Cash on hand

[naughty_joe18]

Hi Guys,
If there is some cash leftover from the sale of the HDB and the 25% downpayment ; what would be the best strategy to put this extra cash to work? (Nothing risky like bitcoin pls)

Thanks!
Joseph

 

[mikeeeey]

how much is the amount?

 

[elvintay07]

I presume your new property is $600k based on ur calculation. If your left over is $50k, just hang on for liquidity. If got a lot like $200k and above, can consider putting into cpf to earn 2.5% risk free. Long term also can use to pay mortgage

 

[halfnode]

Hi Guys,
If there is some cash leftover from the sale of the HDB and the 25% downpayment (about 150K); what would be the best strategy to put this extra cash to work? (Nothing risky like bitcoin pls)

Thanks!
Joseph

buy index and hold for long term?

 

[naughty_joe18]

how much is the amount?

150K

 

[elvintay07]

150K

Did u use any cpf to service your mortgage? If I were you, I would use this to redeem my housing loan (if any). If really got nothing
(1) Singapore savings bonds if u want baojiak
(2) Singapore reits (up or flat and earn 3-4% but if kana issue may drop 10-20%
(3) S&P500 but fluctuates a lot

 

[wetdreamx]

Did u use any cpf to service your mortgage? If I were you, I would use this to redeem my housing loan (if any). If really got nothing
(1) Singapore savings bonds if u want baojiak
(2) Singapore reits (up or flat and earn 3-4% but if kana issue may drop 10-20%
(3) S&P500 but fluctuates a lot

Hoot Argentina to win World Cup.

 

[mikeeeey]

I presume your new property is $600k based on ur calculation. If your left over is $50k, just hang on for liquidity. If got a lot like $200k and above, can consider putting into cpf to earn 2.5% risk free. Long term also can use to pay mortgage

I got think of putting in CPF also, my sum was 200k.

But CPF once go in, cannot come out. although the interest is good..

put into equities i can still earn "about" same or slightly lesser is fine, as its more liquid, can take out when emergency

 

[halfnode]

I got think of putting in CPF also, my sum was 200k.

But CPF once go in, cannot come out. although the interest is good..

put into equities i can still earn "about" same or slightly lesser is fine, as its more liquid, can take out when emergency

Only if SA if doing for retirement planning. If got plans to use it for housing etc, then best cash investment imho

 

[Verghez]

I presume your new property is $600k based on ur calculation. If your left over is $50k, just hang on for liquidity. If got a lot like $200k and above, can consider putting into cpf to earn 2.5% risk free. Long term also can use to pay mortgage

But put in cpf will be diluted and not all go into OA that can use to pay mortgage?

 

[elvintay07]

But put in cpf will be diluted and not all go into OA that can use to pay mortgage?

You refund housing can only go into OA. Actually top up SA more shiok. You imagine 4% interest

 

[wlcling]

150k in SA compared to OA, can net $30k extra in 10 yrs

 

[labixiaoxin]

Dogecoin 10char

 

[Oftheseas]

150k in SA compared to OA, can net $30k extra in 10 yrs

This is good option if already 45 years & older. If younger, better just to refund housing to OA to recycle this fund.

 

[elvintay07]

This is good option if already 45 years & older. If younger, better just to refund housing to OA to recycle this fund.

If can top SA, best to top SA because cannot top when you hit BRS.

 

[Oftheseas]

If can top SA, best to top SA because cannot top when you hit BRS.

Can continue top up till FRS, not BRS.

 

[momoeagle]

150k isn't that much. I feel that if you have to ask, then investments aren't really for you yet.

Ultimately, it really depends on your near term liquidity needs. If you forsee needing it, one strategy is to split into 2 tranches of 75k and placed into fixed deposits.

Or if you are high income or high networth, could consider topping up to 250k and dabble a bit in lower yield but safer corporate bonds.

 

[elvintay07]

150k isn't that much. I feel that if you have to ask, then investments aren't really for you yet.

Ultimately, it really depends on your near term liquidity needs. If you forsee needing it, one strategy is to split into 2 tranches of 75k and placed into fixed deposits.

Or if you are high income or high networth, could consider topping up to 250k and dabble a bit in lower yield but safer corporate bonds.

I think bond is not a good idea because cpf is one of world safest bonds. Almost cannot scam because you cannot withdraw unless you fulfil some conditions. If you have outstanding mortgage, 1 is to repay your cpf usage for mortgage loan. You get 2.5% payout almost with little risk. Singapore savings bonds you need to put long term else they give you 0.85% per annum. I like equities a lot because in the world of inflation, what is better than to invest in the world greatest companies? Again this is high risk and you may suffer 50% paper lost so need to be able to stomach the losses

 

[Cryophoenix]

If want safe and bao jiak, Sinkie Savings Bonds are the way to go.

If you can tolerate some risks and volatility over the medium term, go with S&P 500.

 

[Verghez]

I think bond is not a good idea because cpf is one of world safest bonds. Almost cannot scam because you cannot withdraw unless you fulfil some conditions. If you have outstanding mortgage, 1 is to repay your cpf usage for mortgage loan. You get 2.5% payout almost with little risk. Singapore savings bonds you need to put long term else they give you 0.85% per annum. I like equities a lot because in the world of inflation, what is better than to invest in the world greatest companies? Again this is high risk and you may suffer 50% paper lost so need to be able to stomach the losses

If CPF is a bond, it’s a illiquid bond. Sure, it’s safe but excess cash pumped into cpf will have leakage not going into OA, which cannot be used for housing. If you later use the OA to fund your housing, the interest suck your future sales proceeds back into CPF.

Sure it has nice rates but there is a reason why. It’s pretty much a pit that will draw on your real liquidity unless you are already close to retirement.