Posts Tagged ‘CPF’

How to calculate your CPF 35% stock limit? Use a Calculator!

Wednesday, August 19th, 2009

There is this CPF rule that you can invest only up to 35% of your CPF monies in the stock market. If your 35% is less than $20k, then you can’t invest any at all, as the 1st $20k in your CPF is locked.

I currently hold CPF-bought stocks, and have made money buying and selling, and through collecting dividends. Because CPF monies are pretty much stuck till the age of 55, the ability to hold is there.

However, this 35% limit has caught me off guard about 3-4 times now. I wasn’t really sure how it was being calculated, and seeing money left in my CPF Investment Account, I assume I could repurchase more stocks. Each of these 3-4 times I was wrong, and was forced to pick up some lots in cash. These cash stocks were later liquidated at a small loss, as I had no holding power.

One time, I sold stocks and bought it back at a lower price on the same day. Transaction was converted to cash sale. Asked broker, and he said that I have to wait for the next day before buying back.

The last straw was I sold off 4 lots of stock amounting to $10+k, and buying 3 lots of stock amounting to $9+k (the next day as advised), and was told again that I had exceeded the limit.

CONFUSING!

I’ve been googling on how this 35% is actually being calculated, and have come across sites like lioninvestor, CPF site and fundsupermart.

But the the simplest and quite automated solution is this:

Use CPF’s Stock and Gold limit Calculator!

Hopefully, that’ll be the last time I get the call telling me to fork out more cash!

** Note, CPF monies used to pay for your property is NOT included in calculations for investible amount. Thus, if your monthly mortgage is greater than your current contributions, your investible limit will get less and less. I think that was my problem.

More can top-up kin’s CPF now

Wednesday, July 22nd, 2009

With news like the one below, and news of Goodyear leaving Temasek and Ho Ching staying on as CEO, just can’t help but wonder and hope that CPF is not running out of money. Conspiracy theory!

By Jeremy Au Yong

Mr Gan urged CPF members to take advantage of the more relaxed rules, noting that such top-ups can mean higher bonus payments from the CPF Board. — ST PHOTO: LAU FOOK KONG
CHANGES to CPF rules will allow about 18,000 more people to contribute to the accounts of their family members.

An amendment was passed on Monday that removes the age limit on members who can receive CPF top-ups.

Previously, CPF members could contribute to the accounts of their parents and grandparents, only if these intended recipients were aged 55 and older.

This age restriction will be lifted from next month.

A younger set of working Singaporeans will then be able to contribute to the retirement savings of their family members.

Manpower Minister Gan Kim Yong disclosed just how many would be affected by the change during the second reading of the CPF (Amendment) Bill. Madam Halimah Yacob (Jurong GRC) had asked for the figure.

In giving the number, Mr Gan urged CPF members to take advantage of the more relaxed rules, noting that such top-ups can mean higher bonus payments from the CPF Board.

For instance, CPF member aged 56 to 65 this year are given a bonus when they defer drawing down their retirement savings.

Mr Gan also made it clear that family members are already able to make regular top-ups via Giro.

Read the full report in Tuesday’s edition of The Straits Times.