Originally Posted by
cbsh38584
Buy base on Buggy Jumping strategy - A huge phobia of heights
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Bungee jumping is the scariest thing when you first step off the ledge but once you force yourself jump afterwards it feels amazing and really want to try again.
We should not be a frog in the well ( see the little patch of sky above inside the well).A person with a limited outlook when it comes to global events. So many things have changed after the once in a century US financial crisis in 2008. Stagnant pay , no certainty of job security , high cost of living (milk power), surging housing price , US/China trade war etc etc.
It is very tough when it comes to making a living. Retirement a scary prospect for lower/middle income group($1500-$5000). Without change in saving and investing behaviour, you expect to work as slaves for money for the rest of your life. Hopefully, you health permit you to work beyond age 70. Life is always a struggle. So do not get yourself into a painful struggle which you can avoid at young age. 金钱不是万能的 没有金钱是万万不能的. Money is not everything no money is totally NO NO NO in SG. Start investing as young as possible.
It is extremely importantly when you invest, you need to choose a journey of investing against the herd instinct group of majority people (90%). I have made many mistakes & survived. I survived 1997/98 Asia financial in 1998 & the 2008/2009 US financial crisis. My 20yrs + investing experience accumulated tell me that patience is really key in crisis investing. Investing in crisis time is the most rewarding and it will shortened your journey to Financial Freedom. But it is one of the most difficult investing decision. Only the "very NEW investor (pnly <10%) , very experience investors who have gone through a few of these crisis , investors which has alot of CASH avail will only dare to invest.
Do not blindly follow your remisers, your bankers , your friends/relative , analysis report recommendation etc. If your base on your stock mkt or individual stock FEAR analysis. Your decision will be more right than wrong. At least you are buying price way below calm (no fear) price. Example. Bankers/other recommend starhub at $3.50(calm price ) (high was 4.50 - very optimistic price ) base on dividend yield (5%). You will likely to lose a lot as the price is now $1.68. It is the same for M1 or Keppel corp, SembCorp etc.
Fool me ONCE , shame on YOU. (kena scammed playing penny stock)
Fool me TWICE, shame on ME. (Take revenge to recoup earlier penny stock loses)
Fool me 3rd TIME,How STUPID I am. (Base on hope investing - Old habit dies hard)
Fool me the 4th TIME, I need to be CONDEMNED.( Still cant get rid of herd instinct investing)
Fool me the 5th , 6th TIME, Totally hopeless gamblers (borrow from parent , friends, relative , loan shark).
The final tragedy for a hopeless GAMBLER will bring financial disaster to his/her families.
Below are a few small & big crisis that stock price is more attractive (fear price - NOT EXTREMELY fear like the 2008/2009)
2010 - Middle east crisis
2011 - Greece or Europe debt crisis
2012 - US deficit crisis (now all ok - just print more)
2015 - China crisis
2016 - Russia & Oil & gas crisis
2019/2020 - Continuous Trade war or Balloon US debt lead to Global crisis soon ?
Invest like Warren buffet (richest man in the world).
1) Buy during "tough" times. Tought times never last. Extreme CHEAP or VALUE stock happen during blood in the street (CARSH).
Buy during blood in the street . The downside risk is tremendously reduced. Upside gain is tremendous.
2) Buy good blue chip stock (SG & 3 big China banks) & keep a long-term to collect dividend. Just like you are buying a "property " renting out to collect rental
3)UNIT TRUST - Buy during FEAR times
A unit trust pools money together & is managed by a professional mgr. It attempt to create portfolios that outperform the mkt over a long period of time (15 to 25 yrs).
Schroder growth fund - Return 8%+ since incept (1991)
UOB Global health fund -Return 8%+ since incept (2001)
1st statement dividend fund - Return 8%+ since incept
AIA regional equity fund - Return 8%+ since incept
Prudential SG managed - Return 6%+ since incept (1991
Aberdeen pacific equity fund - Return 9%+ since incept
Bond fund (R2-3) Low risk return 2-3%
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Invests primarily in fixed-income assets, such as treasury bonds, corporate bonds or municipal bond. During the optimistic time, you can switch to Bond fund & wait for the next crisis to come & switch buy to high risk unit trust.
More for experience investors.
Balanced Fund (R5) - Moderate risk . Return 3%-4%
Invests in both stocks (50%) and bonds (50%).
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Income fund (R6) - Slightly high risk return 4% to 5%
Invest into stocks that have consistently high dividends like banks , reits , telco etc.
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Growth Fund (8) High risk return >10%.Can also be -10%
invests in stocks that have the potential to grow substantially
like Alibaba, Amazon etcAs long as your have the long term investment horizon. Itshould able to outperform in long run (15 -20yrs).
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Sector fund (7-8) - High risk
Invests in stocks in a particular industry sector, like financial services , mining or world energy , health care etc.
Don't put everything into one basket (sector risk)
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Single country fund - High risk. No diversification.
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Example if there is a Korea war. The Korea fund will be greatly hit the most.
Vietnam fund was launched at $1.00 in 2007. Still below $1 after 10 yrs.
Young investors can afford to buy (fear) growth fund as long as they have the long term investment horizon. This is to ride through the roller coaster volatility . Holding period at least 15 yrs.But if you are in the 50s. The best optional is to buy income stock. Give quarterly dividend. Timing entry is important.
If you are in the 60s. Better put your money into your own CPF earning 2.5% to 6%.I have "deposited" into my Father's (age 88) CPF RA acct earning 6% (1st 30k is 6%. Next 30k is 5%).
Very important to take note
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Greed investing kills just like speeding on the road which will eventually kill you .Never touch speculative stock especially small cap. Don’t trade as it will be a waste of time due to your own human emotional weakness.
Just be very patience. Wait for the next crisis to come to buy EXTREME fear price. Investing is very simple to grow your retirement. It is you who make it very complex , difficult or no guarantee win. It all about own GREED & herd investing.
CPF is part of your alternative retirement. So start self contribute cash to max out $37k/year (employee + employer+ own cash) if you have the ability. Any excess of 37k/yr, CPF will return the excess with ZERO invest. Start from $100 per mth through ASX machine.