From the recently released 2021 CPF annual report, it seems like we have quite a number of people under 20 years old having lots of money in their CPF. There's 10 of them with $400k to $500k!!! More than a 40 years old me... Looks like there are many people topping up their kids or grandkids CPF to help them grow their money. I think it’s a good way to start the power of compounding young at a relatively risk free rate of 2.5 to 4%...… but I will most likely not do it for my kids.
Don't get me wrong, I like the CPF system. I think the 4% relatively risk free rate the Special Account is giving is hard to beat. I also believe that the CPF is a good financial safety net to build in your financial journey. So why am I not giving my kids a head start by helping them top up their CPF?
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