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CPF INVESTMENT FOR STOCK LIMIT IS NOT ACCURATE
CPF CHAT-R 05-07-2007, 01:03:49 AM


Joined Date: 03-07-2007
Posts: 17 times

I used to buy and sell share in one days for more than one counter.

The agent bank will deduct from there what there are holding, insufficient amount will transfer
from CPF by the agent banks.

May be I have to transfer to CPF to re-caculate the stock limit and purchase the new share.

That why my net amount used is difference. My stock limit was not revise.

If in this case, by the time, I will miss the right timing for my share investment.

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Justin 05-07-2007, 01:36:18 AM



Joined Date: 14-07-2006
Posts: 29 times

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Many of you have the wrong information on USing CPF Funds to for investing in Stocks.

The information on CPF website shows the limits you can invest (in Stocks & Gold). These limits are updated MONTHLY on the 11th (or 12th if 10th is a Sunday/Public Holiday) using your CPF balances at the end of the previous month and they have taken the amount in your CPF Investment Account into consideration. Your Investment Bank will also be informed of the limits.

If you wish to have your limits updated for investments purposes, you will have to email CPF Board investment@cpf.gov.sg or call them at 1800-2271188.

The update will be done within 3 working days based on your CPF balances as at the date of update.

Before doing this, you may wish to the CPF website and login using your SingPass.
After logging in, go to "My Statement" and then look for Section C. Click on "Stocks" under Investment.

They will have your latest calculation. If you wish to update to your "new" limits, you have to either e-mail or call them.

last edited at 05-07-2007, 01:46:07 AM
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CPF CHAT-R 05-07-2007, 01:59:45 AM


Joined Date: 03-07-2007
Posts: 17 times

starline;

I had post yr question to CPF board for reply.

they will reply me after two days.

will inform U the outcome.
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CPF CHAT-R 05-07-2007, 02:07:58 AM


Joined Date: 03-07-2007
Posts: 17 times

Do you use cpf-oa for buying share, pls check yr account.

I'm sure that you will hv the same problem what I have.

I had sent email to CPF for enquiry of the discrepency. first reply take two days, second reply take two days, now they said give then one week.

wait for cristmas.
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CPF CHAT-R 05-07-2007, 03:23:55 AM


Joined Date: 03-07-2007
Posts: 17 times


UTracker99-02 wrote :

CPF CHAT-R wrote :
Now U have to wait until U reach 55, after that wait until 62.

When you can not walk that time, the money become no meaning.

To get round it, is to invest as much as one can, after taking into consideration of other needs such as house loans, education funds, medical coverage, insurances, etc. If by the time it reaches 55, take the lump sum, less the retained amount(by law). For aggressive investors, pure equities or balanced funds may be the way to go. Even mind set have to change. If got more than 5 years before 55, then one is advisable to practice good D.I.Y investment as much as possible. Because, after learning how to catch fishes, we can continue fishes(equities) after 55. Who say it is must to turn 100% conservative after 55.



I agree with your opinion. presently I try to invest all my cpf money in share & UT.

Any good recommendation.
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StarLine 05-07-2007, 12:50:48 PM



Joined Date: 28-03-2006
Posts: 167 times

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CPF CHAT-R wrote :
starline;

I had post yr question to CPF board for reply.

they will reply me after two days.

will inform U the outcome.


Thanks.
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CPF CHAT-R 09-07-2007, 12:58:10 PM


Joined Date: 03-07-2007
Posts: 17 times


StarLine wrote :

I am wondering,

Anyone tried after selling the stocks,
the money goes back to the agent bank.

Can we use the money to buy stocks again,
before it gets transfer to CPF ?

Or

Must we transfer the money from agent bank to CPF,
and then re-calculate and use the money from CPF to buy stocks again ?




Reply by CPF Board for stock limit calculation as below.


There is no difference whether the money is in your Investment Account or
transferred back to your CPF Ordinary Account. During the month, if you
have made any stock transactions, your agent bank will update your revised
net stock limit upon settlement of your transactions as follows:

For purchase:
Current Net Stock Limit - Cost of Stocks Bought = Latest Net Stock Limit
For sale:
Current Net Stock Limit + Cost of Stocks Sold = Latest Net Stock Limit

It is only if you have new contributions during the month or proceeds from
the sale of your house, that will increase your stock limit. If you need
your stock limit to be updated during the month, we would be glad to take
your request. You may inform us not only in writing or fax, but also via
email.

For more information on the CPF Investment Scheme (CPFIS), you may refer to
our handbook at:
http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/Investment/INV.htm


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erwin123 09-07-2007, 02:26:10 PM



Joined Date: 11-03-2007
Posts: 949 times

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So this is just a case of the normal time lag in updating CPF? I guess you shouldn't expect your CPF statement to be updated on a daily basis even though you are a day trader. Most of us will not trade so frequently so I guess that's why our statements are ok.


last edited at 09-07-2007, 02:27:54 PM
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CPF CHAT-R 09-07-2007, 05:32:49 PM


Joined Date: 03-07-2007
Posts: 17 times

To-day, I had spoke to my share broker about the stock limit problems. His reply me that I should not take account for my gains amount into the stock limit. whether you gains or loss, CPF will not adjust your stock limit. Only contribution to CPF will be affect your stock limit.

See below how CPF Board workup for your stock limit.

Annex B

Computation of Stock and Gold Limits


Ordinary Account balance $ 50,000

Net amount withdrawn for education $ 10,000

Net amount withdrawn for investment1 $ 12,000

Cost of stock investment $ 10,000

Cost of gold investment $ 1,000
$
Ordinary Account balance 50,000

Net amount withdrawn for investment 12,000

Net amount withdrawn for education 10,000
_________

Investible savings2 72,000
¯¯¯¯¯¯¯¯¯


35% of investible savings2 25,200

Less: Cost of stock investment 10,000

Available 35% stock3 limit 15,200


10% of investible savings2 7,200

Less: Cost of gold investment 1,000

Available 10% gold limit 6,200




The amount available4 for stock will be the lower of (a) stock limit of $15,200 or (b) latest Ordinary Account and CPF Investment Account balances less shortfalls5.

The amount available4 for gold will be the lower of (a) gold limit of $6,200 or (b) latest Ordinary Account and CPF Investment Account balances less shortfalls5.

Notes:

1. The net amount withdrawn for investment is the amount withdrawn for all investments less refunds under CPFIS-OA.

2. These are updated on the 11th of every month, based on the balances at the end of the previous month. The limits would be updated on the 12th if 10th is a Sunday/Public Holiday.

3. The stock limit applies to both shares and corporate bonds.

4. Before investing, please check your CPFIS Statement and take into account any investment transactions that have yet to be settled to determine the amount available for investment.

5. The shortfalls applicable to members age 55 and above are Minimum Sum and Medisave Required Amount shortfalls.

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CPF CHAT-R 09-07-2007, 10:33:25 PM


Joined Date: 03-07-2007
Posts: 17 times


StarLine wrote :

I am wondering,

Anyone tried after selling the stocks,
the money goes back to the agent bank.

Can we use the money to buy stocks again,
before it gets transfer to CPF ?

Or

Must we transfer the money from agent bank to CPF,
and then re-calculate and use the money from CPF to buy stocks again ?



This evening time, I call CPF BOARD about my problem of stock limit, After a long discussion
with the ladies there, understand that my problem might be when the money in the agent bank that time, I had bought for unit trusts & gold investment.

To solve my problem for update my stock limit, I have to sell off all the unit trust, put the money back to CPF and withdrawn from there for re-investment.

Finally I get the result for my problem solving.

Your opinion had lightern me and help me to solve my problem. Anyway, one again thank you
for joining my forum.
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StarLine 10-07-2007, 12:54:38 PM



Joined Date: 28-03-2006
Posts: 167 times

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Thank You.

I sold some shares using CPF last week.
This week after more than 3 days from the last sold date,
which my stock broker told me that I can make the purchase of CPF stock,
offseting last transaction (must be 3 days or more).



last edited at 10-07-2007, 12:55:25 PM
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CPF CHAT-R 10-07-2007, 02:03:53 PM


Joined Date: 03-07-2007
Posts: 17 times


StarLine wrote :
Thank You.

I sold some shares using CPF last week.
This week after more than 3 days from the last sold date,
which my stock broker told me that I can make the purchase of CPF stock,
offseting last transaction (must be 3 days or more).





Check your broker agent, for account settlement and payment.

I'm using UOB-Kian Hian, the settlement period is T+3.

You sell to-day, tomorrow you can trade already.

They also allow to me to use my sales proceeds to offset my purchases.

- both sales and purchases are in the same settlement currency, and

- the sales due date falls on or before the purchase due date.



*Please inform your Trading Representative of your request one day before the due date of the sale(s).
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StarLine 11-07-2007, 02:18:12 AM



Joined Date: 28-03-2006
Posts: 167 times

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CPF CHAT-R wrote :

Check your broker agent, for account settlement and payment.

I'm using UOB-Kian Hian, the settlement period is T+3.

You sell to-day, tomorrow you can trade already.

They also allow to me to use my sales proceeds to offset my purchases.

- both sales and purchases are in the same settlement currency, and

- the sales due date falls on or before the purchase due date.

*Please inform your Trading Representative of your request one day before the due date of the sale(s).


Well, for normal trade (cash) the above applies.

But as for CPF trade, they need 3 days or more for the funds to go back to the Bank Investment Account, and then you can use it.

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CPF CHAT-R 11-07-2007, 11:53:00 AM


Joined Date: 03-07-2007
Posts: 17 times


StarLine wrote :

CPF CHAT-R wrote :

Check your broker agent, for account settlement and payment.

I'm using UOB-Kian Hian, the settlement period is T+3.

You sell to-day, tomorrow you can trade already.

They also allow to me to use my sales proceeds to offset my purchases.

- both sales and purchases are in the same settlement currency, and

- the sales due date falls on or before the purchase due date.

*Please inform your Trading Representative of your request one day before the due date of the sale(s).


Well, for normal trade (cash) the above applies.

But as for CPF trade, they need 3 days or more for the funds to go back to the Bank Investment Account, and then you can use it.



U sell to-day, U buy new share next day, your new share due date on forth day, for Cash & CPF investment applied the same.

Only things you have to check your stock limit.
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UTracker99-02 11-07-2007, 03:24:18 PM



Joined Date: 16-05-2005
Posts: 2258 times

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CPF CHAT-R wrote :

UTracker99-02 wrote :
To get round it, is to invest as much as one can, after taking into consideration of other needs such as house loans, education funds, medical coverage, insurances, etc. If by the time it reaches 55, take the lump sum, less the retained amount(by law). For aggressive investors, pure equities or balanced funds may be the way to go. Even mind set have to change. If got more than 5 years before 55, then one is advisable to practice good D.I.Y investment as much as possible. Because, after learning how to catch fishes, we can continue fishes(equities) after 55. Who say it is must to turn 100% conservative after 55.


I agree with your opinion. presently I try to invest all my cpf money in share & UT.

Any good recommendation.

Perhaps you can try to modelled after FSM 100% Equity sample portfolio. If you like a little more aggressive, then trim the weight-age by half for both US and Japan exposure. The 16% can use to increase on SEA, global resources, Latin America and Emerging Europe. Total not to exceed 8 funds. I have been monitoring the performance, and estimate it is likely to provide reasonable return of 10%~12% p.a for some time, as long as there is no global recession.


last edited at 11-07-2007, 03:25:36 PM
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