27 Feb 2020
Ming feng: asset allocation
There are good loans and bad loans.
Good loans are those that even a high interest savings account can potentially beat the interest rates (anything that is 2.6% and below). You should stretch your dollar to invest those monies (as long as you can afford the cashflow for 1 year).
Bad loans are those that is above 4% p.a. this is because, even CPF SA (risk free) cannot beat it. Unless you are able to beat the interest, it does not justify to take that risk.
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