What's with the financial bail out's?

In the 1998 Asian Financial Crisis, the Malaysia Government made a significant stand to "bailout" and even peg the RM to USD. The respond from the other side of the world was that this is unjust and not a practice of "democracy".

Then we ask the question as to how this current financial tsunami happened? How can big companies like AIG go bankrupt and need UD$85 bil bailout or how did the world's fourth largest investment bank, a 158 year old giant, Lehman Brothers end up with US$660 bil in debts?

So now when the other side of the world has a financial crisis and suddenly has to fork out a US$700 bil "bailout", what do we say?

I am of the opinion that we will always do this, first for self, family, company, community, country.

If this holds true, shouldn't we be focused on our situation first and shouldn't we be the ones taking responsibility and pride to ensure that the local stock market, financial sector and economy and even political stability be our priority?

What would your comments be I wonder?

Malaysia BOLEH...! or ?

LVG Launching

Thanks to Berita Harian for publishing LVG Launching. Congratulations to the partners, Nash and Jash for such a memorable event.

What would the trend be in Malaysia ...

It's interesting to look at how matured market like the United States have grown in the mutual fund industry. Just have a look at some of the statistics.

As at end of 2007, the United States has US$12 trillion (RM36 trillion) worth of assets under management, Malaysia on it's private sector unit trust has about RM70 billion. The US has more then 8,000 funds and Malaysia has about 500. There are more funds available in the US than there are stocks on the NYSE.

How will this trend affect the local unit trust industry? Will it create more opportunity, will we see more funds being introduced, will the fees be going down further? Well, as I am not one of those futurist, what I can say, as far as learning and experience ... the best is yet to come.

Thanks Eddie...

Eddie is one of our senior consultants at LVG Consultants. Thanks Eddie for your contribution on the 4-Step Success Strategy:

1. Journey (or time period)
Unit trust investment is not meant for short-term gain. The recommended time period is three to five years.

2. Discipline
Consider investing regularly. This way, the investor rides both the ups and downs of the market to optimise their returns. This investing strategy is known as “Ringgit Cost Averaging”.

3. Monitoring and review
Engage a professional consultant or advisor who can constantly keep you updated with market developments as well as your investment portfolio. The advisor should offer a solid investment
strategy for the medium to long term period.

4. Taking action
Decide in advance what action must be taken when:

• the investment returns target is met
• market conditions indicate change, either for an upturn or downturn
• your risk profile changes
• your financial goal changes

A classic .... do you agree?

This to me is one of those classic newspaper headlines. It poses the question can you retire? It's an interesting article with very staggering statistics. But sad to say, just next to the headline we see that Malaysia is celebrating it's 5o years of independence! Well my assumption is that the country's independence does not equal an individual's financial independence.

Well, I guess there's not much to write about, my work needs to carry on. May we build upon our vision of building a financial fortress in every home. Possibly we can change that heading to "Most Malaysians are well on their way to financial security & independence"