Monday, March 29, 2010

Income Protection Policy

You may already have life policy, medical policy, critical illness policy, PA etc. However, do you have Income Protection Policy? Well, an Income Protection Policy is an insurance that cover certain percentage of your yearly income (as declared during the commencement of the policy) to be payable in case you are temporary or permanently disable.

Friday, March 26, 2010

Good Financial Decision

In our education system, there is no subject that teaches us how to invest or manage our money. However, our system may be is the best system to allow us to become a good employee. Even our parents are telling us to study hard and get a high pay job. As a result, in our subconscious mind, we all have been programmed like so. Does it mean that we totally do not know how to invest or manage our money? Well, not exactly. As a matter of fact, we are learning these skills from our parents.

Tuesday, March 23, 2010


After reading Chapter 8 of "Think and Grow Rich" which is talking about “Decision”, I totally agree with Napoleon about what he has emphasized.

You may recall in my previous post entitled “Investment: Do you know what you want?”, I stress that we should learn continuously in order to improve our confidence on investment as our investment knowledge grow. In other words, knowledge will allow us to make effective decision.

Saturday, March 20, 2010

To be Successful in Life

Do you want you life to be normal? You will be if you follow ordinary crowds. So, what are ordinary crowds doing? Well based on my observation as well as after reading "Think and Grow Rich" by Napoleon Hill, they tend to:

Wednesday, March 17, 2010

Do You have the Same “Frequency” with Your Partner about Money?

Have you ever realized the way of thinking will affect your result? Well, if you think positively, the chance of success is high and vice versa.

Now, let me put it in the other way. Have you ever realized the way of thinking of your partners (they may be your parents, boyfriend or girlfriend, husband or wife, son or daughter) will affect your result?

Sunday, March 14, 2010

Value of Money

Lately, I discussed with my son about value of money. As he is a very playful boy, he never pays attention on how we, as parents, spend our money. Therefore, he is unable to tell us exactly how we go about. However, he did have a comment on that we will not simply allow him to buy anything he wanted.

Thursday, March 11, 2010

One of My invaluable Wealth: Family Harmony

Have you ever realized that the communication among your family member is actually less than interaction with your colleagues, business partners or friends? Some of my friends use FACEBOOK to keep in touch with old buddies or friends. How about their family members? Well, I am not sure about them. But, for me, I am more concerning the relationship among my family members.

Monday, March 8, 2010

Recommend Reading: “Stock Profits – Getting to the Core” by Michael C. Thomsett

This is my second time to read this book.

Have you ever figured whether those figures published in companies’ annual report were as they are or manipulated? You may recall some cases happened in the US a few years ago about inflated figures were reported that resulted in tragedy to a number of investors. Therefore, from this lesson, investors should learn how to generate the true picture behind these figures.

Friday, March 5, 2010

Is ROE the Best Ratio to Evaluate the Return of Investment Fund?

A number of investment gurus have been talking about using Return on Equity (ROE) to measure the return on investors’ fund. It is a key measurement on a company’s profitability. However, it has practical limitation.

ROE is dividing net income by shareholders’ equity (SE) while SE is the difference between assets and liabilities. I.e. SE = Assets – Liabilities.

Tuesday, March 2, 2010

Recommend Reading: “Fire Your Stock Analyst!” by Harry Domash

I find this book shall be kept beside fundamentalist at all time.

I first read this book 3 years ago. At that time, I was in the midst on refining my fundamental analysis skill. This book has provided me a good start by giving me step by step guide on how to go about. In particular, this book demonstrates an 11-step process for complete fundamental analysis. Namely: