This post is meant to summarised the importance of CPF in your early years before age 55.

  1. Mandatory Interest Rate
    • OA (2.5 – 3%)
    • SA (4 – 5%)
    • MA (4% – 5%)
  2. Things you can do to increase your CPF money
    • CPFIS
    • PROPERTY (buying two or more property for investment purposes)
      • Cap at valuation / purchase price limit
    • LRIS ( In the future)
      • Diversified products
    • Voluntary contribution
  3. CPF is one way to reduce your income tax
    • Voluntary contribution to your own account (capped at $7k relief)
    • Contribute to your relatives (Additional $7k)

Q&A

  1. How to obtain higher interest rate (+1%) in my CPF account?
    • Combined account has to have $60k (OA ; $20k / SA ; $40k)
  2. Should I be investing my CPF money??
    • CPFIS, requires a min sum of $20k before being able to invest.
    • There are limited options for investment
    • Cost is around $2 per quarter for …