HDB , Condominium or CPF ( for Retirement ) ?

image credit to CPFBoard.gov.sg

It has been continuously being a hot topic about whether one should transfer their CPF money from OA ( Ordinary Account ) to SA ( Special Account ) to earn a higher return of interest rate.

Different people ( bloggers ) are having a different view about this issue and each might have their own valid reasons or argument to put forward. 

AK ( a famous financial blogger )  being advocate of transferring money from OA to SA and managed to do this for himself which allow him to happily and enjoy collecting significant amount of interest from CPF Board by end of each year.

You may read more detail of his blogs on this issue on this LINK :

Another brilliant blogger ( InvestmentMoats.com ) and famous for his High Yield Dividend Stocks Tracker is having different view on the issue .

Again , here is the LINK :

Also , a very good view to “juggle “ between “ Housing vs Retirement “ by using CPF money by another fellow blogger SG Young Investment , please find the LINK here:

Recently ,  Cai HaoXiang  from The Business Time have an interesting article on the issue as well :   Why I won't be transferring my CPF OA to the SA

According to him ,  “The opportunity cost of locking a source of liquidity up in the SA in my younger days is too much, compared to what I can do with the money.

The benefits, meanwhile, are limited, if I don't give a very long time for the SA to compound way into my 70s or 80s. “

So , how ? shall we maintain our money at OA to enjoy “flexibility “ of using it for our property purchase ? or shall we “maximize “ of transferring it  to SA in order to have the magnificent of “ The Eighth Wonder of the world “ of compound interest , let our money growth in SA in view of higher interest rate .

Both might be right and if we are not so sure on which to follow , it might be wise to go for “middle path “ ：by adopting the “ Doctrine of Mean “ in Confucianism ：

image credit to weibo.com

Concept Explained : 中庸之道 Doctrine of the Mean 

The Doctrine of the Mean (Chinese: 中庸; pinyin: Zhōng yōng) is both a doctrine of Confucianism and also the title of one of the Four Books  (Sishu 四書) of Confucian philosophy.

The text is attributed to Zisi子思  (also known as Kong Ji孔伋 ), the only grandson of Confucius. It was published as a chapter in the Classic of Rites.( Liji 禮記)

The phrase Doctrine of the Mean (zhōng yōng) first occurs in Book VI, verse 29 of the Analects of Confucius:

The Master [Confucius] said, the virtue embodied in the doctrine of the Mean is of the highest order. But it has long been rare among people.

— Analects, 6:29 (Burton Watson tr.)

Analects never expands on what this term means, but Zisi's text, Doctrine of the Mean, explores its meaning in detail, as well as how to apply it to one's life. The text was adopted into the canon of the Neo-Confucian movement, as compiled by Zhu Xi.

The concept of "the Mean" is a core idea of Confucianism. It says that in all activities and thoughts one has to adhere to moderation. This will result in harmony in action, and eventually in a harmonious society. Pure harmony without wandering from the central tone (an image from the music), and standing in the centre without leaning towards one side will keep all social positions stable.

A man in a high position must not be arrogant, otherwise the people will rebel. Simple-minded persons in high position must not think of their own profit, otherwise the social structures will be disrupted. 

Wisdom (zhi  智), Kindheartedness (ren 仁) and Courage (yong 勇) are thre three virtues of the mean way that will keep stable all social relations. 

The cultivation of the self, the regulation of the society and the government of a whole state all depend on the adequate behaviour of each part of society which has to be geared to the mean and the centre. A very important aspect treated in the Zhongyong is Sincerity (cheng 誠). 

I think the most important things is to “strike” a balance between the need for retirement and fund to be used for property. One should not be “over leverage “ or committed on property which may resulted depletion of fund for future retirement .

image credit to CPF Board.gov.sg

For me , I am contented with staying in HDB rather than using my CPF to purchase a condominium ( of course , as I mentioned , everyone may have their own view and needs for better and bigger house , is matter of choice ! ) and I am happily collecting the interest given by CPF Board yearly to cater for my retirement.

We can’t really say “ This is rule of thumb “ and all should follow , each one may have their own “priority “ on things which they matter most in their life , again , it is about finding your priority and balance  in your life.

Cheers !!

Quote Of The Day :

"Be content with what you have; rejoice in the way things are. When you realize there is nothing lacking, the whole world belongs to you. " by Lao Zi ( 老子 )

PS :

Mr & Mrs STE think that allowing these interest to accumulate in CPF will act as “cushion “ in facing any market volatility and turmoil. These AAA rating Bond will give us a “ peace of mind “ if anything happen in our portfolio and dividend in coming years .

Of course , one need to take note that the interest rate offer by CPF Board subject to change and possibility of reduction in coming years ...