Do you over invest?

[highsulphur]

I over-insure rather than over-invest.

That sounds worse to me

 

[DevilPlate]

I don't feel rich nor feel I can spend freely despite my assets. I think it's probably due to limit "free" cash

On months when my bills exceed my free cash I do feel a bit stressed although I can always draw on my uob one account and sacrifice some interest

U still fairly young? Once hit around 60yo, then can spend more freely liao lor

 

[highsulphur]

U still fairly young? Once hit around 60yo, then can spend more freely liao lor

Almost 50. Just too used to the accumulating mindset.

I think I'll start by reducing my monthly investment amount

 

[Meemoosaa]

I don't feel rich nor feel I can spend freely despite my assets. I think it's probably due to limit "free" cash

On months when my bills exceed my free cash I do feel a bit stressed although I can always draw on my uob one account and sacrifice some interest

Glad to see this thread and know that I'm not the only one.

There was once, over a couple of months when I over invested a little and didn't have much flow, got a bit worried. Suddenly needed to return some money to my parents for some errands that I owed them, not a huge amount and I didn't have the cash flow, told them to give me one month so my salary can come in, and they became very concerned. They chided me for the poor cash flow. I also tried borrowing money from spouse to chiong more of the high SSB rate, spouse rolled eyes at me. Felt "humiliated" ! And realised I a bit "zhou huo ru mo" and stopped. Watch the high SSB rates pass me by, now have cash flow but rates dropped below 3% liao.

I guessed I got a bit complacent because spouse is my backup mountain for emergency.... I. Anyway, I stopped doing that and made sure I have enough these days. Maybe it's a rite of passage where we all get a bit obsessed at some points in our lives. Lol.

 

[highsulphur]

Glad to see this thread and know that I'm not the only one.

There was once, over a couple of months when I over invested a little and didn't have much flow, got a bit worried. Suddenly needed to return some money to my parents for some errands that I owed them, not a huge amount and I didn't have the cash flow, told them to give me one month so my salary can come in, and they became very concerned. They chided me for the poor cash flow. I also tried borrowing money from spouse to chiong more of the high SSB rate, spouse rolled eyes at me. Felt "humiliated" ! And realised I a bit "zhou huo ru mo" and stopped. Watch the high SSB rates pass me by, now have cash flow but rates dropped below 3% liao.

I guessed I got a bit complacent because spouse is my backup mountain for emergency.... I. Anyway, I stopped doing that and made sure I have enough these days. Maybe it's a rite of passage where we all get a bit obsessed at some points in our lives. Lol.

Yeah can't optimise all the time.

I am going to resign soon and next month salary will be pro rated. Going to skip DCA for Oct and spend whatever is left after normal expenses

 

[Meemoosaa]

Yeah can't optimise all the time.

Side effects of hanging around the moneythread too much !

I am going to resign soon and next month salary will be pro rated. Going to skip DCA for Oct and spend whatever is left after normal expenses

New job ? Or preparing to retire ?

 

[highsulphur]

Side effects of hanging around the moneythread too much !



New job ? Or preparing to retire ?

New job. Hopefully last one

 

[hwmook]

I never have the same problem, I am close to 100% in equities. I borrow money to put in bank account and money market fund so these form my liquidity, borrow at low cost and earn interest while providing me liquidity. I don't a fixed amount to invest or save, I just spend wisely and invest the remaining, no stress at all for past 16 years.

 

[sohguanh]

I never have the same problem, I am close to 100% in equities. I borrow money to put in bank account and money market fund so these form my liquidity, borrow at low cost and earn interest while providing me liquidity. I don't a fixed amount to invest or save, I just spend wisely and invest the remaining, no stress at all for past 16 years.

Typically ppl stressed is when on top got old ppl aka parents and below got young ppl aka children to feed. If only feed yourself I doubt can over-invest as only you in the whole equation less unforseen parameters except you yourself.

 

[hwmook]

Typically ppl stressed is when on top got old ppl aka parents and below got young ppl aka children to feed. If only feed yourself I doubt can over-invest as only you in the whole equation less unforseen parameters except you yourself.

I have parents and kids, most people do. If I don't invest and just use my salary to try to feed my family then I will feel stress as well. The truth is I started investing in the 1st year of my working life which help to really set me up for life, forever grateful to this forum which really help me to start investing.

 

[Meemoosaa]

I never have the same problem, I am close to 100% in equities. I borrow money to put in bank account and money market fund so these form my liquidity, borrow at low cost and earn interest while providing me liquidity. I don't a fixed amount to invest or save, I just spend wisely and invest the remaining, no stress at all for past 16 years.

Can I ask where do you borrow your money from ? This sounds very gutsy or maybe i'm just late to the game. lol

I grew up with old school MG/PG parents mentality due to my generation, borrowing is bad and savings is good even though I know it's no longer applicable in today's market anymore. And the only thing we borrow are mortgages and if necessary, education. Even borrowing to buy a car is frowned upon in the family. lol.... Credit card bills are already considered living on the fringe for them even if I pay off everytime. So imagine my parents horror when they found out I had cash flow problem.

 

[ctan84]

Can I ask where do you borrow your money from ? This sounds very gutsy or maybe i'm just late to the game. lol

I grew up with old school MG/PG parents mentality due to my generation, borrowing is bad and savings is good even though I know it's no longer applicable in today's market anymore. And the only thing we borrow are mortgages and if necessary, education. Even borrowing to buy a car is frowned upon in the family. lol.... Credit card bills are already considered living on the fringe for them even if I pay off everytime. So imagine my parents horror when they found out I had cash flow problem.

Don't do this "borrowing to invest" approach unless you are the type of person who is good at divorcing your emotions from money.

 

[Meemoosaa]

Don't do this "borrowing to invest" approach unless you are the type of person who is good at divorcing your emotions from money.

I won't have it in me to do so, but just curious.

 

[hwmook]

Can I ask where do you borrow your money from ? This sounds very gutsy or maybe i'm just late to the game. lol

I grew up with old school MG/PG parents mentality due to my generation, borrowing is bad and savings is good even though I know it's no longer applicable in today's market anymore. And the only thing we borrow are mortgages and if necessary, education. Even borrowing to buy a car is frowned upon in the family. lol.... Credit card bills are already considered living on the fringe for them even if I pay off everytime. So imagine my parents horror when they found out I had cash flow problem.

Borrow from banks, balance transfer from credit cards EIR slightly over 3% then put inside OCBC360 to earn 6% interest. Free money. Max out my mortgage, take as much as possible so can free up my cash. I have a lot of debt and I am not worried as the maths make sense.

I pay back all my study loan during my first year of work and that is my worst financial decision ever. The GFC happened a year after.....

 

[highsulphur]

I won't have it in me to do so, but just curious.

me neither. already stress of not having timely cashflow. still want to borrow...

 

[kickass22]

me neither. already stress of not having timely cashflow. still want to borrow...

"I’m surprised to hear that you're feeling stressed about spending and investing. From what I know, you’ve saved and invested a significant amount, and it seems like you could retire or transition into semi-retirement whenever you choose.

It feels like your target for retirement might be shifting—perhaps the amount you think you need keeps increasing, even though you already have enough to live a comfortable life.

Maybe you've changed your lifestyle goals, moving from something like ‘FIRE’ to a ‘Fat FIRE’ approach, or perhaps you’re still unsure of the amount you truly need.

Just an observation.

 

[sohguanh]

Borrow to invest concept has been around for a long long time. If I'm not wrong reader revhappy did something similar and accidentally discover it impact in another way. He cannot get new credit cards to be approved. While this may seem like small issue it does say borrowing too much even if you pay up on time still have an unintended effect only whether that affect you a lot or not.

 

[highsulphur]

"I’m surprised to hear that you're feeling stressed about spending and investing. From what I know, you’ve saved and invested a significant amount, and it seems like you could retire or transition into semi-retirement whenever you choose.

It feels like your target for retirement might be shifting—perhaps the amount you think you need keeps increasing, even though you already have enough to live a comfortable life.

Maybe you've changed your lifestyle goals, moving from something like ‘FIRE’ to a ‘Fat FIRE’ approach, or perhaps you’re still unsure of the amount you truly need.

Just an observation.

i know what i have and i know it is more than i need. Somehow I am still investing aggressively to the point I may over invest in a particular month relative to expenses that month.

 

[kickass22]

i know what i have and i know it is more than i need. Somehow I am still investing aggressively to the point I may over invest in a particular month relative to expenses that month.

That's interesting. You thought process says that you need to invest more than you spent. That is definitely a good rule....BUT that is for someone who is in the early /mid stages of the wealth accumulation / Building phase.

You have exceeded that and have reached your goal, so that rule no longer applies.

My humble and amateur thought process is that you don't have a good / well thought out asset allocation plan with considerations for the various assets and their purpose and its usage with regards to current and future application.

Without a clear well thought application and its usage, you are still "stuck?" in the wealth accumulation phase and cannot seem to transition to the next phase of wealth spending and maintenance.

Just my humble and amateur thoughts based on what you have written.

 

[fr33d0m]

how to over-invest when the market is at the top?

yield for fixed-income is dropping and significantly.

isn't now the hold phase?