HOW MUCH CAN I IN­VEST?

Simply Her (Singapore) - - Beauty -

YouYo can in­vest any amount in ex­cess of $20,000$20,00 in your OA and in ex­cess of $40,000 in your SA. Check your CPF state­ment via CPF’s web­site to get a de­tailed break­down, which will also show­sho you what types of in­vest­ments, known as CPFISCPFI in­stru­ments, you can in­vest in. But first, you must not be an undis­charged bankrupt­ban to qual­ify to use your CPF sav­ings for in­vest­ment. If you want to in­vest money from your OA, you need to open a CPF In­vest­ment Ac­count with DBS, OCBC or UOB; this is not nec­es­sary if you’re inv in­vest­ing from your SA.

ike many Sin­ga­pore­ans, civil ser­vant Lynn Wee, 37, shares the bur­den of pay­ing for her five-room HDB flat with her hus­band, while sup­port­ing two kids and two sets of el­derly par­ents. The cou­ple save what­ever is left for the oc­ca­sional luxury, like an an­nual hol­i­day. “But we don’t have spare cash to in­vest and make our money grow,” says Lynn.

The cou­ple knows they are al­ready luck­ier than many of their peers. “We bought our flat di­rectly from HDB for about $280,000 and our com­bined monthly CPF con­tri­bu­tion is more than enough to pay the in­stal­ments,” says Lynn, who knows friends who shell out cash, on top of us­ing their CPF, to fi­nance their more ex­pen­sive homes.

Cur­rently, your CPF con­tri­bu­tion earns an in­ter­est of 2.5 per cent per an­num in the Or­di­nary Ac­count (OA) and 4 per cent per an­num in the Spe­cial Ac­count (SA), Medis­ave Ac­count (MA) and Re­tire­ment Ac­count (RA). But, an­nual in­fla­tion av­er­ages about 2.8 per cent per year, eat­ing into your in­ter­est earn­ings.

To help bulk up our re­tire­ment funds, the gov­ern­ment of­fers an ad­di­tional 1 per cent in­ter­est per an­num on the first $60,000 of the com­bined bal­ances (with up to $20,000 from the OA).

Lynn has ac­cu­mu­lated five-fig­ure sav­ings in her OA, SA and MA. Jok­ing that she is “more CPF-rich than cash-rich”, she wants to start in­vest­ing her CPF monies un­der the CPF In­vest­ment Scheme (CPFIS) to beef up her re­tire­ment fund.

If you’re also keen to in­vest your “un­touch­able sav­ings”, here’s how you can do it.

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