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Idiot’s investing plan

Money radio show

When I was hosting a weekly one-hour money radio show for three-plus years, I would get calls and sms about how to invest, practically every week.

Idiot’s investing plan

I devised a simple “Idiot’s Investing Plan” for the listeners, which addressed the following most frequently asked questions and concerns:

What to invest?

How to invest?

When to invest?

When to sell or take profits?

Step-by-step guide

So, here’s the step-by-step guide to the “Idiot’s Investing Plan”:

Invest in a globally diversified portfolio of about 10 investment funds comprising about 30% equities 30% bonds 20% commodities and 20% property

Use a no front-end load (back-end load early withdrawal charge) funds portfolio vehicle, if you do not intend or expect to make withdrawals within the first 3 years

If you are using CPF or intend to make withdrawals within the first 3 years, such as if you are retired or are 55 years old or older, use a front-end load funds portfolio vehiclee

Do not use an investment arrangement which has a perpetual extra loading such as a 1% annual advisory fee

The average total annual expense ratio should be 1-plus per cent

Re-balance your portfolio quarterly (free re-balancing)

Whenever you need money, sell the funds that have gone up the most. If you intend to make regular withdrawals such as monthly within the first year – do not re-balance – sell the fund that has increased the most for the amount that you want to withdraw every month

You should use an investment vehicle/platform that enables you to have free 24-hour online access to your portfolio’s funds’ valuation

“Idiot’s investing guide” video

You can also watch this 15 minutes video of Leong Sze Hian speaking on the above at the Invest Fair organised by shareinvestor.com

 
Robin Han
Leong Sze Hian

Dr Leong Sze Hian is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, acting managing editor and columnist for theonlinecitizen, columnist for Malaysiakini, a Member on the CIFA International Advisory Board, executive  producer of the movie Ilo Ilo (8 international awards), treasurer of Maruah, and invited to speak more than 100 times in more than 25 countries on 5 continents. He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.