Investment Tips for my children

Hey there, kiddos,

I haven't the best track record when it comes to making investments. When I first started working, for several years I didn't bother making any kind of investments because, having been born and brought up in a government-salary, single-income family where money was always tight, I thought this was my time to have fun with the money. I shopped, I traveled, I ate out - yes, it was a blast. But I do wish now, in hindsight, that I had been just a trifle more prudent and salted away a small fraction of that money, so that we would have a nest egg today. See - that's what happens when you get married late. You don't think about things like this and while you're busy making whoopee, time's a-fleeting. So, my children, here are some of the things I wish I had or hadn't done, and I wanted to pass on the benefit of this wisdom to you so you don't have these kinds of regrets or if-only thoughts when you're my age. And so that you can never tell me "You didn't tell me so", years later!

1. Invest early, invest often. I'm not saying you have to save all the money you earn or receive as an allowance, but put away a fixed percentage of it from as early as you can - it'll pay off big time in about ten years, and allow you the flexibility of calling the shots, whether you want to backpack around the world for a year, just take time off to stay home with your kids or splurge on solitaires.

2. Invest in property early. It always pays off. one of the reasons your dad and I were able to fool around in Europe for a year was because your grandfather forced me to buy a flat when I was 22. The proceeds from that sale bought us a pretty nice lifestyle in Europe and later.

3. When you first start investing in property - remember, it's an investment. Don't think about it in terms of "I wouldn't be caught dead living here". That's a sure way of losing out on opportunities to cash in as your dad and I can tell you. Don't worry about the apartment being tiny and too far from your friends - your tenants will find it large and roomy and will make new friends there!

4. Buy only term insurance. Anyone who sells you insurance as an investment is busy laughing all the way to the bank.

5. Invest in the stock market. Invest regularly and don't buy stocks or companies that everyone is talking about. And if there's a time when everyone including your driver seems to be talking about the market and the gains hit the front page of the regular newspaper - sell everything and hoard your money.

6. Re. the stock market: buy only stocks or companies you understand. Set a gain target of either time or percentage, and the minute your stock hits that percentage gain, sell off enough to recoup your initial investment. That way you;re only winning or losing notional money and it doesn't hurt so much.

7. Be prudent, be wise but be balanced. At the end of the day, it is only money and life is much bigger than that!