U can buy using cash

https://www.dbs.com.sg/personal/articles/na...(CPFIS)%20funds.

Lol 65 wait die edi
Wat use

U calculate and show here la

Parameter	Value
----------------------------	---------------------------------------------
**Starting CPF Balance**	- Husband: $130,000
	- Wife: $130,000
**Monthly Salary**	- Husband: $8,000
	- Wife: $8,000
**Monthly CPF Contribution**	- Husband: Approximately $2,960
	- Wife: Approximately $2,960
**Annual Interest Rate**	- Assumed 4% (compounded)
**Desired CPF Balance**	- $1,000,000

Calculation Details:

--------------------------------------------------------------------------

To determine if you can reach a combined CPF balance of $1 million by

the time you're 65 years old, we can use the information provided and

make some assumptions.

1. **Starting Balance:** Both you and your spouse have at least $130,000

each in your CPF Special Account (SA) and MediSave Account (MA)

combined. So, the starting balance for each person is $130,000.

2. **Salary:** Both of you have a salary of 1 month $8,000. Assuming you

each contribute your Ordinary Wages (OW) to CPF, which includes both

the employee and employer contributions, it's typically around 37% of

your salary. This means you both contribute around $2,960 per month

to CPF (37% of $8,000).

3. **Interest Rate:** You mentioned a prevailing interest rate of 4%

compounded over time. For CPF calculations, it's essential to use the

specific CPF interest rates applicable during the years in question,

as they can vary. But for this example, let's assume a constant 4%

annual interest rate.

Now, you can calculate the growth of your CPF balance over time. You

want to find out when your combined CPF balance will reach $1 million.

You can use a future value formula.

FV = P * (1 + r)^n

Where:

- FV is the future value ($1,000,000)

- P is the periodic contribution ($2,960 per month)

- r is the periodic interest rate (4% annually, so 0.04/12 per month)

- n is the number of periods (in months)

Now, you can solve for n (the number of months it will take to reach

$1,000,000).

n = log(($1,000,000 / $2,960), (1 + 0.04/12))

Using this formula, you can calculate how many months it will take to

reach $1 million. Keep in mind that this is a simplified calculation,

and CPF interest rates can vary over time.

Starting CPF Balance for each person: $130,000

Monthly Salary for each person: $8,000

Monthly CPF Contribution for each person: Approximately $2,960

Annual Interest Rate: Assumed 4% (compounded)

Since they both contribute approximately $2,960 per month to CPF and you want to find out their balance at age 65, you'll have to calculate the future value of these contributions with the assumed interest rate of 4%.

You can use the future value formula:

FV = P * [(1 + r)^n - 1] / r

Where:

FV is the future value (the CPF balance at age 65)
P is the periodic contribution ($2,960 per month)
r is the periodic interest rate (4% annually, so 0.04/12 per month)



n is the number of periods (in months) until they both reach age 65, given that they are currently 30 years old (which is equivalent to 35 years or 420 months).




$130,000 compoind interest after 35 years

= $ 130,000 * (1 + 0.04)^35
= $ 512,991


FV = $ 512,991 + $2,960 * [(1 + 0.04/12)^(35*12) - 1] / (0.04/12)
= $ 3.2176 millions

Calculating this will give you an approximate CPF balance for one person at age 65. To get the combined balance for both husband and wife, you can simply double this result, as both have similar contributions and starting balances.

The calculation should give you an estimate of their CPF balance at age 65 based on the provided information and assumptions.


$ 3.2176 millions !!!!!!


Just having both the husband and wife with a $4,000 monthly salary for each person at age 30 is sufficient to potentially reach more than 1 million in their CPF accounts.



Please see my previous post again.

This post has been edited by plouffle0789: Nov 2 2023, 11:24 AM

Starting CPF Balance: $30,000

Starting Age: 31 years old

Monthly Salary: $6,500

Annual Interest Rate: Assuming a 4% annual interest rate compounded over time

Desired CPF Balance at age 65: To be determined
To calculate the CPF balance at age 65, including the initial balance of $30,000, you can use the future value formula:

FV = Initial Balance * (1 + r)^n + P * [(1 + r)^n - 1] / r

Where:

FV is the future value (the CPF balance at age 65)
Initial Balance is the starting CPF balance ($30,000)
P is the periodic contribution ($6,500 per month)
r is the periodic interest rate (4% annually, so 0.04/12 per month)
n is the number of periods (in months) until age 65 (34 years or 408 months)

Now he is 31 years old.....



Now, plug in the values and calculate:

$30,000 compound interest after 30 years

= $30,000 * (1 + 0.04/1)^(1*30)

= $30,000 * (1.04)^30

≈ $71,368.79




FV = $ 71368.70 + [ (1 + 0.04/12)^(34*12) + $6,500 * [(1 + 0.04/12)^(34*12) - 1] / (0.04/12) ]

= 5.7018 millions



One of my friend



Fu yoh...



When he reach age 50,

$30,000 * (1 + 0.04/1)^(1*20)
= $ 65,733.70






FV=

$ 65,733.70 +

[ (1 + 0.04/12)^228 + $6,500 * [(1 + 0.04/12)^228 - 1] / (0.04/12)] ]


= 2.28 millions

This post has been edited by plouffle0789: Nov 2 2023, 11:33 AM

adakah aku kesah

SG life expectancy 85 yrs

to reach 20M65, just need any one of following

100k by 45 + annual return rate of 31%
1m by 45 with 16% rate of return
100k by 35 + 20% annual return rate
100k by 25 + 14.2% annual return rate
100k by 25 + 100k annual savings rate + 6.8% annual return rate

The last emphasises the importance of a good job+ prudent expenditure

6.5k epf a month? Someone already mentioned salary epf contribution capped at 6k sgd right? Anyway cpf calculation is indeed much complex compared to our kwsp.

If Singapore cap it at sgd 6k for cpf contribution how you get sgd 2.94k? Your calculation full of mistakes la.

Under the Ordinary Wages component, which is typically our monthly salary, the CPF contribution ceiling is capped at $6,000 per month.
This means only the first $6,000 of our monthly salaries require CPF contributions from us and our employers.
If we earn more, any amounts above the first $6,000 will not attract any employer or employee CPF contributions.
The CPF monthly salary ceiling will increase to $8,000 in 2026



(

in

Sep 2023: $6,300;
Jan 2024: $6,800;
Jan 2025: $7,400; and
Jan 2026: $8,000).


Now already 6300...

2 months later is 6,800 lor

2025 january is 7400....


Please look carefully.


So now you can show calculation how you get 9.5 millions?


This post has been edited by plouffle0789: Nov 2 2023, 04:26 PM

Under the Ordinary Wages component, which is typically our monthly salary, the CPF contribution ceiling is capped at $6,000 per month.
This means only the first $6,000 of our monthly salaries require CPF contributions from us and our employers.
If we earn more, any amounts above the first $6,000 will not attract any employer or employee CPF contributions.
The CPF monthly salary ceiling will increase to $8,000 in 2026



(

in

Sep 2023: $6,300;
Jan 2024: $6,800;
Jan 2025: $7,400; and
Jan 2026: $8,000).


Now already 6300...

2 months later is 6,800 lor

2025 january is 7400....


Please look carefully.

So you upfront straight take 8k but then again full of flaws. U need to calculate the cap or principal up to 55.. 55 - 60 will be 29.5% Contribution 60 to 65 is only 20.5% Contribution. Also 4% it only happened recent right? As i recall cpf always hover below 3%.

That's why cpf is just pain in the ass to calculate. If not mistaken by age group the dividend is different as well right?