26 December 2017

What To Look For In An Investment?

what to watch out for before you invest?

Investment is NOT risky!

Most of the time, when people hear about the word "INVESTMENT",  first word that goes into their mind is "RISK".

However, one of the most famous quote by Warren Buffett is "Risk comes from not knowing what you are doing!"

Easier said than done! How do we know that we already knew about the risk we are getting into?

Well, let me share with you 2 simple factors that I look for in an investment:

  1. Does this investment gives me capital gain in the long run?
  2. Does this investment gives me cash flow?
I shall further elaborate to you on this 2 factors:

Capital gain in the long run

Due to the scarcity of resources (i.e limited of land in the example for real estate investments), we know that over a long period of time, prices for properties will appreciate.

Therefore, in the long run very likely you will enjoy capital gain for your real estate investment as well as stocks if you buy them at the right price.

Cash flow from investment

While waiting for your capital to goes up 2x, 5x or even 10x, you need cash flow too!

For example, if you bought houses and rented them out, you will have cash flow in the form of rental. If you bought equities and hold them, you will have cash flow in the form of dividends!

So, when both of these investment becomes over-valued due to market's sentiments (nobody knows when though), not only you get to keep the cash flow that you have collected over the years, you get to enjoy your 2x or up to 10x capital gain from your original capital investment!

Otherwise, you would also be far better off if you choose to reinvest those cash flow!

11 December 2017

How You Can Retire Immediately

how can I retire now?

Do you know that you can retire immediately?

Contrary to popular belief, not necessary you need to be "old enough" to retire.

When I said old enough, usually people will think of by the age of 55, 62, 65, 70, 80, 90 etc

All these numbers are the official retirement age in all over the world.

So, if you can retire young, would you still choose to retire old?

Certainly not! Everyone wants to retire young. Who wants to travel the world when they are old and frail?

Well, if you desire to retire young and strong, please continue to read on and I will show you the way.........

How to retire young?

If you have been investing for quite sometimes, by now you should know that listed companies that pay dividend usually pay in the mode of certain frequency, i.e yearly, semi-annually, or quarterly.

If I can share with you a way that you can have your salary every few days instead of once a month, would you believe?

Well, I know you wouldn't. 

But still, I will let the cat out of the bag.

And here is the formula:

Invest in 30 companies that pay quarterly dividend (do take note to invest in the right company at the right price).

If you do so, one year you will get paid 30 x 4 = 120 days!

We all know that there are 365 days in a given year. Therefore, roughly every 3 days (365 divided by 120) you will get paid once!

Isn't that simple?

Yes! It is that simple! Most people think too much and procrastinated for way too long and that is one of the reason why they couldn't retire early!

And if you know how compounding works, you will know that the longer you take action, the longer you will take to retire.

So, take action now and retire immediately!