(12-07-2014, 10:53 AM)kyle Wrote: [ -> ]Why not buy some low risk short duration bond fund? This will give you a reasonable interest rate at a low risk while providing a higher flexibility...
because it does not exist?
LC
Earth day - save the world everyday.
(11-07-2014, 09:38 PM)aspeed Wrote: [ -> ] (11-07-2014, 09:29 PM)CityFarmer Wrote: [ -> ]"Savings in the Special and Medisave Account (SMA) currently earn either 4% per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is the higher.
http://mycpf.cpf.gov.sg/Members/Gen-Info/Int-Rates
As I have said, the statement you have paste is only valid till Dec 2014. After that read the para that I paste. You see the difference?
http://mycpf.cpf.gov.sg/CPF/News/News-Re...ep2013.htm
aspeed made a good point which was missed in earlier comments.
When I started doing this (i.e. maxing out SA) in 2008, it was already known that the 4% floor may not hold for long. Despite that, I still went ahead as I reasoned similarly as tanjm. As it turned out, the 4% floor was held for longer than expected so it has been a bonus for me. I am hoping for good news next month regarding the CPF SA/RA account.
For political reasons, they will never let SA rates fall below 4%.
(12-07-2014, 12:59 PM)psolhawk Wrote: [ -> ]For political reasons, they will never let SA rates fall below 4%.
Good!
many people (myself included) is optimistic on our G ability/capability.
I hope that SGP can be better for another 50 years.
Love Compassion
Earth day - save the world everyday.
Just saying my thoughts aloud.
Many of us here are pretty good investors. Why then should we transfer money to SA for 1.5% more returns when we are effectively locking money which otherwise could be used as a war chest during recessions, invest in undervalued companies or for monthly repayment (housing) if we run into a personal crisis.
I would personally forsake the 1.5% extra returns for flexibility
(12-07-2014, 06:08 PM)CY09 Wrote: [ -> ]Just saying my thoughts aloud.
Many of us here are pretty good investors. Why then should we transfer money to SA for 1.5% more returns when we are effectively locking money which otherwise could be used as a war chest during recessions, invest in undervalued companies or for monthly repayment (housing) if we run into a personal crisis.
I would personally forsake the 1.5% extra returns for flexibility
me too.
especially if our SA already hit min sum.
keep in OA will make more sense.
LC
Earth day - save the world everyday.
SA can be use to invest in STI-ETF only.
CPFIS Investment Instrument
Take note that account holder must has $40K set aside and invest the balance.
Investment Administrators
1. iFAST Financial Pte Ltd
2. Navigator Investment Services Ltd
3. Phillip Securities Pte Ltd
CPF-SA Investment Service Provider
(12-07-2014, 09:03 AM)angtc11 Wrote: [ -> ] (11-07-2014, 08:02 AM)gzbkel Wrote: [ -> ]Hi all
Thank you very much for all the advice. 
I learnt much about CPF strategies from this thread.
For me, the 4% in SA is good enough.
I bought quite abit of equities using cash, so the money in CPF is the risk free part of my portfolio.
But if there is a stock market crash, I will consider using SA to buy something like the STI ETF. (Thanks to angtc11 for the info, didn't know SA can be used for investments)
I am now leaning towards making the transfer, but will think abit longer, since the transfer is irreversible.
Hi, you can invest, but it does not include sti etf. The products available for investment from SA are different from OA. What I gather is the SA investments are via a tie up with individual investment firms.
Will try to clarify with CPF and let you know
(13-07-2014, 09:33 AM)Ray168 Wrote: [ -> ]SA can be use to invest in STI-ETF only.
CPFIS Investment Instrument
Take note that account holder must has $40K set aside and invest the balance.
Investment Administrators
1. iFAST Financial Pte Ltd
2. Navigator Investment Services Ltd
3. Phillip Securities Pte Ltd
CPF-SA Investment Service Provider
(12-07-2014, 09:03 AM)angtc11 Wrote: [ -> ] (11-07-2014, 08:02 AM)gzbkel Wrote: [ -> ]Hi all
Thank you very much for all the advice.
I learnt much about CPF strategies from this thread.
For me, the 4% in SA is good enough.
I bought quite abit of equities using cash, so the money in CPF is the risk free part of my portfolio.
But if there is a stock market crash, I will consider using SA to buy something like the STI ETF. (Thanks to angtc11 for the info, didn't know SA can be used for investments)
I am now leaning towards making the transfer, but will think abit longer, since the transfer is irreversible.
Hi, you can invest, but it does not include sti etf. The products available for investment from SA are different from OA. What I gather is the SA investments are via a tie up with individual investment firms.
Will try to clarify with CPF and let you know
Yes, I saw the file before, but when I enquired on what the etf are, they said there is no etf. Am clarifying via email
Click the link and you will able to see the type of ETF you can invest with SA.
1. SPDR STI ETF
2. ABF Singapore Bond Index Funds
Please click here for more details on the instruments included under CPFIS.
*
Please refer to the risk classification tables for unit trusts, investment-linked insurance products and exchange traded funds which Special Account savings can be invested in.
Anyway, let see what CPF reply.
(13-07-2014, 10:24 AM)angtc11 Wrote: [ -> ] (13-07-2014, 09:33 AM)Ray168 Wrote: [ -> ]SA can be use to invest in STI-ETF only.
CPFIS Investment Instrument
Take note that account holder must has $40K set aside and invest the balance.
Investment Administrators
1. iFAST Financial Pte Ltd
2. Navigator Investment Services Ltd
3. Phillip Securities Pte Ltd
CPF-SA Investment Service Provider
(12-07-2014, 09:03 AM)angtc11 Wrote: [ -> ] (11-07-2014, 08:02 AM)gzbkel Wrote: [ -> ]Hi all
Thank you very much for all the advice.
I learnt much about CPF strategies from this thread.
For me, the 4% in SA is good enough.
I bought quite abit of equities using cash, so the money in CPF is the risk free part of my portfolio.
But if there is a stock market crash, I will consider using SA to buy something like the STI ETF. (Thanks to angtc11 for the info, didn't know SA can be used for investments)
I am now leaning towards making the transfer, but will think abit longer, since the transfer is irreversible.
Hi, you can invest, but it does not include sti etf. The products available for investment from SA are different from OA. What I gather is the SA investments are via a tie up with individual investment firms.
Will try to clarify with CPF and let you know
Yes, I saw the file before, but when I enquired on what the etf are, they said there is no etf. Am clarifying via email