Saturday, 25 March 2017

When is the best time for making OA to SA transfer | Earlier is not always better

Few months back Max wrote a post to discuss the things to consider before transferring our CPF money from OA to SA savings. Essentially, the post discussed that if the transfer is made earlier, the power of compounding at the higher interest rate will reap significant benefits, but because the transfer is irreversible, the 'in case I need it' mentality is still the key barrier for some to optimize their CPF savings.

Majority of us (if not all) understand the principle that we should make the transfer early for CPF optimization. This statement is absolutely correct. But do you know, if we add our cash savings into consideration, there will be unique cases which we should delay the OA-SA transfer.

Yes you heard me right, D-E-L-A-Y. Something new huh, let's proceed.