Something to think abt http://www.investopedia.com/financial-edge/0312/How-To-Invest-If-Youre-Broke.aspx?partner=ntu12#axzz1qSB7HnlK
The “forced saving” reason is why I like the CPF concept. However my sore points about the current system are i) its too much of one’s gross pay (over 1/3 up till the $5k limit!), ii) the rate of return is abysmally low for long-term investors and iii) no easy/low-cost way to regularly invest CPF funds (sure you can do RSP into a unit trust – but the trust has high upfront and mgmt fees). The use of CPF for housing also muddies the waters – CPF should be for retirement savings only.
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