CPFIS for REITs

[dontsearchforme2010]

On using CPFIS for REITs, can anyone enlighten on why is it a bad idea to to do this when the rates are higher than CPF interests?


Am aware of the issues with rights issues and dilution of shares. If CPF account is well funded, would this be still a relevant concern?


Thanks in advance!

 

[tcwehcs]

Don’t think it’s a bad issue. Return is generally higher than CPF interest rate. Only risk is high brokerage fees and quarterly fees when you have too many counters.

 

[BBCWatcher]

I don’t think it’s a good idea to dabble in the CPF Investment Scheme (OA) unless and until your Special Account has reached the Full Retirement Sum and you still have many years (decades would be nice) ahead until retirement. OA dollars are transferrable to SA while you’re under age 55 and under the FRS.

I don’t think it’s a good idea to overweight any particular sector absent a compelling reason. Given that your own home, often funded with OA dollars, is also real estate, that counts.

I don’t think individual REITs make sense (if even allowed) given the CPFIS’s cost structure that effectively penalizes holding additional counters. One lowest cost index fund is most compatible with minimizing costs, and the typical ES3 or G3B (which contains a lot of real estate exposure already) works well in that role.

 

[limster]

ultimately you are stock-picking, whether it is REIT or non-REIT, CPF or non CPF. Some are able to beat the market, but many are unable to (and they start complaint thread asking why the govt never protect them from share losses).

My CPF investment portfolio has had no problems beating the CPF return, but there is no guarantee that another stock picker will have the same success.

 

[PostCountWarrior[+1]]

reits can sell off 40% or 50% in recession. if you can tahan that then by all means go ahead.

 

[walt113]

reits can sell off 40% or 50% in recession. if you can tahan that then by all means go ahead.

There you go... spot on.

Now would be a better time to buy.

If you are reading this in the far future, its 2020, year of COVID19. Google it.