Making good use of Compounding Interest

After much thought about it, I made use of my long time horizon to let compounding interest do the job.

Sooo, I transferred my entire CPF OA (2.5+1%) into my SA (4+1%).

Now, before anyone criticises me.

Let me state my reasons/math.

• I am currently single.
• I have a time horizon of about 30 years to 55 years.
• I am working.
• I assume that the time horizon to marriage, house, etc is:
• Assuming I get attached this year
• 3 years to marriage
• 7 years to BTO flat (when you start paying off the loan, I would have preferred 8 based on personal calculations, but I'll make do.)

The math is astounding.

Based on calculations, the money I put in will grow to a total balance of 300% of my current balance! =D

And this doesn't include the regular contribution from my salary. =)

By doing so, you not only make it easy to hit the Full Retirement Sum (FRS) for the CPF LIFE and beyond as another backup route during retirement. =)

Look how wonderful that even despite the large upfront contribution from the OA transfer, compound interest from CPF increases beyond my CPF contributions.

It's almost risk free too! (If you're gonna say Singapore defaults, well, if that happens, not just your CPF is in danger lol.)

This idea was actually based on a friend of mine, who worked 4 years, then chuck all of it into his SA (I'm around the same period but better late than never).

Will I be successful? Time will tell.

But for now, I can only manage my money the best I can to route money efficiently for the future. =)

Done! A small click for me and a giant step for retirement!

And the OA is EMPTY!