Been encouraging my siblings to start Investing when they are still young. But they keep putting it off and want an easier way out.
My point is for someone who wants a hands off approach and have a much longer runway before they retire (about 20 – 25 years), is it better to invest his money into s&p 500 index funds rather than cpf sa?
Understand cpa sa is almost risk free(unless policy change or we have a mutiny against the government lol), but history has shown s&p500 can easily beat the 4-5% offered by cpa sa if the runway is longer.
Any advice ?
It is very hard to persuade someone to do investing if they are not ready. It happens to my own siblings too. The best way is to approach them with your investment success and telling how you get there by enticing them.
It is definitely better to invest in S&P 500 ETF compared to CPF SA as the former have better returns. If someone does not understand the advantage of S&P 500 ETF can give them, most people will put their money in CPF SA because of the trust from Singapore government. After all, if you are new to investing, you will definitely trust your local government more than the S&P 500 ETF. I think you can start by slowly educating your siblings on what S&P 500 ETF is about and how it have advantages as compared to CPF SA. In the meantime, if you can just take a small amount of money and purchase the S&P 500 ETF and show your siblings how it has done so well for you. It may pique their interest.
Hope this helps :)
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