I’ve migrated but my CPF has OA120k, SA40k, MA40k. What is the best way to maximise this through passive investment?

Hi Anon,

The first thing to point out is that you may want to check with your local tax consultant on the tax implication of your CPF account, as well as the implication of any capital gains/ income derived from CPF. This can be tricky because you have migrated to another country.

If you have migrated to the US/ are a US tax resident, then many Financial Institutions that facilitate CPF investing may not be able to serve you.

Endowus allows low-cost passive investing into CPF. We help our clients invest passively, and give a passive asset allocation by:

1. Allocating a fixed/passive mix of funds to form a globally diversified portfolio

2. Having exclusive access to the vanguard SP500 and global stock index fund

3. Allowing free rebalancing services, and help allocate new investment back to the fixed allocation.

Hope this answer helps!

Hi anon,

If you have no intention to use the OA monies then you have 2 options:

1. Move OA to SA to get 4% p.a. interest fuss free. However this is a one way transfer.

2. Invest OA to potentially get more than 4% returns, and then before 55 you can liquidate the investments and move it to SA. This assumes you have a long enough horizon for investing. You retain flexibility by ensuring that you still have OA monies for use (e.g. if you decide to return and buy a house here), but you sacrifice the guarantees of 2.5% p.a. in search of a higher return.

Either way, you should be able to get a decent pot for retirement. Let your RA be formed at 55 and then you can get payouts from CPF LIFE at 65.