Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Thursday, 27 February 2020

Can I Join the Lease Buyback Scheme After I got my Silver Housing Bonus?


This is a follow-up article from our previous article on the Silver Housing Bonus (SHB): $20,000 Silver Housing Bonus: Should You Apply For It?.

Today's topic is on the 2 schemes that the Government has introduced to help elderly Singaporeans monetise their homes.
While it might not apply to you now, it might apply to your parents, grandparents, or older colleagues, in which case, you can share with them this article to let them know of these schemes.

Can I Join LBS after I got my SHB?
Source: Flickr

You are basically downsizing first, then selling the remaining lease of the downsized flat back to HDB.
You can apply for SHB after 55 years old and then apply for LBS after 65 years old.
But, you will only be eligible to apply for either the SHB bonus or the LBS bonus, and not both.
Meaning if you had gotten the SHB bonus, you will not be able to apply for the LBS bonus in the future.

Example:
Kumar is 60 years old, and he owns a fully paid 5-room HDB flat with his wife.
He wishes to downsize to a 2-room HDB flat since his kids are no longer staying with him and his wife.
He downsized to a 2-room HDB flat (resale) with 85 years of lease left and applied for the SHB (Yes, you have to apply for it!).
He expects his wife and him to stay in the flat for up to 45 years only.
So at age 65, after he has met the Minimum Occupancy Period (MOP) of his new 2-room flat, Kumar applied for LBS to sell back to HDB the 40 years of his 2-room flat's lease that he does not need.

Kumar can get the following proceeds/bonus from SHB depending on how much net proceeds he earns from the selling and buying his flats.

Kumar can get the following proceeds from LBS, with funds used to top up his and his wife Retirement Account (RA) to their respective Retirement Sum (RS) requirement.
Kumar can then withdraw in cash the amount in excess of the RS requirement.



Recommended Read: Why are there 2 Schemes to Top Up CPF?

Can I get SHB after I joined the LBS?

From what we read on their FAQ site, it is 'NO'.
But, there is some ambiguity in how they phrased the answer in the FAQ.
So to save you the trouble, we have asked HDB on your behalf and we will post the answer here once they replied us 😉

Conclusion
Plan your moves wisely!
Since you can only get either an SHB bonus or an LBS bonus, make sure you think carefully which one gives you the most amount of bonus dollars!
Next, since you can start with SHB then LBS, but not LBS then SHB, be careful and don't rush into LBS!



WSG can provide you with a career coach that is able to help you with that. 
And if you are looking for a free career coach, visit Workforce Singapore via the link below.
They can link you up with the career coach and you 
might be able to find new opportunities on their jobs portal.


Happy Lunar New Year!
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So we hope you could help us fill in a short survey of 8 questions (4 of them are MCQs) so that we can help better tailor our content to you.
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Monday, 24 February 2020

Why are there 2 Schemes to Top Up CPF?



If you are an employee, this is for you!
There are 2 CPF schemes for you to voluntarily top up money to your CPF account.
They are the 'Retirement Sum Top Up Scheme' and the 'Voluntary Contribution Scheme'.
So what's the difference?
Because there was limited information on the 2 schemes online, we emailed CPF Board to clarify the difference between them.
The difference was not very obviously shown on the CPF website.
As such, we have dedicated this post for it.

Topic
Retirement Sum Top Up Scheme
Voluntary Contribution Scheme
$ Goes To
   Special Account (age less than 55)   
   Retirement Account (age 55 and above)   
   Ordinary, Special & Medisave Account*   
Uses
   Retirement only. 
   Funds cannot be used
for investments etc   
   Funds can be used for other CPF schemes   
Tax
   Contributions are tax-deductible   
   #Non-tax deductible except if all
contributions go into Medisave Account   
Interest
   SA 4%   
   OA 2.5%, SA & MA 4%   
   Contribution   
   Via Cash or CPF transfer**   
   Via Cash   
   Contribution Limit   
   Until you reach your minimum sum or
your NOKs reach theirs'   
   Annual CPF contribution Limit or
Medisave Contribution Ceiling   

Recommended Read: Can I Use CPF to Buy a House After 55 Years Old?

*Money goes into OA, SA & MA based on a fixed percentage that is determined by your age.
There is a Voluntary Contribution Calculator on the CPF website.
However, we have done the work for you, and the contribution rates are posted HERE

#There are 2 voluntary schemes, one is fixed contributions to 3 CPF Accounts (OA, SA & MA), which are non-tax deductible. Another is where all contributions go into your MA, which is tax-deductible.
However, if you are self-employed, there are other tax-related exemptions for you that are beyond the scope of this post.

**You may transfer your excess CPF funds to your next-of-kin if you have met the current prevailing Retirement Sum (RS) if you are aged below 55.
If you are age above 55, you may transfer your excess CPF funds above your RS to your next-of-kin's CPF.
Next-of-kin are parents, spouse, siblings, grandparents, parents-in-law, & grandparents-in-law.

Dear Reader!
As we progress towards the next phase of our journey, we would like to find out what would make you like us even more.
So we hope you could help us fill in a short survey of 8 questions (4 of them are MCQs) so that we can help better tailor our content to you.
Survey


WSG can provide you with a career coach that is able to help you with that. 
And if you are looking for a free career coach, visit Workforce Singapore via the link below.
They can link you up with the career coach and you 
might be able to find new opportunities on their jobs portal.
Link me up with a coach


Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

Have feedback? Tell us now!

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Friday, 14 February 2020

Is Greta Thunberg Overrated?


I would like to share a perspective after seeing people bashing one environmentalist over another, pitting one against another as if the environmentalists are in some sort of competition against each other.
Except they are not, they are fighting for the same cause: to get people to start acting responsibly for the world.

NARRATIVE PERSPECTIVE:
A tap is running, the sink is overflowed and water is spilling onto the floor.
You got 2 children both of which cannot reach for the tap to stop the water from flowing out.
Your older son took a mop and start mopping the floor dry while the water continues to overflow.
Your younger daughter went to call you up from your bed to come and close the tap.

Do you find your son more useful than your daughter?
Or do you find both of them are actually trying to get something done and you as the parent should f**king wake up your idea and turn off the bloody tap?
Source: Reddit

Pitting of Environmentalists
So instead of pitting one against another, maybe we should wake up our idea, and start doing something for the environment.
Don't pit one environmentalist against the other as your justification to not do anything about the environment.
We use 1.76 billion plastic items in 2018.
473 million of them are disposable plastic items like takeaway containers and cutleries, equivalent to 432,000 people throwing away a food container, a spoon, and a fork, every day!
Maybe, just maybe, if we all just brought a fork and spoon to work and not use the disposable plastic fork and spoon for our lunch, we reduce 2 plastic per person per day, we can make the planet better for our future generations.

Source: The Kritic

"Our plastic are burnt in our incinerators, so there are no turtles being poked by our plastic."
That seems to be the only thing people in Singapore can say.
"I throw my plastic trash into the trash bin/recycling bin, I am therefore a responsible plastic user and a recycler."
Except, things don't work that way.
Less than 20% of our plastics are recycled - most of them are shipped to Third World countries and causing health problem for their people.
Even if we recycle our plastic, these plastic do not bio-decompose; instead, they break down into smaller pieces call 'micro-plastic', and it has been found that we eat about 1 credit card size worth of micro-plastic every week.
Plastic is not a climate problem, it is a waste problem.
Yes, we have the technology to burn it and capture most of the harmful pollutants it releases
We are still releasing a lot of harmful pollutants that we can't capture into the environment, and that will only grow as we continue to use more plastic in our daily lives.
At the rate that we are going, we are going to fill Semakau landfill by 2035, and then what do we do with our trash?
Will we be able to keep finding wasteland to pile up our trash in land-constrained Singapore?

Recommended Read: The HDB Pricing Dilemma


"I just cannot live without plastic, I need plastic bags for my trash, straws to drink my BBT..."
IT IS NOT "ALL IN OR NOTHING"
I have spoken to many people about going green.
I've tried going green - I tried to use less plastic, use reusable food containers for takeout, use bottles/tumbler for takeaway drinks, take more public transport, etc.
Nonetheless, I still use plastic - the candies I eat are wrapped in a wrapper, the ice cream I eat still comes in a plastic container, the food delivery I ordered came in plastic bags, and I still fly around and travel.

People seem to think that if someone is going green,
they must do the following:
1. Use ZERO plastic (no disposables, no plastic bags, etc)
2. Don't fly or travel
3. Don't eat meat
4. Generate minimum waste
You are either environmentally-friendly or not environmentally-friendly, you can't be in between.

Not going to deny, there are those who do live their lives that way, but most environmentalists don't.
Think of it as a spectrum.
On one end, it's the person that uses only disposable items, drives diesel cars, meat-only, and generates tonnes of wastage - 10 tissues to clean 1 mouth. Let's say this is 0 marks.
On the other end, it's the person that uses zero plastic, flies when necessary, vegan, generates waste that fits inside a jar. Let's say this is 100 marks (full marks).
Most of us are in between, we use plastic, eat meat, travels, and generates a decent amount of waste, but we also use cups and plates (at home), take public transport, and turn off lights when not in use.
The goal here is to be as close as we can to the full marks, or a nice 70 marks would work too.
Most of us probably fail - I don't have a matrix for this but if you do food takeout daily (food or drinks, especially coffee and lunch), you probably failed.
Think about it, 1 plastic container, 1 plastic bag, 1 plastic spoon and fork, 1 plastic cup (paper cups are actually just as bad as plastic - surprised?), all used and thrown after about 1 hour of use.
If you go to work 200/365 days, you generated 200 sets of the above combination. That's a lot.

But, we can always improve to a pass.
1. Bring your own food container to put takeaway food (can save $0.20 container money).
2. Bring your own bottle to put takeaway drinks.
3. Turn your air-con to fan mode after a couple of hours
4. Sleep early (if you don't use lights at night, you don't create emissions 😜)

Recommended Read: CPF LIFE in the Year 2020

"Using non-disposable items also waste water"
Yup, I know, I heard people say "but if I wash it, it wastes water. Isn't it just as bad?"
Well, at home you use non-disposable cups, plates, and cutleries, right?
I don't see you saying you are wasting water using these non-disposable options.
That aside, we have a NEWater plant, we have developed ways to clean water so that they can be reused.
I haven't heard we have developed anything to biodegrade plastic harmlessly or reuse disposable plastics.

Conclusion
We have gotten used to our lives that we cannot revert back already.
It is almost impossible now to work without air-conditioning or to expect us to not travel as the world gets more interconnected.
But what we can do, is to use renewable and sustainable alternatives.
Use renewable energy instead of coal, generate less waste, push for greener materials in buildings, push for more energy-efficient transportation, etc.



WSG can provide you with a career coach that is able to help you with that. 
And if you are looking for a free career coach, visit Workforce Singapore via the link below.
They can link you up with the career coach and you 
might be able to find new opportunities on their jobs portal.


Happy Lunar New Year!
As we progress towards the next phase of our journey, we would like to find out what would make you like us even more.
So we hope you could help us fill in a short survey of 8 questions (4 of them are MCQs) so that we can help better tailor our content to you.
Survey

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

Have feedback? Tell us now!

Follow us on Facebook and Instagram for more timely updates about finance-related articles and memes! 😁
Subscribe to our newsletter too in case social media platforms decide to stop showing you our content.