Investing with CPFIS-SA

[chienwei]

i have tried investing in unit trusts a few years ago using SA funds but made a small loss.

looking at a time horizon of 30 years.
any other instruments to invest your SA in?

How is your experience with investing with SA?

 

[BBCWatcher]

i have tried investing in unit trusts a few years ago using SA funds but made a small loss.

looking at a time horizon of 30 years.
any other instruments to invest your SA in?

How is your experience with investing with SA?

No way; don't do it.

Your Special Account dollars that you could use in the CPF Investment Scheme earn 4% interest. The list of CPF Investment Scheme (SA) choices is very, very limited, and all the choices are specifically designed to be fairly or very conservative. Net of costs, CPFIS-SA is most unlikely to beat the simple 4% interest that your SA dollars earn. Unless conditions significantly change, you should avoid the CPFIS-SA entirely.

The CPF Investment Scheme (SA) is genuinely, briefly useful in one role: "SA shielding."

 

[s0crates]

There is nothing good... Unless we lobby to have better investment options on CPF SA?

i have tried investing in unit trusts a few years ago using SA funds but made a small loss.

looking at a time horizon of 30 years.
any other instruments to invest your SA in?

How is your experience with investing with SA?

 

[chienwei]

i use OA funds on endowus, and i think if i can use SA funds i would too.

but the options available for SA are few and not good

 

[limster]

I used a little bit of my CPF-SA briefly to buy First State Bridge after I ran out of CPF-OA funds. But I exited and took profit very quickly once the market recovered.

If I didn't sell and left it to grow, it would have outperformed the 4% benchmark.

 

[BBCWatcher]

I used a little bit of my CPF-SA briefly to buy First State Bridge after I ran out of CPF-OA funds. But I exited and took profit very quickly once the market recovered.

If I didn't sell and left it to grow, it would have outperformed the 4% benchmark.

Fair point, but that's a very lucky outcome, and (as they say) "past performance is not indicative of future results." But I still wouldn't do it, especially for what they're charging. You should have so many other assets to deploy first, ahead of your wonderful 4+% interest earning Special Account dollars, to go chase yield and in lower cost ways. I have absolutely no problem finding a place of honor for 4+% SA as a major, fabulous part of the bond leg of my overall portfolio. I'm thrilled to take that deal, really, in its appropriate measure. (And for me the interest is U.S. taxable at my ordinary marginal income tax rate.)

 

[chienwei]

maybe when the next time market corrects/crashes, i can use my SA to buy

 

[limster]

maybe when the next time market corrects/crashes, i can use my SA to buy

of course you use up your OA first before touching SA right?

 

[BBCWatcher]

of course you use up your OA first before touching SA right?

Your logic is flawless. If you're going to chase yield, chase it with your least productive dollars first, other things being equal. OA dollars earn 2.5% interest, and SA dollars earn 4%. OA wins the CPFIS race.

 

[chienwei]

my OA used all that can be used already. left 20k cannot use.

all cash used up left the short term funds 20k.

 

[BBCWatcher]

my OA used all that can be used already. left 20k cannot use.

all cash used up left the short term funds 20k.

OK, and surely you can find a place of pride within your overall portfolio for a 4% interest earning bond-like vehicle (your traditional Special Account), right?

 

[Han Shot First]

Looked at the unit trusts available for investment using CPFIS SA. Only fixed income and balanced funds. Absolutely no equity funds. Therefore, almost guaranteed an investor would not be able to get a return better than 4% p.a.

So it seems the PAP government does not want us to invest our SA monies. So that it can invest the monies itself.

On Sep 13, 2016, Deputy Prime Minister Tharman Shanmugaratnam said CPFIS is "not fit for purpose". Seems like that is intentional because the CPFIS has no major improvements (in my opinion) since then. The CPFIS SA is "just for show".

 

[chienwei]

OK, and surely you can find a place of pride within your overall portfolio for a 4% interest earning bond-like vehicle (your traditional Special Account), right?

i see it as fixed deposit, not bond.
4% is honestly good, but i want to try using small part of it to get better returns.

 

[chienwei]

Looked at the unit trusts available for investment using CPFIS SA. Only fixed income and balanced funds. Absolutely no equity funds. Therefore, almost guaranteed an investor would not be able to get a return better than 4% p.a.

So it seems the PAP government does not want us to invest our SA monies. So that it can invest the monies itself.

On Sep 13, 2016, Deputy Prime Minister Tharman Shanmugaratnam said CPFIS is "not fit for purpose". Seems like that is intentional because the CPFIS has no major improvements (in my opinion) since then. The CPFIS SA is "just for show".

ok. i understand what u mean. unless the rules are changed, very little we can do about SA now.