The_King Posted July 25, 2021 Share Posted July 25, 2021 https://www.straitstimes.com/business/invest/how-retiree-saved-over-16m-in-her-cpf 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 It is certainly no mean feat because Janet (not her real name) not only refunded all the money she had withdrawn from the CPF when she was younger, such as for a mortgage, she is still doing something that few retirees would consider - making further contributions.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." Link to comment Share on other sites More sharing options...
The_King Posted July 25, 2021 Author Share Posted July 25, 2021 i rather have 5k k in annual interest when i am in my 30s then i 50k in annual interest when i am 67 in my30s and 40s, i still can travel, ssrr hiking, etc.... 2 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted July 25, 2021 Share Posted July 25, 2021 (edited) Edited July 25, 2021 by socrates469bc 3 Link to comment Share on other sites More sharing options...
The_King Posted July 25, 2021 Author Share Posted July 25, 2021 (edited) 6 minutes ago, socrates469bc said: too bad, i pity those lack of critical thinking how much quality of life you have the older anyone get. it like 35 got 5k vs 65 got 50k vs 75 got 100k vs 80 got 200k i rather choose 35 got 5k there a saying no money, can go earn, no time, i cant buy time to make myself young and healthy again Edited July 25, 2021 by The_King 2 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted July 25, 2021 Share Posted July 25, 2021 3 minutes ago, The_King said: too bad, i pity those lack of critical thinking how much quality of life you have the older anyone get. it like 35 got 5k vs 65 got 50k vs 75 got 100k vs 80 got 200k i rather choose 35 got 5k there a saying no money, can go earn, no time, i cant buy time to make myself young and healthy again if work here, sure can get many many 5k one. wahahahahahahha 1 1 Link to comment Share on other sites More sharing options...
The_King Posted July 25, 2021 Author Share Posted July 25, 2021 13 minutes ago, socrates469bc said: if work here, sure can get many many 5k one. wahahahahahahha not everyone can enter there and know what they are doing 1 Link to comment Share on other sites More sharing options...
aaur4man Posted July 25, 2021 Share Posted July 25, 2021 9th wonder of the world is accrued interest on your own monies. 2 Link to comment Share on other sites More sharing options...
Huat Zai Posted July 25, 2021 Share Posted July 25, 2021 2 1 Link to comment Share on other sites More sharing options...
ManOfTheHour Posted July 25, 2021 Share Posted July 25, 2021 67 liao, 1.2m can do what fuck 3 Link to comment Share on other sites More sharing options...
The_King Posted July 25, 2021 Author Share Posted July 25, 2021 5 minutes ago, ManOfTheHour said: 67 liao, 1.2m can do what fuck who know, some believe they can live till 80yr old and still think they can do thing that 20s and 30s can do 3 Link to comment Share on other sites More sharing options...
XianGe Posted July 25, 2021 Share Posted July 25, 2021 Still doesn't sexplain where she got her $$$ from... Cod got >30yrs liao? 3 Link to comment Share on other sites More sharing options...
The_King Posted July 25, 2021 Author Share Posted July 25, 2021 18 minutes ago, XianGe said: Still doesn't sexplain where she got her $$$ from... Cod got >30yrs liao? ashley 3 Link to comment Share on other sites More sharing options...
socrates469bc Posted July 26, 2021 Share Posted July 26, 2021 16 hours ago, The_King said: not everyone can enter there and know what they are doing 16 hours ago, aaur4man said: 9th wonder of the world is accrued interest on your own monies. this one can be considered 2021 wonder of singapore. 2 Link to comment Share on other sites More sharing options...
The_King Posted July 26, 2021 Author Share Posted July 26, 2021 Hahhah the king run away 1 Link to comment Share on other sites More sharing options...
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