Wednesday, July 15, 2015

Should everyone invest?

Before answering that, let's change it to another question: Should everyone have tuition?

No. Because not everyone needs it, though most will probably have to seek some sort of guidance every now and then. If you're highly disciplined, understands what is going on in school and has access to occasional help, then go ahead and do it independently! I also don't have access to tuition at all in my schooling days, but that's a zillion years ago and I know how tough it is like these days. So, in summary, it can be done. You can have no tuition provided you do these and that.

Going back to the original question on whether one should invest, I think the answer is no. To qualify that question properly, I'm talking about investment as in the stock market. I've heard stories in createweath8888's blog regarding people who do not want to touch the stock market at all. These people have very low maintenance and their personal inflation rate is so low, it wouldn't hurt if they didn't invest their money at all. Investment is, afterall, just one way in the great scheme of things. Some people who have excellent career paths can also save a huge amount of money, squirrel it somewhere and use it sparingly till the end.

Assuming you want financial freedom (and always bear in mind that not everyone is aiming to have that), and here are some other ways to reach it:

1. Work like crazy, save like crazy, live in a low cost environment so that you can spend less without working anymore. This range from migrating to another country to living with nature in a self sufficient community. There's a movement in other countries where people live way below their means, become self sufficient and generally living a life without the need to use much money at all.

2. Do your own business. Once you achieved a certain level of success, the business runs without you and you will have a stream of income coming in till your retirement. I would't say this is passive at all, but it's still a more reliable income than depending on someone for work. At least you can control some of the variables more than a mere employee can. Could be an good option, or worse, depending on whether you succeed or not, haha!

3. Marry a rich partner. Hey, it works, but not for me. More likely I'll make my partner rich LOL


Createwealth8888 said...

Super savers with low personal inflation rate do have their option not to invest and live their life without any emotional roller coaster rides across market cycles. They just need to focus on their day job.

cookie said...

But the day will come when they will be too weak or old to work, then how?

la papillion said...

Hi bro8888,

Agree. I've seen a few old people, including my own parents who have zero investment. Possible model.

la papillion said...

Hi low Paul,

I think the prerequisite is that u have to work and save hard and also to spend very little. Then draw down the capital till the end. Most older folks do that anyway when stocks and shares are not that common.

cookie said...

Old folks of our parents gen can do that. But with pple living older n expenses creeping up faster than before, i doubt most of us our gen can repeat this.
look at many of our parents gen have bought such things?

Singapore Man of Leisure said...


I think every generation will perceive the previous generation as having it "easier", and we have it "tougher".

Just wait till we are in our 80s and the younger generation will tell it to our face that life in 2015 was so much "easier".

Don't blame them. In the future, HDB 3 room will be above $1 million, and our neighbours will have caught up with us economically. If you think competition is "tough" now...

Most of our parent's generation have little CPF (especially stay at home mums); not much education (got study till sec 4 already very power!); not much investments to speak of (they don't think of themselves first); and what life and hospital insurance again?

Yet most are doing OK during their retirement.

They are just simple folks who are also GOOD parents - they brought up well adjusted children who grew up to be RESPONSIBLE citizens ;)

So no, not everyone need to invest.

Having said that, we need to "invest" in relationships that matter.

la papillion said...

Hi Low Paul,

Hmm, are you saying that everyone in this current generation should therefore invest? Regardless of background, circumstances and general interest in this area? Will it be a better outcome?

la papillion said...


I think each generation has their own struggles. It might be easier or harder depending on what criteria you see it. For us, having food and shelter is almost taken for granted, but for those who lived through the wars, it might be a very different challenge at that time. Anyway, no point talking about whose life is easier or harder, I would rather focus on our own challenges and how to over come them! LOL

You're very right. Regardless of anything, we should always invest in the right relationship. Those without financial means, if they had invested in having filial and responsible children, these are their human assets that will provide for them in their golden years. Wealth is a more holistic thing that just money. I don't want to be so poor that I only have money and nothing else! LOL

cookie said...

A lot of pple in older gen made it rich thru their ppty investment. Those are pple who bot their land in the 70s n 80s. Of course the wages then were much less than today. But land appreciation far far exceed this wage growth.
Not saying tt everyone shd invest. It really dep on each individual circumsrances.
To be rich is good but to be happy n healthy is equally if not more impt.

la papillion said...

Hi Low Paul,

Haha! so you do agree with me that not everyone should invest! So let's push it further - what do you think are the circumstances which an individual should not invest?

Regarding health and happiness, I totally agree! As mentioned above, I would not want to be so poor that I only have money! :)

Sillyinvestor said...


I like your qn on should everyone have tuition and drawing parrellel to it.

Tuition is very much sought after by pupils of ALL abilities. Gone were te days when we get tuition because we see people struggling. Now we chase after the last mark, and also want to feel less guilt when peers ask parents, so what are u sending your kids for.?

My colleague challenged me that when my son is older, I will not say things like let him develop at his own pace, only if there is a need since he is struggling.

So far, I still feel not need to push although I still get a little irritated when my mum-in-law compare Her another grand daughter with my son.

Now come back to investment. Is it a need to bridge the gap between goals, whatever it may be, or is it still the same of afraid of losing out?

Since tuition Is now for everyone, regardless of ability, investment is for everyone regardless of how loaded they are, as long they want to chase the last final/ mark or dollar and afraid of losing out.

But singapore retail invest participation rate is so Low compare to tuition rate ...

So might not be a bad thing ... If more start learnjng to invest

cookie said...

Circumstances when one shd not invest
-no money
-borrowed money
-emotional when comes to money
-not understanding how market works
-not understanding how companies make money n distribute money to shareholders.

la papillion said...

Hi SI,

Haha, thanks :) I guess it'll be a good thing for oldies in the market. If there's no new blood in the stock market, the prices won't shoot up. If everyone wants to buy cheap, then nobody will benefit actually. Part of the predator-prey nature of the stock market.

I don't know about everyone investing...I think some people are really not suitable to invest. They may lose much more than they started off. But the funny thing is, everyone thinks they are above average, until they tried and realised they are not.

If someone ask me if they should invest, I'll say go and try it. As long as they don't whack, wouldn't die but they'll learn something about themselves in the entire ordeal.

la papillion said...

Hi Low Paul,

Agreed. Actually to be able to invest means we already cover the basic of food, shelter etc. We should all be happy since there are some people who don't even have all these basics!

Investopenly said...

LP : Just like everything and anything in life, there is always two-side of the story, so, my answer is : NO too! ;-)

la papillion said...

Hi Richard,

Thanks for your support!

Rolf Suey said...


My answer is yes! Everyone should invest, not necessary in stocks or property or financial instruments but invest in yourself and your family.

By the way, category 1 will likely realize that life sucks eventually!

la papillion said...

Hi Rolf,

Wah, you like that say, how to disagree? haha!

Of course we must invest in ourselves, at the very least! You win!