I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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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
Posted by Createwealth8888 at 07:28
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2 comments:

  1. Anonymous16 October 2010 at 09:17:00 GMT+8

    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. Createwealth888816 October 2010 at 15:59:00 GMT+8

    Fisherman replied:

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

    ReplyDelete

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