Question:
What are some of your financial mistakes and best financial decisions?
Answer from our CEO, Christopher Tan:
Thanks for joining the AMA and also for your question. I have made many financial mistakes, but let me list a few significant ones here:
Financial Mistakes:
- I bought a country club for investment in my 20s without doing any due diligence. The country club went belly up after a few years when the lease ran out, and the club could not renew the lease.
- I speculated on IPOs in the early 90s. I did not even read the prospectus! I ended up owning Golden Agri, which lost money on the first day of the listing.
- I bought whole life insurance when I was in my 20s. I actually did not need that coverage.
Best (Or Better) Financial Decisions:
- I restructured my insurance portfolio. I pay lesser premiums but am more adequately covered today.
- I invested in ETFs and Dimensional Funds.
- I moved from private property to public housing. It freed up a lot more cash for me to do the things that really mattered to me.
Thank you!
Our CEO and Founder, Chris, noticed interest and questions on the SingaporeFI subreddit for some time and had the opportunity to conduct an “Ask Me Anything” (AMA) session in October 2023. The above question was selected from the list of many questions that were asked.
If you are interested in viewing the full Reddit list of questions, you can visit this link.
Christopher Tan, is Chief Executive Officer of Providend Ltd, Southeast Asia’s first fee-only comprehensive wealth advisory firm and author of the book “Money Wisdom: Simple Truths for Financial Wellness“. He is also a Certified Ikigai Tribe Coach.
For more related resources, check out:
1. Buying Term Insurance Is Not So That You Can ‘Invest the Rest’
2. Right Sizing for Retirement
3. Why Does Providend Work with Dimensional Fund Advisors?
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