As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Saturday, 16 October 2010

Use CPF or Cash to invest in stocks?

Assume we have more than enough fund in CPF investment account and in cash account (money that is not required in the next 5-7 years to ride out the next bear-bull cycle).

My friend actually asked this.

Interest-wise

Are you interest-wise? Current bank saving interest rate is around 0.X% and CPF OA rate is at 2.5%. Why would you spend the money that earns higher returns at 2.5% and keep the money that earns much lower returns at only 0.X%?

Then you argue that cash is more useful and can buy things leh. But, didn't I told you that one should come to stock market with money that is not required in the next 5-7 years to ride out the next bear-bull cycle.

When the mind is calm, you may invest with ease and in better position to ride out the next bear-bull cycle - Createwealth8888

2 comments:

  1. HI 8888,

    Completely agreed.

    But the problem is if you have "extra cash" where to park temporarily for month to month or up to 3 months with capital protection in mind.

    It's a real headache.

    I am sure you have extra cash now because you have "said" you are selling in the market slowly.(Sorry, if I am wrong.)

    I have sold about 30 % of my portfolio.

    So where to park the money with better return than the BANKS and yet capital safety.

    Any sound opinion will be appreciated.

    Lawrence

    ReplyDelete
  2. Fisherman replied:

    http://createwealth8888.blogspot.com/2010/10/my-money-works-harder-for-me-4.html

    ReplyDelete

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