Hey guys, i found an article from Yellow Post and found it really in line with my concept ya ..
And it is a question Are You A Risk Taker ? Here the story goes...

I'd rather save my money in a Fixed Deposit (FD) u guys know ?? its safe and secure- NO RISK!" "I'd rather find a safe and secure job than investing in property or venturing into new business." Your parents may tell you "You'd better study hard to get a safe and secure job in the future!". These are typical mindset among all of us. To many, investing and venturing into new business is risky.

The following should be correct mindset in the 21st century or the information era. Firstly, there is no more safe and secure job today. Look at the retrenchment, VSS, etc. These things rarely happen in the 90's. Today many companies employ the reward punishment approach - employees will be rewarded when they bring in profits and when the company losses money, some of the employees will be retrenched; some will be relocated to other country. Besides that, with the evolution of globalisation, employers can now outsource the jobs to other countries easily. The company may operate from its current based country and outsource its jobs to China or India. Safer and secure jobs will slowly diminish.

How about SAVINGS? To me savings is losing money. Thats because we lose our money to inflation. Lets us look at a very simple example: Lets assume that 20 years ago, there are three people, Mr A, B , and C. They had won a lottery worth RM 15,000 and distributed equally among themselves. Each of them got RM 5,000. Mr A dumped his RM5,000 in a 20-year FD with an interest rate of 4% p.a. Mr B used the RM5,000 to buy a 20-year savings policy from a famous insurance company with an avarage return of 6%. Mr C decided to used it as a downpayment to buy a property and rented it out (20 years ago, a piece of property in Penang cost about RM90,000), he got a loan of RM85,000 from the bank and paid an interest rate of 6.5% p.a. for a 20 year tenure. (Lets assume the rent he received is just sufficient enough to pay every month's installment for his property).

If u do correct a calculation, 20 years later, Mr A will get RM10,000. Mr B gets RM15,128. And as for Mr C, there are 3 possible scenarios.

Scenario 1: The property did not appreciate at all, Mr C sold it at the original price of RM90,000, Though there was no appreciation, but he got back RM90,000 ( because throughout a 2o years, the tenant fed the bank instalment and interest for him).

Scenario 2: The property value depreciated 50% to RM45,000, he still got back RM45,000.

Scenario 3: The property appreciated at a normal rate (This is the real case happening from 20 years ago till now) the value is RM500,000 now; he makes RM500,000.

20 years ago a plate of noodles costs RM0.50, A, B and C can buy 10,000 plates of noodle. 20 years later, a plate of noodle costs RM3.00. Mr A can buy approximately 3,000 plates of noodle only( he is losing approximately 7000 plates of noodleto inflation). Mr B can buy approximately 5,000 plates of noodle ( he is losing approximately 5,000 plates of noodle to inflation). While Mr C can certainly buy more than 10,000 plates of noodle( depending on which scenario is happening).

Who is taking more risk? DO u still prefer SAVINGS ?

P/S: If anyone of u wanna read the article, get it from me , or get a copy of Yellow Post Issue June29-July5,2007. Wake up guys and open your eyes!! This is what happening in the world today in the 21st century. Safe and secure jobs?? Savings? Haha.. Doubted it .. Get out from your comfort zone. Be more adventure. Life is just once for us to make it happening and different from others.