As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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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Saturday, 13 October 2007

Risks vs Returns

One of my colleagues has been busy finding which bank offers the best FD rate; but, he was very disappointed as the best rate is only 1.88% with 6 months lock-in period.

I advised him to invest if the money is not meant for emergency use or short term.

However, investing involves risks, and not many people are willing to take higher risks, spent more time educating themselves on stock investing for better returns.

For many years, I have been like him; not willing to take higher risks as I have heard too many sad stories of how people got burnt when market crashed. I was fearful then. I put my money in FD for many years and wasted many of years of opportunity of growing wealth.

We must spent more time on financial education, monitor the market closely, and learn to take higher risks for better returns.

Looking back at the bold decision that I have taken in 2003 when I decided to take higher risks, spent more time educating myself on trading, and started active stocks trading.

See the above table for the result of returns vs FD rate.

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