Saturday, November 10, 2007

Investing your CPF savings

Dear Mr Tan,

If I remembered correctly, PM Lee Hsien Loong once mentioned on Budget 2007 that the CPF interest gained over time would have been better off if we were to leave our money in CPF account instead of using it for our own investment.

PM Lee said that applies to majority of CPF accounts in Singapore. The goverment must have gotten statistics from the CPF board to prove the statement. Is that true?

REPLY

I do not recall him making this statement, and the context in which it was made.

Personally, I think that it is better to invest in a large, well diversified, low cost fund comprised of global equity.

When the stockmarket has corrected, it may be a good time to make this investment.
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2 comments:

Anonymous said...

http://mycpf.cpf.gov.sg/CPF/News/News-Release/NR_25Sept2005.htm

Quote:

First, we must help CPF members to earn better long term returns on their savings. Over the years, we have opened up the CPF Investment Scheme (CPFIS) and given members considerable latitude to invest their CPF savings as they judge best. However, this has not always worked out as well as we hoped, because the options available to the members are not well tailored to their needs, and it is difficult to educate members adequately on how to plan for their long term needs. Almost three-quarters of the members who invested under CPFIS from 1993 to 2004 would have been better off leaving their savings with the Board. In particular, those who invested in unit trusts and investment-linked products (ILPs) have generally received mediocre returns.

November 10, 2007 4:16 PM
onekell said...

Mr Tan, it seems that the US economy is headed for a major downturn. In your opinion, would now be a good time to invest in bond funds?

November 10, 2007 10:46 PM

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