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BEWARE: CPF Accrued Interest

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Old 20-09-2018, 11:58 AM   #16
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Either bank or CPF? That's a false dichotomy right there. If you can't be bothered to research on investment vehicles or participate in them, if you can't be bothered to take charge and responsibility of your hard-earned money, then that's your businesses, but don't treat everyone else as idiots...
For majority it's in the bank or spent. For those who invest, majority is adverse or got burned. CPF is for the good of majority though some can do better than CPF. For those who think they are better off with money in hand instead of CPF, they can still use the money in CPF for investment, though the option is not that great.
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Old 20-09-2018, 01:53 PM   #17
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For majority it's in the bank or spent. For those who invest, majority is adverse or got burned. CPF is for the good of majority though some can do better than CPF. For those who think they are better off with money in hand instead of CPF, they can still use the money in CPF for investment, though the option is not that great.
Yeah, most people I know didn't make anything out of what they withdrew from CPF. Maybe it'll change since the younger generation is more market savvy than the baby boomers.

Nevertheless, it is much more straight forward for people who are not into investing to just leave it in CPF.
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Old 20-09-2018, 02:45 PM   #18
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Very happy to see this thread full of well informed ppl with good understanding of CPF and accrued interest
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Old 03-02-2019, 10:51 AM   #19
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Don't understand what's the issue at hand... Lol

Unless u sold your house without enough to pay for the interest. Which in case you probably shouldn't have sold your house
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Old 03-02-2019, 11:54 PM   #20
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Dumb TS. Please dont take grant then. Let other smarter people take.

And to use cpf for housing payments depends on how hard you are able to make your existing funds work. If you are a savvy investor then by all means maximise your cpf usage and use the additional cash flow for something else. If someone dont really invest, and has spare cash, better to use cash to make installments. But honestly it's better to directly make partial or full repayment.
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Old 04-02-2019, 07:38 AM   #21
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Honestly I think people been drumming up this topic irresponsibly.

They show charts of how much the interest can work out to be in 30 years to spread fear and make people consider other loan products.

I don't think this is right. Mass majority of people are too layman to understand or research deep enough.

People who want to make this kind of decision to pay all cash, forgo grants or borrow bank loan at lower rate instead should really talk to professional friends. Go find good friends hor, don't walk into POSB and ask ah, and don't ask your property agent cousin.

But to share my 2 cents, it varies for person to person what u should do. What u intend to do with the house also matters alot. Put it this way, if u today u buy a 70 year old resale flat when u are 30, chances are, you won't be able to sell the house anytime soon and will live there till u retire. In this case, even your cpf got accured 200k interest also makes no impact to your life.

That said, if u insist on using cash, and as a result no longer have money to undertake investments then that is an opportunity cost. I know people who pay full cash, thinking their CPF can generate 2.5% interest is very good. To each his own but to me, cash is definitely worth more than 2.5%. especially in the last few years. Go figure.
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