Discussion Forum Forums CPF How To Make The Most Of Your CPF

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    The majority of us in Singapore uses the money in their CPF accounts to pay for their HDB flats or other properties. There’s nothing wrong with that.

    However, If you do not know, under the CPF Investment Scheme, you could actually invest the money in your CPF in shares, bonds and collective investments such as unit trusts to make it work harder for you.

    Who is eligible for the CPF Investment Scheme?
    You have to be at least 18 years old, are not an undischarged bankrupt and have at least $20,000 in your Ordinary Account and $40,000 in your Special Account.

    Note: Only monies in excess of $20,000 in your Ordinary Account and $40,000 in your Special Account can be invested and you would need to open a account first before you can start investing with the money in your CPF.

    How can i start investing with my CPF savings via CPFIS?
    Firstly, If you are using your OA, you have to open a CPF Investment Account at any one of the three CPFIS agent banks in Singapore. They are DBS, OCBC, and UOB. But if you use the funds in your Special Account then you won’t need to open any account.

    In general, it doesn’t matter much which bank you open your Investment Account with, since the charges and fees are more or less the same.

    Why you should invest with your CPF?

    To try to beat the 2.5% offered by CPF through investing in blue chip stocks that pays more than 5% dividends.

    Below is the list of blue chip company that pays close to 5% dividends

    Captured on 29 May 2016

    What are the things you should note

    If you are planning to invest the money in your CPF, You’d want your investments to at least earn more than the risk-free interest rates of 2.5% and 4% offered by the CPF Ordinary Account and Special Account. If not it actually makes no sense to invest with the money.

     

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