WHAT IF I LOSE MONEY? DO I NEED TO TOP UP MY CPFIS-OA AND CPFIS-SA IN CASH?

Simply Her (Singapore) - - Beauty -

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.

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