Make Your Money in Your CPF Works Harder For You

Before the new CPF changes on Ordinary Account [OA] come into effect shortly, you may want to take advantage in putting your money in your ordinary account to work harder for you.

Before are illustrations of the difference by leaving the money in your ordinary account and transferring it to other funds to generate better returns for you:-

Say a male aged 40, has $50,000 (assuming housing loans taken care of] in his OA - currently his first $20,000 will earn an interest at 2.5%. Above $20,000 will also earn 2.5%.

Come 1st Jan 2008, his first $20,000 will earn him 2.5% + another 1.0% and 2.5% for above $20,000.

This gentleman has two options.

OPTION 1 - Leave his money in the OA
OPTION 2 - Use his money in the OA for investment before 1st Jan 2008

This is what happen

Under Option 1 [Leave it as it is in CPF OA]
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1st $20,000 fr OA at 3.5% for 20 years = $39,796
Bal $30,000 fr OA at 2.5% for 20 years = $49,158
TOTAL = $88,954

Under Option 2 [Investment in other plans]
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Use $50,000 in say Plan A for 20 yrs @ 4.15% = $113,081 or
Use $50,000 in say Plan B for 20 yrs = $107,800 [@ projected return of 5%]
or = $227,700 [@ projected return of 9%]

This is an opportunity not to miss. Act Now! Please contact me immediately and I shall be more than happy to share with you how I can use the financial vehicles i.e. the said Plan A and B abovementioned to help you make more money for you. I will also share with you the related benefits under Option 2.