Many Singaporeans seem to be complaining about the money they save. To them, they do not see where this money actually goes. For others, the interest rates of their CPF accounts are too low to combat inflation. That’s where the CPF Investment Scheme (CPFIS) comes in handy. Even though the returns are not that high, they still happen to be way better when compared to leaving your money in a bank account.
That said, in this post we will take you through some of the things you probably did not know about CPF investment Singapore. Keep reading to find out more and clear some of the doubts you might be having regarding investing with CPF in Singapore.
What You Need Before Using Your CPFIS
One of the most notable things about the CPFIS you must always remember is that any returns you get automatically goes back to your CPF accounts. In short, you are actually investing with the future in mind. After all, there is no essence in squandering all your available CPF funds on a risky product if you will not enjoy the fruits of your investments in the coming years.
What You Can Use Your CPF to Invest in
It is easy to think that you can withdraw your funds and invest it in anything you might feel like. However, that’s not always the case since you can only invest your CPF funds in very specific products. Some of the most notable investment options you can consider settling on include annuities, Unit Trusts, fund management accounts, Singapore Government Bonds, and Treasury bills to mention a few.
It is advisable that you first factor in the pros and cons of each investment opportunity before deciding on anything. Through this action, you will not have to worry about losing your lifetime savings yet you can easily avoid that.
The Bottom Line
Investing with CPF is among the best decisions you can ever make when looking to change your life and that of your loved ones for the better. Either way, it is in your best interest that you understand what goes into this type of investment before jumping to any conclusions. That way, you won’t have to worry about anything after taking this route. The good news is that you can leverage the internet and get answers to all your questions.