Money

[Kananga]

I am 31 and have no savings or pension. I have finally convinced myself I should start sooner than later.

If you had approx $2000 a month (+10% each year) to invest for the longterm (20-30 years) what would you do?

Any help would be appreciated.

[huggybear]

everything depends on you and your future and where you want to be. what type of risk profile do you want to have? do you want to take a lot of aggressive risk with the hope for huge returns or do you want to take the least possible risk (and have very small returns)? there are products in the middle as well.

i would recommend just giving me the money and i'd be happy to spend it...errrmm...i mean save it for you....

[Kananga]

Umm thanks. Anyone else?

[Kananga]

I guess you are all as crap with money as I am then.

[earthfriendly]

Don't be dishearten. Just start saving and investing prudently asap. When it comes to investing, let time work on yourside i.e. the compounding effect. I rather use this route and allow my investment to grow slowly but surely than to invest in high yield high risk avenues. It is important to partner i.e. marry someone who is prudent with money. I am speaking from personal experience. That said, I have very little experience nor knowledge on the various investment options out there.

Disclaimer: I am in no way a financial expert. In fact I racked up thousands of dollars in credit card debt in my early years when I went thru a credit happy phase. Took me years to pay off the principal plus interest. Oh last but not least, stay away from those credit card companies. If you use them, only spend what you can afford to pay off within the grace period. The interest they charge is no joke .

[bigfilsing]

first thing i would do is check out whats available.
Aside from the obvious investments ( banks etc) there also quite a few firms offering off shore investments. Some can be a bit dodgy but other have more solid funds to offer.
At the very least you should meet up with a couple of these kind of advisors as they will help you highlight the important criteria for starting your investment. Where you intend to retire for example.

There are already portfolio's out there where you can spread your investment between high, medium and low risk funds. At the end of the day it's your money so be careful.
Generally speaking the more interest you take in the funds available, the more returns you can expect ..or at least minimise your risk.

I am having some great results with Zurich ( i wont tell you which local advisor as that would be advertising) you need to set aside time to study
the options.
Based upon the amount your have available you could have a simple savings account. ( dont bother with local banks as their interest hardly keeps up with inflation) and an offshore savings/investment plan.

Like i said, take time to gather all the info you possibly can form all sources.

Good luck

[Kananga]

Thanks. I appreicate the advice.

[MoTokyo]

No pain, no gain baby. Educate yourself with the best investment books available (amazon is your friend on this) and start locking away money in the markets.

Stocks, especially options, are a great way to generate solid returns with your capital. Put it to work and stop wasting on garbage.

Allow me to illustrate garbage:

You see a new flat screen tv for 4,000$
You purchase this flat screen tv (garbage) instead of purchasing the manufacturers stock at 20$ per share.

4,000$ % 20$ = 200 shares

In 1 years time, your flat screen tv is now worth 3,000$.
In 1 years time, had you done your fundamental research correctly and knowing firsthand the flatscreen tv was going to be a phenomenal hit in the market, your shares are now worth 30$ each.

30$ x 200 shares = 6,000$
Original purchase of 4,000$ tv = 3,000$

You head back to the electronics store and see a brand new model from a different manufacturer that has developed methods to making brilliant flat screen tvs for only 1,000$. People at the electronics store hover around this model and you hear mothers and fathers agreeing in tandem that this just might be the first flat screen for their home.

You do your research, discover the company has excellent cash flow, low debt and a solid management team behind it. And what's better? The market has yet to reward this company for what you've seen firsthand is an amazing product with excellent potential.

So we take our 6,000$ and invest in the original manufacturers competitor (the new 1,000$ tv company) at 10$ per share (6,000$ % 10$ = 600 shares). All goes well, the tv was a massive hit just as expected and in 1 years time the 10$ shares are now worth 20$.

20$ x 600 shares = 12,000$

The original tv manufacturer (the 4,000$ purchase) has drastically slashed their prices to compete with the new guys and the original tv has gone from 3,000$ to 1,200$.

---

After 2 years time, the original 4,000$ flat screen is worth 1,200$ which equates to a 2,800$ LOSS.

After 2 years time, the intelligent, prudent individual has seen their 4,000$ investment baloon into 12,000$ for an 8,000$ GAIN. This wise individual not only purchases a new flat screen tv, they literally get it free with the realized gains.

Now tell me, what's better? Losing money or making it? This is what I mean by not splurging on garbage. If you see something new that you just can't live without, ask yourself if anyone else feels the same. Do your research. Maybe everyone can't live without this new product, it's just too great to miss out on. Be smart, don't buy it, invest in its production instead.

[Kananga]

Thanks for the explaination. Unfortunately my way of thinking is,

1/ what if the new company I invested in doesnt increase it's share value.

2/ What am I going to watch TV with while I am initially investing my TV money.

[MoTokyo]

[quote="Kananga"]Thanks for the explaination. Unfortunately my way of thinking is,

1/ what if the new company I invested in doesnt increase it's share value.

2/ What am I going to watch TV with while I am initially investing my TV money.[/quote]


"" I am 51 and have no savings or pension. I have finally convinced myself I should start sooner than later.

If you had approx $2000 a month (+10% each year) to invest for the longterm (5-10years) what would you do?

Any help would be appreciated. ""

[ksl]

Thanks for the explaination. Unfortunately my way of thinking is,

1/ what if the new company I invested in doesnt increase it's share value.

2/ What am I going to watch TV with while I am initially investing my TV money.

keppel corp
keppel land
K-Reit


and any other government share must be a winner in Singapore! I wonder why?

Cheap to build, expensive to buy and rent! Shortage of land, yet another 2 million immigrants expected = flying pigs and expensive bacon

and this week maybe the time to buy! keep and eye on the stock

[Kananga]

Thanks ksl!

[Kurozu]

I thought singapore has a min limit to how much you must buy in the stock market, just like in Japan? (Now Japan is changing the rules)

for example, if ABC company stock price is $100, and you must purchase 1000stock, which you must pay 100x1000= $100,000. (expensive)

Well, MoTokyo is both right and wrong in stock investment, because the return on stock market is very little. W. Buffett and Peter Lynch's (the 2 best investors) return is 15%~30% (not sure right now), while the other minor investors (like myself) will be happy just to get 5% return each year (if market is good). If anybody can get 100% return each year, it will give $2,048,000 in 10 years with just $2000. That is unrealistic. MoTokyo is right in the analogy since I believe the return should be smaller but still a very big return if you are investing $2000 per month + 10% each year. phew....lots of money.....let me see....if my calculation is correct with the 5% guarantee return each year.....you may have 27% return in 10 years. which will give u a total of 486,283. But of course, dividend, stock split etc is not included, and I believe you may get higher return if it is included. I wish I had 2k per month to invest.

[tuk boy]

interesting...

[Victor_rs]

Read the lasts posts on how and why to live knowing we will die; according to Sandra the answer to this philosophical question is to get MONEY.

She promises 10 million in 12 months by an initial investment of two bucks (you will be in a friendly group of 5 million people), “the secret”