Friday, July 3, 2009

The Failure of My Investment

Is investment really important? When I was teenager, I always thought investment is something which able to bring me greater return than normal savings, with certain risks applied. Perhaps investment can make me rich, or at least ready for my retirement. When I listened to my teachers and relatives, investment is very easy, just dump the savings into somewhere offers more interests than your bank savings account for short or long term. Perhaps they are right, because I know nothing about it at that moment.

When I grow up and enter to the society to work, I tried to do what the oldies have told me. I've started to invest my savings into insurance and unit trusts since 2003. I got about average return of 10% a month from unit trusts, which is good. After few years back, my unit trust portfolio average return dropped to -30%, due to economy recession. Furthermore, the unit trust company is sucking my 5-6% of investment amount per entry. What a thrill! I was very unhappy about it, as after few years time, I've got negative, might as well I put the money in the fixed deposit!

I started to avoid diversification after I know how it increases my risk.

I continued to look for alternative investments which able to offer me higher annual return, which were foreign exchange and stock market. Sorry, I burnt my hand for these investments, due to I know nothing much about them. I proceed to look for other more solid and stable investment like real estate, unfortunately, the real estate price is already at the sky-high level nowadays in our country, and a person like me with average monthly income of RM1-2k should not be afford to pay the installment. Furthermore, I found out real estate is not worth to invest for me, for 3 main reasons. Perhaps I'll explain about it in detail in my coming post.

So what's left now? Marrying someone for her money? No, I'm not handsome and cheeky enough. Buy the lottery with return of RM20 millions everyday? No, I lost interest to do it for now, it's kind of wasting my money anyway. Invest my self to become a movie or rock star? Not potential enough. Fixed deposit and live frugally? No, I can beat the inflation and I want to bring a better living standard to my family. The more i think, the more I pissed off, because I don't know what should my plan be, while my age is growing.

Is real estate investment designed for the rich? Pls wait for my next post.

Until lately, I realized investment should be very simple. Not to blame unit trust or real estate anymore for now, as they can make good money very well too, provided we understand and know how to. To invest, we just need to know some basic rules, understand the investment we want, and come out with a system to do and monitor it. I should be invest without any risk! That's what we looking for, isn't? And investment should be just like a starting-up and managing a business. As you already know, business should be the ultimate investment we should look for. If the business is built successfully, it can gives us the good return perhaps until we are off from this world. If you already know what I'm talking about, very good for you. If not, please try to read 'Rich Dad, Poor Dad' again.

So for now, I'm working on my investment plan with a draft system, perhaps I need a couple of years time to prove it works. I really hope it will works and let me have the good return for the remaining of my life. If I'm success, perhaps you'll see me posting up my result here. If I'm failed, well, at least I've tried my best. You won't laugh at me, right.

Is there any giant rich ass in this world doesn't do investment?

Have a nice weekends, my friend.

1 comment:

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