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.