CPF Interest and CPFIS Performance Update

 I think most of us will feel happy happy so long as you have CPF account as your interest from CPF been credited this morning , no matter rain or shine on 1st day of each new year. We (STE & Mrs. ) are so happy to see our CPF account  balance increase by $28,118.64 with these interest credited in..

I always emphasize that the CPF act as the Triple AAA Bond in our portfolio and if you are still young , you should treat it as long term AAA Bond  with only exception that you can see but can't touch at this moment. But I think we should not ignore the power of "compounding" effect if we are talking about 20-30 years kind of "lock in " period.

Again, no right or wrong , some may think 20-30 years is too long and there is always a " policy risk " involve in  this regards.

My Way Is Not The Only Way

W have regularly done our RSTU while still being employed to save some personal income tax  and also doing some transferred of  $ from OA to SA  from time to time. Both our SA accounts already exceeded the  FRS and we will just let the interest compound year by year.

Another aspect of growing your CPF balance will be the money spend on housing. One will need to find a balance on how much you wanted to spend on your housing. As I mentioned in my previous blog post , we started with smaller HDB flat and then upgraded to our current 5Room flat when our salary increased and having more balance in our OA account eventually.

Remember , CPF is not a "Super Hero" that be able to cover all our need and requirement for retirement and housing. Sometimes, we will need to strike a "balance " among these two in order to have sufficient fund for our future retirement.

For me , this " untouchable " CPF balance is kind of cushion and a final safety net for us. It gave me a little relief and peace of mind by knowing that I will still have close to a Mil in our CPF balance no matter what happen to my equity portfolio , when seeing your equity portfolio down by more than -30% at one point.

Well, as I said, you will need to do your own calculation and planning on how to grow your CPF money base on your own circumstances and commitment. Definitely not "my way is the only way" and "one size fits all" kind of  approach.

Our CPFIS Report Card for 2020

Well, some may choose to deploy their money in OA to invest under CPFIS and hope they would be able to beat the interest rate given by CPF Board.

Okay , another way of growing your CPF money will be investing through CPFIS , of course this will be subjected to market risk. You may try if you think your returns can beat the 2.5% interest given ( from OA ) since I am just using OA balance to invest.

Well , I might be the lucky one that still be able to beat the 2.5%  interest rate but you may notice that majority of the returns came from "dividend " as overall still suffer capital lost of around -$2K because of my investment in Keppel Corp and SembCorp Ind. where the share price are not doing well due to challenge from Oil and Gas Industry.

My SRS Account 

As I blog before , I have contributed 2 years ( $12,750 x2) into SRS account to save my income tax prior stop working in 2015.

Investment Using SRS fund - My Experience

I am happy to see that the total Profit & Dividend amount had exceeded the amount of my initial contribution.

Okay , enough taking about CPF and SRS , today is  the 1st day of 2021 and most of us still in Holiday mood.  I would like to wish all A very Happy and Prosperous New Year 2021 , let's pray and hope that the Covid-19 pandemic will be over soon. 

For time being till we have the vaccine for all , please Stay Safe and Stay Healthy.

Cheers !


Some photos taken in the past two weeks during our morning walk / Jalan-Jalan.... from  Lower Peirce Reservoir to Lower Seletar Reservoir :


  1. Hi STE

    I really love your photos man.
    Don't look like it's SG.

    All the best for 2021


    1. Hi TTI,
      Thanks for the comments :D , wishing you A Happy and "Huat-Huat " 2021 !!
      Noticed that you have a great investment return in 2020 !!
      Cheers !!

  2. Hi Sim. Wish you a Happy New Year.
    I didn't do anything about CPF. :( No one talk about this when I was still working. When I learnt that we can do transfer and top up a few years ago, alamak, it was too late. Already hit FRS. Lol. So like you, just collect interest lor.

    1. Hi Henry ,
      Thanks and wishing you and your family A very Happy & Prosperous New Year !!
      Yah, will just collect interest once SA already hit FRS, may be you will have more fund available in OA for other investment. Some may still dong VC even after SA already exceeded FRS ( like AK71)... if we are approaching 55 , this might be one of the option to deploy our excess cash and treat it as 4-5 years bond with rate around (3+% averg ) , depending on one's age to 55.
      Cheers! :D

    2. Hi Sim. Is it possible to do VC just to SA alone?

    3. Hi Henry,

      I think is not possible as VC is for 3 accounts , once your SA already exceeded FRS , the only way is to do the VC ( for 3 accounts base on distribution rules from CPF Board according to one's age )... hope this clarify.
      Cheers !

    4. https://www.providend.com/frequently-asked-questions-about-cpf/#:~:text=Once%20you%20reach%20the%20FRS,on%20your%20age's%20allocation%20rate.

      8. Can you do cash top-up once you hit the FRS?
      Once you reach the FRS, you cannot do top up in the Retirement Sum Top Up Scheme. You can still top up your MediSave if you have not hit the Basic Healthcare Sum (BHS) to earn tax relief. You can still do voluntary contribution which will be allocated into your OA, SA, and MA based on your age’s allocation rate. The maximum contribution you can do is $37,740. Unfortunately, voluntary contributions do not attract tax relief unless you are a self-employed.

  3. it's not that difficult to beat 2.5% , even without dividends, if you don't solely invest in SG markets

    1. Hi d,
      Yes, but one will need to look at the risk level as well ...and CPF IS investment choice is quite limited .
      Cheers ! :D


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