Alert from CPFB-Get fast cash, high returns with CPF savings?

Alert from CPFB-Get fast cash, high returns with CPF savings?

Dear Sir/Madam,

Be careful! Do not invest based on promises of quick and attractive returns alone.

You are advised to ignore advertisements which tout conversion of CPF into cash. You should invest prudently and consider the suitability of the products according to your own risk appetite and investment objectives. Investments should not be made based on promotional gifts and rebates. Click here to get some tips before investing your CPF savings.

Yours faithfully

CPF Board

Received this e-mail from CPFB, guess recently there must be lots of complain from Singaporean about CPF investment. If you read through the newspaper, especially The New Paper, you will be able to see lots of advertisement about “Getting fast cash using CPF or Invest you CPF to get Cash” etc. These advertisement are put up by Insurance Agents who wanted to get as many CPF cases as possible before April 2008 when government will hold on all Singaporeans first $60,000 monies from CPFIS. Such acts is terrible and especially people who engage them just for the miserable 1-2 percent cash rebate.

Yes, you might get some cash rebates from such agents but what are your potential loses, your CPF monies are for retirement. Given 2 different case,1) investing with a experience financial consultant who didn’t give you any rebates but 10 years later help you increase your CPF retirement funds by 10-15% or 2)you rather get the miserable few hundreds rebates now from these irresponsible agents and end of the days lost your CPF monies due to bad investment portfolio, which do you want?

Many of my clients who had previously bought CPF investment from insurance agents or bank all have bad experiences, honestly I haven’t got some positive feedback yet. I guess we cannot blame them too since they are just train to sell what are have in their shelves and not to place clients benefits at the front. If they don’t sell, they can’t get their salaries and commission, is not their fault? How to solve this? Educate the public and restructure the front end sales force in financial products. I believe the government is putting effort in this already but it take times. Independent advisory firm should be your choice, of course there are always still bad sheep in every industries, every occupations but at least they have the extra options where banks and insurance agents don’t at all.

Writing a bit off topic but anyway do not invest your CPF just because of cash rebate and free gifts which are illegal anyway if you don’t know. You can report these agents to MAS and he/she will be out of job very soon. Be wise, be alert and think long term especially CPF investment, you don’t want your retirement funds to go down the drain because of 1-2% cash rebates or a free handphone.

If you need advise about CPF investment do contact me at 9105 9260 Jack Lan Senior Financial Consultant , AFC (Independent Advisory Firm)!

Filed Under: CPF Investment • Investment • Retirement Planning