As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Monday, 28 April 2014

Inflation - The Silent Killer



Just For Thinking ....


Read? Inflation - The Silent Killer


1. Singapore Inflation Rate











 

 
XIRR of Inflation (2000 to 2013) = 2.1%
 
 
2. Uncle8888 is an old human asset that depreciates with time .....
 
 
 
 
 
XIRR of Salary (2000 to 2013) = 0.7%
 
KNS!
 








3. Uncle8888's Investment Portfolio Performance


XIRR of Investment Portfolio (Jan 2000 to 25 Apr 2014) = 9.6%


4. Impact of inflation?

Fortunately, the poor return of 0.7% from an old human asset is compensated by higher investment return of 9.6%.











The Moral of the Story ...

Most human asset after 20 or 30 years of working will start to depreciate with time. Sad truth!

So how?

We may have little choice; but spend some effort and time to learn more on investing and to manage our investment portfolio to beat inflation by some percentage unless we are successful in climbing corporate ladder. The promotional salary increments and annual bonuses will be way ahead of inflation.

Two ways to beat inflation:


1) Do well in our career development and climb corporate ladder

2) Do well in our investment and climb investment ladder


Don't forget Investing Lessons From Conversation With Uncle8888 (1)


We should work hard on our Financial Assets and let them work harder for us to compensate our depreciating human asset in the last phase of our work life.




 
 
 
Do you have any other better ways?
 
 
Do share them.
 
 
 
 
 
 
 
 
 


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