Achieving A Passive Income Through Value Investing (Part 1 of 2)
[Advertorial]
Day in day out, in the busyness of life, it is often easy for us to get carried away with fulfilling all of our tasks and obligations. Salaried workers looking forward to payday, to … … pay their bills and splurge/reward a little on themselves or their families. But … …, the living standard of Singapore is high. With inflation, taxes and salary stagnation (no thanks!), not only everything gets more and more expensive (GST is going to be 9% soon), we are also worried how our children are going to have a shelter over their heads in the future.
It is getting common to have both parents working these days. We have a high cost of living, we need to supplement our kids through tuitions and enrichment classes, and we also do not want to short change ourselves in our annual overseas trips.
Truly, like what Warren Buffet says, if we don't find an alternative to earn passive income, we will work until we die. I wish I have known this in my early 20s, but I only realised it in my mid-30s when I entered the financial industry as a Remiser. Of course, it is better late than never. It was from that stage of my life that I started learning about investing, about the different types of financial investment instruments and the wonder of the Rule of 72.
Fortunately, 10 years forward, with the avail of Internet, we could gather more and more information and knowledge on how to create an alternative source of passive income. One of the ways is through Value Investing.
In order to get a meaningful return from our investment, we need to understand that compounding return can only work if we allow it to continue for a long time. A long time would mean 10 years and beyond. It also means that we should view our investment as something we hold on to for the next few decades. A mere $10, 000 compounded at a rate of 10% over 20 years can become $70,000. Therefore, we need to allow our investment to work its magic by staying invested and not get caught up with quick profit and speculation.
Think about what you and your loved ones can enjoy if you know exactly how to apply the formula to sifting out profitable stocks that actually makes you money. Wouldn’t life be better to have assets giving you passive income every year, yet at the same time, compounding your wealth through capital gains? And once you have gotten the right strategies to value investing, you could even create your own low-cost fund for your family. There is no need for you to get locked in into mutual funds or insurance investment-link policies that take a big commission fee and wipe off your investment returns.
A word of caution, from my experience, do not try anything new in investment until you have adequate knowledge. Take courses, read investment books and journals, learn from the gurus, and speak to the professionals are ways I hone my investment skills. Anyone without financial knowledge can pick this skill up, and here's one I strongly recommend:
Would you like to attend this workshop with me to learn more about Value Investing in Saturday 29 June 2019? It is very kind of Value Investing College to offer this free for members of Kiasuparents and my readers, including a new book authored by Pauline. If you are serious about creating a passive income, take the first step by clicking on the link now to register for this free workshop. You could be on your way to financial freedom.
Day in day out, in the busyness of life, it is often easy for us to get carried away with fulfilling all of our tasks and obligations. Salaried workers looking forward to payday, to … … pay their bills and splurge/reward a little on themselves or their families. But … …, the living standard of Singapore is high. With inflation, taxes and salary stagnation (no thanks!), not only everything gets more and more expensive (GST is going to be 9% soon), we are also worried how our children are going to have a shelter over their heads in the future.
It is getting common to have both parents working these days. We have a high cost of living, we need to supplement our kids through tuitions and enrichment classes, and we also do not want to short change ourselves in our annual overseas trips.
BUT
Truly, like what Warren Buffet says, if we don't find an alternative to earn passive income, we will work until we die. I wish I have known this in my early 20s, but I only realised it in my mid-30s when I entered the financial industry as a Remiser. Of course, it is better late than never. It was from that stage of my life that I started learning about investing, about the different types of financial investment instruments and the wonder of the Rule of 72.
Fortunately, 10 years forward, with the avail of Internet, we could gather more and more information and knowledge on how to create an alternative source of passive income. One of the ways is through Value Investing.
In order to get a meaningful return from our investment, we need to understand that compounding return can only work if we allow it to continue for a long time. A long time would mean 10 years and beyond. It also means that we should view our investment as something we hold on to for the next few decades. A mere $10, 000 compounded at a rate of 10% over 20 years can become $70,000. Therefore, we need to allow our investment to work its magic by staying invested and not get caught up with quick profit and speculation.
Think about what you and your loved ones can enjoy if you know exactly how to apply the formula to sifting out profitable stocks that actually makes you money. Wouldn’t life be better to have assets giving you passive income every year, yet at the same time, compounding your wealth through capital gains? And once you have gotten the right strategies to value investing, you could even create your own low-cost fund for your family. There is no need for you to get locked in into mutual funds or insurance investment-link policies that take a big commission fee and wipe off your investment returns.
A word of caution, from my experience, do not try anything new in investment until you have adequate knowledge. Take courses, read investment books and journals, learn from the gurus, and speak to the professionals are ways I hone my investment skills. Anyone without financial knowledge can pick this skill up, and here's one I strongly recommend:
Comments
Post a Comment