facebookShould I first (1) top-up my CPF SA, or (2) invest in ETFs, or (3) purchase a retirement income insurance? I am in my 40s and thinking of setting aside $200pm to start retirement planning.? - Seedly

Advertisement

Anonymous

28 Dec 2020

Retirement

Should I first (1) top-up my CPF SA, or (2) invest in ETFs, or (3) purchase a retirement income insurance? I am in my 40s and thinking of setting aside $200pm to start retirement planning.?

Discussion (2)

What are your thoughts?

OPINON

Below is the your target sum(CPF table). With 200 pm. will you able to achieve what your target with extra $50k in 15 year?

if No, are you able to increase your monthly contribution?

You may use cash to invest in ETF to achieve more than 4% return but have risk. Cpf is risk free.

just personal opinon, dont buy retirement insurance plan.

TIPS (in case you don't know)

when you near & before 55 you MUST invest your SA.

Because

  • you can only transfer OA to SA before 55

  • @55, RA account is created which is also 4% interest

  • RA will prioritise in moving your SA into the RA , then OA. Up to FRS

  • by moving your SA into investment, your SA is empty. RA will then take $$$ from your OA 2.5%

  • After the process is complete, you then sell your investment and get the $$$ back to your SA.

  • investment you can do with SA is low risk, low return. So make no sense if you invest early.

http://www.moneychimp.com/calculator/compound_i...

View 1 replies

Write your thoughts

Advertisement