Central Provident Fund (CPF)
Everyone has CPF but how do we maximize our money?
A typical HDB property owner usually:
✧ services loan with CPF
✧ aims to pay off all loans ASAP
if this is you, you might be building the biggest obstacle of your path to financial freedom.
YOU NEED TO KNOW HOW TO USE YOUR CPF CORRECTLY AND EFFICIENTLY!
With all of most of your CPF locked inside your HDB property, you lose:
1) the 2.5% interest you can earn from leaving it inside CPF
2) the accrued interest of 2.5% to pay back when you eventually sell
That is 5% opportunity costs you are losing each and every year!
In dollar terms, for every $200k locked up in your property, you would have lost $50000 of your money in a matter of 5 years.