facebookI am getting my house in 2 years time. Do you recommend if I throw my OA into SA and pay off my monthly mortgage using the OA I got every month from my pay? Should I leave some OA in case I lose my job? - Seedly

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Ivon

Ivon

Level 2

08 Jun 2021

Property

I am getting my house in 2 years time. Do you recommend if I throw my OA into SA and pay off my monthly mortgage using the OA I got every month from my pay? Should I leave some OA in case I lose my job?

I am getting my house in 2yrs time. Do you recommend if i throw my OA into SA and pay off my monthly mortgage using the OA i got every month from my pay? Should i leave some OA in case i lost my job.

SeedlyTV S2E08

Discussion (8)

What are your thoughts?

Ng Wei En

Ng Wei En

11 Jun 2020

Level 8·Analyst at Mastercard

Should definitely leave some OA as buffer in case you get retrenched or become unable to work due to unforeseen circumstances. You could be looking at 6, 9 or 12 months of monthly mortage depending on the margin of safety you desire.

Cedric Jamie Soh

Cedric Jamie Soh

11 Jun 2020

Level 12·Director at Seniorcare.com.sg

CPF money, to me is extremely illiquid. no matter how urgent, or how big an opportunity you may get, you cannot get CPF money out. Even when you retire, CPF money is only released via monthly payment.

CPF-OA = at least this can be used for your property needs and property investment.

CPF-SA = nothing you can do except to wait till retirement.

Unless you are so adverse to investment, to the tons of easy, simple ETF, robo advisors, bonds fund, even simple stuff that can easily hit 4% yearly, and MOST importantly, allow your funds to be used in any urgent emergencies (and even non emergencies, just your own preferences)....

Money is not money if it cannot be used.

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Most have suggested 12 mths. I think I only want to add that the buffer period is dependent on how f...

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