Should I surrender my AIA policies?

Hi,

I buy over such policies. But as you only paid the first year, we are unlikely to takeover because the opportunity cost is very low (and returns for us is very low).

As Ernest Suggest, it makes sense to understand the opportunity cost and also whether you can reliably do your investments. You cannot be panicky when markets drop and "sell low buy high".

I hope you understand but in mathematical terms, do a cost benefit analysis and give yourself a decision. Such plans are like putting into CPF SA hence i would normally compare it with 4% opporunity cost. (even if you can't invest wisely), and SA top up can be stored anytime.

Of course, everyone's situation is unique. Please understand before taking advice from anyone.

Hi Anon,

I was also facing a similar scenario a few months back when I started investing in the market and realising that I could generate alot more profit than what the saving plans are giving me (mine is not from AIA btw).

But fast forward to today, I'm in a net loss position for my investments due to the current market conditions.. So in a way, I'm kinda glad I still got these savings plan, because if not I would definitely have used up all those money in investing, and probably incur a larger loss than currently.

So personal opinion, I do think that putting your money in different areas are kinda safer. But it also depends on your cash flow situation. If you only have 1k a month of "spare" cash, investing in the market is still better due to the liquidity (you can sell anytime). If you have say 3k of "spare" cash, then the 1k you put into the savings plan can be treated as diversifying your funds, while you use the remaining as investments.

Hope this helps!