Dear Mr Tan,
I have been caught with some bad experience both with insurance and investment but nothing serious to affect my life savings.
Being in my fifties, I runs a small business and have enough saving for my retirement which have for some years been kept in USD and SGD deposits earning very poor interest and suffering depreciating USD exchange rates.
I am afraid to invest in stock or funds at this moment thinking it is too high. Do you think I should wait or do something now with my savings? I am more thinking of protecting my nesteggs, avoiding it being eroded by inflation, poor interest rates and depreciating exchange rates.
I am of course feeling sorry to myself that I missed the current booming market.
It may be better to wait for the market to correct, before investing in the equity fund. In the meantime, you can put your money in the money market fund (ie flexi-cash) plan to earn about 2.5% to 3% per annum. There is no lock-in period.
When the market correct, which I hope may happen within the next 12 months, you can invest in an equity fund.
This is what I did for the cash in my bank account. I put in the flexi-cash and will wait for a market correction.
If the market does not correct, I will be happy to get 2.5% to 3% per annum. This rate will change with the money market.
Tan Kin Lian
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