Hi, just wondering what type of risk do you think is acceptable and what returns should be appropriate e.g 5-10%? Stocks and bonds can be quite risky. What if your son had invested in swiber and swissco bonds? Wouldn't he have lost all his savings then? I think FD could be a risk-free option or even ETF would be better in such a volatile environment. What do you think?
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Originally Posted by Unregistered
Think I have written about this before but I think I am slowly getting my point across to my children to start investing their savings. They have no problem saving but they are very risk averse as well as not interested in investing their savings.
My older son who started working about a year and a half ago has accumulated about $100k savings in cash from his salary, gifts (ang pow) as well as allowances. He is only comfortable to put his money in FDs.
I tried a different tack to induce him to invest and it seems to be working. I showed him my passive income sources and said that each passive income was helping to cover some of our family's expenses. Then I challenged him to create a passive income source to cover his handphone bills. With my advise, he selected Tai Sing Electric shares and bought 30 lots at 35cts per share or an outlay of $10.5k. Next month (Nov), he will be receiving his first dividend from the shares at $480. Needless to say, he was pleased that it was sufficient to cover one year's phone bill!
My next challenge to him was to make enough passive income to pay his share of our annual overseas vacation!
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