CPF Investment

[blurpandasg2014]

Will it be advisable to invest cpf into unit trust for couples that is gg to get a hse? Take loan frm hdb and use the returns for the investment to pay the interest

Have been contemplating to do it... However buying stocks is expensive cos of the bank charges: besides I cant afford so many lots with the 30% cap

Any suggestions?

 

[stoneblackdragon]

depends on how much risk you are going to take.
I am aiming to BTO soon, going for balloting.

One way is to shift some of the OA fund out first, e.g. 20-30k.

Buy something SAFE like singapore bond fund. then once HDB deduct all, transfer it back in.

It is earning 3.5% interest in the CPF OA, already beat HDB loan of 2.6%. then every month come in fresh $800 into the OA can be pay HDB loan,maybe adjust to $700 paying the loan, so the OA can grow abit and continue gaining interest ... this also makes it safe, in the unfortunate event of losing job or what, OA still have 30k to deduct for housing (maybe 1-2 years payment)

Does that make sense?


If you feel garang then transfer and buy some higher risk funds lor, or sti-etf hehe

 

[blurpandasg2014]

depends on how much risk you are going to take.
I am aiming to BTO soon, going for balloting.

One way is to shift some of the OA fund out first, e.g. 20-30k.

Buy something SAFE like singapore bond fund. then once HDB deduct all, transfer it back in.

It is earning 3.5% interest in the CPF OA, already beat HDB loan of 2.6%. then every month come in fresh $800 into the OA can be pay HDB loan,maybe adjust to $700 paying the loan, so the OA can grow abit and continue gaining interest ... this also makes it safe, in the unfortunate event of losing job or what, OA still have 30k to deduct for housing (maybe 1-2 years payment)

Does that make sense?


If you feel garang then transfer and buy some higher risk funds lor, or sti-etf hehe

If i want to buy sti-etf, must i take the "exam" in order to buy? also, it seems like there is additional charges for cpfis acc

 

[stoneblackdragon]

opps, i haven't done it yet so I cannot advice you.
Sure you can look it up!

Cause my plan is just to transfer out, park for a while, and transfer back into the OA to earn 3.5% and to serve as a emergency housing fund.

Thus, even if i cannot transfer to the a35 bond fund, which i already am buying. I may just transfer to fundsupermart risk rating 1 bonds (e.g. lionglobal sg bonds) or something slimilar or money market funds for a few months and transfer back. maybe lose $20 in the process or what. but for a peace of mind