yoki26

Hi,
Anyone can give advice should one use partial of the $ in the CPF OA account for investment or to pay housing loan (if any)?

Understand that nxt yr hv to maintain min. sum of 20k, hence nw should it be the right time to take out OA for investment?

Thx

jencrs

Just a bit of info, I believe that if you're buying a hdb and using the hdb loan, they will wipe out your cpf first. No choice there to use partial or not.

Anyway, i think it's hard to say whether to use the OA for housing loan or investments is better. Dump it in the loan, and the total interest you have to pay the bank is less. Put it in investments, and your returns (which go back to cpf) may more than pay for the extra interest you have to pay for the bank for the larger loan. It's really up to you to work out what's best for you.

Leocravensky

The 20k min sum required will only be in force come Jan 08. If you invest your CPF OA in a broadly diversified fund/investment over 10 years you should be able to see a nice return that would be higher then the interest rate you pay for your loan.

You can invest your money away before you buy the house as jencrs mentioned, your cpf will be wiped out once you buy a house.

*PM me if you need to know anything that Great Eastern life can offer (Mortage insurance, investment etc) =p

Leo~
Blog : leoandsong.blogspot.com

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.