facebookI'm a fresh grad and just started my first full-time job. I am planning to do a $5k(from my savings) voluntary contribution to my CPF account. Is this the best way to use the 5k? - Seedly
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Anonymous

12 May 2021

I'm a fresh grad and just started my first full-time job. I am planning to do a $5k(from my savings) voluntary contribution to my CPF account. Is this the best way to use the 5k?

It's an unpopular opinion/decision. Any advice or 'better' ways to use that $5k?

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    Discussion (9)

    What are your thoughts?

    Arpita Mukherjee

    Arpita Mukherjee

    14 Nov 2019

    Level 8·Community Evangelist at Kristal.AI

    Hi Anon,

    Although a CPF account is not a bad idea, there are other safe ways to invest your money and have it grow. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.

    You can read here for a better understanding.

    I work at kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.

    I hope this helps you make the right decision.

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      Kenneth Lou

      Kenneth Lou

      06 Dec 2018

      Level 14·Co-founder at Seedly

      Interesting that you are planning to do that, in fact you can read this article I wrote about. The pros and cons are highlighted below.

      Essentially this act of topping up the SA account is about your retirement funds compounding at a faster rate of 4%+ risk-free rate.

      By doing this action:

      • It locks up your money with the CPF Special Account till age 55
      • You are unable to use this money for property, education or CPF approved investments
      • You cannot reverse this action and take out the funds

      If you plan to withdraw it in the next 10 years, maybe a SSB at around 2.4% would work better? no fees to withdraw also.

      https://blog.seedly.sg/should-you-transfer-cpf-...

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        Oh ChengKok

        Oh ChengKok

        12 May 2021

        Level 4·Financial Services Consultant at AIA Singapore

        Congrats for your full-time role! I understand that you have a $5K saving and intending to put it in...

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