Only something kept nagging me is the pool portion. Interest is paid on the premiums. Said interest goes into the pool but does the pool attract interest or just becomes a reserve to pay members who survive after consuming the premium portion? If you check MOH reports, part of premium from MSL goes into reserve but does not attract interest.
Hi Evelyn, thanks for the informative video! how do you plan ahead with your calculations? eg calculating in 2020 what decision you will make for 2021 if i top up in Jan 2021, the tax relief is for YA 2021 and not 2020 right? if my income changes in 2021, would i not over top up or under top up, because my calculations would have been wrong? I feel like im not quite understanding it yet
Hi Junzies, good question. If you top up in Jan 2021, the tax relief is for YA 2022 which is for the year 2021. YA 2022 just means that the tax is to be paid in 2022. So in Dec 2020, I estimated my tax payable for the year 2021 (YA 2022) based on the following: 1) Annual income for 2021. I use my 2019/2020 annual income as a gauge. (As I'm just an employee, my annual income won't deviate a lot from prior year. ) You can set some buffer in your estimation too. 2) Total personal relief 3) Donation amount (I make donation every year so I will also factor in that deduction) Top up the amount that is chargeable at the rate that falls under i.e "Next $10,000", "Next $40,000".. Because the fixed amount in the first portion is much lesser in %. (I hope this make sense). Recommended to do the estimation using excel, you can refer to my format in the video.
Thanks for the suggestion. Possible guideline for "Extra cash" = After setting aside your emergency funds, estimate living costs/instalments obligations for a few months.
Top up relief is the same for all ages. For 55 and above, you will only be able to top up RA instead of SA. The maximum amount you can top up in a year is CPF Annual Limit of $37,740 minus the mandatory CPF contributions made for the calendar year.
Little girl. Instead of thinking how to save tiny amount on tax reliefs, think of how to earn big on the cash on hand. Trying to get some tiny tax reliefs by toping up cpf is mindset of poor people. Be savvy
Only something kept nagging me is the pool portion. Interest is paid on the premiums. Said interest goes into the pool but does the pool attract interest or just becomes a reserve to pay members who survive after consuming the premium portion?
If you check MOH reports, part of premium from MSL goes into reserve but does not attract interest.
Great video keep up gd work
Thank you for your encouragement. Really means a lot to me.
Hi Evelyn, thanks for the informative video! how do you plan ahead with your calculations? eg calculating in 2020 what decision you will make for 2021
if i top up in Jan 2021, the tax relief is for YA 2021 and not 2020 right? if my income changes in 2021, would i not over top up or under top up, because my calculations would have been wrong? I feel like im not quite understanding it yet
Hi Junzies, good question.
If you top up in Jan 2021, the tax relief is for YA 2022 which is for the year 2021. YA 2022 just means that the tax is to be paid in 2022.
So in Dec 2020, I estimated my tax payable for the year 2021 (YA 2022) based on the following:
1) Annual income for 2021. I use my 2019/2020 annual income as a gauge. (As I'm just an employee, my annual income won't deviate a lot from prior year. ) You can set some buffer in your estimation too.
2) Total personal relief
3) Donation amount (I make donation every year so I will also factor in that deduction)
Top up the amount that is chargeable at the rate that falls under i.e "Next $10,000", "Next $40,000".. Because the fixed amount in the first portion is much lesser in %. (I hope this make sense).
Recommended to do the estimation using excel, you can refer to my format in the video.
@@evelynthoughts Thank you for the guidance!
I think you should factor in the other living costs first before putting that he or she can be able to topup 7k.
Thanks for the suggestion. Possible guideline for "Extra cash" = After setting aside your emergency funds, estimate living costs/instalments obligations for a few months.
👍
How about top up for 70 over? How much can topping? Thks
Top up relief is the same for all ages. For 55 and above, you will only be able to top up RA instead of SA. The maximum amount you can top up in a year is CPF Annual Limit of $37,740 minus the mandatory CPF contributions made for the calendar year.
Little girl. Instead of thinking how to save tiny amount on tax reliefs, think of how to earn big on the cash on hand. Trying to get some tiny tax reliefs by toping up cpf is mindset of poor people. Be savvy
Both are good depends on your risk averse and opportunity cost