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I was referred by one of my client to his friend recently to help him with a financial plan. I went through his friend's needs, insurance and investments just like any of my other prospects. He is a single professional in the mid 40s. He believes in accumulating his wealth towards retirement and to take care of his aging parents.
When we started to touch on investments, he opened up and told me that he was rather depressed over the investments he made over the last 2 years when he had lost more than 60% of his life savings. He was a saver until the period from Sep06 to Apr08 when he invested into Shares and Unit Trusts.
When he passed his pile of investment statements to me, I nearly fainted. I can understand why he was depressed.
1) Accmulated too much cash
* For 20 years, he saved all his money in fixed deposits and structured products from the bank. He accumulated quite a large amount till he was frustrated with the low interest rate and was tempted with the rising equity market.
* He followed his colleagues into buying shares and purchased Unit Trusts from banks and Fundsupermart, all over a short span of 1.5 years. Nearly all his 20 years savings are put for investment over that 18 months. Read more...[caption id="attachment_2213" align="alignright" width="150" caption="Photo from Health and Wealth"]
[/caption]
I was referred by one of my client to his friend recently to help him with a financial plan. I went through his friend's needs, insurance and investments just like any of my other prospects. He is a single professional in the mid 40s. He believes in accumulating his wealth towards retirement and to take care of his aging parents.
When we started to touch on investments, he opened up and told me that he was rather depressed over the investments he made over the last 2 years when he had lost more than 60% of his life savings. He was a saver until the period from Sep06 to Apr08 when he invested into Shares and Unit Trusts.
When he passed his pile of investment statements to me, I nearly fainted. I can understand why he was depressed.
1) Accmulated too much cash
* For 20 years, he saved all his money in fixed deposits and structured products from the bank. He accumulated quite a large amount till he was frustrated with the low interest rate and was tempted with the rising equity market.
* He followed his colleagues into buying shares and purchased Unit Trusts from banks and Fundsupermart, all over a short span of 1.5 years. Nearly all his 20 years savings are put for investment over that 18 months. Read more...
[/caption]
I was referred by one of my client to his friend recently to help him with a financial plan. I went through his friend's needs, insurance and investments just like any of my other prospects. He is a single professional in the mid 40s. He believes in accumulating his wealth towards retirement and to take care of his aging parents.
When we started to touch on investments, he opened up and told me that he was rather depressed over the investments he made over the last 2 years when he had lost more than 60% of his life savings. He was a saver until the period from Sep06 to Apr08 when he invested into Shares and Unit Trusts.
When he passed his pile of investment statements to me, I nearly fainted. I can understand why he was depressed.
1) Accmulated too much cash
* For 20 years, he saved all his money in fixed deposits and structured products from the bank. He accumulated quite a large amount till he was frustrated with the low interest rate and was tempted with the rising equity market.
* He followed his colleagues into buying shares and purchased Unit Trusts from banks and Fundsupermart, all over a short span of 1.5 years. Nearly all his 20 years savings are put for investment over that 18 months. Read more...
