To successfully achieve this, you need to aggressively top up your CPF-SA as early as possible. Given that this is a unidirectional transfer, not many will be able to achieve the level of conviction required for such a move.
2. Low availability of Funds
As you are just starting out in your career (with student loans to pay, and upcoming family commitments), cashflow and finances are likely to be tight. It may be difficult to part with the money with these conflicting objectives
3. Other financial instruments that may give a better yield than 4% p.a.
Theoretically, there are a number of instruments that provide a better yield as compared to CPF-SA. For example, if you employ a DCA strategy in a home market index over a long period of time (i.e. 25 years), you could theoretically get returns up to 6% p.a. However, past performance is no guarantee of future results, so do your own due diligence ;)
Pros: It's similar to forced savings, so you won't be tempted to use it, you can't even if you would like to. And this will allow for compounding effect to be in full force.
Cons: Not liquid. Will have to use cash for housing loan or kids' education loan, which may not be plausible for household with single working parent
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