In the course of conducting investment reviews for many of younger clients, I have observed that many of them have invested a large portion of their CPF monies and have suffered substantial losses due to the 2008 recession.  I will put forward several reasons why young people below the age of 30 should never invest their CPF monies. 
·         Large capital outlay ahead
·         Short time horizon for CPFIS – OA investments.
·         Risk free rate of 4% for CPF Special account is attractive
·         Risk adjusted returns for CPFIS investments is not a good deal

Large capital outlay ahead

The majority of young couples, would be looking for a build to order (BTO) flat in Singapore if they intend to marry young. In order to apply for a HDB concessionary loan, one has to ensure that all monies under the CPF ordinary account …