there's 2 schs of thoughts. the conservative ones based it on salary, the other camp is using 6-9 months of monthly expenses + any upcoming big purchases (reno, insurance annual premium, etc)
Emergency funds can be defined as how much you need in ready cash in case u need it immediately. It can be expenses/bills for the family in the event eg u lose your job.
I like to take yearly gross salary as a guide. In case I decide to yolo and not want to work, I can tahan for a year lol.
I dont think it has to be in bank. But it should be kept such that u can easily retrieve.
No right no wrong on this. For me, I also like the thrill of seeing the interest rate credit every month from those high yielding bank accounts.
Bto flat will be ready mid-2022
Hi all. Details about me...
Cash-poor: ran into debts before hence my cash on-hand is very little.
Any suggestions on what should I do or how should I grow my wealth?
I know nothing about stocks/shares/ investing.
Welcome all advises.
true!!!! very!!!!!!!!!!!!!!!!!!!
see the difffce 1st
| You can invest using your CPF savings from- | OA | Sa |
|---|---|---|
| Investment products included under CPFIS | ||
| Unit Trusts (UTs) | Yes | Yes Higher risk UTs are not included |
| Investment-linked insurance products (ILPs) | Yes | Yes Higher risk UTs are not included |
| Annuities | Yes | Yes |
| Endowment policies | Yes | Yes |
| Singapore Government Bonds (SGBs) | Yes | Yes |
| Treasury Bills (T-bills) | Yes | Yes |
| Exchange Traded Funds (ETFs) | Yes | No products currently available Higher risk ETFs are not included |
| Fund Management Accounts | Yes | No |
| Fixed Deposits (FDs) | No products currently available | |
| Statutory Board Bonds | No products currently available | |
| Bonds Guaranteed by Singapore Government | No products currently available | |
| Up to 35% of investible savings (PDF, 0.1MB) can be invested in: | ||
| Shares | Yes | No |
| Property Funds | Yes | No |
| Corporate Bonds | Yes | No |
| Up to 10% of investible savings (PDF, 0.1MB) can be invested in: | ||
| Gold ETFs | Yes | No |
| Other Gold products (such as Gold certificates, Gold savings accounts, Physical Gold) | Yes | No |
What capital gain? Not historically, or at least that's very unclear. The Straits Times Index hit its peak of 3,906.16 in October, 2007 -- over 14 years ago. The STI is currently (as I write this) a little over 20% below its all-time peak to date. You also have CPFIS (OA)-related costs to drag along, and they're fairly considerable.I can exceed the 4% benchmark by simply collecting 3%+ dividends from STI ETF every year and enjoying capital gain.
2020 is a good year for CPFIS investors.To quote a line from a movie "A man's got to know his limitations"
There are those who know how to make money from stocks, and those that don't. The latter should definitely just leave CPF alone to earn interest.
Of course in reality that doesn't happen and there will always be a significant number of investors who lose money in the stock market (though I am also full of respect for the 59% of CPFIS investors who made money in a bad year like 2020!)
In order for me to be able to buy STI ETF when it is undervalued, I need someone willing to buy STI ETF when it is overvalued and sell to me when its undervalued
good idea!Too play safe, go for long term with dividend income.
The problem with CPF investment is dividend also go back CPF not as cash you can withdraw all and spend. So alot of CPF funds say dividend is reinvested but if cash is paid out.2020 is a good year for CPFIS investors.
2021 not so good year for CPFIS investors.
Too play safe, go for long term with dividend income.
