Actually I already covered that in my 1st reply to him, with his general background its easy to tell he is not well versed in the markets. I don't believe its right for people to preach investment advise to those not versed in it, unless the individual is willing to discard anonymity and physically meetup and explain how things work. Even banks have to perform risk assessment first before preaching products.
If he loses a ton of money based on rubbish advise from this forum a lot unregistered preachers of stock investment will just turn around and blame him for lack of knowledge, but really reckless advise should be penalized as well. I purely advise him the safest approach based on his situation. If he feels the need to suddenly trade in Fx or Stocks surely this is not the right place to gain that kind of direction steer.
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Originally Posted by Unregistered
Some on this forum will advise you to invest in stocks and what not, unless you're a guru or have a stable emotional mindset you have to decide if this is for you? One thing for sure many on this forum dish out advise on how to generate 5% or even 10% returns but no one can really provide in detail what is the right approach. Without this most of the information is garbage really.
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Originally Posted by Unregistered
The advise of promptly paying down housing loans is not always good advise especially in today's low interest climate. There are such thing as good loans and bad loans. Housing loans are considered good loans and they are the only ones that come with the lowest interest rate. Banks give low interest rates because the collateral is the property the loan is taken for.
So let's say you have study loans, car loan, renovation loan and housing loan, your priority should be to pay off the ones with the highest interest rates. And after that, if you still have money left over, you should explore investing those money for higher returns than the housing loan rate.
In my case, I took a $1m loan for my condo and the interest was slightly above 1% pa. Instead of paring down the loan, I invested the money into blue chips and reits for 5% or more returns pa. Even my CPF OA gives 2.5%. Be nimble, not need to rush to pay off a good loan when you have one. |