Asked on 05 Aug 2020
I am paying my house loan with CPF currently and looking to change.
Not being investment savvy, i'm looking to put money into CPF for stable growth.
I have set aside enough money for emergency funds n dailys so no worries on that.
Should I pay the loan in cash instead so there are more money in OA, or, should i pay with OA, and later do a VC so that the money can spread out to MA and SA which have higher interest?
Understand at 55 yo, will be able to draw out after setting aside Life amount.
If you believe that you can earn a higher interest rate with your cash (4%) via investing on your own, then pay by OA.
If you aren't confident you can earn a higher interest rate than what CPF offers, then pay via cash and leave more money in your OA.
06 Aug 2020