Topping up our CPF savings can wait for some.

Reader says...
Thank you for providing clarity on my current situation.

I will stop using my CPF OA for my mortgage payment, since my rental is able to cover this obligation.

To date, I have used about $87K of CPF for my property purchase ($85 plus K for principal and $1 plus K for accrued interest).






If I have limited cash at my disposal, am I correct to say that I should first prioritize repaying CPF the amount of money used for my property purchase, so as to reduce the amount of accrued interest which continues to grow as long as the amount of money remains unpaid?

In other words, voluntary contribution and retirement sum top would have to wait while I repay CPF the amount used for property purchase.

I am not sure if my above understanding is correct. Hope to hear from you on this. Thanks!

AK says...
OA savings can be used for other purposes if the need arises.

SA savings is strictly for retirement funding.

For those who want some flexibility because cash is tight, growing SA savings might have to take a back seat in the meantime.






It is like not stretching our finances to buy a condo or to invest in stocks.

It is only sensible not to top up the SA even more so because it is a one way street.

When you become financially stronger, you can build your SA.

Of course, make sure to do everything we can to become financially stronger.






Do you want?
More passive income than richer friends.

Remember,
If we are not rich, don't act rich.

Rich Dad, Poor Dad? 
2 are better than 1.

All in good time.






AK's closing words:
Remember, all of us have different circumstances and it is rarely a good idea to simply copy what someone else is doing.

What is suitable for one person might not be suitable for another.

We must have the ability and the will to see things through.





Although I like to think where there is a will, there is a way, sometimes, we have to be realistic and do what is within our ability to do.

The will must be strong but the ability must be present too.





Related posts:
1. Stop CPF accrued interest growing.
2. Know how to grow our CPF savings.
3. 4 ways to boost our CPF savings.