Monday, 22 December 2014

What Does Investors Have To Say About This?




Today, I received a short email. Upon reading, I was again struck with the realisation that I am not always the best person to come to for advice. Therefore, I'm putting this out there so that financial bloggers and readers of my blog may give their advice based on their own experience.

We shall refer to him as FR to protect his identity.

Hi there teenage investor. I guess we are on about the same age. I currently doing my final year and currently met with an accident. I really don't know where to start can you help me out cause I'm like having no savings except that I also put aside money through insurance whereby at the age 45 then I can take out the money, which mean for 25 years each month I have to pay a sum. Right now I really want to know what I can do to start investing. Thank you.


Dear FR, I'm very sorry to hear about your accident. Is there any reason why you have no savings yet? For your insurance, I have no idea of the benefits/cons of having that insurance plan for now. But you should start saving a regular portion of your allowance/pay, e.g. maybe 10-20% / month?

You can't invest without any capital after all. Maybe this will help:

Additionally, some posts on my blog as well as fellow bloggers will help you a lot. But all these can't be done without any capital.

All the best FR.

Till next time,
Teenage Investor

10 comments:

  1. Teenagers and youths should invest in their own human asset.

    After spending so many years in the market, I realized that human asset still generate the best investment return. It is EARNED investment return and for us to keep.

    Investment return on financial assets is just earnING. Mr Market can take back at its own time and will without letting us know in advance.




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    1. Hi Uncle! I agree that human assets are the most important!

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  2. I hope he is covered when he met with an accident. I guess the insurance comes in during this type of unpredictability when things seems like they can't go wrong.

    As far as investing is concerned, i guess he does not need to rush it off. After all, he is still very young so he should focus on his studies, basic emergency funds and investing knowledge before investing.

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    1. Hi B! I'm not really experienced and knowledgeable about the different types of insurance plans available. Hopefully someone will come up with a blog post.

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  3. Investing can start from small and regular manner.. Can consider those plan to invest small sum on regular basis. Phillip securities, Ocbc and Posb has such plans

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    1. Hi Richard I agree! POSB would be a better choice for those with $100 ++ // month haha

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  4. Hi TI,

    I have the concept of a wealth pyramid where the base tier should always be sufficient insurance cover. From what I read above, the reader seems to have taken an ILP and not pure term insurance. Hope he had managed to get adequate payout for his accident and hope he is on the road to recovery.

    The second tier of the wealth pyramid is emergency savings to tide over a crisis. Only when this second tier is well covered then would I consider the third tier - investments.

    Finally, to cap the top would be frivolous money that one can spend on leisure. That's how I built my own wealth pyramid.

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    1. Hi SRSI! I'm not really experienced and knowledgeable about the different types of insurance plans available. Hopefully someone will come up with a blog post one day. Sounds relatively complicated.

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  5. Oops, looks like he has an investment-linked policy? He should relook at his insurance coverage before all the fees eat him up.

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    1. Hi OWQ! I'm not really experienced and knowledgeable about the different types of insurance plans available. Not a clue what ILP means either haha

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