Should I invest my CPF OA and where should I invest it at?

Hi anon,

I'd advise against it. If you need your CPF OA within the next 3 years, it might just be better to leave it in CPF OA as you might suffer losses in the market. If you have a 5 year horizon, you can look at investing it, but even then I would only take a portion of it to invest. CPF OA is risk free and protected from the movements of the market. We often chase higher returns, but forget about the potential downside.

Don't underestimate the power of 2.5% compounding over 5 years, in addition to your contributions from work. If your BTO downpayment was affected due to insufficient OA, you would have more problems on your hands.

You should at least leave 20k in OA for 3.5% interest. (2.5% base + 1% extra interest)

For the rest, you can read up on Endowus robo-advisor. It is in my KIV list once my OA is at substantial amount. I believe it is one of the most 'effortless' way you can invest with your CPF.

Do take note that you will be needing the money in few years time and taper down the risk slowly.