 Good evening everyone. Welcome back to another episode of investing and business. Alright, can you guys hear me? If you can hear me right, please type invest because in this sharing we are going to share with you exactly how can you start investing $50,000 for your parents. Alright, if you can hear me please type invest. Let me just see the comments and see whether are you guys streaming in. I know there's gonna be some lag. Okay, let me just double check. I think I think I can hear my voice. I believe you guys are able to hear my voice as well. Okay, let me share the screen so that we can get started. Hold on here. Okay, we see this one. Share screen and yeah. Here we go guys. Alright, let me see whether your comments are coming in so that I can make sure that everybody is able to hear me, see me clearly as well. Alright, if you can see my screen please type S-E-E. Alright, if you can see my screen please type S-E-E in the chat so that we can get started. Alright, so why are we doing this? It's because actually some of my people who follow my channel, they actually posted this question like this lady she actually wants to invest for her parents and she has some questions regarding exactly how can she get started. So I think it's also a very relevant question for a lot of people I believe you know like you guys also want your parents to compound their wealth even though they are at the retirement age right because the cost is rising you know medical bills everything so how can we actually invest safely for our parents as well. Alright, thank you so much. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you for letting me know and yes so if all of us can see then we can get started right. So I also want to know about like you guys are you guys investing for your parents already? If you are investing for your parents right please type parents in the chat okay because I'm personally also investing for my parents as well and recently my grandma also passed me some money for me to help her invest so I think as I go through this journey with you maybe you can see how can we actually you know like yeah you can also implement whatever things that we are going to share and and yeah maybe you can also start investing for your parents as well. Okay I can see Zacute is already investing for his parents fantastic alright so I believe this session will be helpful for you maybe you can also share with me exactly how do you invest for your parents then we can learn from each other alright so I think the very first thing that you need to ask yourself if you want to invest for your parents and even for yourself as well if you have $50,000 how can you start investing for yourself alright you need to ask yourself right what are their goals alright because parents are not you right so you need to ask them what exactly do they want to achieve from their own investment everybody is different you and I are different as well you and your parents will also be different so does your parents want to have like a income or does your parents or do your parents actually want growth okay because people can be different you never know even people at the retirement age they can still want to grow their portfolio because we have seen from our students some of the people that we personally coach yeah even though they're at retirement age they also want to continue to grow their portfolio so you need to ask them exactly what are their goals right so if they are someone who are willing to grow then uh yeah then you need to ask them what is their investment horizon because recently when my grandma actually passed me the money right so I also have to tell her upfront that if I were to invest for you it cannot be like a short one year or two year kind of investment because for a really substantial kind of return you should be looking at slightly longer term so I think it's very important to also set this expectation with your parents or whoever that you want to invest for right so I can see uh ZQ most of the time he actually buys reads okay for the parents and buy corporate bonds physical goal wow wow very nice of you buy physical goal as well capital preservation so for JS maybe for your parents you want to have capital preservation so that means exactly how can you preserve the capital well but at the same time still have some passive income coming in for your parents retirement fund right so once you know that investing horizon and there are goals as well as their risk profile right risk profile in terms of what kind of companies are they willing to uh yeah are they willing to bear the high risk or are they generally more for capital preservation like what jsa if that's the case then probably need to go for very very safe company or safe investment vehicle which i'm going to share with you exactly what in my opinion it's a safer way to invest as well so the next question is hey if you guys are not investing for your parents then uh yeah maybe you will also encounter this question so who should invest for them right because at the end they need some of money rather than putting the money in a bank which is going to erode no matter what right because inflation is catching up bills are catching up so how can we actually invest safely for them so the question that you need to ask yourself is do you want to engage professional people to invest for them or do you want to invest by yourself because this is exactly the question that my follower asked okay she's asking hey may i check with you as buying pure investment plan like excel axa or manual life better than investing our own in td so uh td basically it's a account that she is using to invest for her portfolio and i believe her parents also see that she is doing a good job as an investor that's why they also want to consider uh start investing for their own retirement fund so when these uh these followers of mine ask me this question then actually the first question that you should ask yourself as uh yeah can you do better right so for example as your investment ability better than those professional people out there if you are able to generate higher return then you can even consider investing for yourself and investing for your parents as well so let's take a look at uh since it's a very very particular kind of question including uh axa in the new life so in these uh sharing i'm just going to go through one of the the the investment product out there that you can buy but once again this is not a buy or sell recommendation and it's really for you to have a proper education before you you even decide to invest in anything right so actually the one that i personally look at uh because of her question is axa right and i know that um axa there is quite a famous uh investment plan it's called axa pauser plan and the first thing that you need to ask yourself as if you decide to invest in axa pauser or whatever investment link plans are similar right then firstly what kind of fees are there that you definitely need to pay right because you are getting professional people to pay for to manage for your for you manage for your parents then definitely you're going to pay them so when i was just looking at the fees that was like well actually there are quite a lot of fees that you need to uh pay in order to get them to invest for you for example the account maintenance fee is four percent right based on the account value right and based on your initial unique account and then it's payable every single month right and second thing is there's also investment fee being charged 1.5 percent per year so if you divide by every single month you 1.5 divide by 12 and then there's also a monthly administration fee uh charge it's a fixed charge eight dollar or ten dollar right and on top of that there's also additional policy maintenance fee insurance charges or if you are because it can be an insurance link plan all together so there are actually quite a lot of charges so one thing that i personally not very comfortable as if i want to invest in something right and charges it's going to be actually quite a lot okay a number of charges it actually start will it will actually start eating up into my profits so yeah so that is the first question that you need to consider for yourself uh is are you willing to pay so much money for people to manage for you right and secondly are you able to do uh invest for yourself or for your parents right so the next one i want to share is all these information i found online the second one is they do have um certain penalty if you want to encash it earlier because when you are buying this kind of plan uh they definitely want to lock you in for a certain period of years right so depending on how long is your duration can be like 20 years can be like 30 years so the sooner you decide to terminate the the more money that they're going to charge you right for for your early termination so i think it's quite quite terrible because you can see that hey number of years left that means that means you buy for 30 years if it's only left with one year then of course your early encounter uh encashment charge rate is lesser but if you just bought it like maybe two years back and you want to terminate it right you can see that uh you are going to get back very very little money because they are going to charge you a lot for your for your early termination so yeah the second thing is in my opinion it's not something that it's very uh liquid if you really want to use that cash you cannot use it very very readily because you cannot cash out so easily and the second thing is but uh vice versa you can see as a double-edged sword one thing is it you cannot cash out but second thing is it's like forced saving so if you are someone who are who lack discipline then i think forced saving like this will help you and at the same time it can still help you to uh yeah compound your wealth right so oh by the way because i am i have never invested in this kind of plan before so if i make any mistake do do let me know because i am not a insurance agent i have never bought this kind of plan before most of the time i just invest for myself for my parents as well right so uh but of course despite all those charges despite all those you know early encashment uh penalty that you may face but if you still go ahead to invest right let's assume okay based on uh like 300 every single month that you invest and for 30 years you never cash out right so you are very very guai every single month you continue to pay and annual return for the funds that uh based on these asa powers so you can actually select your funds all right or maybe you can get that insurance person to suggest you so let's say the fund performance at the end is 12 per cent per annum and then you can see that after 30 years of investing your total premium paid it's about hundred thousand uh hundred and eight thousand dollar all right and eventually because uh every single year your wealth is compounding at about 12 percent but because there's definitely certain fees that you need to incur right because you are getting people to manage your money for you so the net uh net return is about 10.19 percent so after 30 years can you see that your wealth is still compounding very very quickly as compared to you putting money in the bank right so if you just compound 30 years and every single year your return rate is about 12 percent as a general policy right that's when your total invest interest in that means your total profit like eventually will be about six hundred thousand dollar which is really really not too bad right consider your ROI it's about close to five hundred and sixty percent very good okay so what kind of funds that can you invest right based on this asa powers I can see that you can choose multiple choose multiple funds be it your franklin technology your jpm greater china right all of them will give you a different return because individual funds they actually invest in different sector or different companies so just for example uh purposes I'm just going to look at one of the funds called franklin technology all right let's take a look at what kind of companies are these funds investing in and I believe whether you decide to uh decide to invest in funds like this or not it's still good to look at them because at the end of the day even someone else are helping you to manage your wealth it's still good to know what exactly are they investing in yeah so don't follow blindly really check what kind of companies are they investing in via the funds all right so you can see that this is franklin templatean which you can also find all this information just by google it right uh you can see over the past five years the performance of the fund is actually pretty nice right and if you go down just like scroll down below you can see that most of the time they are investing in tech companies right that's why it's called franklin technology fund so what kind of companies are they investing in you have your amazon your microsoft your apple your paypal your baba your tensam right all these very famous companies that we all know right and 86 percent or 87 percent of the funds is actually in united states while the rest of the percentage is in other parts of the world right so next is hey you know if you can invest in these kind of funds actually you can even take it as a reference for example you know that if these funds are performing well instead of buying the fund you can also consider buying some of the companies that are inside the fund because at the end of the day these are the companies that have been helping to drive up the performance of the fund as well so this is another way that you can get investment ideas for yourself for your parents as well next is uh i think one good thing about xr understanding from my friends who also actually yeah he also invested in in this fund as well back then he didn't know anything about investing but he also know the importance of investing and that's why he decided to buy these funds but now he also start to learn investment by himself and now whatever money that he has right he actually invests on his own yet he doesn't want this policy to lapse because once he laps that means he's going to pay he can't get back most of his cash so that's why he continued to invest because it's a sunk cost right so based on the screenshot that he sent me using the allocation that he actually paid right the premium that he actually paid the agent actually helped him to diversify into different funds as well which i think is considered quite quite a good performance at the end of the day now it's about annually about 15 percent okay which is not too bad right so i think if you really don't know how to invest for yourself then consider having someone to to invest for you if the person really know what are they doing right and but some of you may be thinking hey Chloe then is it possible to actually invest in something that it's easy to manage it's passive by the same time yeah i don't need to pay so much fees okay guys what do you think what do you think in your opinion that it's actually could be better than investing in this kind of puzzle funds that at the same time you don't have to actively manage it but still give you a very decent returns over the years all right in fact i've talked i've been talking about this investment vehicle for a long time right so if you know you've been following me you know what is the instrument that i'm referring to let me know what do you guys think okay do you know the answer what do you guys think so in the meantime just looking check checking through some of your commands all right so rule number one jsa never lose money right rule number two remember rule number one fantastic okay so the investment vehicle that i personally love a lot apart from you know investing in professional managed funds which is gonna be a lot a lot expenses incurred right i like to invest something called etf right and one of the best etf that that that is like everybody also like whoever who invests right you will definitely know this it's called s m p 500 right yeah exactly kelvin also said right etf and s m p 500 right it's like it tracks the top 500 companies in the us listed in the us and you can see that there are three year average return it's about 13 percent right and if you base on 10 years track record right how much has s m p 500 grown over the years the average return is also about 13.55 percent which is actually pretty decent right if you look at just now the example that i gave you based on the article right based on the pauser fund article it's about 12 percent so they are just they also want to be managing your expectation don't want to give you like 20 over percent the kind of return so they are trying to manage your expectation let's say about 13 percent what kind of return will you get eventually so in this case s m p 500 has also be getting about 13 percent year on year for the past 10 years which i think it's pretty similar in terms of performance but now let's take a look at what kind of companies do s m p 500 track right so you have your top 500 companies in the us which has your apple your microsoft your amazon your facebook alphabet tesla also inside berkshire so if you see that hey this group of companies that hey actually it's they are the really the best of the best right in the us and you feel invest in s and p 500 on top of these companies you also have the rest of the companies that are very very stable for example your starbucks your mcdonalds everything is inside so literally you have a very very diversified basket and you don't have to be tracking them manually because once you invest in an index basically you are like a very very passive way of investing but the decent return can be still very good now let's take a look at what is the difference between the the the the investment roi it's almost the same right about 13 percent per year but let's take a look at what is the difference if you invest in s and p 500 which the fee that you need to pay is so little like very very minimal right on the other hand if you like almost let me treat it as zero right almost it's like very very minimal almost zero so let's take a look at after the 30 years right that you compound the same way that you will compound if you were to invest in your puzzle fund whatsoever let's start with just $300 per month okay everybody i believe most people can start to afford $300 saving per month right to invest so after 30 years right and compounded annually let's see what will happen okay through your funds now we are going to share do this calculation together all right so let's go to this website let me just uh unshare this so that i can go to the website and make you guys see the difference okay how much does it make you know if you don't pay so much fees in terms of like your management fees or whatever hidden other charges that that you need to pay should you decide to invest in those investment link plans all right so let me share screen application windows yep okay so this is the the calculator that i i was showing you just now right let me just zoom it bigger okay so this is an investment calculator you can also get it online very simple all you need to do is to key in how much is the initial amount so initially you deposit $300 and then every single month okay you will invest another $300 so consecutively do this for 30 years and now let's use a number that we all think that it's it's actually conservative doable for smp 500 okay i'm not talking about 13 percent let's take just an average like let's say 12 percent okay even lower than what is shown in smp 500 just now so if i grow it at 12 percent what will it look like for 30 years 30 years later right so let's calculate all right so you can see that initially you because you every single month you will contribute right so you can see that your wealth is definitely growing because the the US economy is also growing but at the end of the day let's look at the results guys can you see that your imbalance is 9 3 3 2 7 9 so this is close to a million dollar imbalance but okay there is contribution from your end right because every single month you are depositing $300 to buy smp 500 all right so your total contribution will be the same as the example i show you just now should you decide to invest in pauser fund so that is about 108 000 so that's why we minus off your initial contribution in total your total interest that means it's the total money that you actually make right it's more than 800 000 guys so how much was it just now should you decide to invest in pauser fund that will charge you a lot of fees right how much was it let's do a comparison uh so now remember if you pay very little fee very very very minimal eventually you will get back about 800k so initially if you decide to invest in pauser fund let me do that share screen again 800k versus how much let's go back to the application windows oh where's my hold on uh let me just start the the slide share again so that you can see it let me find this okay all right now let me share that screen where is it okay basically i'm reading off i'm reading off from my own screen if you were to invest based on the pauser fund that i just show you based on the example that they gave right okay your investment final profits will be about 600k right oh well let me let me just share this hold on because i'm using dual screen so sometimes i cannot see the screen at the back okay now i can see okay now can you see that your total interest earn all right if you were to invest in pauser funds like this and they give you almost very similar kind of return i'm also using 12 percent all right so your total profits eventually it's about 600k versus just now how much was your return if you just invest in sp1 it's about 800k so there is a difference about 200 000 dollars okay what can you do with 200 000 dollars guys if you i give you 200 000 right what can you do with it what can you do with it with 200 000 that is actually a lot of money so if you look at the funds the management fee every single thing if you look at it in a very short-term horizon it seems very peanuts right like almost nothing to you but if you compound your wealth over time can you see that that little management fee at all add up to be 200 000 dollars right so you are literally contributing 200 000 of your profits to to this xa right that's how they make money and and that's why they continue to do what they do because it's very good money to make and somehow they lock you in right so they know for sure give it long time long term they will be able to profit tremendously from your investment right so save yourself i think my advice is if you can invest for your own right save yourself that 200 000 because you can literally do so many things right if you choose to you can even use it to invest in properties in like cryptocurrency i don't know recently like pete with he was he's mentioning about how how important and it's important to diversify your assets as well so with 200 000 you can diversify into other asset classes that compound your wealth even more all right are you guys surprised by the 200 000 dollar okay is any age more than 60 dollar how to put in okay very good so this facebook user is asking me this question hey if their age like as parents right if you're talking about parents they definitely very very little tendency that they're going to live like 30 years or 40 years or more but i'm showing you this as an illustration okay let me just as an illustration you can see that well 30 years can make a lot of difference all right but how about let's say 10 years or 20 years it will also compound so because if you give it time if it's a good investment it can make you a lot of money so it's very important that you start to compound and start helping your parents to invest and i think etf is a really really great way to get started so some of you are asking so does that mean that just buy one spy per share i think this is a good strategy for example if you are investing for yourself or maybe for your parents if you want to and very importantly you need to have a long term horizon okay so what i show you just now is a 30 years investment if you want to think about long term right i think minimally you should be looking at five years or even more if you can look at more than 10 years that's even better right so if every single month you compound your wealth by buying like let's say one share of spy give it time i promise you i really think that this is one of the best and safest investment vehicle that you can use for yourself for your parents as well right very good strategy all right you just buy one share per month average uh and dollar cost averaging right so but of course some of you may be thinking hey is it possible to make more than 12 per cent per year and the truth is you can okay if you know how to select good companies to help you to invest so some of the companies that have been like really proven to be very good very stable consistent return at the same time they are there's share price right because they are their performance is so good the share price has also been increasing over time as well so let me show you some of example for example right i think it's important especially for parents age right they want to grow their wealth in a very stable manner so when you are selecting some kind of companies to invest for them let's say you want to right i think it's good to invest in stabilizer company right companies that have proven track record at the same time yeah they are able to give you consistent and predictable performance all right so one of them that you can consider it's uh it's actually called no Berkshire Hathaway right because this is a company that Warren Buffett is running it right very very solid investor and if you give it time actually for the past 20 years Berkshire has appreciated all right more than 650 percent right way more definitely way more than your S&P 500 because when you know how to select a good company uh the growth of the company can be also definitely higher than the market performance all right but provided you know how to select a good counter for yourself right so another one uh that in my opinion it's very stable very predictable but at the same time still can grow okay tremendously is actually google all right alphabets and if you look at the past 18 years all right almost another 20 years time right the growth rate is like your your return has actually increased 36 volts okay does it sound amazing if you think that 36 times that means you multiply your wealth by 36 times it's amazing right please type amazing right and i really think that even till today google it can continue to grow because this is a company that we personally use every single day it's still making a lot of money from its advertisement stream at the same time it has many different kind of businesses that it's running so i think it's a giant that is still growing so if you want something that's very predictable stabilizing but still have growth i think google is considered one of them as well i personally also have a google for my parents and for myself as well all right so of course i don't have time to go through nitty gritty exactly how to analyze a great company at all this but i think it's important that you need to ask yourself this question so if you decide to invest for your parents right firstly do you have the ability to generate more wealth compared to professional managed funds okay and if you don't have the ability right then you can also consider another instrument called etf right which have shown you that it's a very very powerful passive way of investing but still give you very very high return with minimal fees all right so my parents are conservative they only invest in government back guarantee like four to five percent rather than up and down how to convince them to go into the stock i think uh i think i uh when you talk about the government back it can be cpf so if they think that cpf is something that they uh like what you mentioned it's guaranteed government back right so i think you can start to convince them by maybe parting not a lot of their wealth maybe just start with let's say 10k 20k and you start to invest and manage for them with this 20k you give it sometimes like one year two year down the road and when you are able to show the result that you can generate for them then definitely they will have more confidence to part more money with you right so i think it always takes time for people to build up the conviction in investing and i think it's good that you already started to invest for yourself right then use your result to show that you can do it and you can also help them to manage their wealth better start with a smaller portfolio but as long as you give them a good return over time i believe uh with time they will be able to manage and invest a bigger money together with you as well so thank you so much for your question as well so uh that's all i have to share today let me know if you have any more questions okay in the meantime if yeah in the meantime i i think i really hope that this sharing can actually help to encourage you to yeah start investing not just for yourself but also for your parents as well thank you so much yes start small first okay anthony that's how your parents will have conviction so for those who are interested in to learn more about investing or maybe you are talking about options investing right i think it's very important to also get yourself educated because etf is one of the most passive way of course you don't expect super hyper growth of etf but if you want to have a slightly faster growth then it's important to get yourself educated as well so for myself i actually conduct these workshops it's a free workshop that next saturday yeah 10am to 12pm i'm going to share with you my own strategies that i personally use phone strategies to profit from the stock market very safely but of course in terms of the strategy wise i'm also going to share with you option strategies so for those who have not learned options before and you are interested to get started to accelerate your return i think it's important to get yourself educated all right so if you're interested in you can actually go to this link bit.ly slash for strategies 2021 to get registered and then after that i will be able to send you an email with the information okay let me see let me just open up this banner all right so i i seldom do it so if you're interested in just register i will be able to send you the zoom link it will be conducted via zoom you have any questions you can also ask me during that time as well all right in the meantime let me see any more uh question so usd okay this is the first question sgd deposit okay let me see uh sgd deposit into us td i b will be less will be less than what right uh will be will be less than 300 in the end ah okay okay okay very good question so for example if you know that uh or sgd 300 will be less than less than one fpy share right what you can do is you can let's say save 200 dollar all right i mean two months right save two months and then you invest right that's how within two months definitely you will be able to buy at one spy share all right so you just continue to do it that means you do uh you kind of force yourself to do force saving every single month you save 300 sgd all right and then two months later you will definitely be able to invest one or maybe sometimes two depending on the market condition right that's how over the year you will be able to collect more and more shares and and and yeah compound your return right so second thing is which broker shall we use uh by using uh usa etf so i personally use td a marriage rate so i know that td in my opinion is one of the best platform out there but it takes a lot of time to open it at the count right now okay so i would suggest if you don't want to wait for a few months to open your account you can consider other brokerage platforms such as ib interactive broker uh sexo also can or tiger broker recently this tiger broker has been quite popular a lot of youngsters also start using it you can consider that as well so yep uh there are definitely more more than one that you can choose from all right so uh okay that's all i have to share and before that okay before i end for those who have not uh joined my telegram you can also consider to join my telegram because this is where i'm also going to share with you uh more of my my own investment insights okay on top of that actually i will also start posting some uh like uh how should i say ask your question kind of post right so that if i have any questions i will actually compile and see which is the best question or which are the few best questions that i can answer during live session like this i will actually go and do up a google form and you can actually submit your questions inside so that i can also help to address it all together and everybody get to learn right so do join this uh t.me slash b and invest Chloe if you want to follow my telegram for more insights and ask me questions which i will be posting the link inside my telegram channel as well so uh that's all i have to share hope you guys find this session useful and uh yeah with that i hope to see you in my telegram channel and inside my workshop as well which you will be conducting next saturday that's all i have to share and i hope you guys have a great great day ahead a great evening and a great week ahead as well so i will see you during next time thank you bye bye