Idiot’s investing plan

November 20, 2013

  • Nov 2013
  • By Leong Sze Hian

Money radio show

When I was hosting a weekly one-hour money radio show for three-plus years, I would get calls and sms about how to invest, practically every week.

Idiot’s investing plan

I devised a simple “Idiot’s Investing Plan” for the listeners, which addressed the following most frequently asked questions and concerns:

What to invest?

How to invest?

When to invest?

When to sell or take profits?

Step-by-step guide

So, here’s the step-by-step guide to the “Idiot’s Investing Plan”:

Invest in a globally diversified portfolio of about 10 investment funds comprising about 30% equities 30% bonds 20% commodities and 20% property

Use a no front-end load (back-end load early withdrawal charge) funds portfolio vehicle, if you do not intend or expect to make withdrawals within the first 3 years

If you are using CPF or intend to make withdrawals within the first 3 years, such as if you are retired or are 55 years old or older, use a front-end load funds portfolio vehiclee

Do not use an investment arrangement which has a perpetual extra loading such as a 1% annual advisory fee

The average total annual expense ratio should be 1-plus per cent

Re-balance your portfolio quarterly (free re-balancing)

Whenever you need money, sell the funds that have gone up the most. If you intend to make regular withdrawals such as monthly within the first year – do not re-balance – sell the fund that has increased the most for the amount that you want to withdraw every month

You should use an investment vehicle/platform that enables you to have free 24-hour online access to your portfolio’s funds’ valuation

“Idiot’s investing guide” video

You can also watch this 15 minutes video of Leong Sze Hian speaking on the above at the Invest Fair organised by shareinvestor.com

(Source: This article is reproduced from einvesthub.com of shareinvestor.com)

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.