Investing using CPF-SA

[adammax]

Hi guys,

Given the current market situation, i'm thinking of investing my SA account.
Is there any recommended funds or etf I can invest with SA? I understand there are limited choices but hope some Gurus can share further insight.

 

[tangent314]

Generally, it is not recommended to invest CPF SA which already gives very attractive interest rates. The risks that you are taking to get higher returns is not worth it.

If you really must invest, then you'll pretty much only have a choice between bond funds and balanced funds. Bond funds using CPF SA is a complete waste of time, so that leaves balanced funds.

 

[edmund77]

FS Bridge is the only fund I've invested using SA. Avg 6-10% pa. but marketing timing is important and you can't buy and hold. IMHO, now is a good time

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[OngHuatHuat]

FS Bridge is the only fund I've invested using SA. Avg 6-10% pa. but marketing timing is important and you can't buy and hold. IMHO, now is a good time

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You can buy and hold definitely, but this unit trust drop a lot recently too.



Waiting for correct time to enter.


Do we need to submit application to invest funds in SA?

 

[BBCWatcher]

Do we need to submit application to invest funds in SA?

No. There's no requirement for a CPF Investment Account or CDP account when you want to invest CPF Special Account funds. You just work with the investment provider or broker directly. Typically you'll want to work with dollarDEX, FSMOne, or POEMS if you do this.

I agree with Tangent314 that you shouldn't do this, except for Special Account "shielding" and not with this particular unit trust. It's most odd to me that somebody cannot find a place of pride in his/her portfolio for what is effectively a long-term Singapore government bond paying >4% nominal interest. Use cash or at least OA funds if you want to buy a high management fee unit trust.

 

[d9_lives]

Ts, I won't do it.
SA is for my retirement, I won't **** it up just for some % more.

 

[Thoreldan]

Ts, I won't do it.
SA is for my retirement, I won't **** it up just for some % more.

X999 support this
Imagine at 55 yrs old,another black swan event happens and your cpf-sa investment drops 25-30%. Are you able to sleep at night ?

 

[adammax]

Thanks guys for the opinion. I did some transfers of OA to SA. I thought it’s a good chance to enter the market given the situation. It would probably be the amount I transferred from OA or less

 

[jack-320]

If you can stomach the risk then ok

However I do not recommend doing it

You might consider investing via cash aka war chest instead and leave your CPF untouched

Just my thought

 

[celtosaxon]

If you can stomach the risk then ok

However I do not recommend doing it

You might consider investing via cash aka war chest instead and leave your CPF untouched

Just my thought

It is a great thought and everyone should take heed. It is not smart to give up 4% guaranteed return, especially in the low interest rate environment we are in. Everyone needs a safety component in their portfolio it’s hard to beat SA for that.

If you don’t have cash savings to invest in the market, you should do some serious reflection on your savings & investment strategy. If you do have sizable investments outside CPF and just want to average down, be patient and stick with your plan.

 

[1scape]

can SA be use to buy sti etf?

 

[edmund77]

It is a great thought and everyone should take heed. It is not smart to give up 4% guaranteed return, especially in the low interest rate environment we are in. Everyone needs a safety component in their portfolio it’s hard to beat SA for that.

If you don’t have cash savings to invest in the market, you should do some serious reflection on your savings & investment strategy. If you do have sizable investments outside CPF and just want to average down, be patient and stick with your plan.

Can easily beat the 4% p.a guaranteed return if you put in some effort. Only question is how much that effort is worth. If you are required to spend just an extra hour a month to get an extra 2% p.a., will you do it? How about if you are required to spend 20 hours a month to get that extra return?

For those with 0 or little investment knowledge, it would be, of course, prudent to just leave it in the SA.

In times like this, along with low interest environment I even utilise my credit facilities at less than 2% p.a. to generate very conservative returns of 4-5% p.a.

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[JuniorLion]

Can easily beat the 4% p.a guaranteed return if you put in some effort. Only question is how much that effort is worth. If you are required to spend just an extra hour a month to get an extra 2% p.a., will you do it? How about if you are required to spend 20 hours a month to get that extra return?

For those with 0 or little investment knowledge, it would be, of course, prudent to just leave it in the SA.

In times like this, along with low interest environment I even utilise my credit facilities at less than 2% p.a. to generate very conservative returns of 4-5% p.a.

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You can try to be smart and "time" the market as you said. But funds are forward-price and you can't exactly time. But I guess since you're a genius, it's no issue for you at all.

 

[HMAN]

Use the SA account to buy DBS and UOB.

these 2 have high capital gain potential with reference to 30-40% off their previous peak value.

The average dividend is slightly more than 4%.

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[Thoreldan]

Use the SA account to buy DBS and UOB.

these 2 have high capital gain potential with reference to 30-40% off their previous peak value.

The average dividend is slightly more than 4%.

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Since when are you able to buy individual stocks with sa ??

 

[Thoreldan]

can SA be use to buy sti etf?

U cant use sa to buy etf

https://www.cpf.gov.sg/Assets/members/Documents/CPFISInvestmentProducts.pdf

 

[Redfield]

How to use sa to buy funds

 

[spickyboy]

4% SA is risk free at this moment for the current policy of the Singapore govt

If you are taking out to invest in other forms, it’s a 50 / 50

Based on past few years returns, which made money for you using SA $