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.
CPF money, to me is extremely illiquid. no matter how urgent, or how big an opportunity you may get,...
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