Qn from community: If you have already achieved Full Retirement Sum (FRS) in your Special Account (SA), you are unable to convert part of the funds in your Ordinary Account (OA) to SA.
Which option would you choose (to keep your cash safely)? Eg. To do a one-time lump sum contribution/purchase now.
- Voluntary contributions to your 3 CPF accounts
- Voluntary housing refund to OA account
- Buy SSBs or SGS Bonds and put it for 10 years
- Get 1 year bank FDs
- Hold it in cash and wait for higher yield opportunities in FD, Banks, SSB etc
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- OA: Can use OA for investments (if potential return above 2.5%) / pay off housing loan (reduce debt)
- Cash: Depends on financial goals and their progress (nearing achievement/still have gaps) - we need to allocate different pots of money for diff goals (housing, retirement) ready at different ages - depending which goal is more impt/time critical (need more time to compound)/most economical. But wouldn't hold in cash if emergency fund goal already met.
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Cryotosensei
01 Oct 2022
Blogger at diaperfinancingfund.blogspot.com
I maxed out my SRS this year and am now concentrating on (2). Because I don't know if my wife wants to sell our house to buy a better property in the future. I don't want to sell my current fund and get a sianz feeling, realising that all the proceeds will go into plugging my OA gap. So contributing to the housing refund as much as I can now lor haha
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You may also consider SRS option if you are looking at tax relief and using it for SSB placement for...
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