Why Cpf Policies Make the Rich Richer? Part2
More CPF Policies with loopholes created by Cpfb Policy Makers and approved by the MOM continue to make the Rich Richer! And these are not shared publicly yet, by Ms Lorna Tan or any financial blogger?
This one I did not write to CPFB to double confirm. Someone shared:
- A few weeks before 55, he invested his SA (leaving 40k balance) to stop CPFB from transferring the monies to RA. His balance in OA plus 40k in SA is less than FRS.
- CPFB transferred SA (40k) and OA (leaving 5k) to RA, total in RA is less than FRS.
- Later he transferred OA (5k) to RA.
What he should have done is topup cash to RA as this topup will entitle him to claim tax relief (subject to limits). He missed the opportunity cos he is not aware of this “loophole”.
He is also not aware of more “loopholes” in the CPFB @55 Policies which only the “Rich” can benefit:
- A few weeks before 55, he could have invested his OA (leaving 20k) to stop CPFB from transferring the monies to RA. CPFB will then transfer OA (leaving 5k) to RA.
- Then he can topup cash to RA to form FRS. That would be more than a 100k cash to earn 4% going forward.
Yes only the Rich gets Richer with all these CPFB @55 Policy loopholes for the cash rich to earn 4% interest in RA and all his OA and SA continues to earn 2.5% and 4% respectively.
Wow! Only the Rich will keep quiet and not complain!
Read “Why CPF Policies Make the RichRicher? Part1”
