Are ETFs the only way to diversify your investment risks as sold by ETF's snake oil?
Hmm .... Risks and Return on Capital. Risks come loss of permanent capital. Volatility is not yet risk when we have adequate level of war chest to participate in market volatility AND we DON'T REALLY DEPEND on our investment portfolio asset draw - down to partially fund our annual household expenses. Focus on our portfolio management; we too can achieve that same effect of diversification of investment risks; not through Method i.e. by holding big number of stocks but Money Management. Cap any potential losers but let the current winners generate cash flow and that becomes our ROC. Our own capital doesn't even need to be fully invested to generate this yield. How much can ETF yield for our invested capital? 5% , 6% or 7%? Uncle8888's portfolio management may generate conservatively at 5.7% for 2018 and he still has large fire power to fight market correction or the next Bear.
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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