and I.N.V.E.S.T (relates to the investment concepts we should be aware when deciding on various options)
.The above covers both a guiding compass and a technical manual which is sufficient for me to start investing. But each of us are different and maybe many others do not jump into investing as easily as me (which can be good sometimes).
A friend on Facebook asked me about my thoughts on investing and how I go about deciding on investments. Yes, there is a gap between where you are at now, and when you finally hold a compass and use a manual in your treks at the investment jungle.
Yet, it is not very different from a decision to start a fitness exercise plan for example, or even the decision to look for a job rather than stay at home to watch TV. It seems hard when we have little information, or feel less confident since we assume a difficult hurdle lies ahead of
us, or assume it takes too much time getting involved and decided to have the easy way out, of not doing anything.
Like keeping fit, investments are necessary. I want to urge you to think deeper about the value of your savings in the next 15 years. Investment does not entail taking huge risks. It merely requires investing time in thinking about your future. As you have asked that question and wondered if you have done enough in investing, the next step is to sit down one weekend or one quiet evening to draw up a fitness plan for your money and earnings.
Ask yourself if you are saving enough? Are you
you diversifying some of that savings into more risky yet higher returns? Would you want to start building up savings to purchase a property and how much percentage of your investment portfolio ought to be in property?
Do you need money for the next 5-15 years and if that savings can be put aside for more risky investment plans that invest in equity?
You are the master of your own future. Even if you are married, you need to set aside an individual plan that TAKES CARE OF YOU. It is best you gather some thoughts even before meeting a financial planner, so you can be sure of what suits you best. Be sure not to be
lured into making large investments that are not diversified.
You may want to consider both a rabbit hunt and an elephant hunt. A rabbit hunt is a regular, daily, weekly or monthly affair where you bring food to the table. This can be interest gained from local or foreign deposits, rent, dividends from stable equities or short term trading profit. You get investment returns regularly to know your money is working for you. Even if your other investments fail, you have a steady plan that would not make you rich, but sufficient for the next few years.
An elephant hunt is a once a year or once every 5-15 years occasion where you celebrate in a feast for the successful sale of a property, a business, a long term regular savings plan or equities you bought at very cheap prices as you know their hidden potential in reaping a large gain such as holding on to Apple stocks at USD12 for 20 years till it holds an exorbitant value of USD490. You should plan for both a tactical short term fitness regime for your savings, as well as a long term strategic plan.
Next, reflect and keep a diary. Do not make impulsive decisions. Make investing a beautiful experience like any other activity that you pursue. By attributing more meaning and thoughts to each action, you appreciate the activity more. When you enjoy learning and participating in your investment decisions, you begin to get better at it. Write down what you purchased, why you purchased it or even take a photo of your initial investment plan or equity purchased. Make it a personal and meaningful activity rather than a click of a mouse of an investment transaction. Like all things, when you give it some thought, you put your heart, soul and mind into it, you gain fruits from the toil of your labor.
This may seem common sense principles, but the first step is to think and then act. Then, you begin to get more experience and begin appreciating the use of your own compass and manuals that you begin to discover along the way. Happy investing! Happy dragon year 2012 to all my friends and loyal blog readers!
(Photos show me being the top 5 participants in a ballroom of more than 1000 Singaporeans who won an autographed book from New Yorker Dr. Alexander Elder in his investment seminar. Also photos of my daughters in Tokyo, at their previous favorite playgroup at Kagurazaka and at Shinjuku Isetan and a Japanese bookstore. Also Sayaka's 1 year old birthday at Pizzeria Mozza. Also a video featuring Sayaka's joy in learning to enter a block.).
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