Keeping a cash buffer sounds smart. I am thinking of this for next year's budget as well. So I will share my current position - the mortgage is paid for via cash / monthly giro deduction from my 360 account
Plan A) continue servicing in cash. My passive income and collections (from friends who I lent money to clear their credit card debt) should fully fund the mortgage unless one or more mishaps occur (eg dividend cut or that friend in financial issue again)
Plan B) my cpf OA has about 40+k, so if I need to activate it, I can apply to pay mortgage via my cpf, and this can fund the mortgage for probably 13-15 months.
Plan C) Got ssbs equal to 4 months of mortgage payment, and some money in my 360 as emergency funds. But I am keeping this for the bills and other living expenses if extended unemployment happens.
As my mortgage payment dropped from 3.5k to 2.8k (interest savings of 700 mthly = 8.4k for full year), I plan to use the savings to make quarterly payments of 3k back to OA to pay back money borrowed from CPF for the property ==> this will further beef up plan B as much as possible while I still have a job.
I think recovery may only come in 2022 so I would err on the Conservative side and prepare for long winter.
What I would suggest is to look at your cpf oa balance, find out the estimated monthly payment, and then work out how long the OA balance can pay for mortgage.
Each person has different tastes, but I would like to know that the next 18 months of mortgage payments are secured and not have to stress over it. Coz this storm might not be that short.
If you are up for more extreme advice, I would suggest you try to fund partial or in full the mortgage with cash (up to own financial capability). Paying mortgage fully with cpf means your interest cost is the going rate + 2.5% so your mortgage is actually costing you 3+% or more.
Most high yield savings account won't pay above 2% for now, so is it wiser to keep that money safer in OA as a backup reserve for servicing mortgage, or keep cash earning something 2% or less in the high yield account?
Keeping a cash buffer sounds smart. I am thinking of this for next year's budget as well. So I will share my current position - the mortgage is paid for via cash / monthly giro deduction from my 360 account
Plan A) continue servicing in cash. My passive income and collections (from friends who I lent money to clear their credit card debt) should fully fund the mortgage unless one or more mishaps occur (eg dividend cut or that friend in financial issue again)
Plan B) my cpf OA has about 40+k, so if I need to activate it, I can apply to pay mortgage via my cpf, and this can fund the mortgage for probably 13-15 months.
Plan C) Got ssbs equal to 4 months of mortgage payment, and some money in my 360 as emergency funds. But I am keeping this for the bills and other living expenses if extended unemployment happens.
As my mortgage payment dropped from 3.5k to 2.8k (interest savings of 700 mthly = 8.4k for full year), I plan to use the savings to make quarterly payments of 3k back to OA to pay back money borrowed from CPF for the property ==> this will further beef up plan B as much as possible while I still have a job.
I think recovery may only come in 2022 so I would err on the Conservative side and prepare for long winter.
What I would suggest is to look at your cpf oa balance, find out the estimated monthly payment, and then work out how long the OA balance can pay for mortgage.
Each person has different tastes, but I would like to know that the next 18 months of mortgage payments are secured and not have to stress over it. Coz this storm might not be that short.
If you are up for more extreme advice, I would suggest you try to fund partial or in full the mortgage with cash (up to own financial capability). Paying mortgage fully with cpf means your interest cost is the going rate + 2.5% so your mortgage is actually costing you 3+% or more.
Most high yield savings account won't pay above 2% for now, so is it wiser to keep that money safer in OA as a backup reserve for servicing mortgage, or keep cash earning something 2% or less in the high yield account?