There are a lot of misconceptions about what it takes to become a millionaire.
Some people may think that becoming a millionaire requires a high income, lots of connections, or an Ivy League education, but that’s just not true.
Do you know that you can be a CPF millionaire?
It is very possible to achieve this goal.
Just save a good portion of your salary and park them inside your CPF account and let time do its job.
InvestQuest has written a very detailed guide on how to optimize your CPF so that you can become a CPF millionaire.
Some strategies might seem a little complicated, but you’ll be surprised by how easy it is to get a million dollars from your CPF.
- You maxed out your Medisave account (MA) so that the 4% interest flows into your Special Account (SA) or Retirement Account (RA).
- You contribute more cash to your Special Account (SA) to earn 4% p.a. risk-free.
- You transfer the access amount from your Ordinary Account (OA) to Special Account (SA) to earn 4% p.a. instead of 2.5% p.a. risk-free.
- Do Special Account (SA) Shielding so that most of the funds used to create Retirement Account (RA) is from Ordinary Account (OA) as SA earns more interest.
- Do Ordinary Account (OA) Shielding if you need the amount for purposes such as property purchases.
Since contribution to CPF is mandatory, we can make good use of the system to help us achieve our goals.
Have a job and contribute a little bit more of your salary to CPF.
The earlier you start, the more time compounding interest can do it’s magic.
Even if you didn’t manage to become a millionaire, you still can have a basic retirement income.