Hi, Mr Tan,
I have been reading your blog. Thanks for your time in sharing with all the readers your views & observations.
I have a question regards to CPF. I had made a CPF transfer from OA to SA this year. My money in the CPF exceed the $40k that qualifies for 1% extra.
I am thinking of taking out the excess in the SA to invest in NTUC Prime fund as it has one of the lowest cost. Do you think that is a good choice ? Or should I diversify to others ?
REPLY:
In my personal view, it is better to keep in the special account as it pays 4% interest and is free of risk.
The return from the Prime Fund is uncertain. As the stockmarket is now at a high level, and there is still much uncertainty in the global economy, it is better to keep your money in risk free investment for the time being.
You can review the situation next year.
Your action does not make sense to me. Had you wanted to invest your CPF monies, you would not have transferred and take out the excess in the SA to invest. You would have invested the transferred amount from the OA. You have made a wise move by transferring the monies from OA to SA to earn more interest. Now just leave it there and see it grow.
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