ST: 'Lift CPF Special Account minimum for investment'

[Temperament]

If SA 4% p/a is guaranteed, i think it is not bad if you can afford to treat it as an "asset allocation".
By the way, i am also treating my wife's RA as "asset allocation" as long as CPF is paying 4% p/a. But i know each of us have different investment situation. Just make sure you can get more than 4% p/a return and your SA's principal as safe as possible.
Shalom.

could this lifting be a precursor to scrapping the guaranteed 4%?

It is already scrapped around 3 years ago... officially it should be pegged to 10 year +1% but govt continued to maintain it at 4%. It is no longer carved in stone.

http://mycpf.cpf.gov.sg/CPF/News/News-Re...un2013.htm

Rumored that they no longer want to maintain it from next yr onwards. Present 10yr bond stands at around 2.4-2.5%, so SA rate will drop to 3.5%?

If that's the case, then the next 2015/16 GE will see even more opposition members in parliament. Do you think they want to lose their so lucrative rice bowls? i don't think so.
In fact i think more and more goodies will be given to sweetened the ground as much as possible as the time approaches nearer and nearer 2015/2016 GE. We have had seen this in the past. Then after the GE, they will take it back more than they have given you.
Please beware and be careful.

[pianist]

cost wise with the posb saverinvest thingy costing 1% per transaction, is this cheaper compared to if we trade the etf using brokerage platforms?

[chialc]

pianist,
if you subscribe to $500 per month, then 1% means $5?

Normal brokerage for CPF will have a min charge of about $20 or $25 + GST.

[pianist]

hmm..thnks then it makes sense to trade etf using this latest heavenly sent platform..thks
waiting for UOB to come up with something similar
ocbc's one seems to pale now

[chialc]

my post refers to using CPF ... ok.

however, if not using CPF but cash then SCB 0.2% (no min charge) will be cheapest.

[pianist]

my post refers to using CPF ... ok.

however, if not using CPF but cash then SCB 0.2% (no min charge) will be cheapest.

noted.....with many thanks..but can this posb thingy use cpf to buy the nikko etf

[chialc]

sorry, my mistake.
I saw this post headline and assume that CPF can be use for POSB saverinvest.

Correction. POSB saverinvest is for POSB saving/current/multicurrency accounts.

[pianist]

sorry, my mistake.
I saw this post headline and assume that CPF can be use for POSB saverinvest.

Correction. POSB saverinvest is for POSB saving/current/multicurrency accounts.

oh..like that not much use, for cash must well use sc platform
for cpf, no choice have to use other brokerage platform

[quantcall]

actually 4% to me is quite ok, using SA to invest incurs higher fees as compared to cash investment