You Ning Sun (Co-CEO and CFO of Endowus) had a fireside chat with Mr Loo Cheng Chuan as they discussed strategies around unlocking $4 million (4M65) in your CPF. In this session, they will chat about how investing efficiently yields better returns for your personal wealth, investment restrictions and the different options available in the market.

2:38 Loo's introduction

16:12 How much would our CPF worth be at 65 years old?

18:06 How can we get 7% through CPFIS?

19:51 What if we invest all our OA into the S&P500?

26:11 What is needed for a couple to achieve 4M65?

28:10 What is holding everyone back to become a CPF Millionaire?

30:42 QnA Part 1

59:20 You Ning's introduction and an introduction to Endowus

1:03:14 Indexing strategy VS individual stock selection

1:04:40 Compound interest - starting as early as possible

1:06:12 Marketing timing

1:09:38 Diversification

1:10:46 About Endowus

1:13:17 Loo's thoughts on investing through CPF for S&P500

Extracted QnA

Q: Would you do a SA top-up or invest in S&P500 - 4% or stock market return?

A: Investors shouldn't look at returns alone, but consider risks as well. A 4-5% return on SA is not high compared to 7% on S&P500, but the risk is near 0. If you are willing to take some risk, use your Ordinary Account. I would be more willing to invest in S&P500 using my Ordinary Account.

Q: What advice would you give to those who are in their 50s and older?

A: Now that people at 70, 80 years old are very active, our time horizon for money must be stretched after 65. In short, my personal view is that even at 65, we shouldn't be in a rush to take money out. Let the interest compound. Even at 45 or 55 years old, we can still harness the power of compounding. We should also educate our children to have this mindset when they are young.

Q: What you should look at for holistic financial planning?

A: Holistic financial planning should follow these steps: first, set aside money for a stormy (not just rainy) day. 6 to 9 months of emergency funds should be set aside for mortgages and family expenses. After that, we have to make sure that you have got your insurance. I highly favor term insurance because it gets you the most value for money. After that, look at your financial safety net of 1M65, top up as much as possible into your SA. Once these are set up, you can use the rest of your cash to invest in more risky investments - stocks, shares, property.