Worst financial/investment advice you ever got? - Seedly
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Kelly Trinh

Asked on 25 Nov 2019

Worst financial/investment advice you ever got?

As per headline. Doesn't need to be actually actioned but just with hindsight was bad. Maybe seperate into two classes: advice from layman and advice from professional FAs and the like.

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37 answers

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Kelvin Seetoh
Kelvin Seetoh, Founder at Kelvestor.com
Level 6. Master
Answered on 03 Dec 2019

"Investing is only for the smarter people"

😂

Here is what I want to encourage everyone else:

To be an investor, you need to understand numbers... but you don't have to be an accountant to be an investor.

1 comment

👍 6
Rex R. Wei
Rex R. Wei

06 May 2020

"Investing is easy" :( Disclaimer: Investing is a full-time job. It is not a side hustle.
Daryl Liao, Fti
Daryl Liao, Fti
Level 7. Grand Master
Answered on 05 Dec 2019

Commit a high level of your salary to a Long term savings plan for retirement.

That would literally cripple your spare cash flow.

0 comments

👍 4
Shengshi Chiam, CFA
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Level 7. Grand Master
Answered on 07 Dec 2019

"Invest into high dividend yielding companies and hold long term"

Thankfully I never subscribe to stock picking having worked in listed companies and understanding that retail investors would never truly understand the risk they are taking.

In the past people said telcos have a strong moat, SPH/Hyflux is government backed, so these are counters to hold long tem. Business environment changes and these are really difficult even for people in the industry to anticipate. I rather hold on to diversified funds and get on with life than to stock pick. ​​​

2 comments

👍 3
Frankie Rappaport
Frankie Rappaport

02 May 2020

Very good
Rex R. Wei
Rex R. Wei

06 May 2020

It's amazing to see the number of blue-chips that have been borrowing money just to pay dividends.
Jonathan Ang
Jonathan Ang
Level 7. Grand Master
Answered on 06 Dec 2019

Sell when your stock goes up 20%

0 comments

👍 3

"Value Investing for the long term doesn't work for modern finance"

People do think investing is only for the professionals, the people from the 'streets'.

Here's my input: Investing as a retail investor is possible, some work just needs to be done.

1 comment

👍 3
Rex R. Wei
Rex R. Wei

06 May 2020

I would argue a lot more work than an average person could put in. Martin Shkreli said something along the lines of: "30 minutes allows you to learn the company name, 2 hours allows you to learn about the business, 50 hours allows you to have a general idea of the company’s performance over a 10 year period, between 50-100 hours allows you to really understand a company thoroughly."
Bibiana
Bibiana
Level 7. Grand Master
Answered on 06 Dec 2019

"Trust me, I'm an investment professional."

Result: -1% return after 10 years

1 comment

👍 2
Frankie Rappaport
Frankie Rappaport

02 May 2020

Ha ha
Chua Wei Feng
Chua Wei Feng
Level 4. Prodigy
Answered on 06 Dec 2019

By an insurance agent "friend", ETF is high fees and i should DCA into an ILP instead.

1 comment

👍 2
Sharon
Sharon

02 May 2020

Your "friend" must have been quite desperate for sales lololol
Eric Ong
Eric Ong, Project Analyst at 8Bit Global
Level 6. Master
Answered on 03 Dec 2019

"Buy stock for long term doesn't work anymore"

0 comments

👍 2

Buy term and invest the rest without due consideration for the person's background, situation, and future.

8 comments

👍 2

6 more comments

Alan Kor
Alan Kor

03 Dec 2019

Chiu are basing on a scenario where one has to give up insurance premiums or investment during a financial downturn? seriously???
Ninja

05 May 2020

Ikr haha
Yi Guang Loh
Yi Guang Loh
Level 2. Rookie
Answered on 07 Dec 2019

Worst advice is getting no advice

0 comments

👍 1
Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 05 Dec 2019

"guaranteed you to make 20% ROI per month". From JJPTR

0 comments

👍 1
Png Cheng Xi Damien
Png Cheng Xi Damien, Happy Life Seeker at Home
Level 6. Master
Answered on 04 Dec 2019

Agents asking me to buy ILPs - the single worst product among all the offerings by insurance companies.

1 comment

👍 1
Sharon
Sharon

02 May 2020

I agree!
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Updated on 03 Dec 2019

"Don't buy now, so expensive, wait for correction".

and xx years later.. still waiting....

Expensive can get more expensive, cheap can get cheaper!! Go for valuation!​​​

0 comments

👍 1
Junus Eu
Junus Eu
Level 9. God of Wisdom
Answered on 03 Dec 2019

Worst investment advice:

Scene: Chinese New Year

Auntie you hardly talk to talks about the latest stock tip she got, and convinces the other aunties that the stock will 'sure make money one'

I didn't buy it - but just tracked it.

Stock was Hyflux.

Thank goodness I chose to ignore that advice.​​​

1 comment

👍 1
Rex R. Wei
Rex R. Wei

06 May 2020

😱 The more people talk about stock, the worse decisions seem to be made.
Guo Wei
Guo Wei
Level 4. Prodigy
Answered on 06 May 2020

"BUY CRUDE OIL"

0 comments

👍 0

Bought into an IPO on SGX without doing much research on it. The business went downhill and management team started to left one by one. The stock was eventually suspended on SGX and its basically worth nothing now.

Was lucky that I only allocated a small portion of my portfolio to this stock but definitely learnt a huge lesson from this experience.

0 comments

👍 0

Don't like bumping this, but it's a great question.

"It will crash anytime soon." - 2011

"It will crash anytime soon." - 2013

"It will crash anytime soon." - 2015

"It will crash anytime soon." - 2017

"It will crash anytime soon." - 2019

"It will crash anytime soon." - 2020

Meanwhile, record highs.

A broken clock is right twice a day.​​​

0 comments

👍 0
Fong Kin Fai
Fong Kin Fai
Level 4. Prodigy
Answered on 03 May 2020

A wealth manager from a bank with tiger logo, recommended me to buy life insurance policy with premium same as my salary.

I rejected and left, and she still called me over the phone why I rejected her wealth planning. ​​​

0 comments

👍 0
Npm Adele
Npm Adele
Level 5. Genius
Answered on 03 May 2020

"Trust me"

And another!

"I understand you aren't obliged to buy from me. I'm just disappointed that as a friend (FA), you didn't think of seeking my opinion cos you know that I'll have your interests at heart".

I still feel bad for the second

0 comments

👍 0

Worst advice from friends:

“Everyone is getting it, don’t be the odd one out.”

“You’re too paranoid!” —when I withdrew all investments back in Feb prior to the dip dip dip...

“You should invest high % of your income when you’re younger. No point keeping all that cash.” — true to certain extent only. When you’ve been through worst you know cash is king. And you don’t play with fire till you know your limits.

Worst advice heard from FA:

“I have a very strong record of making >7% gains YOY you can trust me because I AM GOOD” (FYI, never trust anyone just because they say they are good. Only trust after you CSI the shit out of them and do your due diligence)

“The market is booming and will continue to grow for next 5 years.” — ironically that was in mid Jan when Covid news first came out for China and I started getting wary but the FA who approached me was very confident and I asked for his take on the market. Guy wasn’t very updated on international news.

“Everyone is buying so we should buy now because if you start late you might make a loss” —- never let anyone pressuring you or led you into thinking NOW is the best time to buy. Your money - you make the choice. You use your brain.

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