It may be better to postpone your plans

It is finally publicized today on the papers that the Integrated Resort (IR) at Marina Bay cannot be completed on time. I personally think it is a good idea for them.

On one hand, there are datelines to meet, on the other hand, I'd rather the dateline is not met than to have a shoddy completion. You don't want the floors to give way after you strike a winning-7 on your jackpot machine (I'm more concerned of the safety of the people. For the record, I am against gambling).

A few days ago, I was having a conversation with a client. He intended to purchase a flat in less than a year. Half a year ago, he invested his CPF money with an insurance agent (no, not me) expecting to grow his money to an amount that can help him pay the downpayment for his flat in a year's expectation.

He definitely didn't expect the market to take a turn down. As of today, he probably lost 40-50% of his investments. A few days ago, he asks me if he should terminate the policy.

I asked him if he does that, how does that help him with his goal in buying a house in less than a year. He suggested to me to help him set up a portfolio that can help reach that goal.

I had to tell him that's not gonna work.

A better idea is for him to keep his current investment, because even if he draws it out now, it doesn't help at all. I think he should calculate how much he really needs for the house, and try to work backwards how much he needs to put today, and how long it takes. He should work on the time frame and the contribution he needs to set aside to reach that amount, and decide if he will do that. He should consider to push his house purchase further away instead of rush in, only to end up in bigger debt, and tight cash flow.

While not everything should be delayed, some things that can be delayed, then it'd better be. Like the analogy of not having the floor in the IR to give way, you don't want your finances to give way just because you chose not to secure the foundations before inviting your guests (your family!) to come in.

I made this mistake myself years ago. I can vouch that postponement is usually the better option.