白痴投資者的下場－夢想出走、夢想吾撈、夢想美食

OK,

these are all my faults... I should not be sooo naive...I know I am a 白痴投資者.

This is how the story goes.....

Farmlady started investing for her financial freedom in 2001. Being someone who had no idea what investment was all about (though Farmlady had once worked in a bank), she joined an Executive Saving Plan (buying funds monthly).... The agent advised that there would be some bonus which should be able to cover more than the management fee....

In 2005, noting the advice from Tony Measor (pls do read his book: Invest to Last), farmlady cut the plan and withdrew a part of the savings and invested it in some stocks instead (the return was ... satisfactory

The terms of the saving plan was such that the injection made during the first two years could not be withdrawn without paying a hefty penalty.... Hence, farmlady just let the sum sit with the company (which actually accounts for >10% of her total investment portfolio).

Out of curiosity, farmlady checked the balance today and found that the number of fund units were reducing during the last two years!!! ..

the CS with Friends Providentjust told farmlady that the company would deduct 1% of the balance as managment fee and got a further charge of some $48 (by selling some of my units....)

I cannot withdraw further (or else I have to forgo more than one-third of my balance) .... but I consider the management fee v. v. high la...

Have to think hard... would the opportunity cost (of not using the money to invest on my own plus annual management fee of 1% for 14 years) be higher than that one-thirds penalty