It is such a pity that many people do not use CPF’s Investment Scheme, also known as CPFIS. Under this program, holders of CPF Ordinary Account or Special Account can put their money to work by investing in a wide range of investment products, such as property funds, bonds, stocks, exchange-traded funds, unit trusts, and investment-linked insurance plans. These investments can earn a profit above the 2.5% interest that CPF accounts provide, giving you more money for your old age.
Not everyone is eligible for CPFIS, of course, but the requirements are not terribly hard to fulfil. To qualify for this investment scheme, you need to be 18 years old or above, must not be an undischarged bankrupt, and have either more than $20,000 in your Ordinary Account, more than $40,000 in your Special Account, or both. Once you fulfil these conditions, you can start investing your CPF money.
It is worth noting that not all of your CPF savings can be invested. You must maintain at least $20,000 in your Ordinary Account or $40,000 in your Special Account at all times, and only use the excess for investment. In addition, CPF also enforces stock and gold limits, which mandates that only up to 35% of your investible savings can be invested in stock and 10% in gold. Investible savings in this context is defined as the sum of your Ordinary Account balance and the amount of CPF money that you have withdrawn for education and investment.
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