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Reader says...
I am a fairly new reader on your blog.
I am thankful that you are sharing your knowledge, and at the same time I have a few questions that I would like to seek your opinion on.
I am currently serving NS.
I have been working part time since 18 and have a saved up 30K which I am planning to use for my university fee (Private).
I am not sure whether I should invest with the amount of money that I currently have or just leave it untouched as it is money that I would require in the coming years (approx.1-2 years).
I am also currently spending $4000 a year on an insurance saving plan (25 year plan, 10 years of paying).
I will have to commit to it for another 8 years before I can stop paying, after reading up I have found out that it is not a wise decision to continue, however cancelling the plan now would only ensure me a value of 1k++ returned.
Thus I am unsure if I should or should not continue with it as the whole plan last for 25 years.
AK says...
Welcome to my blog. 🙂
I will never invest with money which I will need in the near future.
As for insurance, my preference is to buy term and invest the rest.
However, an insurance savings plan can be good for people who do not want to bother with investing themselves but would rather let someone else do it for them.
(Then, you are basically treating it as a pseudo bond component of your investment portfolio.)
You decide. 😉
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