Sunday 26 February 2012

Importance of Financial Independence

Many people talk about reaching financial independence. Everyone dreams of attaining sufficient personal wealth to live indefinitely without having to work actively for basic necessities....and enjoy the freedom to do whatever one likes without slogging like a slave for the boss. The truth is most will remain chained to their sucky job.

Ever since I joined the workforce ( 8 years back), I have decided that the rat race is not for me albeit I do enjoy some of the work I am doing. The only way out is take action and take the giant step out to invest your money. Many of the people around me (my relatives, colleagues, friends) view such an attempt as extremely high risk and virtually impossible. Over the years, I have learned many invaluable lessons from investing. Have also put my faith in various financial advisors who claimed they are able to beat the market by over 20% (average) annually but turns out their assertions are all lemons and suffer heavy losses. The Global Financial Crisis in 2008 also lead to a wakening in terms of the intricate workings of the property and stock market.

These experiences led to the creation of an investment philosophy that has delivered a net return of at least 8% per annum over the past 2 years, mainly through the creation of portfolio of dividend yield stocks combined with capital accretive potential stocks.

No comments:

Post a Comment