeds the loan interest (currently about 4.25%). To match SA 4% return, then the yield + appreciation should be about 8.25% per annum.

[@RenoKong]

@@lengrith why 8.25%? Can share how you hit this number? I thought more than 4% can already

[@iam-we6lj]

Omg i just watched the do not top up cpf thing yesterday (but by seth) and then today i watched this😅😂😂😂😂

[@Xiaomalu]

Market down, top up cpf Market up later, regret why top up cpf #human

[@hcwbb]

Can we see your portfolio again?

[@viper88448]

just a comment, as much as we want to believe cpf is a safe heaven, i will assumed this saving instrument will be similar to investment in equity market. Reason being, policy may change along the way. We still have 20 years to 30 years down the road, anything can happened.

[@plar7895]

Have you considered $37k top up for self employed personal like yourself? You don’t need this 8k such a minimal tax relief, but much more

[@gparamaeswary7276]

Invest in dbs whenever it goes down.

[@davewong1107]

When should i top up my CPF MA? Start or end of the year? Is there any difference?

[@KelvinLearnsInvesting]

Top up start of year will have more months to compound

[@pratikdam2804]

Hi Kelvin, $200k in cpf can get you $1k every month?? Whats the math behind it??

[@cyyron]

hi Kelvin, thanks for sharing. i've followed your videos for more than a year now. it takes a brave man to share what you do, and to make changes when you feel you are in the wrong direction. unpopular opinion - i feel you lack conviction in what you want to do, and that you seemed easily rattled. from #YOLO TESLA to FAANG now to S&P500, it seems you are going towards the safer options. Maybe it's because of what's happening in the market, maybe it's a case of the more you research the more you waver, maybe you are unrelentlessly pursuing FIRE in 5 years, that you do not seem to have a concrete strategy. anyway, i may be wrong. good luck in all that you do!

[@jsadiq76]

Is it that kelvin kena call up for kopi...😀

[@PHLOOKHERE]

That’s a good move. Risk management skill is the key!

[@nicklovia]

Does it matter when I top up to CPF, beginning of year vs end of year? I think you made a video on this but i can't find it

[@KelvinLearnsInvesting]

It matters abit, cos you get abit more compounding every month

[@vyong1]

Good video. Just see CPF top-ups as risk-free diversification of portfolio lor. Risk free 4% interest is not shabby.

[@darrenkwok84]

Ya top hard earn money but peace of mind also la since once high until the FRS level that 8 plus k is almost a bond quality

[@obgprasa]

A big proviso though - that policies do not change and you can't withdraw as at present! Nothing is cast in stone.

[@darrenchia304]

kelvin kor kor, why u zhao xia?

[@Missy_Ai]

Yes, CPF provided a safety net. CPF life is somewhat like a pension scheme for us in the future

[@garlicbread68]

Basically peed your pants in 2022 😂 now you are buying safety pants

[@heishoi]

If you are considered as a self-employed person per your tax return to IRAS, medisave contribution is mandatory and contribution is eligible for tax relief. If annual tax relief has max or not a factor, consider voluntary CPF contribution (goes into 3 a/c) (current annual limit $37,740)

[@KelvinKing]

Why not just load up on SG REITS instead? Get the same outcome plus a little capital appreciation over time.

[@Notsosmartyetnotsostupid]

Reits May go down too

[@temasekb]

I rather place my bets on our local banks than reits for long term

[@soochenwoo2373]

That's why all these m & w sites are offering goodies to entice nugoos.

[@lightbox1974]

Why not use insurance product? Same benefits as cpf and more flexible.

[@Auzzuro76]

i thought u 40 + already😂

[@Stothereal]

the next time Kelvin sees someone telling not to top up CPF, he will change his mind again

[@singaporewatchcollector6262]

What’s more $1 mil at 40 won’t be able to have FIRE unless you really frugal

[@82219783]

what??! you're only 26 years old?

[@siimplycharl1e_]

Hi Kelvin, why no more cute pets on the opening now, it really makes your videos more interesting with it :)

[@jinngeechia9715]

Allow me to quote a certain KFC President. Take care of the downside, the upside takes care of itself.

[@greengrasshopper999]

My tgt 1M65 (SA + RA). Goodbye Tension. Hello Pension. Convinced my niece to transfer OA to SA (@age 32) three years ago. She will be 1M55 (SA + RA) if she will still remain working till age 55. Then a CPF SA shielding if CPF board still allow it.

[@ngkahsiong9001]

Hi Kelvin, may I know how much is yr ideal monthly passive income to supplement yr family expenditure with a kid when you've achieved FIRE.?

[@KelvinLearnsInvesting]

Minimum $3k first. Its to buffer for market crash and inflation

[@ngkahsiong9001]

@@KelvinLearnsInvesting If it's 3k, dun you think that investing in Singapore property to collect monthly rental is considered safe and able to hedge against inflation?

[@KelvinLearnsInvesting]

No money to buy property…

[@ngkahsiong9001]

@@KelvinLearnsInvesting ahaha.. there're ways to investing in Singapore property

[@lukeeong]

CPF is really the last line of retirement. Maximise it to the fullest. It's risk free. CPF has only improved, not the risk that you mentioned. Be factual. Also, CPF retirement is about getting money regardless of market up or down.

[@thelonelycabdriver3494]

厲害就好，不要假厲害。😂 Welcome back after deviating… Next you might switched back to dividend investing…

[@EZJRVCXY]

It feels like this video is made because CPF / some GOVT agency doesn’t want him to say “bad things” about CPF

[@soonglinhao]

Follow this guy at your own risk.

[@20nineaug94]

follow anyone at your own risk

[@GG-um2uc]

Huat big big

[@victorlim1561]

Jit Ba Boom!

[@laisowfong]

Top up MA $2k every year to cover insurance premium is gd enough ...

[@andylau13]

LOL u top up CPF , how old can u withdraw it out ? U r funny 😂🤣

[@Wuyh99]

2037 40yo? Means he born in 1997? So young?

[@jaysnsd85]

i think its 2027 40yo. at first i also thought i heard 2037, but impossible that he's only 26 this year.

[@fathuthreev2279]

wait hold up youre only 26 years old?

[@thomasheng6372]

Do not be penny wise and pound foolish. Topping up FRS as early as possible after your housing has been secured... Tax relief is just a side dish if you already completed your first tier of the Kueh Lapis.... Next stop will be dividend investing for you I guess?

[@jackluo9999]

Dun see not open and settle for 4%. Watch adam khoo better

[@travelstartsfromsg5702]

Invest in your knowledge and exposure to great outdoors.. sitting in to see the savings grow don’t bring wisdom in life nor living purpose.

[@philippelee5720]

Forgot topping up cash is king …… n if only u hv buy tesla last month

[@xavierchin5762]

the question is, will you even dare to buy tesla last month ?

[@temasekb]

you already say if,

[@HeahMinAn]

Interesting prata😂 Nonetheless, thanks to Kelvin for reiterating my conclusion: CPF: for retirement Other financial tools: for FIRE or whatever mandates I have Emotional stability is important so be disciplined in ensuring and sticking to the portfolio mandates.

[@Kakashi-hm4bq]

U need to force urself when u were young to do this. Do in parallel and learn not to outsmart...no u got white hair. Better be careful when planning.

[@noproblematallmate]

Next level: Borrow money from all loan sharks to put in CPF then go into hiding overseas :O

[@zhangdengke8]

Mah kat

[@ron2040]

Top up medisave mah

[@hthaneunt9218]

Sigh you stole my first comment..

[@ron2040]

@@hthaneunt9218 lol.. I m always first unless i m sleeping. 😂

[@singaporewatchcollector6262]

Terrible idea…. Transferring cash to something locked up for life to just earn a little more measly interest than a FD or T bills.

[@jaslynkoh7364]

Hi Kelvin, SOS! Need your help badly. I need to earn urgent cash online. Can you pls help me? Thanks.

[@tedchandran]

Jai Hinduja. It is always good to salt away more gold or invest in Singapore properties than savings in CPF because FED printing will forever create higher inflation.

[@kwangc6720]

Amazed at the short-sighted mentality many have here. Topping up CPF is one of the worst ways you can ever do, thinking it is for your comfortable retirement next time. If you use cash to top up your CPF, you have less cash. Cash is king. Cash gives you the assurance to tide an emergency. CPF used to be good for retirement. Not any more. I have to burst the bubble of the younger generation. If you think you are saving for retirement via CPF and topping up is a good thing, I urge you to seriously re-think quickly and get out of the fallacy these KZbinrs are spreading. As an example, suppose you are 30 years old and intend to get married at 35. So you think you have some cash and listening to all this bad online advice about topping up CPF, you really do so. Do you realise that the government is, at the same time, allowing flat prices to keep going up? All the chunk of hard-earned money you put into your CPF..... sorry to say that they will be returned to the government when you purchase an overpriced flat lease from them. So say, a 4-room BTO flat now costs $650k to lease. You don't think enough and make the bad mistake of continually topping up your CPF account. In 5 years' time, when you need to buy a similar BTO flat after getting married, how much do you think it will cost? $850k? Yes likely. That's a big $200k increment within 5 years. You have not even hit $200k in your CPF topup but within 5 short years, the government already suck back a hefty $200k from you! All that golden money you have saved up... yes, it's gone. You think it's for your retirement? No no! The CPF-HDB is a cunning dual scheme that makes you put in money thinking erroneously that you are saving for retirement. Unfortunately, at the other end, the government cut a big hole to suck out your money by selling you a severely overpriced flat lease. You end up in a worse state.

[@softspaze]

Hmm isn't OA used to pay for HDB? But topups are made to SA/MA? Hence i don't think the topups are affected by the increase in price. OA contributions are mandatory anyway (unless self-employed)

[@kwangc6720]

Thank you for pointing that out. Yes, I should have been clearer to say that the money being wiped out is from the OA when purchasing a flat lease. But it does have implications on the SA as these two are closely intertwined. Within limitations, you may transfer money from your OA to SA. When one leases a flat, usually much of the hard-earned money from OA will be used or even wiped out. This means there is little or nothing left in OA. Had money not been used to top up the SA, it could be used to finance the housing loan. By continually topping up the SA, it could mean: 1. you would be left with lesser cash for your daily and miscellaneous needs; 2. you would opt to have more of the money in OA to be used to pay the loan (likely leaving little or no money inside); 3. you would take a bigger loan and/or longer tenure. If HDB flat lease prices were better controlled (read: more affordable), then one would worry less about using more cash or OA money to pay off the mortgage. In that situation, topping up the SA, by using fresh funds or transferring money from OA, would make sense. But given the heavy burden of paying the exorbitant flat lease for many years, one would likely find it hard to manage financially if there is continual top ups to the SA. While you may "boost" the income from one account with the promise of a good interest rate (it's a lie actually as you could earn more through other means if you are savvy with money), you are shortchanging yourself in other areas. Something has got to give. Eventually, money in the SA and OA will be combined to RA when one turns 55. You may be building up money in your SA when you are young but it stays pretty much locked up till you are much older. So more money in SA could also mean less money in OA and cash, generally speaking. With cash, it is more "liquid" and there are more opportunities for you to build your wealth in other ways. If the CPF were a robust retirement fund, theoretically, there should not be a need to top up the CPF (SA). For employees, they are already contributing to their CPF (OA, SA, MA) every month. Their employers even contribute a portion of it! So why is there a need to top it up further? As the OA is continually being heavily utilised to pay for the very expensive flat leases, I take it that the government knows many will have relatively little money in their RA upon reaching 55 years old. At this point, it doesn't matter to distinguish OA and SA any more. Whatever money you have in them becomes one. Hence, I see the motive for their advising people to "top up" their CPF as early as possible. This will beef up their SA to look less "pathetic" next time. Moreover, it makes the authorities less culpable to be blamed in future for a wonky retirement fund. But as explained above, there are dire consequences to consider. As a summary, I often like to give this crude analogy: CPF is the bag where you put in money (from working or manual "top ups" *DREAD!). But leasing a present day flat is like a razor blade that cuts the bag open -- the money is siphoned away to pay for your housing loan.

[@softspaze]

@@kwangc6720 Thank you for the reply I think people suggesting to top up CPF/OA>SA transfers are merely capitalising on the compounding interest benefits in SA/MA. I do agree that there are other ways to grow one's money but by merely topping up and getting a guaranteed interest of 4% (compounded over time!) is an easy method. It also gets a nice tax relief too. Regarding the use of OA to pay for the flat (correct me if i'm wrong, i haven't bought a house before), i don't think it is compulsory to use OA to pay for it? I think using cash/taking up a bank loan would be better? Given that bank rates are lower as opposed to CPF where principal and accrued interest need to be paid back.

[@alexischoy6639]

jibaboom

[@siang076]

liquidity is still king. Don't trust CPF too much.

[@Aphrodisiac80]

Today video is sponsored by CPF Board~~

[@littlehusky9031]

CPF covered his losses after hearing his sad story on how he lost TONS of money.

[@georgetang3489]

Good to spread the news 🗞️ to ppl still sleeping thinking CPF is a scam 😂