Educate public on how to invest using CPF

I was one of those who lost money when I first started investing in the stock market using funds from my Central Provident Fund account ("CPF Investment Scheme to be reviewed"; Sept 14).

That was when I decided to learn to manage my own investments, and started buying long-term growth stocks such as Straits Times Index exchange-traded funds, using my CPF monies, which would give me dividends of at least 3 per cent, without much risk.

However, I have to pay the stockbroker a commission upon purchasing, and also pay the bank a fee every quarter for my investment account, regardless of whether I am earning a profit.

If I use cash, I just have to pay the stockbroker commission up front and I can keep the shares for as long as I want, without paying anything extra.

One of the goals of the CPF Board is to enable Singapore citizens to have enough savings to take care of themselves when they retire.

The public must be educated that CPF investments are meant only for long-term growth. Those who want cyclical stocks should invest using their own cash.

I also hope that the bank fee is removed for those who pay using a CPF account. Using a CPF account should not be more expensive than using cash.

Joe Ng Boon Leng

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