Friday, January 11, 2008

Lesson in Money Management

Someone sent this message to his daughter. He asked me to share it.

Many Singaporean work hard and earn a lot of money in year 1990's and early 2000's. Under Goh Chok Tong policy, he encouraged investment. A lot of CPF money and personal saving just gone to the sea. Why?

Sale person make a lot of commission and they don't have a heart (conscience). The commission alone can buy at least one condo within a short time. The sales person does not risk their life, like engineer yet enjoy life. Are you working for sales person?

You better read this Blog and Dr Money's article to protect your hard earned money :,4136,150939,00.html?

The blog and articles are updated every day/week. It does not matter if you don't understand the technical term, just go through it. When you need to make a decision later , you know where to find infomation.

Last few days, Lee Kuan Yew advised people NOT TO TAKE RISK. This is a lesson learnt after so many years.


My advice to people who visit my blog is to invest in low cost, diversified equity fund for the long term. By investing for the long term, the investor will average the good and bad years and get an average return that is better than the return from safe investments.

The advise is different from your view of "do not take risk". Do you agree with my advice?

Read this FAQ:


hongjun said...

I agree with you in investing in low cost diversified funds for long term.

Currently, I know the practice of independent financial advisers is that their commission actually is tied to how well their clients' investment portfolio are. Meaning to say, if their clients earn more, then their pocket will be heavier as well.

Their research team actually advised to invest in a basket of well-diversified funds for long term and periodically perform a review in the performance to see if there's a need to rebalance the portfolio. I find this approach best.

I know of some companies from tied companies that only suggest 1 fund. All money is invested in the high risk fund and hoping for quick money (commission). I don't think this is advisable.


Priyadi said...

what does he mean by 'not to take risk'? whatever we do, we are taking some risk. nominally, CPF, fixed deposit and saving accounts are risk free. but if we account for inflation, they are certainly not risk free.

Anonymous said...

Most insurance agents don't have a heart for thier clients.The clients are their money tree. They lack conscience. They would fleece their clients without batting an eyelid

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