Reader:

I don’t know if this is the correct avenue to ask you a question. I’m hoping that you can give your insights if you’re faced with this situation.

I bought a HDB flat and took a bank loan plus used a bit of my OA to pay for it. I have about $240k of bank loan left and now I ‘owe’ my OA $85k.

Since the market is kinda ‘overvalued’ now, so nothing to invest in. What would you do if you have some spare cash. Would you pay off the Bank loan or CPF loan?

Actually, I have enough money in my OA to fully pay off the Bank loan, but I decided that ‘free money’ from the government is good. Besides, the interest of 2.5% in OA is higher than 2% Bank loan.

Or I can use the money to invest if Mr Market gets very depressed.

What would you do? …