There two types of reaction when I tell people of index investing.
1) "Wow, I don't know how to invest! This is risky!"
2) "15-25 years horizon to build retirement fund? This is not fast enough."
I have managed to influence a couple of friends and family members to start this index investing journey. My sister started her POSB Invest Saver this month, after telling her about it one year ago. I recommend this for those who are not as savvy about investment, and wish to invest as passively as possible. My wife started it last month. Two of my ex-colleagues started this month (thru' buying over brokerage and POEMS ShareBuilder plan respectively).
I hv more second reactions though. It is true, most people, including me, wants to see "visible" money. That was why I started off as a forex trader. But life changes, and I am leaning towards a more passive investment style.
Ironically, after stepping into index investing world, one of my regrets is that I didn't build my career properly - my main source of income. I understand index investment are slow for risk takers, but if u hv a source of income from business or employment, where do you park your cash?
Many high income earners I know do not know where to park their cash after monthly big paycheck, most of them changed their lifestyle to higher standards because its useless parking these monies in 0.05% savings account. The other group would just save it inside and let inflation drawdown their savings value.
That is why we need to invest monies (after emergency funds and savings which u will need 5-10 yrs). It is an enjoyable process to build up a portfolio and see your money grow. Set a target allocation and work towards it. If you are not savvy about investing, just choose a posb invest saver, ocbc blue chip investment etc. to do the work for you. I believe POSB is the most passive among them, no need to pick any counters.
Have faith my friends.
