WHAT IF I LOSE MONEY? DO I NEED TO TOP UP MY CPFIS-OA AND CPFIS-SA IN CASH?
That just means your losses have ave eaten into your retirement nest st egg but don’t worry, you don’t’t need to plug the gap.
Senior admin executive Cheryl Koh, 35, prefers not to take the risk and just let her money sit in her CPF accounts, earning the additional 1 per cent interest per annum on the first $60,000 of the combined balances. “My SA and MA is earning 5 per cent interest. How many investment products out there can guaranteentee this?” she says.
On the other hand, Lynn shares: “I am envious of friends ds who invested their CPF funds early and have made tens of thousands effortlessly, while my own funds were just sitting g there collecting meagre interest. est. However, I also know friends whose investments’ values stayed ayed stagnant for years, or even dipped. They can’t sell as they y don’t want to lose money.”
At the end of the day, it all depends on the current market, your personal financial al management style and yes, luck. uck. But one thing is for sure – while you may not “see” your CPF funds in your pocket, it’s still your money.
“My friends admitted that they were more reckless with CPF investments because they felt ‘more immune’ from any profits and losses, unlike investing with their cash savings,” says Cheryl.
If you squander away your CPF monies on bad investment choices, you may not feel the pinch now but you certainly will when you’ve retired and need all the savings you can get.