Start to Invest as early as possible

I started my first investment at the age of 25 after I have graduated from NTU and enter the working journey. I dont expect myself to retire as young as below 50. But at least when is my time for retirement, I have sufficient enough to lead my life with not much worries of saving each dollar and cents. Because I know in the near future, everything will be more expensive as the country grows rapidly other than our own salary. Knowing my own needs and goal for my life, i find that invest as early to keep my savings rolling will benefit me in the near future.

I joined the AIA US finanical investment plan introduce by my insurance agent. Back then, US rate was as low as 1.24 and this plan stretch a length of 15 years. However, payment to this plan is only the first 5 years. Thus, for the first 5 years I required to pay a sum of 2704.4USD base on the current exchange rate. The withdrawal period will be base on the 6th, 10th and 15th years of lifespan of the plan with each time of withdrawal of 5,000 USD. In the event, if i choose to keep my withdrawal, they will continue to roll it with interest. Sounds attractive enough.

But practically, each year i need to cough out 3k plus and I dont see my bank account grow much. Finally, I have just made my last payment this year. I actually regretted one year later after joining this AIA financial plan investment as i start to come into awareness of stock market. Thus, i will withdraw on every payout to put them into investment of stock market if i found any reliable ones. The key in this US investment is the USD exchange rate. Over the past 5 years, USD has been climbing up from 1.24 to now 1.405. On average, as long as the USD exchange rate is higher than 1.36 upon my withdrawal i should be able to profit a little more.

If you are considering if you should invest in the AIA US financial investment plan, my suggestion is a no. Reason is that USD is now at a high note. Whereas, if you have spare cash, you can put into reliable stocks in the stock markets to earn at least 8% dividend a year while waiting for the opportunity of profit gain. I will elaborate more on my stock markets investment on my next post.


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