An honorable member of the Coffee Shop Has Just Posted the Following:
I was employed for 12 years. Starting pay $2200 at 24yo. By the time I am 37, I have enough in my CPF to fully pay for my resale flat, but I choose to leave the money in CPF. Instead I took a bank loan. Why? Because CPF PAYS 2.5% interest for my money in the Ordinary Account, while I pay the bank 1.2% for the loan. I made 1.3%. I planned to fully redeem the loan if interest rate rises.
Every year, I transfer the interest earned in the OA, to the Special Account to earn a higher interest of 4 - 5%. Letting the magic of compounded interest to help me build my basic retirement nest egg.
Meanwhile, I used MEDISAVE to pay for the integrated shield plan which I have to pay out of pocket if there is no MEDISAVE.
Click here to view the whole thread at www.sammyboy.com.
14-03-2015, 03:00 PM
This guy is as smart as me, put more money into your CPF account.
