Asked on 03 Aug 2020
After setting aside the $20,000 required, you can invest the remaining. You can choose a diversified portfolio and allocate your investments more in fixed income funds/money market funds and still have a portion on equities related funds for upside returns.
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You will need to first open a CPF Investment Account with DBS, OCBC, UOB.
The first $20,000 in your OA are not investable and you can invested the rest into SPDR Straits Times Index ETF (ES3.SI).
It is low risk compare to those individual shares and there are still risk involve due to the market sentiments (losing money in a short period of time).
Do note that this is not a recommendation to buy, please do your due diligence, you can read more in the link below regards to the STI ETF:
To be on the safest side, you can ask HDB to leave $20K in your CPF OA account and earn up to 5% interest on the first $60,000 of your combined CPF balances (OA+SA+MA). The rest into your HDB.
According to my financial advisor, some folks will put them in Money Market Fund. Maybe you can take a look into that.
You can consider investing in a managed fund example AIA Investeasy for your OA. Fund prices are relatively low now due to the economy. It is a good time to start investing at least for the next few years.
In my opinion, one of the possibilites you can do is leave 20k in your CPF-OA, and not wipe out the entire amount. That way you still can continue to accrue an acceptable interest rate in your OA account.
That being said, if you have substantial liquidity and OA funds, and would like to take the maximum possible loan and the lowest capital outlay possible, short term you can consider looking at SPDR Gold. It is a good hedge against the current outlook. YTD its generating around 24.7% ROI. Explore your options, but even if its short term, make sure you do your funds justice!
Hope i was able to address your queries!
*This does not constitute as investment advice, please do your own due diligence before making any investment decisions.