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You said:
“When you do the enhanced nomination, your nominees will receive your CPF monies into their CPF account instead of in cash. Why would anyone want to do that? ”
FYI: infact more common than you think.
yes, there are infact many thoughtful people out there who opt for their nominees to receive via their CPF A/Cs instead of getting cash… that’s why CPFboard came up with such an option.
this include those who nominate to more elderly beneficiaries (siblings, uncles, aunties, parents) who will be able to make monthly drawdown from their CPFs soon)…. but there are also some parents who choose this path with nominations for their childrens.
I too will opt for my beneficiaries (mostly elderly siblings) to receive via their CPF A/Cs instead of via CASHs…infact I encourages them to signup to CPFLife too.
not everyone can manages their money well, though personally I compound at some 15% p.a. over last 14 years; I also recognise that very few are good at investings their monies… and for some, if you give them a big sum, they may even “party-away for 1 or 2 years” and then have bigger problems coping when the monies runs out…
…thus I choose to max-up all their CPF’s minimum sum first…. and encourages them to takeup Cpf Life – and at least they have a certain lifelong sum to fall back upon… if all else fails
eg. for the few who outlive everyone else, and in case ended up with little or no family support decades from now…. what little CPFLife payout monthly, will become all the more important. (if you have lots of monies, a few hundred dollars a month is peanut, but when that is your only income in your 80s or 90s – then every dollar count !!! )