CPF Investment

[capri87]

I understand that most advised to not invest in CPF unless I know what I'm doing or which stock to pick. But as I just found this fund that was recommended by the agent that it is one of the better performers, I wish to know what are you guys' say on this? Thanks

http://pruaccess.prudential.com.sg/prulinkfund/viewFundPricing.do

PruLink Singapore Managed Fund

Source: http://www.prudential.com.sg/export...resources/downloads/factsheets/PMAN_Jan15.pdf

 

[capri87]

It seriously depends. We don't know what the TS intends to do with the CPF, whether it is for retirement or to make small gains for buying a house in the future or he had already purchased a house or how much is his monthly contribution to his CPF.

If the TS already purchase a house and his monthly contribution to CPF is higher than the amount paid to HDB, isn't it better to transfer the OA to SA to gain 4% or 5% rather than let it be in OA to get 2.5% or 3.5%? This would enable TS to hit minimum sum faster.

CPF main intention is for retirement and not for you to purchase property. Just like insurance main intention is to cover you for unforseen circumstances and not make money for you.

So I am basing my assumption that the TS intend to grow his CPF for retirement and hence advocating the transfer. Even if he had not purchased a house yet and intends to do so in the future and assuming that he wanted to purchase a BTO, it would enable him to save up his OA while waiting for the BTO.

Sorry for the late reply as I was busy with some other stuffs. I'm 28 this year, so my intention of investing CPF is actually for the BTO purchase.

 

[djchris]

I just found this fund recommended by the agent that it is one of the better performers. Can help to verify whether worth investing? Thanks

http://pruaccess.prudential.com.sg/prulinkfund/viewFundPricing.do

PruLink Singapore Managed Fund

Source: http://www.prudential.com.sg/export...resources/downloads/factsheets/PMAN_Jan15.pdf

I used to own some units in this fund.

Now I have closed all my investment-linked policies.

 

[capri87]

I used to own some units in this fund.

Now I have closed all my investment-linked policies.

wah, this fund isn't performing like what it states? So now you just park your CPF in OA?

 

[anfielder]

I just found this fund recommended by the agent that it is one of the better performers. Can help to verify whether worth investing? Thanks

http://pruaccess.prudential.com.sg/prulinkfund/viewFundPricing.do

PruLink Singapore Managed Fund

Source: http://www.prudential.com.sg/export...resources/downloads/factsheets/PMAN_Jan15.pdf

Look at the top 10 holdings. Just seems like a bunch of STI stocks plus some bonds. Is it worth paying 5% in sales charge and 1.3% every year for something which can easily be replicated on your own using STI ETF and ABF Singapore bond index fund?

 

[capri87]

Look at the top 10 holdings. Just seems like a bunch of STI stocks plus some bonds. Is it worth paying 5% in sales charge and 1.3% every year for something which can easily be replicated on your own using STI ETF and ABF Singapore bond index fund?

Ya true. I just got to know about ETF and ABF too very recently from ShinyThing thread and Perisher. Still doing some more reading before opening account with SCB to purchase A35 & ES3 like what ST advocates.

 

[anfielder]

Does it include those savings plan as well?

I'm rather ambivalent to savings plans. I have a couple of them myself but I think it's still better to save and invest on your own.

 

[capri87]

I'm rather ambivalent to savings plans. I have a couple of them myself but I think it's still better to save and invest on your own.

Haha okay, thanks. I think for people who doesn't know how to invest, it is better for them to park their money in these savings plans than in the bank since these plans have a higher interest return?

 

[makeupconnect]

CPF OA 2.5% is pretty decent. You should invest your SRS instead.

 

[anfielder]

Haha okay, thanks. I think for people who doesn't know how to invest, it is better for them to park their money in these savings plans than in the bank since these plans have a higher interest return?

Ya, but on the other hand it's not difficult to invest leh... now that there's OCBC BCIP, POEMS sharebuilder and related plans.

 

[capri87]

Ya, but on the other hand it's not difficult to invest leh... now that there's OCBC BCIP, POEMS sharebuilder and related plans.

I'm not aware of this. I'll read up more on this. Thanks!

But what's the difference between buying blue chips via OCBC and buying blue chips yourself? Bank charges?

 

[Perisher]

I'm not aware of this. I'll read up more on this. Thanks!

But what's the difference between buying blue chips via OCBC and buying blue chips yourself? Bank charges?

If you buy yourself, the cost is lower. SCB doesn't charge a fixed minimum.
BCIP does. I suggest you go try SCB and find out for yourself. Actions can clear up your doubts better.

 

[makeupconnect]

CPF OA 2.5% is pretty decent. Plus theres additional 1% on the 1st $60k.

You should invest your SRS instead.

 

[silverwing]

Bring up this thread to ask a few questions.

Is it wise to sign up for the cpf investment plan before hdb wipe out my OA so that i will have a buffer fund in case i'm unable to finance my bto (i.e. jobless) and the buffer will tide me through?

Heard that it's flexible and i can pull out of the investment any time.

Thanks in advance.

 

[01asdf]

Bring up this thread to ask a few questions.

Is it wise to sign up for the cpf investment plan before hdb wipe out my OA so that i will have a buffer fund in case i'm unable to finance my bto (i.e. jobless) and the buffer will tide me through?

Heard that it's flexible and i can pull out of the investment any time.

Thanks in advance.

There's a couple of threads already about how to 'park' your OA so it's not wiped out. Offhand, i think dumping in SSBs would probably be the least risky.

 

[lzydata]

There's a couple of threads already about how to 'park' your OA so it's not wiped out. Offhand, i think dumping in SSBs would probably be the least risky.

Yeah this particular topic does come up here, although I could only find these two threads:

http://forums.hardwarezone.com.sg/m...-before-hdb-wipes-out-oa-balance-4723644.html
http://forums.hardwarezone.com.sg/m...pf-invest-leave-hdb-deduct-house-2650239.html

Unfortunately I don't think CPF funds are eligible for SSB. Perhaps silverwing can place the funds in a money market fund or bond fund that is eligible - less (but not zero) volatility and lower fees.

But also pls bear in mind the downside i.e. have to take a larger mortgage and a longer loan/pay more interest.