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Should you buy REITs with your CPF?
By Dr Wealth  •  September 15, 2020
You’re a fan of REITs and you want a better return than the 2.5% interest given to your CPF Ordinary Account (CPF OA). So, what’s stopping you from investing your CPF OA into REITs and get more than 2.5%? It’s a plausible idea since REITs are known to distribute high dividends – it is common to see a REIT yield more than 5% in a year. REITs can easily beat the 2.5% CPF OA rate, not forgetting that the share prices can go up too and contribute even more gains. Moreover, REITs are the closest thing to property investing and it is ‘affordable’ for most investors. Hence, using CPF OA to invest in REITs is a perfect match. But…is there a catch to it? Let’s explore. CPFIS Approved REITs You can use up to 35% of your investible savings into stocks approved under the CPF Investment Scheme (CPFIS) – not all stocks can be invested with CPF funds and you can check the full list here....
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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