Investment planning? Huh?

The above is all about planning with you.

Consideration for having an investment plan – In Singapore the Savings rate is currently 0.125% while inflation is at 5.5%. The problem will then be: erosion of purchasing power taking your wealth (if any) lower. If you agree, please read on.

Most people are afraid to lose money. The common reason is that they are so busy with their work/profession; they do not have time to monitor or understand markets. This would lead to losses during down market corrections or bear markets.

If you do not have time to monitor / understand markets, you have two choices;

• keep the money wherever it comes from and earn the (pathetic) interest/yield; is is definitely safe this way or
• seek referral for a trusted wealth planner (at a small professional fee); please read on.

Depending on your risk profile, time horizon and investment objectives, etc a strategy is drawn up for your approval (applying the Art of War principle).

Depending on my reading of financial markets coupled with on-going intermarket analysis, an on-going strategy is drawn up to accomplish your (realistic) investment objectives (goal) and a stretch goal.

A well defined client-planner relationship is established with well defined responsibilities of the client and the planner. While the client’s responsibility is to provide changes in personal profile and objectives, the planner’s duty is constant monitoring, updates (as in posting of my blogs) and pro-active ( & reactive) management of the client’s portfolio.

If all is fine, the strategy is drawn up with diversification and asset allocation specifications within the client’s risk profile and depending on the economy cycle. Communications are through emails and SMSs!

For the record, during the global financial crisis in 2008-2009, the Asset under Management does not exceed more than 6% of loss while some may even enjoy a 2% gain. As for Year 2011 the results are posted here.

As of current, the Asset Under Management had recuperated losses in year 2011 and depending on respective risk profiling; some are enjoying 2-10% of gain. (wow, isn't this fantastic; the secret (or no secret/no brainer) is discipline and startegies are defined to cut losses while preventing further erosion of your pricipal, hence a small lost is recuperated easily) It has been an extremely difficult fourteen (14) months. Fighting fire for 12 months and delivering some goals YTD.

I am exhausted! As the market will always be there the next business day, I will be taking a well defined break. Hence, whichever, the market will trend the following week, I will be taking a rest and be taking ALL the profit of the table. If you’re happy with your performance too, you may decide to move into bonds that provide regular income (dividends).

If you miss my post, don’t worry as I will still monitor the financial markets and continue blogging. Of course the major difference is that my responsibilities will be much lighter while enjoying a well defined break!

Happy Investing! By the way, the Greek situation may finally come to a close this weekend or probably (it is so common that datelines are postponed and postponed with the exception; planned riots do not get postponed) the can would be kick further again and again.