SOS Rich

A statement made by someone:

"If you were in my shoes, every month has passive income coming in and it will continue after I pass away.  Why do I have to worry about making more money by investing."

The issue here is, if your passive income is more than your expenses, even more than you can spent for next life, would you be worry about making money by investing.

No, if you have no one to inherit to.  (so sad)

Yes, if you wish to inherit it to your children or family members.

However, I agree with the statement that "you do not need to worry about making money by investing."  But, as a financial planner, we believe it is a rational move to allocate your assets into different assets, disregard how rich you are.

You ask any billionaire to retire, they will ask you to …… To them, the motivation as an entrepreneur is no longer about money, could be leaving a legacy behind or even helping others.

So, does, that mean this billionaire do not need to ALLOCATE his assets, like put a portion for investments. Yes, he need not worry about it, because, he cannot finish using the money he made.  Neither should he be worry of letting his money to work harder for him, i.e. getting a better return on money.  I am of the opinion that it is RATIONAL and RESPONSIBLE to let your money work harder for you, of course, not to the certain extent that you are worry for it.

Investment, to me, is merely an avenue to let you excess savings to work harder for you.

Investment in good value EQUITY if done rationally, systematically and prudently, will provide you a higher yield than merely FD.

It would be a bit overly optimistics that you will get your passive income forever, when you group gets old, some may not want to continue the biz, their next of kin may not want to continue it, so the group will become smaller and smaller.  Or during a crisis or world depression, people may run out of work, and sale of the product may not be good for a period of time.  Hence, isn't it RATIONAL to invest, part of your hard earn money, so that, the money can work harder for you.  Of course, not to the certain extend you have to worry for it.

The principle here, I believe, is No everyday is SUNDAY.  The world do not move in a linear way, it happen in a mysterious way.

SOS Frustration

Frustration comes from:

1. own desires
2. did not turn out as one expected
3. others doing (kids, spouse, relatives, colleagues).
4. require to do something that the person do not like
5. things did not go well

Causes of frustration can comes from many angle.  Family life, work life, daily social life, even during games.

How do people find peace when facing with so many types of frustrations in their daily life?

So we must let go of attachments and also practice truthfulness, compassion and tolerance.  There are many attachments we need to let go:

1. jealousy
2. envy
3. competitiveness
4. selfish
5. lust
6. to food & beverage
7. temptations

And there is a long list of it.

LET IT GO, LET IT GO.

SOS Greed

World share market lately loss a few trillion dollars, due to the recent corrections of stock markets all over the world.  The world market is about say USD65 trillion, a 5% drop will cause someone USD3 trillion, whether realised or not.

This is the result of Greed.  You may ask, how may greed arise?  Well, there there a lots of hedge funds out there who speculate in the markets with borrowed money.  When sentiment change, there will be the first to dump and run.

Greed is a social ill.  Why are most people, young or old, is greedy?  Is this human nature born with?  When I said most, of course, I was referring to 99.9% of the people I know, not the 7 billion people.

There is no good consequences of being Greedy, period.  Some are just more serious than the other.  Anyway, one must learn to let it go.


The lesson here is DON'T be greedy in all aspect of life.

SOS Temptations

Life is full of temptations.

Normally temptations will overcome RATIONAL thinking, or shall I say, emotional thinking takes over.  Emotional thinking, or lack of rational thinking will cause the person make MISTAKES.

Principle - don't give into temptation if it is within your control.  As the word temptations, it is due to weakness to control RATIONAL THINKING.

For example, your spouse is nagging about something, so, if an opportunity arise to stop that temptation to stop the nagging, one may give in to their own principle to please their spouse.  Hence, they will find a solution, although it may be against its own principle, they will still do it and regret later.  It could be an expensive lesson.

Similarly for kids, due to temptations of playing electronic gadgets such as iPhone, iPad, computer games, they give in into this temptations, playing electronic gadgets instead of doing REVISION, which is their responsibilities.

Although most parents may agree that you should not force your kids to do something they do not like, the kids tend to suck in by temptations, because at their age, they are not aware of their responsibilities. Unfortunately, for kids, even after we discipline them about not give in into a temptations, they seems to forget and make the same mistakes all over again.  The never seems to learn.

Exactly like ADULTS, about investment.  The element of greed or the element of temptations to make fast money always make the same MISTAKES.  So, for adult, they don't seems to be responsible themselves and then expect their kids to be responsible.

Anyway, this is a work TEMPTATIONS can be view from another angle.  Basically it is a TEST for us to hold a GOOD PRINCIPLE like being honest.  Human tend to lie to protect themselves.  And unfortunately, if a person is honest, others will call them "naive", "stupid", "slow".  In the end, it is expected or natural or it is alright to be dishonest to protect their self interest.  Hence, the standards of todays moral is very much different from the ancient times.

CONCLUSION

Don't give in to TEMPTATIONS.  Like eat a lot, while over weight.  In the end, you will have to PAY for giving in to TEMPTATIONS, and you really have to pay more.  Anyway, it is not a coincidence, it is a predestined, it is just a test whether one is enlighten to this principles.  Today, i learn the hard lesson of temptation and can be avoided should I use my RATIONAL THINKING.

So, remember, in whatever we do, we hold the consequences.