Investing your CPF savings

COMMENT IN MY BLOG:

None is safer than leaving your money in the CPF. This has been proven again and again and again.

When CPF opened up for purposes other than its original objectives it was a big mistake. It opened up because members wanted it. Members thought they were savvy and cleverer at investing than the CPF, instead what a mess they have made to their hard earned money. Many today do not have enough to set aside for minimum sum in the retirement account. What do you think are the reasons? Who benefited from all these changes? Definitely not the administrator and the members!

The so called investment advisors; the insurance agents; the stock brokers,the product manufacturers, the market makers etc; for these people CPF is a gold mine. When things go awry there will be a lot of finger pointing, except ourselves. Scapegoats? Maybe CPF when it closes up again in the future.

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REPLY:

I agree that the liberalisation of CPF investments had produced poor results for the investors during the earlier years, as the stockmarket performed badly. This is compounded by the high expenses in the products (as you have pointed out).

In recent years, the stockmarket had performed well. It had given a good return to the investors, including those who invested their CPF savings.

The CPF investment scheme allows the members to invest their savings in equity and bond funds, to earn a better return than the interest rate of 2.5% paid by the CPF. You now have the choice of choosing a low cost, well diversified fund.