As a self-employed person, CPF was never a very attractive savings plan for me. Are there any tips you have for the self-employed going for the 4M65 plan?

If you would like control over your money and to protect yourself against liquidity uncertainty, you will have to design a portfolio that will generate 4% after fees. This can be done via Roboadvisor platforms. While non-guaranteed, that is the price you have to pay for liquidity.

You can design it with some level of protection using annuities as well.

Make sure you set aside liquid cash for future mortgage loans, as unlike an employee, you would be paying your mortgage in cash.

Hi anon,

As a self employed, I can understand how you feel about this. After all, we keep every cent we earn, and most people would not willingly lock their money up in CPF after seeing their salary come in.

However, the CPF is about delayed gratification. Even if you don't go for 4M65, 1M65 is a very decent goal to work towards. It doesn't matter if you are a freelancer or someone with a full time job with CPF contributions. By putting money into CPF, you're already going to get tax exmptions and a reasonable, safe and guaranteed rate of return. You can always put in an amount you are comfortable with, without having to hit the annual limit. The most important thing is to start.

Once you have amassed a sizeable amount in OA, you can start to invest to play catch up. You will want to leave SA alone, that is your last line of defense for retirement and there really isn't anything out there that gives 4% guaranteed anyway. Although I don't know your age, but you can always start now, as every year that ticks away is a year lost and can't be gotten back.