Investors who are risk averse want to look for safe investments that give a yield higher than inflation. Here is the tip that I give to people who attend my talks on investment and financial planning. It is what I learned over 40 years and is given free to consumers!
http://tankinlian.com/admin/file.aspx?id=681&IID=685
http://tankinlian.com/admin/file.aspx?id=681&IID=685
Thanks Mr Tan for sharing this piece of information for the investing public. I believe especially if more retirees can read this article, they will stand to benefit as this is a relatively safe way to invest for 5% annual dividend yield.
ReplyDeleteApart from the STI ETF, investors can also benefit as mentioned from the article by investing in a basket of blue chip stocks for diversification. I believe our Singapore blue chip stocks are familiar names to Singaporeans. There is nothing difficult to earn a decent steady return from the stocks market. As long as one is disciplined and mechanical, continually investing in a basket of blue chip stocks will provide adequate returns through dividends collected over the years as long as one has a long term mindset in investing.
Just make sure one buys in gradually and build up such a blue chip portfolio over a long period of time to have a cost average advantage. Once the dividends come in, it can be reinvested to buy more blue chip stocks for compounding effect so as to receive more dividends subsequently.
During bear markets, do not panic but buy more aggressively. During bull markets, buy some but never aggressively. As long as one has the price bargain mindset to always seek to buy good familiar blue chip stocks at low prices, similar to an auntie bargaining at market to buy quality fish or vegetables cheap, it will apply well to investing over the long run.
Do not underestimate the compounding effect of sound long term investing. It can make anyone rich in seeing the dividends collected increase through the years plus a possible treat in capital appreciation of the stocks in one's portfolio.
Nobody could get rich by merely working, you get rich by investing your savings.
ReplyDeleteDividend stocks from blue chips are the safest investments, you get both income and capital appreciation.
Better than investing in those dubious insurance products who con you with offerings of potential returns that are non guaranteed.
"Nobody could get rich by merely working.." (Yujuan)
ReplyDeleteNot true. Peoples who work hard and get rich are top management of Multi-National Corpn, top civil servants, politician....
"Dividend stocks from blue chips are the safest investments, you get both income and capital appreciation" (Yujuan)
ReplyDeletePrior SIA public listed, SIA sold its share at $4 each to its worker.
An SIA employee having received his CPF at 55yo, he invested with SIA at $15 per share. He is pleased with the Blue Chip until last year. Being an employee of the Blue Chip, he had confidence with his investment.
Today, it worth $10+ per share. He want to cry and have to continue working at 62yo. He stayed in a landed property.
You can NEVER accumulate wealth for retirement by investing in insurance products, whole life, endowment or single premium.They have negative return.
ReplyDeleteYou can NEVER retire too if you ever use an insurance agent to advise you. They would be thinking of theirs. It is like hiring a thief to advise on your wealth.
These are facts. Ask anyone whose wealth has ever grown because of the insurance agents.What I know the insurance agents wealth has grown. The Sunday times are full of them. How they get rich? It is YOU.