(Post 83/week 68)Learning investing/trading together part 16: Practical Guide On Financial Planning (By Tan Kin Lian) part 2

Continuing on from part 1 here...

11.Good Financial Products

• Criteria for good financial products: transparent, fair charges and value for money
• Product traded on an exchange such as stocks are transparent and available to all, you can either be a buyer or seller
• Invest in renown company stocks that have high volume transaction per day, avoid fund or stock has less than $100 million in asset
• Once again...avoid insurance saving plan!
• Stay away from any complex product that you do not understand!

12.A financial adviser

• Contrarily to the book, Simply, just avoid them or find a trusted financial advisor (or DIY yourself,there are many information about various product on bank websites, there is no need for a financial adviser)

13.How to deal with inflation

• Simply put, earn more money(1001 way to do this!)

14.Planning at a later stage

• Start saving early

15.Higher commitments

• Allocate your saving and expenses according to your income(see part 2:Start a financial plan here)

16.Investing on your own

• Before investing in the stock markets, you should be aware of the following risks:
• Poor performance of invested company
• Failure to take up right issues
• High expenses of trading
• Bad timing decisions

• Trading in shares requires a close knowledge of the market, most of the individual investors like you and me do not have the time or resources to monitor the market, that is our disadvantages against a large fund
• Investment research information is more readily available to large fund, they are able to act quickly to take advantage of the news.


• On the other hand, our advantages are that we are able to hold on our stocks throughout the bad times, large fund have to consistently make a profit and show results to shareholders
• We may end up selling at a low price or buying at a high price due to the delay in getting relevant information

• When a company makes a right issue, new shares are available for a discount, existing shares are diluted and drop in value
• Hence, avoid companies that have a habit of making rights issue regularly

• Don't rely on an investment tip

• In a bull market, investor make a profit by buying shares
• In a bear market, investors sell their shares

17.Cost of term insurance

• Get one of this,I got one under the SAF Aviva
• Term insurance will pay out after a person death

18.Cost of health insurance

• Get one of health insurance

19.Cost of life insurance

• Also, get one of life insurance

20.The fun of gambling

• Don't start gambling, simple as that, unless its new year!

Will continue the next part here!