Paths to Financial Freedom
What is capital mastery, and social trading?
18 April 2015, Vinco Game Changers
Many people would feel that they are using their monies in a good way. Our cash flows can be pretty obvious: our salary, investments, bills, debts and expenses. In the long run, will our single incomes and investments still be sufficient for us? We need to think about how we can make our money work harder and smarter for us, not continuously work harder for more money. Whether you are a business owner or not, how often does cash flow problems create obstacles for you in your personal and business life? Rachel highlights one method you can free up cash right now in your life, while Marcus introduces us to an easy way to start investing in Forex.
Speaker 1: Rachel Chong from Business Mentors
Unlock Capital Mastery
Have you ever thought about your insurance plans and premiums more carefully? The percentage of people insured with at least one plan in Singapore is very high, and the usual way insurance is bought is through friends or a recommended insurance agent/financial planner.
One quick question: How do you know if you are getting the best deal for your money? The multitude of plans, prices and coverage baffle most of us – even if we read through the entire Terms & Conditions set out by the insurers, we might not be able to fully make sense of all the data, or effectively compare it to another plan.
According to Rachel, up to 82% of us here are overpaying for insurance. The differences in pricing from one insurer to another can be absurdly high – up to 70%! Here are the three myths that Rachel wants to clarify:
(1) That all insurance plans are similarly priced – No
(2) Policies that are linked to investments and payouts are the best of both worlds – Not really
(3) Just having life insurance is enough for retirement – No
Rachel brought up the story of a new business owner who needed cash, and after reviewing her existing insurance plans, managed to ‘unlock’ cash of over $30,000 while increasing her coverage.
There are some other things that Rachel wants us to take note of, including conflicting goals. A lot of times, due to the large amounts of information that the financial planners might not know, or will not be able to tell you, your personal financial goals may not be met in the best possible way. We assume that if we tell them what we want to achieve, then they are able to do it. Unfortunately, not every financial planner is equal – getting second opinions may save you a lot of money.
What Rachel can do for you, is to help you assess your current insurance portfolio, to determine if there are ways to increase your coverage while lowering the amount you pay.
Find out more about Business Mentors: http://www.businessmentors.com.sg
Speaker 2: Marcus Lau from Riovest Pte Ltd
Social Trading in Singapore
Have you always wanted to try out investing your own money, but have no idea where to start? Marcus Lau, seasoned investor and trader, thinks that social trading is one place you can start. With technology and the internet, forex trading is highly accessible to everyone, anywhere in the world.
What is Social Trading?
In very simple terms, a social trading platform is likely to be a web application that allows everyday investors to trade online in real-time, but with an added ‘social’ element. After setting up an account, you can befriend other traders online. It is a platform where data is viewable by all users, and past track records is available for scrutiny. The interesting part about this, is that once you spot a trader that is doing well or making consistent profits – you can choose to copy their transactions and trades with just a click of a button. A lot of traditional trading functions are now fully automated; you can set a limit to your gains and losses for a particular trade, and safely to to bed at night.
What are the benefits of Social Trading?
There are very low entry requirements, and you can decide to stop anytime. Most recreational traders consistently lose money, and Marcus puts the percentage of consistent money makers at just a mere 5%. This would probably result in a long-term loss rather than bringing you closer to your retirement goals.
Trading itself can be very complex if you delve deeper into its mechanics – but with the rise of social trading, there is no need for you to learn Technical Analysis to trade anymore, because you can choose to tap into the knowledge of other master traders. On the Riovest platform, you will be able to earn commission (no cap on earnings), simply by introducing your friends to join you. Their subsequent transactions would earn you some money, with no expiry date at all. Marcus pointed out that this is a powerful way of building your financial security.
People without experience, knowledge, or time can benefit from the existence of master traders on social trading platforms. While no investments are 100% risk-free, the beauty about the open-ness on the platform will show one thing – data does not lie. People would naturally follow and copy the better traders. Riovest, along with Brightwin Securities, are curating a ‘Master Trader Community’, a group of leading traders with proven track records. They are available to give you advice on trading, and they meet up once a month. Riovest also holds frequent training and educational workshops on financial education.
If you want to try your hand out at forex trading, talk to master traders, and ask more questions – reach out to Riovest: http://riovest.com
To attend an upcoming free preview session: http://riovest.com/events/ (look out for social trading previews!)
Jocelyn Ke (www.jocelynke.com)