In my last post, I said that Singaporeans should be allowed to sell off their flats for cash if they want to. My position is simple; if the flat is yours, then you should be allowed to sell it if you want to.
By that same token, the CPF is supposed to be your money so if you want to use it to invest in stocks, you should be allowed to. That’s why I strongly disagree with the suggestion that the CPF Investment Scheme (CPFIS) be stopped.
During a ministerial dialogue, a resident claim that that he had lost some $350,000 in his CPF account after investing in shares and suggested that the CPF Board stop allowing members to invest in shares and risk losing their retirement nest egg.
Now I’m sorry this man lost so much money in stocks, but that got nothing to do with the CPF. It’s his choice to invest in the stock market, and it’s hardly the CPF fault that he lost the money. If you are afraid of losing your nest egg, then don’t go into the stock market.
I for one never used CPFIS, but the option is there. The matter here is “choice”. You have a choice of entering the stock market, that doesn’t mean you can blame CPF if you lose.