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 …