Using CPF for investment

[suz.forum]

Hi, we need some advice here..

We have just bought a HDB flat and will be due for payment in 2 years time. In the meantime, is it a good move to invest the money in CPF before HDB wipes out for the flat payment?

Besides stocks, what other financial instruments can we invest in?

Thank you.

[Dennis Ng]

Hi, we need some advice here..

We have just bought a HDB flat and will be due for payment in 2 years time. In the meantime, is it a good move to invest the money in CPF before HDB wipes out for the flat payment?

Besides stocks, what other financial instruments can we invest in?

Thank you.

Hi suz.forum,
please set aside enough CPF to pay for at least 6 months of Housing Loan instalment, this should not be invested. The rest of the money other than stocks, which you can only invest up to 35% of your CPF, you can consider investing into ETF and Unit Trust.

[ystan79]

Hi ,

My parents had bought some stocks and unit trust using CPF a long time back (10 years ago). Recently they have retired and asked me if I could help them look into how to sell the shares and unit trust in their CPF account.

As such, I had opened Poems account for both my parents. However I am not sure about the charges and the exact process adding to the fact that they are actually holding odd lots for the shares they are holding (not in multiples of 1000). I checked with the remiser in Poems and they told me just check the "CPF" check box if you want to buy/sell via CPF is this correct, or is there additional admins stuffs i need to take care of?

Regarding Unit trust is a bigger question mark for me. Which platform should I be using if I want to sell unit trust from CPF account.

Thanks in advance for any advices.

[ein55]

For POEMS (same as others, eg. UOB Kayhian), there are 3 main trading accts:

- Cash (no need to choose, option by default, link to your bank/CDP acct)
- SRS (need to click if applied)
- CPF (need to click if applied) - CPFIS - OA (Ordinary Acct)

Before choosing each option, get a statemement from
- CDP (you can sign up for internet acct) - mainly stocks from your cash acct
- Bank which provides SRS acct
- Bank which provides CPFIS - OA acct

This is critical because if you buy/sell using the wrong acct, it will be a big problem as they are considered 3 different "persons", shares cannot be "shared". You need to clarify with them on the policy of selling for odd shares. After selling, the $ will be credited back to respective bank of CPFIS-OA, then you need to request the bank to return the $ to CPF acct.

For unit trust bought through CPFIS-OA, check with the respective insurance company selling it, need to buy/sell through the same company.

Monitor the price trend in the past, check how much is the profit (sometimes they may not indicate buying $ many years ago), even if you want to sell, choose the right timing, eg. within 1-2 years, it could make a difference. However, if there is large %return, ok to sell anytime to lock in the profit.

[ystan79]

Thanks ein55 for providing the information

As my parents are actually holding odd lots in their CPF investment account, is there a special way to sell the odd lots? or, I can sell it like how i sell a broad lot counter?

Thanks in advance again

[Mps112]

Thanks ein55 for providing the information

As my parents are actually holding odd lots in their CPF investment account, is there a special way to sell the odd lots? or, I can sell it like how i sell a broad lot counter?


Thanks in advance again

From my past experience, I have to go through my broker/remiser on selling odd lots as the online platform does not offer this option

[elainetai]

Poems platform allows sale of odd lots. You need to click on one of the tabs. I can't remember which one. You could call the helpline for advice.

Elaine

[jazzmama]

Using the POEMS platform, you have to click on STOCKS-UNIT SHARE- LIVE to sell your odd lots.

[sheiwah]

go buy some gold using CPF as well, through UOB

[wemakebread]

Using the POEMS platform, you have to click on STOCKS-UNIT SHARE- LIVE to sell your odd lots.

Strongly suggest you do this during active market hours (say 930 - 1630 hrs).
You may see only Buy price & Buy volume.

For Buy Volume, you may see many counters show 0.999.
I was told that this is SGX 's way of helping investors clear odd lots.
The 0.999 means someone has queued offer to buy 999 lots at the Buy price stated.
Pls note that this price could be slightly worse than the prevailing price for normal lots.

Also suggest you check the "All or None".
Let's say you have 800 lots, this option ensure you clear 800 lots at one go or else no transaction.

I was told that SGX will always try to refresh the Buy Volume to 999 lots.
If this doesn't happen throughout the day, try the next trading day early morning.


If I am not mistaken, you also need to link the POEMS trading account to the CPFIS-OA. The fastest way to verify whether it is linked, is to sell (or buy) shares using POEMS and checking the "CPF" option. You will get an error message if it is not linked.