B: I wrote an article here not too long ago when I surrendered my whole life policy.
I think it is important to acknowledge that products like ILP and WL are not bad on its own. I must admit that they do cater to different people with different personalities and they can be an important part of the personal finance portfolio to have.
The only reason why I mentioned ILP and WL as one of my worst investing mistake is because I could have done better with a term life earlier on in my life, paid lesser premium and I could have the flexibility to terminate it as and when I do not need them.
At this point, I believe our family are sufficiently covered in terms of the financial need should anything happens to me. I believe additional items like CPF (where I have done my CPF Nomination) and company 18 months salary death benefits payout will also be a huge help for the family. But that’s just about me.
I’m also a big advocate of having offense as a good form of defense.
The interview shows that you are making a return of 19.2% over the past 6 years. Is that sustainable? What about the losses? Are there any?
B: As much as I’d like to keep the high returns momentum going, I’m not naive enough to think this will continue forever. I’m also not going to spin a story and says how good I am to be able to churn out that sort of returns thus far like most marketing gimmicks.
One thing I can say for certain is that the returns will drop at some stage and it is not wonder to see why.
I’d love to also reflect on past losses and have made many throughout my investing decision. On top of my head, I can already think of Kingsmen, ISOTeam, Silverlake, Accordia and Ascendas Hospitality Trust.
I’d also love to reflect on past winners that I have made a profits on that I think makes a bad investment on hindsight. Sometimes, it’s so hard to distinguish if it’s luck that’s helping you or skills that you are getting out of.
Nothing is certain, that’s the fun element about investing.
Your portfolio looks pretty concentrated and it is also only covering the SGX market. Are you not afraid of over-concentration?
B: At the moment, I do not see it much of a problem yet.
I like the governance that covers most of Singapore companies and it cannot be said to be totally the same if we start looking into unknown territories.
The US market is an interesting one but I have always find it to be expensive on valuation basis. I think during a deep recession like we had in 2008, it’s a very good opportunity to start looking at some big cap companies over there.
I reminded about this at the start of the article but I’d like to remind again at the end that it’s ultimately about becoming a better person, both spiritually and financially than who you were the day before. It is never the intention to compare one status and keeping up with the jones.
If you are still constantly keeping up with the jones, you may want to read this article here which is pretty self explanatory on why there are always things and someone who are better than you.
Last but not least, I’d like to express my gratitude to all the fellow bloggers – the senpai whom had achieved financially great status but still remain humble, the 12 immortals in our chatgroup as well as all the friends and readers who have been supportive of me since the very start. I think it is important that we keep giving each other strength so we can move on to a better level scale together on this very journey.