Tuesday 20 November 2007

A Consideration To Investments

This morning if not because of Mr. Tee's reminder, I have actually forgotten about the official office opening of a friend's land investment company as my GM called me up for an audit discussion which is very urgent to be submitted by this afternoon (as I am also on a half day leave...so my schedule is actually very pact). However, as to show strong support morally to my lovely friend, I have followed Mr. Tee to the function and we are supposed to have just a quick attendance as I need to be back to my own office at 11.30 a.m.
When we arrived at 11.00a.m sharp, Ah Too is also there and I met few familiar faces...my own agents (si..loh..they will tag me as the new target loh...) and the event was fast, as the guest of honour was about to cut the ribbon to enter the premises. It was smooth as planned...A quick intro from the MC to the guests and a short speech from the guest of honour...the opening ceremony is quite done..by then it is only 11.20a.m.


A relief when I heard the MC saying that the ceremony is done and those who wish to sit down for investment presentation, they may stay and those who wish to proceed with their early lunch, we may just proceed to the food counter. Instead of proceeding to the food, my lovely friend quickly pulls us into the discussion room....and start to share with us her personal experience from an investor outlook....(there goes my planning and had to text my boss for delay of our discussion...)


Now...my main objective to write this blog is actually trying to reflect on what is the best investment options available to us;

a) House
b) Vehicle
c) Land
d) Shophouse
e) Insurance
f) Stocks market
g) Unit trusts
h) Business opportunities/partnership
i) Our career
j) Our kids' education
k) Ourself...in promoting our career path or business development...
Before trying to reflect on the above options, probably we may need to know the following;

a) Have we ever thought about investment ? let our hard earned money to work us...money work for money..
b) We actually using our energy and time for the return of our investment...how much time do we have ?
c) Do you have a investment plan/strategy ?
d) What is our goal of financial freedom ? RM1m cash in excess of our accumulated properties worth RM5m with yearly investment profits of at least RM500,000.00 ?
This topic is ever refreshing...and it may also confuse us if we are not careful with our planning. The best is good exposure to share and learn from different masters as to provide an overview of our investment planning...the little pool of money that we have to enable us to achieve financial independence.
One of the smarter guy did mention to me...though you may not be able to transform fully but by preparing your mindself through reflection on what you are prepared to do...your transformation has already begun...and it is definitely for better than those guys who do not even think..
If you have read this blog to this stage,...congratulation you have started your path to financial freedom...and do not stop here, please try to explore further by answering the above few questions..then if you find your answers are "blurr", do not stop there but proceeding to explore with the experts to plan yourself a good investment plan to reap the optimum profits (that is how the rich guys think and do ! They plan and think enough to be richer that the poor...and normally the poor do not think much and always say happiness is the best. Hey, definitely happiness and good health are also top in the list for rich people and th when they have a good investment plan they believe that having a good investment plan with maximum return shall assist them in their positioning for happiness and good health..)

20 comments:

William said...

The land lease policy in Sarawak whereby land are leased instead of propertually owned by the proprietor make it an unattractive form of investment. Leasing a piece of land and hope that the price will appreciate while the land is not utilised just does not make sense. In addition restriction to foreign ownership and strict immigration and settlement policy even to fellow countryman deter the land price appreciation.

Ivy said...

And your lovely friend thank you a million times for being so supportive. Thank you! Thank you! Thank you!

Every change in life starts with a change in mindset, I can never say enough of how very true this statement is.

The very rich not only understand about investments, they also know the difference between an asset and a liability.

In my list, a car is not an asset, it can't be - its value will only depreciate and it can't generate a cashflow to me. And in that sense, a house is also not an asset to me unless a) it is no longer on loan b) it generates cashflow to me

I run Robert Kiyosaki's Cashflow 101 Board Game as an educational session occasionally, anyone interested?

mygreatbuds said...

How much is the fees for running the game ?

Ivy said...

My normal fees are RM35/person for a 3-hour session, it's called a Wealth Awareness Workshop. Max. of 6 persons, min. 4.

But I don't know how to charge close friends one lah...belanja me kampua at Sin Poh Poh good enough!

Heroes said...

I would think that asset and liability are interlink. Own an asset could possibly link to a liability, do you agree?

House, car, land, share or unit trust investment etc....which one is asset and which one is liability??

It's all back to individual. A house is an asset as the price appreciate in time but do you ever hear a house could possibly depreciate in value? YES.... Monthly instalment of the house is a monthly fixed liability..... But when you rent it out and it generates income and then you could define it as asset again...

A car...most of us would not consider it as an asset, right? A car rental company, they rent cars to public to generates income....to them, cars are their assets...of course monthly instalment is their fixed monthly liability but it generates cashflow to them to pay the instalment plus profit/income....so???

Share or unit trust and land, what categories are they in? A lot of uncertainties on these types of investment. Tell me what's the main purpose a person when he/she want to invest in something??? Am I wrong to say he/she aims for "Profit" in monetary term? I do not agree so-called "paper gain/profit" as it has yet to turn to real monetary term. I am not a "money face" person lar....but all of us wish our inverstment turn to profit, right?

mygreatbuds said...

Ivy, RM35 is fair...but I am sure it can be further negotiate for group discount.

Will see how to promote this to my company as I think this is like a massage programme on our brain (go for cha-kuat nowadays is at least RM60 subject whether it is full package or not :))

Ivy said...

Yes, an asset can turn into a liability, and vice versa. But it's the definition of whether something is an asset or liability that people screw up on.

Very simply put, an asset must put $$$ into your pocket, whereas a liability would take $$$ away from you. Ironically, accountants are the one who finds it hardest to understand that a house that you buy on loan and is still paying for without any rental income is a liability, not an asset. No thanks to what our accounting teacher taught us.

Ivy said...

Gr8buds, appreciate your interest on the workshop. But before you decide to run it for your staff, it's best that you experience it yourself beforehand. Most employers wld probably not encourage their staff to attend the workshop...there are certain implications during the process of the workshop that sometimes does not favor employers.

mygreatbuds said...

Ivy, that is true it could be damaging if it is for my staff. However, I am more looking into my group of agents...just thought of giving them a new year resolution as added values.

Again, I should play the game first, ya to evaluate the suitability but how long does it take ? I do not like long game except for mahjong.

Heroes said...

wow....business talk on the blog...i like and love it...

BTW, Gr8buds am i included as mentioned "agents"?

I don't like long game too...but with exception like u said is much welcome...heheh

Ivy said...

2&1/2 - 3hrs if we keep it to a minimum of 4 persons....u'll be enjoying yourself so much you won't remember the time!

mygreatbuds said...

Heroes, you are not agents...you are a brokers and brokers is self sufficient. BTW, you are a friend to lovely Ivy so there will be no charges from her...except kolok mee from Sin Poh Poh..okie.

Ivy, okay..hope to fix a time soon. For appreciation will give your a warm hug and coffee + snacks at Coffee Beans as your wish.

Ivy said...

Aaahhhh....what could be better than a warm hug+coffee, what more can a lady ask for, heh heh.

Heroes said...

Wow...hugging thingy starts again!!!

Gr8buds,your offer to our lovely ivy is unrejectable as mentioned but she might ask for more or something special.... :-)

Kolo mee at Sin Poh Poh is on me JUST for our lovely ivy and eat as much as you could.

mygreatbuds said...

Actually a warm hug a day will keep our relationship with other truly stronger.

mygreatbuds said...

Actually a warm hug a day will keep our relationship with other truly stronger.

mygreatbuds said...

Actually a warm hug a day will keep our relationship with other truly stronger.

Ivy said...

Gr8buds, we get the msg, no need to post until 3 times!!! Ha ha ha..must be your thoughts so strong that blogger also went crazy.

So bila we go Sin Poh Poh, Heroes belanja wo...make it early breakfast lah, I love the smell of the early morning..

mygreatbuds said...

Sorry...(face blushed).I thought it hanged so I refreshed..then came out with 3 repeated msg.

Hello...Hero only say you...I have to bring my own.

Heroes said...

yalor, Gr8buds why u need to mention 3 times but love to see little yii's cute face...hahahah

Okie Okie Okie.....the kolo mee session also include my great buds lar....