it's been many years since i started investing and i took the chance over the last week since my mum was hospitalized to head to the bank to review the investments. there was the push to do it becos one of the investment i made got back to me and told me that they would be taking the fund off the market and if i do not realize the value, they will simply sell it off and credit it into my account.
well, it seemed like a straight forward matter as i headed to the bank. but when the personal banker opened up my account, he almost fell off his chair. well, you see, i have been a lazy investor that do not spend any efforts to monitor and manage my investments at all. and over time, i have invested small amounts and sell of every once a while to finance my housing loans, car loans etc. and as a result, my investment records are in a mess! accordingly most investments would make money 2-3 years after their initial launch and most people would sell them off. for me, i have not looked at what i bought over the many years and not really analyze what to sell what i sell. what this meant was - many of the stuff i bought has gone into the red, and there were times where i sold off some that i should have kept etc. as a result, the amount of monies i have lost over time was quite substantial. wtf right?
all these created a huge challenge for the personal banker. i had to give him 2 hours to consolidate the numbers and after which he had to get an investment specialist to attend to me, just to advice me how to move ahead with whatever monies i have left…
i was like… hmmm… how the hell am i gonna plan for my retirement when what i have can barely last me a year or two, based on my current liabilities!?!? it is bad enough for me to be part of the so called sandwiched generation (where most of our savings are used up either on loans for to sustain the livelihood of the previous generation. and end of it all, we may appear comfortable but in reality, we are a living time bomb), but to be caught with poor financial management efforts really adds to the headaches.
my own creation… can only blame myself!
damned!
damned!
Hi Jeffrey,
ReplyDeleteOuch. Sorry to hear. Are you heavily invested in Asian stocks? China seems to be increasing volatility. Not sure when it will become more predictable.
Unfortunately, we are in a period of increasing volatility worldwide. The US stock markets are fair valued under traditional measures so the gains going forward are higher risk. Especially, since the US Federal Reserve will need to decrease Quantitative Easing and return to normal monetary policy.
I wish there was a silver bullet solution for all of us, but it will be essential to stay engaged and vigilant (I have downloaded a copy of Prof. Shiller's 2001 Valuation Ratios updated paper to read. I'm expecting some very deep naps ;-)
Be careful going too far out on the risk curve chasing return. Most people are decreasing duration on Fixed Income to 4 years or less to avoid painful losses when rates rise again (capital preservation since yields are hardly worth discussing). When rates rise stocks should also react to the downside as the higher cost of loans would impact the economy and Corporations. If all goes well then stocks will soon recover and you could have ignored this transition ;-) If not, then we'll need to deal with whatever that turns out to mean. We should know within the next 6 months or so.
Don't ask me about Currency or Commodities since I don't gamble ;-)
You really should review your investments at minimum annually and ideally quarterly (think of it as just another doctor's appointment ;-)
Oh, disclaimer: I am not a Financial Advisor nor a Financial Analyst and I don't play one on television or even the internet ;-) Just in case someone reads and thinks I might be ;-)
Best wishes, Edwin
Hey Edwin,
ReplyDeleteThanks for the advice. Yup, certainly, i think I will need to buck up and be more diligent in managing my investments.
I also think that as part of the overall management of my assets, I probably need to consider selling off my current property once my mum goes… very heavy maintenance if I may say. But for now, to hold on to it so to give my mum as much comfort as i can...
:-)
Jeffrey
Hi Jeffrey,
ReplyDeleteYup, we need to live in the present with an eye to the future.
I think I read that Singapore is among the list of countries who are trying to limit price appreciation and speculation in real estate during this cheap rate (money) period. So hopefully the timing will work to your advantage. When the time comes be flexible on timing based on market conditions (real estate is still recovering here from the crash and people who don't have to sell are being patient as prices recover).
Financial Advisors are in a business and I have yet to find one without some conflict of interest (not a slam, just my perception of reality. They need to make a living ;-) So it's neccessary to have some understanding of investments and our own nervous stomachs ;-) If one loses sleep than they have taken on too much risk for them.
Best wishes, Edwin
Hi Edwin,
ReplyDeleteIn Singapore, I'd say there is one strategic reality that influence almost all policies here, and that is limited land space. With a space that is approximately 700 sqkm (probably less than a typical county in the States) and the need to support a population base of about 5.5 million, everything that relates to the use of land space becomes important and are subjected to scrutiny and naturally expensive over time. These includes property prices, office space, roads, vehicles etc…
Such is the reality we face here… so… for buildings, we have to either built up or dig underground, as for land transport, up to a certain point, we cannot expand anymore roads and must push people towards public transport means…
With such a reality, in the longer term, anyone that has properties to his name will only stand to gain. And increasingly, people will find buying and owning a car restrictive.
Such trends do not do good to keeping costs down and certainly exerts huge pressure on the government to be able to balance economic demands vs social demands… and so over time, with more affluence, more and more people end up buying more and more properties. So unless there are measures to control this, the rich will get richer and the poor poorer, and the social stratification becomes even more distinct. Thus, the many attempts to control prices…
Nonetheless, the fact remains that land is limited.
Anyway, I'll probably have to buck up and do my due diligence to review my finances moving ahead. Need to live in the present with an eye to the future, as you have said…
:-)
Jeffrey
Hi Jeffrey,
ReplyDeleteGood to know about Singapore. Very different from my personal reality: we do just sprawl and outside of some areas like Manhattan (also land constricted) prices are limited by current construction costs plus profit.
There is a good movement to redevelop and rehabilitate urban cores to save farmland and avoid becoming a "Detroit" with abandoned homes and levelled city blocks (a very sad situation and I wish them well).
Glad to hear your mum is becoming stronger.
Best regards, Edwin