Introduction
Welcome to this week’s digest of BBCWatcher’s insights from 05 Dec – 12 Dec 2024. This summary compiles key discussions and analysis from the HardwareZone forum.
Key Insights and Discussions
- CPF and Healthcare: Every CPF member below age 65 has room for Voluntary Contributions (VCs) to MA whenever the Basic Healthcare Sum (BHS) increases. The BHS is increasing from $71,500 to $75,500 on January 1, 2025.
- Insurance Updates: Singlife is offering a “2 ADL” amendment on an opt-out basis, reducing the threshold for insurance payout under this policy. Currently, one must be unable to perform at least 3 Activities of Daily Living (ADLs) to qualify.
- Financial Transactions and Fees: Using a Citibank Singapore debit card allows for fee-free cash withdrawal from any Citibank ATM in the United States, beyond currency conversion fees.
- Spending and Wealth: It’s noted that even the wealthiest individuals, like Elon Musk, should be able to spend their money as they see fit, without obligation to spend on goods and services they don’t need or value.
- OA and CPF: The Ordinary Account (OA) earns 2.5% interest and can be used for housing, education, and invested via the CPF Investment Scheme for amounts exceeding $20,000.
- Insurance Recommendations: BBCWatcher suggests that anything above a public hospital Integrated Shield plan is not necessary. They recommend getting an “as charged” public hospital Integrated Shield plan with a low-cost rider, citing Great Eastern and Prudential as offering better cancer coverage and competitive plans.
- Emergency Reserves: Developing an emergency reserve, such as keeping 2 months of living expenses in a bank account and 4 months in Singapore Savings Bonds, is considered a good idea.
- Tax and Dividends: The U.S. dividend withholding tax rate for Singapore residents is 30%. Selling stock can avoid dividend tax, and there’s a warning about non-compliance with U.S. financial reporting requirements potentially leading to account closure.
- Rider Options: Switching to the PRUExtra Premier Lite CoPay rider is suggested as it has a lower premium and is not subject to claims-based pricing, capping out-of-pocket costs at $3,000 per policy year.
Conclusion
This week’s digest highlights key discussions on financial planning, insurance, and wealth management. BBCWatcher’s insights emphasize the importance of understanding policy changes, such as the increase in Basic Healthcare Sum, and making informed decisions about insurance coverage and financial transactions. The discussions also touch on the need for emergency reserves, tax implications, and the benefits of certain rider options. Overall, the week’s main themes revolve around prudent financial planning, awareness of policy updates, and strategies for optimizing one’s financial situation.
Source: View original posts on HardwareZone Forum