Cory Diary : CPF Life Retirement Study

Key financial thing I have done this month is to do Housing refund 50% to my CPF. Probably will completely pays it off before end of this year. From -2.5% to 4% that's a 6.5% swing from cost to profit.

And this can be done electronically through internet which is what's so amazing about today world. This boost my Pension quite a little for it to compound to age 65 producing a base monthly sum to my future retirement. Which comes to my next investigation on CPF Life.

CPF Life Retirement Study

While I was doing above, it strikes me how much should I put into my RA. Will doubling it provides me double monthly income at age 65 or more ?

As you can see from the estimator almost double. Probably slightly lesser if we try to be a little stingy about it.  The escalating plan is interesting to beat inflation but seems not for me as CPF is not my key dependency ( specific to me ).

While studying it strikes me why would anyone want to choose a Basic withdrawal plan. Not that's it is a lot ( roughly 130 lesser than Standard )? The answer lies with Bequests ( see below chart ).

At age 80, there is almost no money left if we choose Standard or Escalating Plans. However Basic will provide about half the money to beneficiaries upon passing. Now, Basic plan do looks interesting. However doubling the RA Amount initially only double my Bequest. Something I need to watch if I do my step correctly ....

So my preference is Basic 192K for now and depending how I do well in my investment financially, this may change. However once is selected, can't change after 30 days. oh dear. I need to make a note on this.

Watch for any error as I am new to this. As usual DYODD.

Cory

2020-1021

Cory Diary : Dividend Report Oct'20 - Mid

This month dividend report is not so regular reason being I have to wait for AGT to pay me the dividend which is kind of huge as they paid off most of the cash they received from the golf sales through dividend. It would have be even gigantic have I not sold 40% of my shares to reduce my exposure prior to Ex-Dividend.

The good news is on NAV perspective there is still about 6 cents to be collected. I don't have the experience to tell how much will be left for shareholders before AGT completely close shop. I am looking for 3 cents at least.

Obviously Year 2020 will not be the right best measure for 2021 dividend plan. A one time deal as I split the investment across a number of stocks to compensate for the DPU loss from AGT delisting.

As it current stand, $88,845 for Year 2020 YTD. Excluding AGT with it's regular dividend that are loss the rough theoretical value of $55K by year end. 

And yes there is some ready cash now to boost the dividend further. Any recommendation for Kiasu and Kiasi ... investor ?

Cory

2020-1016

Cory Diary : Repricing Home Loan Package

In a few more months time, my current package will be available to be repriced which was on package based on 2.38% Fixed for 2 years after which FHR8 + 1.88% (0.6%+1.88% =2.48%) where FH is the Period 8 months reference to the column above.

The current DBS Fixed Deposit is as follow.

Since May, DBS announced the FHR8 revision, my total loan repayment has not been reduced s it is fixed package and instead will increase to 2.48% if I do nothing.

What-if I Reprice ?

Per DBS website, home loan accounts are out of lock-in or will be out of lock-in in 3 months’ time are allowed to do repricing. I do not like floating package so will only look into the new reprice Flexi-Fixed package as follow. There is a re-price cost about $300 for Promo.

Fixed in years at 1.5% depending on the flexi-Fixed package which I am interested, follow by FHR24 + 0.9% = 1.8% thereafter. So should I go for 3 Year or 5 Year ? 

That's depend how soon we get over Covid aftermath I guess which could take 2 years. Since there is a free conversion I could ask for contract change per table above if the ever decreasing rate happens once I sign up on the new Contract.

However, if the rate increases then I would want to continue the new contract as long as possible. So looks like 5 years Lock is better option. The 5 years contract states " We will waive the Commitment Fee if such full repayment is made upon the sale of your entire interest in the Property, and no event of default under the Conditions has occurred." (updated).

With the new contract, monthly saving will be $293. That's $3,518 annually. Most importantly is the peace of mind. That's the key point of the plan other than the saving.

Cory

2020-1015