I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


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

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Sunday 24 June 2018

Low Return Is NOT Zero Return and Far Better Than Negative Return!


In our life-cycle of investing; we should be investing largely based on our needs and wants in respect of tight and discipline money management and estimated future cash flow to avoid liquidating any part of our investment portfolio to fund shortfall to meet future years of household expenses.

Low return is not ZERO return and it is far better than negative return when we are NOT in the position to inject monthly capital to our investment portfolio anymore.

We often hear bloggers in the investment blogosphere warning us about impact of future inflation eroding our cash. So what?

Uncle8888 has been living through years of inflation and same as generations before him. The generations before him have survived and so we will survive inflation too. But, we will NOT survive years of negative investment return and followed by years of partial cash draw-down to fund household expenses under negative investment return! 

Inflation may be painful; but negative return will kill us faster when we are not capable of any capital injection any more! Get it?









3 comments:

  1. Able to take risks? Willing to take risks? Need to take risks?

    If answer is "no" to any of the above then probably not good idea. :)

    Inflation & disinflation keeps occurring in cycles. The last time with elevated inflation was in 2011/2012 ... gold at US$1900, Brent crude at US$120, unaffordable BTOs, inflation at 6%, PAP kena whacked at the polls ... think people all forget liao LOL! Now inflation is at miserable 0.1% yoy as of Apr 2018.

    Periods of high inflation will be followed by periods of disinflation (or touch wood, deflation) & vice versa. Nowadays with ultra flexible monetary & fiscal policies, usually don't stay in extremes for too long (unless govt really incompetent or corrupt).

    In fact for those with plenty of cash & not afraid to invest in risk assets should be praying that central banks all around the world quickly jack up interest rates much higher & faster! This will accelerate bear markets (stocks & property) & recession. No pain no gain Hohoho!

    ReplyDelete
  2. Uncle 8888

    Waiting for posb savings acc int to 8% lIke in the 1970s

    ReplyDelete
  3. May be we can slow down our investing goal to get more yield since we have enough and days ahead are getting shorter.

    ReplyDelete

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