I’ve migrated but my CPF has OA120k, SA40k, MA40k. What is the best way to maximise this through passive investment? - Seedly
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Anonymous

Asked 1w ago

I’ve migrated but my CPF has OA120k, SA40k, MA40k. What is the best way to maximise this through passive investment?

I’ve no plans to return as of now and hope to not have to top up from my own pocket before 55 to meet any minimum sum. Just want to grow this pot separately for retirement.

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    Hi anon,

    If you have no intention to use the OA monies then you have 2 options:

    1. Move OA to SA to get 4% p.a. interest fuss free. However this is a one way transfer.

    2. Invest OA to potentially get more than 4% returns, and then before 55 you can liquidate the investments and move it to SA. This assumes you have a long enough horizon for investing. You retain flexibility by ensuring that you still have OA monies for use (e.g. if you decide to return and buy a house here), but you sacrifice the guarantees of 2.5% p.a. in search of a higher return.

    Either way, you should be able to get a decent pot for retirement. Let your RA be formed at 55 and then you can get payouts from CPF LIFE at 65.

    2

    Question Poster

    1w ago

    Hi Elijah, thanks for responding! I was also thinking along this chain of thought. Was thinking of using Endowus with my OA though I’m new to that and am also wondering why many people seem to mention they only invest 10k in that, are there any extra costs associated with putting more in that, or is it just for diversification?
    Elijah Lee
    Elijah Lee

    4d ago

    Hi QP, I don't use Endowus myself actually, since I am aware of what and how I wish to invest. Personally I just do UTs with my CPF and have been satisfied with the growth. I've personally invested >$80K from CPF into funds and had decent returns which I then liquidated to put my downpayment on my HDB.
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post
    Endowus

    Endowus

    Answered 6d ago

    Hi Anon,

    The first thing to point out is that you may want to check with your local tax consultant on the tax implication of your CPF account, as well as the implication of any capital gains/ income derived from CPF. This can be tricky because you have migrated to another country.

    If you have migrated to the US/ are a US tax resident, then many Financial Institutions that facilitate CPF investing may not be able to serve you.

    Endowus allows low-cost passive investing into CPF. We help our clients invest passively, and give a passive asset allocation by:

    1. Allocating a fixed/passive mix of funds to form a globally diversified portfolio

    2. Having exclusive access to the vanguard SP500 and global stock index fund

    3. Allowing free rebalancing services, and help allocate new investment back to the fixed allocation.

    Hope this answer helps!

    0

    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post
    R

    Ryan

    Level 5. Genius

    Answered 1w ago

    Have you considered moving OA to SA? Passive 4% returns.

    1

    Question Poster

    1w ago

    Thanks for answering, it is definitely an option, although it means I will lose the flexibility to use my OA for anything else in case I were to ever return before 55.
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post