Topping Up $7,000 into my CPF Special Account (SA) for tax deductions Skip to main content

Topping Up $7,000 into my CPF Special Account (SA) for tax deductions

Last month, I decided to top up my CPF Special Account since that account gives me 4% yield risk free. My calculations show that I can reduce my tax bill by $7k x 15% = $1050, without even taking into account future 4% yield benefits i'm to receive.

It's definitely worth the top up from an ROI point of view, since it's tough to guarantee this kind of return in today's market.

There is a maximum cap for cash top-up relief per Year of Assessment (YA) which is $14,000 (Self $7,000 and family members $7,000), but at least max it out for yourself if you have the spare cash. This way you can quickly hit the CPF SA ceiling sooner, maximizing the 4% risk free yield early on.

Will do it again for FY2019.
Labels:

Comments

Post a Comment

Popular posts from this blog

Hotel Review: Novotel Halong Bay

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Unfortunately there was no SPG/Marriott hotel in Halong Bay area, so i ended up with Novotel. Location: Along the western side of Halong, right across some ongoing construction. Room: Decor is dark wooden, taking a spin on modern Chinese. Wood flooring and a huge king size bed that's abit hard and uncomfortable. I like the decor though. Gym: This has got to be the saddest hotel gym i've ever seen. I decided to run outside instead. Breakfast: The selection is so limited, and it's not even that good. Nice decor though. Would I return? Definitely not to this 4 star hotel. Thankfully I was only here for 1 night. Although the place is filled with Korean tourists, you can eat some basic Korean breakfast here, but that's not my preference.
Post a Comment
Read more

Your circle of friends

I group my friends into 3 categories. Family: Those who are dearest to your heart.  They will always come first. True friends:  Those who you can always count on, no matter the distance or the time spent apart.  They will always be there for you, to lend a listening ear, to share your feelings, to guide you through life.  They may have different interests and lifestyles, but you share an unbreakable bond. Lifestyle friends: People whom you hang out with for certain type of activities, and discussions and banter will be limited to those activities.  Conversations will probably center around your common activities.  Lifestyles change, hence this group of friends will also change. When you're dead, people won't remember you.  Celebrate people's presence when they're alive.  Appreciate them and spend time with them.  There's no point in throwing a bigass funeral to commemorate a life. It's over anyway.  You should had made your ...
Post a Comment
Read more

Purchasing life insurance

I recently re-balanced the family's insurance schemes. I remember just when i was just starting out, my cousin once told me to buy only Term + Critical illness insurance. I didn't listen and bought an investment linked plan from one of my friends (he played the friend card, which is annoying). They guarantee you 3% returns or something similar, along with coverage. I bought the Manulink Flexi plan on Nov 1 2008, and had it for 89 months (7years, 5months). Monthly premium was $206.59. Total Premium paid was $18386.51. I remember getting back only around 11k when i surrendered this policy. Basically I paid $7386.51 in total for term + critical insurance coverage for the 7+ years, about 1k per year. Looking back, i did not require such coverage as i didn't have any dependents. Lets see the figures comparing what i would've otherwise gotten, had i invested in a stable dividend stock/reit, since the premise is that this policy is not necessary. I'm looking at a t...
Post a Comment
Read more