Read? Top Up CPF SA From CPF OA? Depending On Who You Ask! (9)
Saturday, 19 September 2015
Recently; Uncle8888 has been reading increasing interests in topping up CPF SA.
He did once to top CPF SA from his CPF OA and then realized .. oh dear and stopped!
One and only once!
Probably; the lone voice that is lost in loud CPF SA drummers!
For long journey ahead; beware of One Way Traffic as there is NO turning back when you realized you have miscalculated your liquidity needs.
Wealth = Asset Value + Cash Flow
People top up their CPF SA. You top up?
People has plenty of liquidity. You also have?
Can anyhow follow?
Why Uncle8888 did once to top CPF SA from his CPF OA and then realized .. oh dear and stopped?
Uncle8888 realized he is an investor and he has been working hard to become competent investor and his Maths showed him he can beat that extra 1.5% compounding interests over 10-year period.
Over ten years, no Bear market?
Extra 1.5% compounding interests in CPF SA for $10,000 after 10 years is 14.3% gain.
But that trade off of $10,000 transfer from CPF OA to CPF SA is that you will have $3,500 less in your CPFIS to invest in the next Bear market.
To beat that 14.3% gain for $10,000 in CPF SA; you just need 41% capital gains for $3,500 in CPFIS excluding dividends.
How difficult to gain 41%?
Ask the veterans who have been through the past few market cycles.
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