04-12-2017, 05:28 PM
(This post was last modified: 04-12-2017, 07:40 PM by Millionfaith.)
I actually refund to CPF voluntary after 4 years. If I remember correctly, I also need to pay back the accrued interest. I bought the property in late 2004.
But first of all, before refunding to CPF which charges 2.5%, I cleared my mortgage loan which was charging 5-6% interest in 2006.
One of the reason why I refunded to CPF at that time was that I was concerned I might used the money to invest in shares, which I considered risky and uncomfortable. But if one is good at investment, invest the sum would generate more than 2.5%. I believe most VBs here can do better than 2.5%
Of course if one have refunded the money to CPF, they still can use it for investments. However, there are limitation in what one can invest and the maximum sum one can invest in a particular asset class.
But first of all, before refunding to CPF which charges 2.5%, I cleared my mortgage loan which was charging 5-6% interest in 2006.
One of the reason why I refunded to CPF at that time was that I was concerned I might used the money to invest in shares, which I considered risky and uncomfortable. But if one is good at investment, invest the sum would generate more than 2.5%. I believe most VBs here can do better than 2.5%
Of course if one have refunded the money to CPF, they still can use it for investments. However, there are limitation in what one can invest and the maximum sum one can invest in a particular asset class.