In Uncle888's investment kakis Whatapps group; more than half of them have already applied for T-Bills using CPF OA/SRS!
That 1.5% dilemma in CPF OA again or this was due to Caught that Fat Rabbits syndrome in 2001, 2002 and 2003! LOL!
Read? Is STI nearer or farther away from 1200?
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Hi CW,
ReplyDeleteWhen using CPF OA to buy T-bills, you are not restricted to 35% of investible amount. You are allowed to invest CPF OA amount minus $20K.
For eg., if you have $1M in your OA, you can deploy $980,000 into T-bills or FDs.
Once we touch any amount in cpf OA, we will have 35% less of that amount used in cpfis as war chest.
ReplyDeleteCW,
ReplyDeleteI see you have some animal spirits in you yet!
That's the edge for those who are strolling down the mountain.
We don't have to "seek" yearly returns like when we were climbing up the mountain.
Cash can rot; and its OK.
There's no need to seek validation or to impress anyone (hello, we retired oredi).
We both have fond memories of 2003. Knowing what we know now, we should have gone all-in!!!
LOL!
If that opportunity returns, we don't want to be "married to someone when the right one comes along"....
Wink.
Not following the crowd may make us look so odd! LOL!
DeleteUncle8888,
ReplyDeleteI think additional 1 million cpfis accounts opened this year coz of tbills lol. Local banks help to do NS since they literally only get kopi money for the service haha.
This is good for those who treat their cpf as the fixed income portion of their portfolio, and not as additional warchest ;)
Particularly for those still with active income ... better to utilise cash as warchest for investing.
CPF voluntary top up will drastically drop. Next movement coming up is T-Bill 1M65? LOL!
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DeleteGood point by Spur. My plan was to hit 2M62 in my CPF Savings in slightly over 1 years' time but now the time may be even shortened if the T-bill yield stays above 4%. I am planning to shift the OA savings into T-bill to fast track the growth via CPFIA. I have treated my CPF savings as my bond portfolio and only use cash for my war chest. Even then, I have already moved half of that cash into T-bills. It has been rotting for a few years already earning next to nothing.
DeleteAnd I believe people (including myself) will continue to do voluntary contribution to their CPF simply because they can still channel that top up via CPFIA into T-bills.
Real life investing lesson here! Investing is a Game of Capital. Our account size really matters and we will formulate our own investing strategy to optimise the approach to our End Goals.
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