Nobody cares more about our money than we do.

I read something by Suze Orman which resonated with me and I would like to share it here:

Right now, interests are still relatively low even though they’re headed up probably. We still have one of the lowest interest rate environments ever.




Everybody knows that when interest rates go up, the value of bonds go down.

If you are going to buy a bond mutual fund, you have to be very careful because if interest rates go up, the value of that bond mutual fund will go down. And, in a mutual fund, there is absolutely not maturity date.

So, what are you thinking? The worst thing you could do with your money right now is put it into a bond mutual fund.




Not too long ago, my dad came to me after visiting a local bank right here in Singapore. 

He showed me a few pieces of paper which a financial advisor at the bank gave to him. 

Basically, he was advised to invest in a unit trust which was invested in bonds. 

Luckily, he did not commit right away.

Bond funds are not the place to be now and I have said this in various blog posts before.

As I believe that the very low interest rates we currently see cannot persist for many more years, buying long term bonds is a risky proposition.
Why? See: CPF or SGS?

Now we have "perpetual bonds". What are these?  See:
Perpetual bonds: Good or bad?





We have to remember that nobody cares more about our money than we do. 

Don't take what "finance professionals" say as the Gospel truth, especially not when they want to benefit from our business.

This actually raised a question in my mind as to whether wealth managers are providing products which are fit for purpose or are they self serving sales people.
See: Be cautious even as we accept higher risks.






My parents have both been sold unsuitable products by "advisers" in local banks before. 

I tell them to remember that these "advisers" are just sales people and it so happens they work in banks and they sell financial products. 

The more they sell, the more they make. 

They are not altruistic or noble.




We have to look after our own interests. 

No one else would.

Related posts:
1. Unscrupulous and rude person from Prudential.
2. Inflation adjusted retirement income plan.
3. Know what is good for us.
4. Why a wealthy nation cannot afford to retire?

Eco Music Challenge : Vote for your Favourites!

Organised by the National Environment Agency, the contest inspires talented musicians to protect and care for the environment through music. 

Give your favourite song / singer some support by voting for them!

Show your support and vote! Details at:
http://sg.sharings.cc/AK71SG/share/neaecomusic

"Every small action contributes to reducing our energy footprint. Follow the 3Rs (Reduce, Reuse, Recycle) to bring down our overall energy use."