Anonymous

16 Sep 2019

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Would CPF SA be considered as bonds with a long-time horizon of 25-30 years?

If you have a 25 - 30 yr time horizon to accumulate wealth at 55yrs old (to 'unlock' your CPF money), would you consider using CPF SA as a bond equivalent with 4% guaranteed and using cash to buy stocks as portfolio balance?

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Elijah Lee

16 Sep 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Yes, I would consider CPF SA as the investment-grade bond component of my portfolio. Just note that you must be aware that you do not control the terms and conditions of this 'bond' and will be at the government's mercy (e.g. future rate changes or changes to when you can access the money). Having said that, the purpose of CPF SA is the need to provide for your retirement so 4% backed by a triple-A rating is not easy to find nowadays.

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