Worst financial/investment advice you ever got? - Seedly
 

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Asked by 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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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.

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Daryl Liao, Fti
Daryl Liao, Fti
Top Contributor

Top Contributor (Dec)

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.

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Jonathan Ang
Jonathan Ang
Top Contributor

Top Contributor (Dec)

Level 7. Grand Master
Answered on 06 Dec 2019

Sell when your stock goes up 20%

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"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.

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Shengshi Chiam, Cfa
Shengshi Chiam, Cfa, Personal Finance Lead at Endowus
Level 6. 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. ​​​

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Bibiana
Bibiana
Top Contributor

Top Contributor (Dec)

Level 7. Grand Master
Answered on 06 Dec 2019

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

Result: -1% return after 10 years

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

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Ninja

30 Nov 2019

This is so helpful 👍
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???
Yi Guang Loh
Yi Guang Loh
Level 2. Rookie
Answered on 07 Dec 2019

Worst advice is getting no advice

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Don Chua
Don Chua
Level 2. Rookie
Answered on 06 Dec 2019

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

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Wallace Chai
Wallace Chai
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 05 Dec 2019

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

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Bjorn Ng
Bjorn Ng
Top Contributor

Top Contributor (Dec)

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!​​​

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Junus Eu
Junus Eu
Top Contributor

Top Contributor (Dec)

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.​​​

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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"

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"You pay more for the fund's manager's abilities."

On hindsight, since 90% of fund managers don't outperform the market, why did I believe it

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JC
Jon Chua
Level 4. Prodigy
Answered on 07 Dec 2019

”No need to invest, market sure tank with Trump. Just wait“.

Not sure if my Friend is still waiting.... Hahah

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Su Jun Hao
Su Jun Hao
Level 3. Wonderkid
Answered on 07 Dec 2019

“Water is national security, Hyflux will be bailed out by SWFs”.

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Adelyn K
Adelyn K
Level 5. Genius
Answered on 04 Dec 2019

Advice from layman: Invest when you have the right amount to invest.

  • Truth: There's no right amount to start your investment. I say, you can invest even with just $100/month, you just need to adjust your risk/profits appetite. And also build your emergency fund concurrently.

Advice from banks/insurance providers: You should invest in this insurance linked product, you will get very high returns, higher than what all other products offer.

  • Thankfully, I didn't buy into this one as when i calculated everything else, i realised that the interests are not guaranteed and I might be better off generating my own income than relying on these products.

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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.

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Back when I didn't know any better, got advice from an FA to buy into this 101 plan and its "opportunity seeking fund"

Opportunity my ass. A 4% return would yield me an IRR of 0.8% p.a. on that policy. Oh how foolish I was back then.

Never mix insurance with investments. My clients understand my stand on this very well.

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Choon Yuan Chan
Choon Yuan Chan
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered on 03 Dec 2019

Guy A: "Buy this stocks because I heard it is going to rise soon"

Guy B: "What is the financial or fundamental basis?"

Guy A: "Whats that?"

GG

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