Asked by Anonymous
Asked on 10 Jul 2019
I signed it on 2017 and was assured i would have my capital OA($55k) invested back with interest higher than it was placed in CPF.. I was worried it might not be true and might have troubles opting out in case i want to use my cpf for BTO
Top Contributor (Sep)
You will need to know what you invested in. Looking at your comment below, if it was indeed Unit Trusts, there is no guarantee of any form. Depending on which unit trust you invest in, returns can potentially be better than CPF OA's interest, but you are at the mercy of the market, and hence if you require the CPF monies for a milestone that is coming up in the short term (
11 Jul 2019
Short Answer: Bad! So take it out!
Why? OA earns you 2.5% guaranteed atleast. If you are earning more then that in your CPFIS, I would like to know and invest in that too. =X
It's not too late, take it out and leave in OA. If you're intending to invest your OA for a better retirement, then you should just have transferred some OA to your SA (But that takes some calculations)
Point is, just leave it in OA until the SG government reduces to 0% fee for CPFIS, which then might make CPFIS more attractive. https://www.businesstimes.com.sg/government-economy/government-to-remove-sales-charge-under-cpf-investment-scheme
It really depends from advisor if you invested the money with an insurance company or your own investment skillset.
If you had invested a lump sum of money in 2016 and cashed out by 2018 in China Funds, your returns would have been easily in the double digit.
Also, investments take time to mature in the long run
10 Jul 2019