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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. ;)

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