Setting Aside CPF Funds For Rainy Days

by Lawrence Lee on February 25, 2009

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Buying a property for first time can be rather tedious, other than having to do a walk about like the MPs does,  they will also have to set aside precious weekends to go for house viewings.

Some of you might have done some CPF Investment in your early years of working life. For those who have not, you may already have accumulated large sum of CPF monies sitting idle in the Ordinary Account.

Once you have shortlisted a house that you like you may start to plan you finances. How are you going to afford to pay for the monthly installment and making up the downpayment is the common questions that you will ask yourself. However, some question may not come to your mind, they are, “What if my spouse and I lose our jobs? Can we still afford to make  the monthly installment? Where are we going to get such money to pay for our installment which is already stretched to the maximum by using CPF?

This is a likely scenario where most new home buyers face. To eliminate this worry all you have to do is set aside some CPF moneis into unit trusts, be it with an insurance company or with banks or other financial instituition. Once this CPF monies is set aside, unless you took a bank loan, HDB will only drain off all the available funds in both you and your spouse CPF and not those already lock into unit trusts or other investments like shares.

When you are buying a property next time, remember to set aside some CPF for rainy days.

To know how to maximise your CPF Investments, contact me.

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