Anonymous

17 May 2020

∙

General Investing

When diversifying my portfolio, should I consider my CPF SA as part of the weight, or should I only take my investible amount as the base (i.e. 100%)?

Asking because I initially pumped everything into SA and have since hit the target (202k currently). My total stock $ is $162K, so this will affect my diversification / stock picks if I were to treat CPF Separately vs treating it as a bond. Any thoughts?

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Hariz Arthur Maloy

17 May 2020

Independent Financial Advisor at Promiseland Independent

Hi Anon I wouldn't. Mainly because you don't control it. And in portfolio terms, you can't rebalance it or move money in that pot around freely.

So treat CPF as CPF and your cash investments as your main core portfolio. Even though it's popular to use it as a "bond" replacement/substitute, it really isn't one. It's social security, a form of income source, but not an asset class.

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I constantly hear about the importance of diversifying your portfolio when it comes to investment. What would be considered a diversified portfolio?

If my CPF SA account is already at FRS ($181k), can i deploy or invest some money from SA account so that the SA sum is below FRS amount and then top up $7k cash to qualify for tax exemption?

Is it wise to include cpf as part of my portfolio? I am 30 and I have 51% in stocks, 40% in cpf (oa, sa, ma) and 9% cash. ?

If I buy a resale HDB before selling and take a 2nd HDB loan, between the refund to CPF and HDB wipe out of OA, can I transfer part of the OA to SA? Or must all refunded CPF go to the new HDB loan?

Is it fair for my employer to pay managers the same amount, one being on EP, BUT tops up CPF for the local and consider it as not part of the paydeal??