Thursday, June 23, 2016

Lost retirement savings on bad investment

Many years ago, John (not his real name) met me. He worked as a security guard. He looked sad. He told me that he had invested $300,000 in buying several plots of land from Profitable Group. It was supposed to give him a retirement income. His investment was stuck. He had to work as a security guard to earn an income. His health was not good, but he had no choice. He had made a big mistake.

A few years later, he saw me again.

John - Mr. Tan. What do you think about my investment in the land plots. Do you think that I have a chance to get my money back?

TKL - Honestly, there is no chance. The company had been raided by the police. You had the titles to the land plots. You have to look for a buyer. Nobody is interested to buy the land plots at the price that you had bought.

John - (really sad face). Why does MAS allow this type of company to sell the investments to ordinary people?

TKL - I don't know. Sorry.

Recently, John saw me again.

John - Mr. Tan, my wife and I voted for you during the Presidential election. Are you able to help me to get my money back?

TKL - I really don't know how.

Over the years, John had become more angry and more desperate. I felt pity for John, although it was unfair of him to harass me over his financial problem.

1 comment:

Yujuan said...

If I am a foreigner I would also fleece Singaporeans, with their robotic, trusting, meek but greedy character, with no Govt protection to screen off both local and foreign wolves.
Only fools could avoid temptation to pluck such low hanging fruits.
A bird in hand is worth 2 in the bush. Keep money with you. There are safer ways to maximize savings.
E.g. place some money in Johore, an FD could net you over 4% sometimes for seniors, and the Ringget is now at an all time low.
Maybank stopped accepting foreign accounts' opening now, except for FD. perhaps they feel the Ringget is too low, and they want to avoid a deluge from foreigners. Try Hong Leong Bank, or other Johore Foreign Banks. Not sure about CIMB.
Or buy a property to retire at Hainan Island. Many aging Mainland Chinese in a greying Society in China,
increasingly eyeing here for retirement. Mainland is too cold for them, and Hainan is blessed with cheap foods with winter temp not below 8 degree. Thus properties would still go up in near future, with RMB vis a vis S$ quite low now.
Common sense not to put all eggs in one basket, but then greed gets in the way.

Blog Archive