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14-03-2015, 02:20 PM
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 (http://sammyboy.com/showthread.php?202617-This-guy-is-as-smart-as-me-put-more-money-into-your-CPF-account&goto=newpost).
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 (http://sammyboy.com/showthread.php?202617-This-guy-is-as-smart-as-me-put-more-money-into-your-CPF-account&goto=newpost).