Should I withdraw my profit?

Dear Mr Tan,

Last year, I was forced to withdraw 8k from flexilink (the profit). And despite that, there was some more profit by Feb 2007.

Do you normally withdraw the profit (leaving the what we put in initially, i.e. the capital) or do we leave the profit alone, as I understand the capital will double in ten years time?

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My reply:

It is better to leave the gains to accumulate in the fund. If you need to spend some money, you can make a withdrawal, and it does not need to be tied to the amount of profit.

I allow my investments in the fund accumulate and will draw money from my bank account (which earns 1% interest), if I need to spend.

If the fund earns 6% per annum, it will double in value in 12 years (if you leave it to accumulate).

Wish you all the best in your investments.