If you are unaware… the CPF Board has just increased the Minimum Sum amount for 2012 which means that if you are in that particular eligible group – you have to ensure that your retirement account must be at least at the stated amount.
And if you are sighing and complaining that this is unfair… this trend is here to stay and I have also shared in my previous post on the rationale behind this annual increment.
So What Can You Do To Help Grow Your CPF Account And Better Prepare For Retirement?
For a start, at this point of writing, the economy is not in a good state and there’s a recent report that almost majority of CPF monies that have been taken out to invest (in plans like Unit Trust or other form of Equities) have yet to make profit (means these people are losing money) – which is a dangerous sign!
Why You Should Not Invest In Unit Trust With Your CPF Monies If You Are Not Too Sure Of The Future?
If you are currently served by a Financial Planner who is very keen to sell you some Unit Trusts using your CPF Monies -do you know that he/she gets to earn a one-time commission fee (certain percentage from the initial amount) and a trailer fee (certain percentage from the onset value, e.g. the amount after every 3 months period). And these fees are deducted regularly (until you decide to terminate) regardless of the economy. Therefore if your Unit Trust Fund is not performing and fees are deducted… it will just get harder for you to break even and make a profit!