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



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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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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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?


Posted by Createwealth8888 at 08:45
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3 comments:

  1. Singapore Man of Leisure13 January 2017 at 14:50:00 GMT+8

    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. Createwealth888813 January 2017 at 23:01:00 GMT+8

      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. Singapore Man of Leisure14 January 2017 at 07:57:00 GMT+8

      CW,

      LOL!

      Now I get the poke!!!

      Sorli, sorli.

      I not much study; slow.


      Delete

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