Hi Sir,
I chance upon your site and need your advice regarding my investment. By end of March, the Government will be freezing our CPF account.
I am thinking of investing my ordinary account and special account into bonds (50%) and in AIA Growth Fund (50%). Is it wise?
My friends told me that the economy is not doing well, so better not invest in anything. I really don't know. This is the first time I am investing. Really hope to hear from you soon. I need to reply my agent by 15th March.
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It is better to keep your money in the CPF to earn the guaranteed interest rate of 2.5% for ordinary account and 4% for special account plus the bonus of 1%. If you do not need the money in the ordinary account, you can transfer it to the special account to earn a higher rate of interest.
Do not invest in high cost products sold by an insurance agent, as it gives you a poor return, after deducting the charges. High quality bonds do not give you an adequate yield. Low quality bonds give a higher yield, but is risky.
By April 1st. the CPF is not freezing your accounts. CPF is helping you to grow your first 60K at higher return from the 3 accounts WITHOUT THE RISK.You must have gotten this impression from insurance agents.The insurance agents are going
ReplyDeleteround telling customers this lie.The insurance agents CANNOT and do not give you better than CPF. Don't fall for the lie.
Remember, any investment outside carries risk.Do not trust the agents. They are NOT QUALIFIED to help you with better return.
I also know of agents from NTUC who go round asking people to invest in their GRowth Policy and claim guaranteed return of 4%, 0.5% higher than CPF. This is misrepresentation,a lie, not true and unethical.
At this time there are a lot agents eyeing your CPF and will say or doing anything to 'steal' your retirement.Don't believe when they say they are helping you with your retirement.If you fall for it, i feel sorry for you. You can forget about retirement, annuity and start planning to work longer. Please listen to Mr. Tan.
Well I notice the banks, finance companies, and online brokerages/fund houese also have products similar to those sold by insurers, which you can use your CPF to buy. Should those be avoided as well and the money be kept in the CPF?
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