Help needed on CPF contribution for Self-employed?

Hi everyone, I am currently self-employed earning a decent amount of money. I am 27 this year.

Currently, in my CPF I have
OA: less than $1
SA: less than $1
Medisave: 2k+

Should I contribute my CPF at this point, as I can only see the money at 65 and with the ever-increasing of Minimum Sum, is that wise to do so? I am contributing to my Medisave though.

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Loh Tat Tian

16 Sep 2019

Founder at PolicyWoke (We Buy Insurance Policies)

No matter what you do, CPF is here to stay. What you are facing will be

(1) Political Risk of Change to CPF rules vs

(2) Having enough money

Being a Self-employed means your Voluntary Contributions can enjoy tax savings. I would start doing when I hit the 11.5% tax bracket to lower it to the 7% tax bracket.

It is wise to do it if you feel your investment cannot hit 5% (since first $60,000 in SA and MA earns 5% interest), and you wish to have some funds to buy housing, (while also wants some accrued interest so that you can contribute later to OA for 55 years SA Shielding).

I would treat SA as a bond portfolio that can mature in 55 years if you contribute enough to hit Full Retirement Sum (FRS).

Do remember to report your income from P2P lending as they are taxable income.

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Low Wen Bin

14 Sep 2019

I am doing my own investments such as Robo-advisors, peer to peer lending and stocks investing. I am also having spare cash in my multiplier account to have higher interest (40% of my total assets).

Please help me as I am very confused by all the information and I am afraid that when I contribute to CPF I will no longer see the money. Thank you in advance!

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