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.

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

Friday, 13 January 2017

The Difference Between Smart Financial Advice and Smart Financial Advice For You (5)


Read? The Difference Between Smart Financial Advice and Smart Financial Advice For You (4)

Do we know that all these topping up of our CPF Accounts with our "excess" Cash is no different from selling options to Big Daddy and collect one time premiums of $XXX to $X,XXX with maturity date at 55, 62, 65 (soon 67)?

Great deals???

For those younger folks who have few dependents; it is going to be a very long expiry date in terms of decades while trading off our liquidity to respond to contingencies that may require us to sell our assets at the wrong market cycles. Once we have to deplete our assets to meet liquidity needs; it will become harder for us to recover in the next market turn.

Emergency fund is never the same as having adequate liquidity to respond to contingencies. 

Do some younger folks know the significant difference between Rich Assets and Good Assets?

Do you have a pie chart of your Rich Assets and Good Assets?

Uncle8888 has told (Wa Ka Li Kong) somebody to do this chart fo himself and not sure has he done it to understand his own liquidity position to respond to any contingencies?




3 comments:

  1. CW,

    I think using the options example will fly over the heads of most bei kambings...

    Don't say them.

    Even I catch no ball!?

    Selling option is cash flow in.

    CPF top-up is cash flow out.


    I can't poke what I can't understand...

    Any options trader want to come verify?



    ReplyDelete
    Replies
    1. What we may not understand is how some may think in this way.

      Tax saving is cash flow in leh! You see got saving of $XXX to $X,XXX!

      CPF top is cash flow out???

      CPF Top up is compounding asset hor. What cash flow out? Where got?

      Delete
    2. CW,

      LOL!

      Now I get the poke!!!

      Sorli, sorli.

      I not much study; slow.


      Delete

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