Club SAHM

[SAHM Chew]

ngl2010:

Does your husband give money to his parents? If he gives through CPF, it is tax deductible. Since, your husband is in high tax bracket, the savings could be quite a lot. But of course there is maximum limit and whether his siblings are claiming this tax deductible or not.

Also, if your husband put money in SRS for his retirement, it is tax deductible too. It will be taxed at 50% rate when your husband takes it out after 55 years old. Of course, SRS has its annual limit.

My DH does gives his parents allowances, but, Not through CPF. So he can only claim the parent relief.

[SAHM Chew]

TheAnswer:

SAHM Chew,


I am relieved to know that you have reserves for 3 years. You are really a prudent wife, an example I can learn from. By the looks of the savings which I have now, the most it can only last my family 16 months.
At this moment, I think most importantly is to remain clear headed. Support your DH. It's probably mentally stressful being the sole breadwinner. My DH lost his job twice. Went through a spiral of depression and each round took quite some time to recover. His temper got edgy and everything annoys him. I remember it well. My brother also lost his job a few times. It wasn't easy for them. Men do feel lousy as their job is like their pride. Be strong for him, for your sons and for yourself. You will be able to get through it. :snuggles:

Thanks for the encouragement. I am a worrier by natural. So even if I have more savings, I will still be worried. Unless I have passive income which can support us. But we do not have at the moment.

The savings are actually meant to generate more passive income, that's the reason we have been saving aggressively, to get out of the rat's race.

[SAHM Chew]

Thanks ladies for all the encouragement.


It really make me feels better as I have the opportunity to vent out my worries.

[ngl2010]

SAHM Chew:

ngl2010:

Does your husband give money to his parents? If he gives through CPF, it is tax deductible. Since, your husband is in high tax bracket, the savings could be quite a lot. But of course there is maximum limit and whether his siblings are claiming this tax deductible or not.

Also, if your husband put money in SRS for his retirement, it is tax deductible too. It will be taxed at 50% rate when your husband takes it out after 55 years old. Of course, SRS has its annual limit.

My DH does gives his parents allowances, but, Not through CPF. So he can only claim the parent relief.

Topping up parent's CPF is tax deductible for up to $7,000 per year. Depending on your DH's tax bracket, this could translate to savings of about $1,000 per year. Your parents-in-law will get $297 per month credited by CPF directly to their bank account (POSB, etc). If you usually give more to your parents-in-law, you can give the rest in cash. I found that this CPF scheme is useful. It is a win-win with our parents-in-law.

[sleepy]

I have severe 危机感, even more so after I quit my job and our household income reduced by half. Always feel savings growing at snow snail speed & insufficient for our retirement. Dh used to be easily satisfied. If got 6 months reserve he would be happy while I look at the same amount & totally freak out. But I think my 危机感 is contagious so he kind of see my point after all these years


Not investing at all at this point. I think everything is overpriced.

[metz]

SAHM Chew:

Thanks for the encouragement. I am a worrier by natural. So even if I have more savings, I will still be worried. Unless I have passive income which can support us. But we do not have at the moment.

The savings are actually meant to generate more passive income, that's the reason we have been saving aggressively, to get out of the rat's race.

Sorry for mistaking you for another mommy. :oops:

But I am glad you are sounding more positive now. Coincidentally, my friend is in the same predicament as you. Her husband (41 years old too) has just served his notice after deliberating for months. And she is also a SAHM with 3 kids of similar age as yours. Perhaps, some men just need changes in their lives at around 40? Whatever the reason is, it's important to lend them some support. Furthermore, things may not be as bad as you imagine. He may find a job shortly soon. So stay strong and be positive!

[SAHM Chew]

ngl2010:

SAHM Chew:

[quote=\"ngl2010\"]
Does your husband give money to his parents? If he gives through CPF, it is tax deductible. Since, your husband is in high tax bracket, the savings could be quite a lot. But of course there is maximum limit and whether his siblings are claiming this tax deductible or not.

Also, if your husband put money in SRS for his retirement, it is tax deductible too. It will be taxed at 50% rate when your husband takes it out after 55 years old. Of course, SRS has its annual limit.

My DH does gives his parents allowances, but, Not through CPF. So he can only claim the parent relief.

Topping up parent's CPF is tax deductible for up to $7,000 per year. Depending on your DH's tax bracket, this could translate to savings of about $1,000 per year. Your parents-in-law will get $297 per month credited by CPF directly to their bank account (POSB, etc). If you usually give more to your parents-in-law, you can give the rest in cash. I found that this CPF scheme is useful. It is a win-win with our parents-in-law.[/quote]Hi, just to clarify, putting in $7000 per year is around $583 per month. But will CPF credit the full amount or just $297 per month?

[SAHM Chew]

metz:

SAHM Chew:

Thanks for the encouragement. I am a worrier by natural. So even if I have more savings, I will still be worried. Unless I have passive income which can support us. But we do not have at the moment.

The savings are actually meant to generate more passive income, that's the reason we have been saving aggressively, to get out of the rat's race.

Sorry for mistaking you for another mommy. :oops:

But I am glad you are sounding more positive now. Coincidentally, my friend is in the same predicament as you. Her husband (41 years old too) has just served his notice after deliberating for months. And she is also a SAHM with 3 kids of similar age as yours. Perhaps, some men just need changes in their lives at around 40? Whatever the reason is, it's important to lend them some support. Furthermore, things may not be as bad as you imagine. He may find a job shortly soon. So stay strong and be positive!

Maybe we are friends and you are referring to the same person? Hehe.

[ngl2010]

SAHM Chew:

ngl2010:

[quote=\"SAHM Chew\"]

My DH does gives his parents allowances, but, Not through CPF. So he can only claim the parent relief.

Topping up parent's CPF is tax deductible for up to $7,000 per year. Depending on your DH's tax bracket, this could translate to savings of about $1,000 per year. Your parents-in-law will get $297 per month credited by CPF directly to their bank account (POSB, etc). If you usually give more to your parents-in-law, you can give the rest in cash. I found that this CPF scheme is useful. It is a win-win with our parents-in-law.

Hi, just to clarify, putting in $7000 per year is around $583 per month. But will CPF credit the full amount or just $297 per month?[/quote]Only $297 per month. CPF will credit $297 per month to your parents-in-law's bank account until $7,000 is depleted. However, if your husband top-up $3500 to his mother's CPF account and $3500 to his father's CPF account, his mother will get $297 per month and his father will get $297 per month too. Please note that if your husband's sibling(s) already claim this tax deductible CPF top-up for your parents-in-law, your husband cannot claim anymore.

Please check with CPF before you do this. The draw down amount may differ. Your parents-in-law's age and the amount they still have in CPF may affect the amount and timing of the draw down.

[Imami]

sleepy:

I have severe 危机感, even more so after I quit my job and our household income reduced by half. Always feel savings growing at snow snail speed & insufficient for our retirement. Dh used to be easily satisfied. If got 6 months reserve he would be happy while I look at the same amount & totally freak out. But I think my 危机感 is contagious so he kind of see my point after all these years


Not investing at all at this point. I think everything is overpriced.

Do u think this 危机感 has got something to do with you being a Sahm? For me, it certainly is! I tried being a Sahm for a short period before. During that period, I was super thrifty (to begin with, I am quite thrifty by nature. Almost Everything I spend must have value). I would walk to the neighbourhood central for grocery shopping just so that I save less than $2 on two way bus fare. My hubby thought I must be nuts :rotflmao: