Gold : Is It A Fool-Proof Investment Afterall?

Numerous clients over the past year have said the following:

"I invest in Gold. Prices will never drop"

"Gold is a good investment because it is safe and gives good returns"

"It is silly to invest in anything else than Gold."

In light of the recent dramatic drop in the price of Gold, it may be useful for us to reflect on this common conception that Gold is a safe asset to hold.

Well, it does makes logical sense that since Gold is a commodity that is precious, it will always be in demand, always be valuable and thus prices should remain stable and constantly increasing. Gold is regarded as a good asset to own. People buy Gold bars to lock in their safes at home while it is good value to give gold jewellery at weddings and baby's one months. Not just because its shiny and beautiful but because it is believed that Gold prices will always appreciate and thus be a valuable present.

But did Gold prices drop?

Gold prices 11 - 17 April 2013
http://www.bullionvault.com/gold-price-chart.do

 Yes it did !

So let's remember that Gold is a risky asset, and some gold investments are riskier than others. 

We can see this from the CPF investment limits as well: 

There is a limit of investing up to 10% of investible savings in gold while 

the stocks limit is 35% of investible savings.  

Gold is more risky than stocks? 

Is it the Plan ? or the Planner ?

When you make a decision, how often is it because the product was good, and how often was it because of the person selling it?

In making a decision, there are so many factors. We as consumers want the best of ALL worlds. We'll compare based on price, quality, brand, and sometimes the salesperson.

I recently bought a TV mediabox from SimLim. We walked around shopping for the options available in the building, asking around for prices, and eventually chanced upon this shop at a 'ulu' corner selling a brand we hadn't seen yet and at a cheaper price than what we were quoted by everyone else. But more importantly, I decided to buy from this particular salesman because he made me feel that he knew what he was talking about and that I could trust him. He asked us why we wanted to buy a mediabox and showed us what he thought would meet all our criteria. He was well versed in how his brand performed compared to the competitors, he explained how the technology worked, he gave us alot of examples of what we could do.

I don't think I could have done it better than him. I was sold.

So we brought it home. Whether on impulse or not, I felt that I had made a good decision. And it didn't matter that it wasn't as fast or easy to use or that I couldn't find the shows I was looking for. I knew that I had got the best deal among all the lousy ones, and the other brands would have been much worse HaHa.

You must be wondering what has this got to do with financial planning ?

At face value, it reinforces that you would prefer to do business with someone you like. Who gets you, understands you and is sincere and trustworthy.

Honestly, what is your plan for yourself?
You won't know how to plan for what you want, if you don't know what it is you want. You are the planner of your own life. What do you hope to achieve in the future? Where would you like to live? What kind of family life you would like to have?

It scares me to hear people say 'I don't know what I want in the future'. Of course 'going with the flow' and 'letting life take its course' are necessary. But lets think of something that would make your heart sing to have in the future. It could be to own your own car, or have a holiday tree house, or have 3 kids, whatever makes you smile to think of it.

For me, I would like to live in a self sustaining house when I retire. I visited this place in Australia called French-Island when I was studying in Melbourne. It fascinated me that they grow their own produce, have their own electricity source using generators, and make use of rain water. It was a total different way of life. And though retirement is pretty far away from now, and I don't really have the details on where this house would be, it feels fun just imagining it.

Without a purpose, there would be no reason to take any action. Even if it's just fun to think of, and may not eventually become reality, using your imagination can be a wonderful pastime.

You could be at any stage of your life and wondering what you want to achieve next.
A good financial planner can't help you plan what to do with your life, but can help to explore the endless possibilities out there while helping you to get there.

What do you want?
When?
How much do you need?
What could stop you from achieving it?

If you can't answer question 1, then how do you carry on with the rest of the questions?

Who is Sueyan Lim Shuyan ?

I discovered that quite a number of my clients do research on me before they decide to sign on the dotted line. So why not give you a proper place to get to know me, instead of inferring through my facebook posts. And thus this blog was born.

I believe that some will like what they read here, and some won't, and that's fine. If you're not going to like me, better to know it sooner than later. So here is an introduction into who i am and what i do.

I'm a Bachelor of Commerce graduate from University of Melbourne, class of 2009. Spent 2 years after my graduation doing various things and gaining valuable experience. February 2012, I decided to start as a Financial Planner. Having been trained well by the Singapore Education System, I sailed smoothly through the CMFAS papers (passed them all in one attempt btw) and got my "license to sell" after 2 months in April 2012.

What I do?

You probably know what financial planners do. Some people call us 'insurance agent' in layman terms. So I'm not going to justify my profession here and start any arguments based on different opinions, experiences or generalisation/ hearsay. This is about ME and how I treat my clients.

What's important to me?

2 way communication. Starting a long term professional relationship and friendship requires trust and I appreciate when my clients are able to speak openly with me about their financial plans or otherwise. In turn, I know that it is only when I present the real me to them, that they feel my sincerity and are able to trust me.

Respect. No 2 people are the same, so I do my best to be sensitive to different needs and expectations. Friends have described me as 'non-judgy', but you'll have to see for yourself if there's any truth in that.

I can be long-winded at times, continue blabbering on when I'm nervous or be shy in a group (especially with strangers). So I'll keep this short and sweet and end with something personal.

Perhaps I may not be able to guarantee that I'll be a financial planner forever, but I know that after 1 year in this industry, I really enjoy what I do. If not for the trust and belief my clients have in me, I would not be where I am today, setting up this blog as a commitment to keep improving myself and helping more and more people.

I will not disclose my company on this site but feel free to contact me at 86998688 or sueyan.limshuyan@gmail.com if you want to find out.

Disclaimer: Information posted on this site is solely my own views and opinions. They do not represent that of any company.