(Investing) CPF monies

[Sg_Stone]

Hi all, what are the various channels of investment that you all apply for CPF monies?

I see that CPF monies can be invested in FDs, however is the prevailing rate for FDs using CPF monies same as cash? If so, why would one invest in FDs?

Thank you all in advance for constructive feedbacks.

 

[starfish.starfish]

Hi all, what are the various channels of investment that you all apply for CPF monies?

I see that CPF monies can be invested in FDs, however is the prevailing rate for FDs using CPF monies same as cash? If so, why would one invest in FDs?

Thank you all in advance for constructive feedbacks.

I don't see any reason why someone will take a 2.5% interest amount to get a <2% interest FD.

 

[Sg_Stone]

I don't see any reason why someone will take a 2.5% interest amount to get a <2% interest FD.

Hi there, precisely thats when i'm puzzled when i thought about it. Anyway you tried investing your CPF monies?

 

[haydentan]

They probably do so while they r getting HLE to prevent them from wiping up the cpf oa. After the purchase of the flat, they put the money back into OA for contingency plan.

 

[Perisher]

Hi there, precisely thats when i'm puzzled when i thought about it. Anyway you tried investing your CPF monies?

I haven't tried but I'm planning to buy when any financial crisis hits. I have already set up my trading account with OCBC for CPF OA investment.

It works the same as the usual trading, just using a different account to fund the purchase. There are some other extra charges though I can't recall now.

 

[edwinttt1978]

They probably do so while they r getting HLE to prevent them from wiping up the cpf oa. After the purchase of the flat, they put the money back into OA for contingency plan.

This tactic/loophole works well. Transferring all OA to SA also works but such point of no return is not for the faint-hearted.

 

[edwinttt1978]

I haven't tried but I'm planning to buy when any financial crisis hits. I have already set up my trading account with OCBC for CPF OA investment.

It works the same as the usual trading, just using a different account to fund the purchase. There are some other extra charges though I can't recall now.

The other charges are:
Max $26.75 fee/trade (on top of usual brokerage charge); and
$2.14/counter/quarter.

 

[Bedokian]

For me at the moment I am concentrating my OA purely for the payment of my property and let the SA roll with the 4%/5% interest.

I had done investments before with my OA and SA but now no more. I had originally intended to relook my CPF for investments again after I have fully paid up my property, but after some readings and analysis, I think I may be better off in opening an SRS account and invest the amount there instead.

 

[haydentan]

This tactic/loophole works well. Transferring all OA to SA also works but such point of no return is not for the faint-hearted.

Once the amount is transferred from OA to SA, it is irreversible. If there is nothing left in OA to service the loan and when the lender is outta job, he/she will have to fork out hard cash to pay the monthly installments. Will the flat be forced sell if a hdb loan cannot be serviced? So what if you have tons in SA. Can see but cannot touch till old age. Transfer OA to SA if and only the property is fully paid and you have the full capabilities to support your kids' tertiary fees.

 

[shareholder]

As a shareholder, recommend investing in shares for the cpf oa. First 20k cannot be invested if sa less than 40k, but the rest can be invested in sti etf or 35% of oa can be invested in approved shares.

 

[henrylbh]

CNBC - it paid to be Singaporeans in 2015.

http://www.cnbc.com/2015/12/30/sing...beat-markets-in-2015-with-steady-returns.html

 

[lb95010]

Does the dividend or gain will reduce the accrued interest since it reduce our OA withdrawal?