Not too long ago, I received a letter from IRAS that I have to pay for my mandatory contribution to my medisave account as a self employed. It comes up to be $6393. I was mulling through the options that I have, so I might as well share it here since I know there is a dearth of write up just for self employed by self employed.

My situation:

1) I’ve done voluntary contribution to my CPF for ages, and the reason is to reduce my income tax and also to build a buffer in my OA so that if I have a bad year of income, I can rely on my OA to make payments to my mortgage, which is my biggest expense. And since I’ve switched to a loan with a floating interest rate, there will be a time when I need to prepay the loan when the …