Invest in CPF to earn some extra bucks

    • In these tough times when the world is experiencing an economic downturn and IMF has already announced that we are already hit by a global economic recession, everyone is looking to invest their money into something that can reap huge benefits and safeguards their wealth. If you are such a person you can definitely look for investing your valuable money into the Central Provident Fund.
    • Below are some factors that prove CPF can be your wealth messiah in this period of economic downturn:
      • It is very strong and stable which reduces the chance to lose your principal sum to almost zero.
      • CPF pays a guaranteed return on your investment at a rate of 2.5%-4% based on where the amount is invested.
      • It pays an extra bonus of 1% for the first $60K of investment and another 1% for the first $30K of investment for customers age 55 years and above.
    • The CPF may not be the best thing to invest for people looking for short term investments because the funds are not accessible to the investors until the age of 55 and will be starting reaping benefits only post-retirement but this can be a boon for the people looking for a regular and healthy monthly income post-retirement.
    • With that being said let’s have a look at the best ways to utilize your CPF and make the best of it, no matter you are a young lad or a person above 55 years of age:
    • Don’t stop your investments when you are working: With benefit limits at about $37,000 per customer annually, every cent you invest in CPF earns more interest than investing in a fixed deposit account. So keep investing and continue to reap the benefits.
    • Increase your income: People who don’t have a full retirement amount in their special account and haven’t reached the age of 55 years can reap some extra cash at a rate of interest of 4%.
    • Refund your housing loan: If you have paid your mortgages from your CPF and you are in your late 50s and still living in the same home that is all paid up consider refunding the money to your CPF. This will give you the benefit of earning 2.5% interest on your CPF fund.
  • So after reading all these benefits are you thinking to invest in your CPF?

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