I came across this article on the Sunday Times, 1st May yesterday. It was a poll made by insurer, Aviva entitled “Over 4 in 10 not saved for retirement”. One column that caught my attention was “Wish someone else sort out their financial affairs”. The percentage for each age group was quite substantial, in view that those in the poll were young adults to seniors. The first thought that came to my mind was “were those people simply lazy or they deliberately chose not to deal with money?” Out of the sample size of 1000 people, there should a high percentage of educated people in view of Singapore’s relatively high literacy rate.
To me, this segment of people is likely the most vulnerable to quick rich scams. The fact they chose not to sort out their own finances means that they can be easily moved by financial carrots dangled out by unscrupulous individuals or organizations. They can easily be skewed to believe by sweets talks that promised them high returns. They are likely to be the people buying bonds issued by Lehman brothers or gold trading schemes that promise them no lower than 20% return only to find themselves becoming the victims after they lost their capital. Basically, allowing others to sort out our financial affairs could easily make us lose control over it. For those extremely conservative ones, it is likely that their ‘investments’ do not go purchasing insurances. They are also likely to work longer in their lifetime as they are not making money work hard for them.
Personally, I am a strong advocate that we are the best people to manage our own finances. We are the best people to know our incomes and expenses. If we have to leave to someone else to sort out our financial affairs, we could be selling away our financial freedom. I wish this group of people – Good luck!
Brennen has been investing in the stock market for 26 years. He trains occasionally and is a managing partner for BP Wealth Learning Centre. He is also the author of the book – “Building Wealth Together Through Stocks” which is available in both soft and hardcopy.