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?
CW,
ReplyDeleteI 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?
What we may not understand is how some may think in this way.
DeleteTax 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?
CW,
DeleteLOL!
Now I get the poke!!!
Sorli, sorli.
I not much study; slow.