I receive a question from a reader on whether she should invest her CPF OA monies before they are transferred to RA account when she turns 55. This is her question:
“I am a noob in investing, but keen to know for those approaching 55 years old, is it advisable to invest all OA before it was transferred to retirement account? And then transfer back afterwards?“
My advice to her is to keep the money in her OA account and let it transfer to RA account at age 55 and earn higher interest (between 4% to 6%) from there, unless she can find an investment plan that earns higher interest than what the RA account is offering and at the same time able to guarantee her capital.
Besides, she is able to withdraw $5,000 from her RA account from 55 to 65 years of age, or even more if she has met the Full Retirement Sum in her RA account.