Wednesday, October 18

Smart investing - a Path to Financial Freedom

This is Section 1.1 of our "Smart investment for beginners" workshop.

OK. Let's start our series with the obvious question: What does it mean by smart investment?

It means: make your money works harder for you.

Putting your money in a bank is one type of investment -- the deposit gives you an interest income. But it is not efficiently utilized.

Smart investment would mean putting your money in:
  • Cash or money markets
  • Stocks
  • Bonds
  • Forex
  • ETF (exchange traded funds)
  • Mutual funds
  • Real estate / REIT
  • Commodities
  • Structured products
  • Hedge funds
  • Private equity
  • Rare collections e.g. antiques and fine arts...

... at the right proportion and at the right time.

The porportion of each asset class depend on your age, number of dependents, job stability, spending behavior, debt level, your risk appetite and so on. The less you are depended upon, the more risk you can take, and the more reward you can get in a long-term horizon.

Why do I want to invest? I think I have enough.

Because it will give you the financial freedom sooner. While it doesn’t guarantee a big pile of cash, successful investment can give you an option of retiring sooner, travelling all over the world, or open your dream business.

Stay tuned for the next topic:


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