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

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

Saturday, 23 May 2015

Your Personal Finance and Investment - Three Risks That Are Seldom Actively Discussed by Personal Finance and Investment Bloggers

The three risks that we should be thinking very hard when are investing over decades in the stock market:

1. Risk Of Large losses

Once we have locked in large negative losses it is very difficult to recover as most of us may have limited saving to keep adding bullets into our war chest to continue with the Game. So we must think very hard why Mr. Market is wrong and we are RIGHT before we keep averaging down on losses.

2. Risk Of Liquidity Needs

We must think hard and think years ahead on how to meet our future liquidity needs over 5 - 7 years of market cycles; but can be unexpectedly longer. 

We must avoid having to sell our assets at market low to meet our large liquidity needs and locked in large negative losses as in Point 1. 

By selling our valuable assets at market low and locking in large negative losses at the same time; we can say bye bye to our investing goals.

Think way ahead how to meet your liquidity needs; especially the larger ones.


"Do or Do not. There is no try

3. Risk Of Inflation over decades when inflation outlives our life

FIRE - The new word in personal finance and investment dictionary.

Financial Independence, Retire Early

When your passive income exceeds your living expenses is FIRE!

Now you can voluntarily fire your  job and your boss when you have enough FU$ or No Thanks$ to walk away from those "nonsenses" from you bosses. Enough is enough!

Sure or not when you are in your late 30s or early 40s?

You have decades of inflation ahead of your life.

When your passive income exceeds your living expenses is FIRE. 

Chun bo?

How financially educated are you with inflation?

Read? Reaching the Edge of Financial Independence. Next, watch your Beta closely! (2)-of-financial-independence.html

Read closely. Uncle8888 has chosen the word - Edge. No bom pi pi! Just Edge nia.

In the Land of FIRE; we still have to fight off the Dragon of Inflation to generate sustainable retirement income for life. 

Can our passive income (or cash flow) grows every year over decades to keep up with inflation? 

How to know?

One way is to simulate it.

Read? Retirement Income for Life??? (14)


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