How.
Mum wants to do some investing and offered me a place to ride behind her. Unlike my insurance deal I concluded a few weeks ago this one has the real risk of losing part or all of your capital, but it's still very tempting because, according to my mother's research, it boasts a potential 60% return rate, as opposed to the 5-9% interest per annum Im getting for my investment-linked product.
The key motivation behind me building my investment portfolio is simple: I've got savings and Im not going to spend them. The opportunity cost of current investment is future consumption; getting more capital goods for myself can only mean getting less consumer ones. But that isnt much of a cost, as it is, to me, because you would never see me carrying an i-pod nor would you ever see me driving a car, and lodging is more or less taken care of for 2 to 3 decades at least. Instead of letting those excess savings lumber along at the bank with its pitiful interest rate why not book a cruise to nowhere?
I am holding back nonetheless. Apart from the fact that I might lose part of my savings doing more investments would also mean spending less in the short-term future--coffee, restaurants, even the periodic indulgence in old chang kee may have to be sacrificed. Holiday trips too, and thats a major minus.
But we'll see how it goes lah hor, in the meantime I feel like trying out orchard hotel's international cuisine buffet.
The key motivation behind me building my investment portfolio is simple: I've got savings and Im not going to spend them. The opportunity cost of current investment is future consumption; getting more capital goods for myself can only mean getting less consumer ones. But that isnt much of a cost, as it is, to me, because you would never see me carrying an i-pod nor would you ever see me driving a car, and lodging is more or less taken care of for 2 to 3 decades at least. Instead of letting those excess savings lumber along at the bank with its pitiful interest rate why not book a cruise to nowhere?
I am holding back nonetheless. Apart from the fact that I might lose part of my savings doing more investments would also mean spending less in the short-term future--coffee, restaurants, even the periodic indulgence in old chang kee may have to be sacrificed. Holiday trips too, and thats a major minus.
But we'll see how it goes lah hor, in the meantime I feel like trying out orchard hotel's international cuisine buffet.
1 Comments:
It's good to learn and experience some forms of investment as it will build up your capability in risk management and decision-making process. In life, we have to face numerous challenges daily, weekly, monthly and yearly. At every stage, we need to make decision be it big or small. Therefore, risk management or calculated risk decision-making process is important.
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