It has become a routine for me to top up my CPF Special Account under the Retirement Sum Top-Up Scheme (RSTU) at the beginning of the year.
As CPF interests are computed on a monthly basis, we could reap higher returns by topping up our CPF account(s) in Jan rather than Dec. For an amount of $8k based on 4% interest rate, the difference between Jan and Dec could be more than $290.
Under RSTU, the main benefits are to earn the risk free 4% interests from CPF SA and to enjoy tax reliefs for up to $8k.
I have topped up $8k today, reaping $320 of interests and saving $560 of taxes (at 7% rate), thereby gaining $980 or 11% worth of benefits!
Moving ahead, I plan to top up my Supplementary Retirement Scheme (SRS) account.
Meanwhile, I am like a predator hunting for preys as many high quality Reits and stocks are been hammered. I smell opportunity again.
The results reporting season is ongoing for some of the Reits. I will just sit back and enjoy the numerous Ang Baos trickling in after the Chinese New Year when the Reits in my portfolio start to pay dividends.
Thanks for reading. As always, stay safe and remain strong.
With Love & Peace,
Qiongster
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