max out CpfLife P2: How #liquidate

See also

— @55 is the time to MAX-out on cpf-life

As I confirmed with CPF hotline, let’s compare two twin brothers aged 55 around 2030

AA has extra balance in OA or cash, so he immediately tops up (straight into RA, without split) up to the ERS watermark (eg 500k). Each year thereafter, ERS watermark would rise (by projected 3%), but new ERS watermark would never exceed his 750k balance accruing at 4%.
BB only hits max at or after age 65, to the 2040 ERS watermark. This ERS watermark is most likely far lower than 750k, probably something like 600k.

AA’s plan is the max-out plan i.e. his cpfRA snapshot65 would be the maximum possible.

In terms of the growth of 500k in their wallets as of 2030

AA relies on 4% compound over 10Y by CPF
BB relies on his own investments, which could produce higher return in some years and lower return in other years

In terms of liquidity of the 500k

cpfRA balance has the worst liquidity.
your own investment can also get stuck around age 65, so you are unable to liquidate it for CPF-life

CPF online estimator shows that as of Sep 2020,

for someone born 1955 (age 65 in 2020), 275k would immediate generate about $1400/M in basic plan. Assuming 275k is the ERS, then this person is not allowed to top up beyond 275k.
for someone born 1965 (age 55 in 2020), 275k (would become some bigger amount) would generate about $1900/M payout
Suppose the twin brother of 1965 guy delays top-up by 10 years, and then does a top-up to 275k (not the new ERS), I bet his payout will be closer to $1400 than $1900. By this time, his early-saver brother has grown his 275k to 410k (monthly accrual), generating $1900/M

So the early top-up guy receives significantly more monthly payout due to 10Y loss of liquidity.

— My current plan — grow some 200k in my own investment account outside cpf. Then top up cpfRA only at the last moment.

Before 55, double-check and triple check that green_portion is feasible.
Once confirmed, if I have 500k cash including FLI150k but excluding USD, I might permanently lock up 50k in the RedPortion of cpfRA.
.. (If you top up 50k to cpfRA at age 58, then this 50k would be locked in for a lengthy 7 years until it transfers into cpf-life and starts “producing milk”.)
Before wife reaches 55, we will build up towards her green_portion of cpfRA (unborn). See [25]build up150k]wife’s green portion – dTanbinvest
When wife reaches 55, I will take stock of my SGD liquidity position (600k?), USD cash position (200k?), income security,,,,
Approaching 65, progressively liquidate assets to aside enough cash, not necessarily the full ERS.

My 3 annuities
My USD idle cash
If I live in the U.S. at that time, then liquidate Asia properties. Hopefully they have recovered by then.
If I live in Asia, then liquidate U.S. properties.