Jan 13, 2016

Cory Diary : Fear is on Our Side

In the past, in order to be rich I need to be a Business man. Maybe professional fields like a doctor or a reputable lawyer, to retire comfortably. Bottom line is ... not easy for majority of people. In today Singapore, a working employee can have a million dollar investable asset just on Salary alone if they save diligently, and work in a good institution or company. Is still not a walk in the park though but chances are they are much more such people today.

This pose a big problem because commoners who are able to save that much could not catch up with inflation since they are drawing salaried income. People needs to understand this logic. A millionaire 20 years ago, today and tomorrow generation are all millionaires but in term of Real Wealth, they are far cry from each other. A comfortable lifestyle is still elusive to many millionaire today and worst for tomorrow generation. The basic issue is we did not breakaway from being a salary man. If we truly want to be rich enough to lead a comfortable lifestyle, careful here as I am not talking about saving every dollar in our twilight years, we need to do business. Well most of us are not cut out for this. Majority will fail and worsen our financial situation. Worst still if we give up our day job to do them.

The most practical way I feel is to invest in property or business/partnership. Property is Cyclic and can requires enormous amount of money. Is a one bullet kind of thing. And is not a sure win. The alternative is to invest in business/ partnership which I have said earlier is simply not for most people and may cost more than invested if the business goes indebted. The next best thing to it is Equity. A stake in the business relation through shares of listed companies. Hassle free and free from liability other than the amount invested.

The problem with Stock Investment is many people treat it as a gamble risk because they really buy on tips and speculates. Buying a property or running a business can have much more risk but people won't view it that way as it is not an easy come and go things. Therefore issue is within oneself. If we treat every stock we buy from the business point of view in growth, earning and returns, in the grand perspective of things, risk managed, I should not be far from financial freedom. With market low, every dollar we invest gives better return in the future. Fear is actually on Our Side !


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