WhatisWhat

  This only affects people who will experience an increase in annual contribution to CPF. Trade-off The "cost" of this $2000 increase would mean that employees would have to contribute $400 X 12 = $4,800. But the first gain would be the 17% employer contribution that wasn’t received in the past. This amounts to $340 X 12 = $4,080. By giving up $4800 and I get an additional $4,080 a month. That’s like an 85% return and brings the total contribution to an auspicious $8880 (HUAT AH) To sweeten the deal, the money contributed would earn interest and snowball through the effects of compounding. This would be way more powerful than just having $4,800 in cash.  What’s more When the total contribution to CPF increases, we can’t forget our good friend IRAS. Employee’s CPF contribution is eligible for CPF relief .  This would mean that the assessable income for the year would reduce by $4800.   Referring to IRAS’s website : Assuming that the monthly salary is $8,000 with ...

[UPDATE] OCBC has updated their rates in March it's no longer attractive. In Short, T bills are more attractive now but no one knows if that will stay the same as all the demand will shift over here. To learn how to apply for Tbills using CPF OA online, refer to this link -------------------------------------------------------------------------------------------------------------------------- So OCBC has launched a  promotion fixed deposit of 3.88% p.a. over 8 months  for CPF OA. Many bloggers have covered this, should I still cover this? Absolutely…. That said, I’ll be kinda screwed if the promotion ends 28 th  February  Please don’t do this to me….. XD The 3 options I'll compare are:  CPF OA’s 2.5% MAS Treasury bills (T bills)  OCBC’s Fixed deposit of 3.88% p.a. Given that US interest rates are still rising, I’m of the view that the situation in 2 nd  half of 2023 might change and I’m biased towards higher rates. At the same time, I don’t want t...