Hi Fellow Automated Millionaires,

I have calculated the differences of yearly investment through CPF versus Cash as below:

1. CPF
Amount Invested: S$10,000
Tax Incurred*: S$0
Employer CPF*: S$954 (subtracted S$3,396 for repayment of HDB loan of 4-room HDB flat)
Sub Total: S$10,954
ROI: 8%
Grand Total: S$11,831

2. Cash
Amount Invested: S$10,000
Tax Incurred*: S$350
Employer CPF*: S$0
Sub Total: S$9,650
ROI: 8%
Grand Total: S$10,422

*Taking an annual income of S$30,000.

DIFFERENCE: S$1,409

This difference for 1 year is already S$1,409.00. The difference in 10 years is S$22,044.49. What about 25 years later? The amount is S$111,246. The difference in 30 years is S$172,385.33. Are you willing to throw S$172K away? :) Definitely not me. Let us find a good solution to counter the CPF lock of the 1st S$20,000.

Disclaimer
The above information is wholy author's personal opinion. It does not intend to replace any professional advice. If legal advice or other professional advice, including financial, is required, the services of a competent professional person should be sought.