A common complaint by loyal customers of our telcos is that the latest promotions are only eligible for NEW customers only.
You signed up for that 2 year 100 Mbps broadband plan with glee thinking how smart you were. Especially if you compare the savings you are getting in relation to the more flexible pay-as-you-go top up plans.
You smart; others not stupid.
From the "others" perspective, you are the bird in hand for the 2 next years.
One year later, you find to your dismay for the same price, the telcos are now offering new customers twice the speed at 200 Mbps!? Throwing in free installation and other services to rub salt into wound.
You now wonder whether it would have been wiser if you had used the more expensive pay-as-you go top up plans for 1 year and then switch to the current promotional plan...
We face similar dilemmas in our investing and trading decisions.
Should I lock-in my money for 1 year, or do I go for the 5 years fixed deposit that pays a higher interest?
Sames goes for bonds. Hmm... Is now the time to go for shorter maturities as in 1 to 5 years, or do I go for the longer maturities like 10 to 30 years?
Is renting now better or should I bite the bullet and buy with a 30 year mortgage?
(This is can be a classic penny wise pound foolish scenario. Save small money here and there and always talking about low cost index funds to only find out your neighbour has bought their unit for $100,000 less than you. Ouch!)
Should I hold on to this losing speculative position, or should I just cut my losses short and retain my flexibility to pounce on future opportunities?
Flexibility has a price.
Lock-in may not be the bargain you thought it is.
Singapore Man of Leisure (welcome to my blog; just google it!)
