I am starting the year with moves to improve financial security for me and my dad.
I am making a voluntary contribution to my CPF account again this year. The idea is to max out the annual limit of $30,600 and let the magic of compound interest contribute to my retirement funds. Yes, the government will be helping me in my efforts. Although this will not be tax deductible, it will help to provide me with a peace of mind.
I have also decided to do quarterly voluntary contributions to my dad's Medisave Account from now on. As he has pre-existing medical conditions, he was unable to upgrade his Medishield plan. Thus, his share of medical bills are heftier.
My dad's Medisave Account is also depleted due to the many times my paternal grandmother was hospitalised in recent years. So, helping him to build up his Medisave Account seems like a good idea.
My dad is still working and paying income tax. So, with regular voluntary contributions to his Medisave Account from me, he will pay less income tax too. Yes, it is tax-deductible for the recipient only.
|Voluntary contribution form. |
Click to enlarge.
His Medisave Account will also be beefed up with some help from a 4% annual interest income. Yes, getting some help from the government again.
My dad's example really shows how important it is to have a good H&S plan in place. So, if you and your parents are relatively healthy and do not have a good H&S plan in place, you really should do something about it.
On that note, HAPPY NEW YEAR!
1. How to get free medical insurance?
2. CPF or SGS?
3. Pay less income tax.
4. Enhanced Incomeshield for my mom.
5. Millionaire or not, plan for retirement.
Visit CPF's website: here.