Investing using your CPF

[wirado]

Hi All,

Anyone ever used your CPF to buy shares? I need to know the procedure.

Say you are using CPF to buy shares:
1. How much can you buy share with CPF? For example, your CPF account balance is 40k. You only can use 20k. Using Dbsvicker or your broker, you proceed to buy 10 lot and it cost you 22k. Will your broker still proceed with 10lots? or reduce to 9 lot? or on T+3, your broker will call you to top up 2k to CPF?
2. Say the co is giving dividend, does the dividend go to your CPF or bank account?
3. When you sold the share, the money and profit goes back to your CPF?
4. Say you lose, do you need to top up the CPF money you used?

[Ms Tan]

Hi Wirado,

Let me try with my best knowledge on CPF (OA):

1. In excess of $20K and up to 35% of the investible fund. You can see the stock investible amount when you log into http://www.cpf.gov.sg with your Singpass and look at MY STATEMENT Section C Investment > STOCKS. If you buy with insufficient CPF fund, you cannot top up CPF to proceed. In your scenario, you have to call your broker to adjust $20K to CPF and $2K to Cash proceed, you will incur additional transaction cost and high comm with small lot. The CPF amount is updated only once a month so you have to do own tracking and be sure not to use more than what you have in CPF.

2. CPF

3. Yes

4. No

[wirado]

Hi Ms Tan,

Thank you for your reply.

Hi Wirado,

Let me try with my best knowledge on CPF (OA):

1. In excess of $20K and up to 35% of the investible fund. You can see the stock investible amount when you log into http://www.cpf.gov.sg with your Singpass and look at MY STATEMENT Section C Investment > STOCKS.

I am not quite understand about the excess of $20k and 35% of the investible fund. I go through the statement as you advised. For example, in the MY STATEMENT section C > STOCKS, I see the amount available is 15k. Does it mean i only can use up to 35% of 15k?

For the MY STATEMENT section C > Gold. Can I use this to buy Gold SPDR or physical Gold? For example, I have 5k, Does it mean I can use up to 35% of 5k?

How about professional managed products? is this used for investment in bonds or funds managed by banks or gov?

Thank you for helping. I am posting number of questions ....

[Ms Tan]

Hi Wirado,

For your example, $15K is already 35% of your investible fund for stock so you can use up to $15K for Stock.

$5K is 10% of your investible fund for Gold so you can use up to $5K for Gold.

Professional Managed Product is the OA - $20K, ie, the total amount you can use for Investment where include gold & stock. For this example, this amount is ~$20K and is already used up if you buy Stock & Gold, no more left for other form of investments.

I can get the answers by looking at the CPF site by putting the cursor on the "What's this?" field.

For further query, pls explore the site or call CPF hotline and share your findings with us. You will learn more this way. All the best!

Hi Ms Tan,

Thank you for your reply.

Hi Wirado,

Let me try with my best knowledge on CPF (OA):

1. In excess of $20K and up to 35% of the investible fund. You can see the stock investible amount when you log into http://www.cpf.gov.sg with your Singpass and look at MY STATEMENT Section C Investment > STOCKS.

I am not quite understand about the excess of $20k and 35% of the investible fund. I go through the statement as you advised. For example, in the MY STATEMENT section C > STOCKS, I see the amount available is 15k. Does it mean i only can use up to 35% of 15k?

For the MY STATEMENT section C > Gold. Can I use this to buy Gold SPDR or physical Gold? For example, I have 5k, Does it mean I can use up to 35% of 5k?

How about professional managed products? is this used for investment in bonds or funds managed by banks or gov?

Thank you for helping. I am posting number of questions ....