Why invest?

To me, the first and most important reason is that there is inflation. If the world is in a deflationary or no-inflation environment forever, I would not think about investment at all. I probably would just work to earn money and save it for retirement. But deflation is temporary(though deflation can be as long as 5 or 10 years, for one's lifetime, it is still considered short), inflation lasts forever. Inflation makes whatever I save become less and less in the future. Can my earning power grow at the same with inflation til the day I am gone? Or any government has any simple financial instruments to guarantee that? Unlikely. At some point, younger people with more advanced knowledge will surely challenge my earning power. Slowly, not only, my earning power can't pace with inflation, but my earning power could deteriorate. To me, the only way out is to invest.

In this sense, financial literacy is as important as being able to read and write（maybe more important?）as everyone will grow old and retire and saving is unlikely to ensure it because of inflation. Why does the current education system not include it as a basic course?

(26-08-2012, 03:03 PM)freedom Wrote: To me, the first and most important reason is that there is inflation. If the world is in a deflationary or no-inflation environment forever, I would not think about investment at all. I probably would just work to earn money and save it for retirement. But deflation is temporary(though deflation can be as long as 5 or 10 years, for one's lifetime, it is still considered short), inflation lasts forever. Inflation makes whatever I save become less and less in the future. Can my earning power grow at the same with inflation til the day I am gone? Or any government has any simple financial instruments to guarantee that? Unlikely. At some point, younger people with more advanced knowledge will surely challenge my earning power. Slowly, not only, my earning power can't pace with inflation, but my earning power could deteriorate. To me, the only way out is to invest.

In this sense, financial literacy is as important as being able to read and write（maybe more important?）as everyone will grow old and retire and saving is unlikely to ensure it because of inflation. Why does the current education system not include it as a basic course?

Spot on !

Totally agree.
i use to tell my son either he is a professional who runs his own business or CEO of some Big Corporation, he will remain just an ordinary wage maker who can hardly make ends meet.
Or he must learn how to be a "passive businessman" in the stock exchange.
If not most probably retire as a "poor man".
And i tell him to look at me who only has ITE education can invest so can he or anybody who has a "Suitable Temperament".
Amen.

For me, investing is (in Kiyosaki's words) to "get out of the rat race".

For me, investing is to get financial freedom, to allow me to do meaningful things without scarify a decent family lifestyle

We are just greedy plain and simple. We can live with inflation or get out of the rat race anytime just spend lesser have lower expectations but no we want to achieve the perfect freedom financially and also keep it that way.

Even if we have no financial problems there will be other problems that will take it's place, do you see the rich people have no problems? No health problems, no family fueds, no "divorce,mistresses,2nd 3rd wives,estranged from wife children all airing the dirtiest linen in public" - problems ?

no escape man

(27-08-2012, 08:58 PM)sgd Wrote: We are just greedy plain and simple. We can live with inflation or get out of the rat race anytime just spend lesser have lower expectations but no we want to achieve the perfect freedom financially and also keep it that way.

Even if we have no financial problems there will be other problems that will take it's place, do you see the rich people have no problems? No health problems, no family fueds, no "divorce,mistresses,2nd 3rd wives,estranged from wife children all airing the dirtiest linen in public" - problems ?

no escape man

What you say is true to a certain level.
But no man is an island.
And we are not living in "LOST HORIZON" or "SHANGRILLA"
i wish we are.

Chinese says:-

"Money is not everything.
But everything is Money"
"No money no-talk"
"Money can bribe the devil to work for you"

Often misquoted from the BIBLE
"Money is not the root of all evil. The love of money is"

So Money is neutral.
How you use it may be not.

Why Invest?

Compared to a regular job, these are my '100%' reasons,

1. 100% Time Flexibility - Can do it any time you like and as and when you are free and feel like doing it.

2. 100% Location Flexibility - Can do it anywhere. Can be at home in aircon comfort or sun-tanning at the beach. Use broadband at home or 3G / WiFi outside.

3. 100% Rewards Related to Performance - You do well, you make more $$. Of course, vice-versa.

4. 100% Independence - Answerable to no one, no need to face anyone (bosses, colleagues, subordinates, customers, suppliers,...).

5. 100% No Politicking - Just need to focus on what needs to be done. No need to waste time protecting your back from being stabbed.

6. 100% Fun - So many different ways of making (or losing) $$. So many different industries and cycles. So many different approaches you can try till you find one that suits you.

7. 100% Easy - Now, what's so difficult about keying in a buy / sell order?

The qualifier is, you still have to spend time to pick up the necessary skillsets, improve on it and continue to keep abreast with what's going on (for active investors) in the companies you're vested in.

The downside is no free benefits - medical, dental, maternity/paternity,...Eat-Snake,... Also no 100% guarantee you'll get a monthly salary if you don't do well....

So, why aren't they teaching us this in school?
My guess...They need a huge continuous supply of cheap and hardworking workers who're enslaved to their debts (house, car,...credit cards,...) and thus 'motivated' to continue to work till they drop dead... so as to make this place a wonderful playground for the rich...

(27-08-2012, 09:48 PM)KopiKat Wrote: Why Invest?

Compared to a regular job, these are my '100%' reasons,

1. 100% Time Flexibility - Can do it any time you like and as and when you are free and feel like doing it.

2. 100% Location Flexibility - Can do it anywhere. Can be at home in aircon comfort or sun-tanning at the beach. Use broadband at home or 3G / WiFi outside.

3. 100% Rewards Related to Performance - You do well, you make more $$. Of course, vice-versa.

4. 100% Independence - Answerable to no one, no need to face anyone (bosses, colleagues, subordinates, customers, suppliers,...).

5. 100% No Politicking - Just need to focus on what needs to be done. No need to waste time protecting your back from being stabbed.

6. 100% Fun - So many different ways of making (or losing) $$. So many different industries and cycles. So many different approaches you can try till you find one that suits you.

7. 100% Easy - Now, what's so difficult about keying in a buy / sell order?

The qualifier is, you still have to spend time to pick up the necessary skillsets, improve on it and continue to keep abreast with what's going on (for active investors) in the companies you're vested in.

The downside is no free benefits - medical, dental, maternity/paternity,...Eat-Snake,... Also no 100% guarantee you'll get a monthly salary if you don't do well....

So, why aren't they teaching us this in school?
My guess...They need a huge continuous supply of cheap and hardworking workers who're enslaved to their debts (house, car,...credit cards,...) and thus 'motivated' to continue to work till they drop dead... so as to make this place a wonderful playground for the rich...

Agree.
Those who use their hands to earn a living is always tend to be at the at the "mercy or exploitation" of those who use their brains. (The politician to the construction workers to the taxi driver).
Oops! where is our position as an investors?

(27-08-2012, 09:26 PM)Temperament Wrote:

(27-08-2012, 08:58 PM)sgd Wrote: We are just greedy plain and simple. We can live with inflation or get out of the rat race anytime just spend lesser have lower expectations but no we want to achieve the perfect freedom financially and also keep it that way.

Even if we have no financial problems there will be other problems that will take it's place, do you see the rich people have no problems? No health problems, no family fueds, no "divorce,mistresses,2nd 3rd wives,estranged from wife children all airing the dirtiest linen in public" - problems ?

no escape man

What you say is true to a certain level.
But no man is an island.
And we are not living in "LOST HORIZON" or "SHANGRILLA"
i wish we are.

Chinese says:-

"Money is not everything.
But everything is Money"
"No money no-talk"
"Money can bribe the devil to work for you"

Often misquoted from the BIBLE
"Money is not the root of all evil. The love of money is"

So Money is neutral.
How you use it may be not.

in the end whatever wealth we have we will achieve nothing, that's why all the wealthy people want to be remembered try to make their mark on the world by creating monuments and landmarks but the irony is people remember landmarks but nobody will remember your name or what you have done. Example Oei Tiong Ham is the name of a road around Holland V area, he was one of the most powerful man in the 1920's at the time his death in singapore his estate was estimated at 200 million guilders, in the 1920's era where money had value thats a billionaire he could have been warren buffet of his day. But until I mentioned it here nobody knew that even myself I just googled it up so you see the point.

all we can do is enjoy a little bit of it for a while then we die and give it to somebody who may or may not be so careful.

Also quoting the bible from ecclesiastes - it's just chasing the wind, it's just for our vanity.