How and where can I put my CPF's OA to some investment (super low risk type) so that HDB would not wipe out most of my OA when I buy BTO? I just wish to park the OA somewhere for a short period and put the money back soon after. Any advice please? - Seedly
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Joseph Lim

Asked on 03 Aug 2020

How and where can I put my CPF's OA to some investment (super low risk type) so that HDB would not wipe out most of my OA when I buy BTO? I just wish to park the OA somewhere for a short period and put the money back soon after. Any advice please?

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Hey there!

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.

Financial planning is an integral part of life. You can reach me here to find out more.

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Vincent Peh
Vincent Peh
Level 3. Wonderkid
Answered on 11 Aug 2020

Hi Joseph

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:

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3

or

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.​​​

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VC
Vincent Choo
Level 2. Rookie
Answered 2w ago

Unfortunately, you can't put the first 20K away.

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Sharon
Sharon, Corporate Communications at A Public Listed Company
Level 7. Grand Master
Answered on 04 Aug 2020

According to my financial advisor, some folks will put them in Money Market Fund. Maybe you can take a look into that.

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Patricia Law
Patricia Law, Financial Services Consultant at AIA
Level 4. Prodigy
Answered on 04 Aug 2020

Hi Joseph,

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.

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Hi Joseph,

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.

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