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.
First of all, if my wife and i were still young couples, we would allocate enough for a down payment for their BTO flats. Subsequently, we would cater enough for about 6-9 months of mortgage payment in the event of a "stormy day". Lastly, I would transfer all the rest to be transferred/invested into the CPF SA for myself.
Most have suggested 12 mths. I think I only want to add that the buffer period is dependent on how fast you can get a similar paying job when retrenched.
Personally I have 18 mths, and hope to increase my own buffer to about 24 mths, as I think the recession will take place for a good 2 to 3 years, and it would probably take me a while (perhaps more than 1 year) to find a job if I am next on the chopping board.
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.