They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

Pageviews since Dec'09

FOLLOW AK ON FACEBOOK.

Recent Comments

ASSI's Guest bloggers

Regret parting with CPF-OA savings 9 years ago.

Thursday, September 22, 2016

Hi AK,

I've been reading your blog recently and have been very inspired by the way you invest.
I need to seek your advice for the Prudential units trust and SRS account

I used my CPF-OA account to invest in the Prudential unit trusts 9 years ago when my insurance agent said that they will earn me more interest than the 2.5% interest CPF gave me.
Fast forward 9 years now, my $80k original invest is only worth $71k now.

I really regret listening to the insurance agent.

My question is should I cut my losses now and put the $71k put into my CPF OA account or SA Account? At least I can earn some interest rate on my $71k before I retire.

My only comfort is that shld anything happen to me now, my family can get $100k from the unit trust as it has some insurance coverage.

As per your blog, I've also set up my SRS account.
Can you advise which fund I should buy with the money in the SRS account. It's sitting there doing nothing and the interest rate in DBS is very low.

Many thanks and I look forward to hearing from you soon.
J

 


Hi J,

1. Buy insurance for the sake of insurance. Don't mix insurance and investment.

You might want to read this:
http://singaporeanstocksinvestor.blogspot.sg/2016/06/how-many-20-years-and-29000-do-we-have.html

2. No one cares more about our money than we do. Always read the fine print.

You might want to read this:
http://singaporeanstocksinvestor.blogspot.sg/2016/09/posb-manuregular-payout-better-than-cpf.html

3. I won't tell you what to use the SRS money for but I will say to avoid investing in anything which might have rights issues.

You might want to read this:
http://singaporeanstocksinvestor.blogspot.sg/2015/07/srs-account-cpf-account-and-rights.html

Best wishes,
AK

4 comments:

STE said...

Hi AK et al ,
Yah , unit trust (aka mutual fund ) is bad "no matter how you slice it " ,,I have very bad experience with investing in unit trust , but lucky that happened 16 years ago ,,juts blog about that today ,, such coincident . :)
Yup! as what you mentioned , one should not mix up investment and insurance ....
Cheers !!

AK71 said...

Hi STE,

It happened to me before too. :(

Well, we learn and hopefully don't make the same mistake again. :)

foolish chameleon said...

AK,
why not rights issue with SRS?

AK71 said...

Hi fc,

Go to the blog post I said the reader might want to read. ;)

Monthly Popular Posts

 
 
Bloggy Award