Risk Management & Investment strategy: What pain can a toothache cause?

A recent client of mine recently had a tooth/gum problem. Initially he felt pain. He bear the pain for a couple of days until the pain is unbearable, he seek dental advice. He was prescribed antibiotics and pain/swollen medication. The keyword here is unbearable PAIN!

The above is not uncommon to us. How could this be avoided?

·         Does he have a regular dental check up?

·         How regular is the appointment? Once or twice a year?

·         How old is he? Age 45, 50, 55, 60?

·         Does he have a bad tooth?

·         Was there prevention better than cure?

Whatever, the morale is that, most of all would not seek advice until the pain is intolerable? Why is that? Is it our character or life style? How does the above topic lead to insurance and investment strategy?

Insurance: As in my related topics on Insurance, buying insurance is not like buying clothes that makes you presentable. Seeking Insurance is one of many risk management techniques to address a financial risk.

I had noticed where the bread winner would seek advice on risk management after a particular ‘event’ which would trigger him to ‘wake up’

The event could be a close friend or relative who had just

·         passed away

·         been diagnosed of a major illness like Cancer

·         gone for a heart surgery, etc

He would then discuss with his spouse on his health, financial matters and subsequently schedule for a comprehensive health screening. If all is fine with the health screening report, there’s a peace of mind. Otherwise, they would seek medical advice and subsequently financial risk management. For a further discussion, please read my related article:  Slapped by ratings, exclusions, extra premiums

Investment: As in my related topics on investment, do you have an investment strategy/plan in place BEFORE you invested? Your investment strategy should include but not restricted to:

·         Timing or dollar cost averaging

·         Diversification

·         Asset Allocation

·         What is/are your investment risk?

·         What sort of climate to look out for? Etc?

I had notice during the global financial crisis period, investors and financial advisers were in a stage of panic (PAIN). Some would wonder

·         What is happening? (oh my god)

·         How far will this continue? (still wondering)

·         Or speculate it may be the low and buy more

·         If the market would even go lower

And until the PAIN is unbearable, they would liquidate their positions. Trust me, when most of us liquidate, that’s when the financial markets reverse! For a discussion to prevent losses in your investment please read my related topic on Investing (or Trading) is like going to WAR.

While some of you would speculate (retaliate), were my Clients’ Affected? Concerned? Called up? Angry? in a stage of panic? The answer is NO! Most are safe and still safe.

The above and related articles is to Thank God for giving me this knowledge, experience, foresight and to share with the public that Prevention is better than Cure. Seek financial planning and investment planning early. And it is not until the pain is Unbearable.