Keep your money in the CPF Special Account

Dear Mr Tan

One insurance agent pesters me to put my special account into his insurance product, citing that it would give a x% of return which will be sufficent to see me through my old age.

I told him that nothing is absolute. I could not take his words simply because there are too many insurance products in the market, with so many agents eager "to close a deal".

I would rather be prudent and let my money remains in the CPF until I fully understand the product. Any comment?

MY REPLY:

I agree with you. It is best to keep your money in the special account to earn 4% plus 1%. Most insurance products cannot give this type of return, due to the high distribution cost, expense and profit margin of the insurer.