Having gone thr the Financial Crisis that the whole world is going thr, I can't help thinking how foolish I was to have put all my investment into a single Basket (Aka Prudential) who not only disappoint me mainly because their investment are so slow and I wasn't enlighted on how to maximise my return except the Agent know how to maximise their return...(Agent always ask u to invest with them forever and ever....True only if the charges are reasonable and dividend are given out)
I failed to realise that they Charges me a 5% Admin Charges + an Annual Fee for investing with them which amount to 1.5%, add in a bid spread of 5% and ZERO Dividends given out.. Do the math on a large sum of investment and you know how much I am lossing out especially when all prices now are so low...I lost almost 30% of my Capital.(1.5% x 4 year is alot and the funds are not performing)
The Good news is that I discover a whole new world of investment tools that are way way better than Prudential. With a friend enlightenment and doing my own research, I realise that I could actually make my money work for me...
The Answer is in Stocks and share, Unit Trust. The Latter is an basket of share investment tools while the former is an investment into a company.
The Investment Cost is minimum,with brokeage fee amount to $25 or 0.28% and no Annual Charges and Dividend Distributions...Yield Can be as high as 10%. It a win-win situation for both investor and broker.
Will start a blog entry series on invesment and my thoughts...probably to share more of mistakes I made in the past as well...
So what Enlightenment Have I gain over this Crisis Saga?
1. Warren Buffett Famous quote " Never Loss money" and Never Forgot this rule
2. Build a diversify Portfolio.
3. Invest for the long Term (3-4 year i Meant, not forever and ever)
4. Set a Target prices to realise your profits (U have to gain something and this is not paper gain I am talking about)
5. Learn the trend, property and bank stock usually ride up rally first...
6. Do Dollor Cost Averaging
7. Invest in Blue Chip stocks and of course company with potential and good capital
8. Investment must have liquidity. Never invest in something that lock u up for years and cause u to loss money. e.g. Structure products, Insurance Endownment
9. Cost of investment. (Remember insurance ILP - Investment link policy charges mortality charges, Insurance Charge + 1.5% Annual Fee + 5% Bid Spread....)
10. Save as much as possible to build opportunity funds and stay invested always
What a painful way to learn all this...but lucky fact is that I still have time to remedy this.....lol
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