In Need of Advice for CPF OA and New House Key Collection

[barefoot.ken]

Hi all,

I need some advice here.

I will be collecting the keys from HDB for my new house soon and I understand HDB will 'empty' out my CPF OA account.

I don't feel comfortable with that and prefer to keep some amount in my CPF OA account but understand I cannot do that. Alternative is to channel some OA money out and do investments.

I have went to DBS and was told with CPF OA I can only buy unit trusts. But I'm not comfortable with unit trusts as always heard that they are under performing and high potential to lose my capital.

In this case, how about other banks? Also can only buy unit trusts with my CPF OA account or?

I prefer something more liquid not really for capital appreciation. It's more like in the event I can't service the HDB loan, at least with liquidity I can easily clear my investment and raise some funds to tide through like 12 months or so to pay the monthly HDB loan.

Does anyone faced such similar situation and what's the best approach for this?

Thanks!

 

[chanhc86]

U can set up a cpfis acct to buy stocks using yr cpf oa. If u r risk averse choose the stable stocks then park the funds till u decide to sell. Once u decide to sell, the money from shares will go back to yr OA.

Or take a bank loan instead of hdb loan which will allow u to decide how much cpf u wan to use to pay for yr hse.