Is it better to park a lump sum from CPF in Endowus for investment or do a recurring sum (DCA) per month from CPF into the investment? - Seedly
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Mel

Asked 3w ago

Is it better to park a lump sum from CPF in Endowus for investment or do a recurring sum (DCA) per month from CPF into the investment?

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I parked a lump sum from CPF in Endowus for investment, since I'm still paying the housing loan. I didn't do DCA.

I set aside about 4 years of funds left in CPF-OA for repayments to the bank, in case I lose my job.

4 years period sound overkill, but I rather be careful because after the lock-in (the "honeymoon") ends, who knows what rate/amount I'm going to pay when the time comes.​​​

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Mel

3w ago

Thank You!
Mel

6d ago

4 years of funds is a lot
Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered 2w ago

Hi Mel,

Thank you for your interest in us! There are a few factors at play including

  • What is the lump sum amount you have in your CPF

  • What is recurring amount you can invest in your CPF

When I first started out, I spread out my "lump sum" into 3 smaller lumps, then I have been doing a $1k+ recurring investment on a monthly basis. Hope this helps!​​​

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Mel

6d ago

Thank You! I see. But what is the pro and cons of lump sum and DCA then in this context for CPF?
Shengshi Chiam, CFA
Shengshi Chiam, CFA

6d ago

To put it briefly, when you do lump sum, you have more money invested, so you should be able to grow you wealth more quickly. When you spread it out and dollar cost average, you have less money invested, but in the case that the market goes down over the period that you spread out your investment, you are buying cheap. In the end no one knows for sure where the market is heading, it is best to have a plan and stick to it imo.