How do I start using my CPF to invest?

Hi there! I will just add on to what Randall has already shared :) Firstly it is important to know what CPF is for and why you need to find a way to protect this nest egg of yours.

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I would recommend you not to touch it as it already will be giving you 2.5% per annum interest just by sitting in your CPF OA (ordinary account)

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You'll be able to touch this money when you need it later for these purposes - Property, Education, etc. The 2.5% is risk free and thus highly recommended to let it compound while you study.

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This is detailed in the article as Strategy 3, where you keep your OA and SA Seperate. This is the default strategy that any working adult would adopt. The allocation for the SA vs OA will change over the years as you reach retirement age.

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Pros:

• By keeping the OA and SA separate, it gives you the flexibility of both Cash and the OA funds for other opportunities
• Argued by a Business Times Contributor, he felt that by letting the OA build over time with 2.5% it gives you the opportunity to pounce on the property market

Cons:

• This is by betting big on the property market in Singapore and believing in the appreciation of property being more than 4% p.a
• Also by betting on the SG government to not change any of the various property cooling measures which will make the property market less attractive for rent or appreciation.

You can find out about this in this detailed article here: https://blog.seedly.sg/should-you-transfer-cpf-...

You can only invest the excess of the first 20000 in your OA and 40000 in your SA.

Eg. 22000 in OA can only invest 2000.

So build to that amount first. :)

For beginners it is safer to Invest in ETF using CPF or Cash. CPF approved investments have limited selections though.

The minimum amount required on your CPF account would be, as stated above, are $20,000 in your OA and/or $40,000 in your Special Account.

You will need to open a CPF Investment Account with POSB, OCBC, or UOB too.

Do read this article that covers more complete details on investing with CPF money. https://www.drwealth.com/cpf-investment/

Hello!

In order to use your cpf to invest you will need to open either a

CPFIS-OA (Ordinary Account) or a CPFIS-SA (Special Account)

A CPFIS-OA will require you to open a CPF Investment Account with DBS, OCBC or UOB

while the CPFIS-SA does not require you to open an account, you will just need to approach the investment product provider directly.

However, as many people mentioned there are minimum amounts to adhere to in order to be able to invest, $20,000 in OA and $40,0000 in SA. Here is a brief overview of the various investments that is you can invest in with your cpf!