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Reader:
Hi Mr AK,
I would like to ask whether do you have any past blog post regarding POSB Invest Savers scheme as I would like to apply for this scheme so I could save up with the allowances I will be receiving during my NS period.
However, my concern is throughout the long run, lets say there is a recession and there are many good opportunities/companies to invest in and I would like to redeem the units I have in this scheme...
AK:
When we buy into (POSB Invest Saver), we are pooling money for investing in a basket of stocks.
It has advantages and disadvantages.
We cannot have our cake and eat it too.
If you are concerned, it could be a better idea to hold on to cash and wait for opportunities.
Money in an ETF is money invested.
You should not think of it as a war chest.
(Neither should it be thought of as an emergency fund.)
Related posts:
1. How to get $50K passive income in stocks?
2. POSB Invest Saver account.
Bloggy Award
4 comments:
POSB has reintroduced the Save As You Earn (SAYE) scheme this year and offered exclusively to full-time national servicemen (NSFs).
You can sign up for a SAYE where a stipulated amount is transferred every month from your salary-crediting account. You can change the amount you save anytime you want, but the monthly amount can only be between $50 and $3,000 each month.
You will get a bonus interest rate of 2 per cent annually on monthly contributions in the SAYE account.
This assumes you don’t withdraw from this SAYE account for the two years of service, otherwise you’ll forfeit all your interest earned.
Hi Nick,
Ah, I have fond memories of SAYE. I think I had quite a few accounts when I was a young working adult. You so bad. Makes me feel old. -.-"
Thanks for sharing this. Useful information. :)
Reader:
can we consider parking some war-chest “cash” on bonds..
How about ABF Singapore bond ? I understand it is giving slightly more than 2% yield?
AK:
Read this blog.
Same same but different.
Reader says...
i follow u n hv a war chest.
can i put the money in Astrea IV retail bond?
it pays 4.35% pa.
when there is a crash i can take the money out to invest.
AK says...
Once you put the money in this retail bond, you would have to deal with Mr. Market.
You can no longer treat it as money in your war chest.
Read this blog and the comments.
Different but same same. ;p
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