Hope everybody is having a great start to the Year of the Dragon!
I am enjoying myself.
Maybe, I am enjoying myself a bit too much.
Too much Chinese New Year goodies.
Sore throat!
Ouch!
My investments are mostly doing well and I am contented.
DBS is making me smile a lot more than usual, of course.
The latest 6 months T-bill had a cut-off yield of 3.66% p.a.
My application using $675K of CPF OA money is probably filled since I placed a competitive bid of 3.5% p.a. like I said I would.
This means I would get paid some $2.5K more than what the CPF OA would have paid me.
Anyway, this is the latest from Budget 2024:
1. Members who are 55 years old and older will longer have a CPF SA from 2025.
2. Money in CPF SA will be transferred to the CPF OA once the newly created RA gets filled to the FRS.
So, CPF SA shielding strategy is down the drain.
Remember, back in 2021, I blogged about how it would probably be a matter of time before CPFB did something about the loophole.
It has finally happened.
See:
No more “shielding” of CPF SA.”
It was never intended for the CPF to work that way.
It was a loophole that benefitted the financially more able while the financially less able would never be able to exploit it.
The CPF system is meant to help the masses and not the rich.
I have said this often enough and this latest move is further confirmation.
Those who are financially more able would have to find other ways to put excess funds to work.
We should pull our own weight and not rely on the government too much.
I like the idea that help is targeted and people who need it more should have more help.
Well, that’s all for now.
If AK can talk to himself, so can you!
Reference:
A river called “CPF” and the horses.
