Wednesday, September 25, 2013

Holistic investing

I am not sure if there is such a term call holistic investing. I believe such a concept is not new, but can't remember the actual term. Anyway:

When we talk about investing, many would think about stock selection, diversification, asset allocation etc. I think to be even more holistic, one should look at the profile of oneself too.

for example, if I hold a stable job, and I know I can set aside money every month or year for investment. My approach will be different from that someone that has a fix amount of money, or that we know our future income is going to drop or be volatile.

For me, I would not touch my CPF money for investment unless we are in a ultra bear market( more than 50% drop), those money will be like bond investment and is suit for the purpose of accumulation of fund for retirement. So I will not invest in bonds for the same of diversifying.

given the stability of my job, I dun need a very hugh war best, as my income for investment will increase every year. This is not to say we should be trigger happy, but perhaps I don't need a warchest as big as perhaps 50% of my investment income.

also, I have already have my insurance needs covered for me and my family, so I can invest with  a peace of mind

5 comments:

  1. Hi Mike,

    My CPF-OA and SRS money form my war chests 2 and 3 only to be utilised in the next bear market. :D

    Holistic investing is about diversifying across asset classes too. Not everyone can do this. For example, people talk about the permanent portfolio and also precious metals and properties. Oh, dear. I need to use some Tiger Balm liniment. Headache.

    I like to keep things simple. I am a lazy guy. :)

    ReplyDelete
  2. AK,
    Your comment made my blush. When I finished this post, and search for an image using "holistic investment", then I realised there is a book written on it. I am too lazy to change my blog then. Haha u are right, different asset classes and different geographies are important

    ReplyDelete
  3. Thanks for the informative article! waiting for your next post.- whole life insurance

    ReplyDelete
  4. I came across this link on best health insurance plan, hope can provide more insights.

    best health insurance plan

    ReplyDelete
  5. Do you need to increase your credit score?
    Do you intend to upgrade your school grade?
    Do you want to hack your cheating spouse Email, whatsapp, Facebook, instagram or any social network?
    Do you need any information concerning any database.
    Do you need to retrieve deleted files?
    Do you need to clear your criminal records or DMV?
    Do you want to remove any site or link from any blog?
    you should contact this hacker, he is reliable and good at the hack jobs..
    contact : cybergoldenhacker at gmail dot com

    ReplyDelete