Why invest

Is investing for you?

Here's a shocker for you. A truth that is often not told is that investing is not for everyone. 

Investing is simple. But it is not easy. As with all skill-based activity, it require practice and some time to get familiar with it.

For those who are not willing to commit any time at all, please don't invest. Would you jump into an ocean without a life vest if you do not know how to swim? Why would you spend hours working to make those hard earned $ and yet believe that you can make more in the stock market without spending any effort?

If you just want a get-rich-quick scheme, please go away. You are just lazy and greedy and I have no respect for you.

Just in case...

But in case you are a nice guy who just happens to be lazy (like a good friend of mine), you may consider doing passive investing. The key approach involves a dollar cost averaging method where you buy a fixed $ amount of the STI ETF (listed on the stock exchange) every month, regardless of rain or shine. I estimate, that over the long run, you should get returns of 3 - 6% per year, net of transaction cost.

But is it enough?

There is a slight problem here though. With returns of 3 - 6% per year, it may not be enough to get you to the magic number you need for retirement.  

If you were born into a middle class family and grew up in a HDB flat, I am sorry to tell you that you need to do more. I know, because my profile is just like yours. And I have done the math. 

A young adult will need to be a multi-millionaire in liquid assets (excluding your house) to retire comfortably. Check your bank account now. You definitely need to BE MORE PROACTIVE.

Which is why you need to do more.

At the end of the day, investing is not a choice. It is a necessity. It is a MUST.

And if you do it well, not only will you retire comfortably, you will RETIRE EARLY TOO. 

Imagine sitting on a beach with a nice cool breeze in your face at age 40 with no financial worries. Imagine, having the time to do what you want, when you wish. Imagine having the time to spend with your loved ones. 

Invest now!

If you invest your time now to learn & invest your $, you will be rewarded with more time in the future as you have the $ to buy time. That's your true return on investment.

If you don't invest in yourself, nobody will.

For most people, value investing is the way to go. It is simple, it requires only a moderate amount of effort compared to most other methods out there. And it works. You can probably achieve 10% return p.a. At that rate, you can double your money every 7 years!

In conclusion...

I hope you are convinced by now. I am here to help you if you want to start today (check out www.i3-institute.com)

If you don't believe that you need to be a multi-millionaire to retire, you can try this excel spreadsheet and find out for yourself (download here)

If you need more info on why value investing is the way to go, see this article or find out more on the blog here.