School of Hard Knocks 02 (Jan 10 - Jan 13)

[Musicwhiz]

Technically speaking, you can say that they had a wide margin of safety, which is also required if you invest in paper assets

Ah yes, we do agree on this point definitely!

[kennynah]

always good to own free hold properties (preferably without over leveraging).

when you get old, you can move from places to places and live in them. have your afternoon kopi-o, read a book, do some gardening... and if you wish to, you can rent it out for passive income.

better don't depend on CPF... guarantee not going to be enough

[winston]

And if those guys had bought Businesses and Properties in the US or Europe instead of in Asia, I dont think they would be sitting that pretty now ...

Therefore, it's not really correct to generalize that investing in businesses and properties are more superior than paper assets.

They happened to be able to ride onto a long cycle ...

But do you still have time now to ride a long cycle ?

If not, what are the short cycles that you can ride now ?

[Musicwhiz]

And if those guys had bought Businesses and Properties in the US or Europe instead of in Asia, I dont think they would be sitting that pretty now ...

Therefore, it's not really correct to generalize that investing in businesses and properties are more superior than paper assets.

They happened to be able to ride onto a long cycle ...

But do you still have time now to ride a long cycle ?

If not, what are the short cycles that you can ride now ?

For me as an investor, I don't ride short cycles. My cycles are drawn out pretty long and while waiting, I collect dividends.

[winston]

Yes, if you have time on your side, then you can ride the long cycles.

But for those who are getting older, they dont have time on their side.

Therefore, they have to look for shorter cycles, which means probably exposing themselves to more risk as well ...

[Musicwhiz]

Yes, if you have time on your side, then you can ride the long cycles.

But for those who are getting older, they dont have time on their side.

Therefore, they have to look for shorter cycles, which means probably exposing themselves to more risk as well ...

I was thinking for older people, they can tweak their asset allocation to hold more Govt or Blue-Chip Corporate Bonds? They can thus limit their risk in terms of fluctuations in asset prices yet achieve a yield which is stable and in line with inflation.

[winston]

I was thinking for older people, they can tweak their asset allocation to hold more Govt or Blue-Chip Corporate Bonds?

They can thus limit their risk in terms of fluctuations in asset prices yet achieve a yield which is stable and in line with inflation.

As interest rates are very low, it's actually quite risky to be in Bonds, even the shorter term bonds.

I would think that some yield plays may be the way to go but again, that means some exposure to Equities.

Probably the way to go, is to buy on any steep correction, to have some added "margin of safety".

And there are people who tried to get 5-6% yield and end up losing 10%-12% of their principal

[Poles]

for older folks...i would suggest better off enjoying the money if can afford.....

[winston]

Friendless and Nearly Broke, Terrell Owens Says ‘I’m in Hell’

Terrell Owens, the former NFL star receiver who has signed to play for and co-own an indoor football team, is friendless and nearly broke, he told GQ magazine. “I’m in hell,” Owens, 38, said he tells people who ask about his well-being.

After the Cincinnati Bengals did not renew his one-year, $2 million contract last year, Owens has been suffering from his financial shortcomings, including ventures gone bad and child support for his four children, he said.

The $80 million or so he had made in his career is almost gone, he said, but not because he lived a lavish lifestyle.

In a profile story in GQ’s February issue, Owens said his financial advisers lured him into risky investments such as an Alabama entertainment complex that cost him $2 million.

He later learned the venture was illegal in the state and violated the NFL’s policy of prohibiting players from investing in gambling, he said.

He also owns a slew of properties that he thought he would be able to rent before the housing market tanked, he said. He has a home in Los Angeles that cost him $499,000 and a multimillion-dollar home that is for sale in Atlanta.

The home in New Jersey for which he paid $3.9 million was sold in late 2010 for $1.7 million, he said.

Owens also pays $44,600 a month in child support for his four children, ages 5 to 12. Three of the four mothers have sued him.

The football player laments about losing trust in people and friends. When people text and ask where he is, he answers, “I’m in hell.”

“I don’t have no friends,” he told GQ. ”I don’t want no friends. That’s how I feel.”

http://abcnews.go.com/blogs/business/20 ... m-in-hell/

[winston]

How to Make Money During the Greatest Economic Battle of a Lifetime

Iron-clad rule #1: Think for Yourself!

Iron-clad rule #2: Become a Proud Contrarian Investor!

Iron-clad rule #3: Buy What Everyone Else Is Selling!

Iron-clad rule #4: Sell What Everyone Else Is Buying!

Iron-clad rule #5: Invest Only in Investments That Are As Easy to Sell as They Are to Buy!

Iron-clad rule #6: Protect Your Capital at All Costs!

Iron-clad rule #7: Turn Lemons Into Lemonade!

http://www.yolohub.com/economy/how-to-m ... a-lifetime