The late American self-help author Napoleon Hill recommended to Think and Grow Rich. Patsy Khoo is more inclined to advise her clients to Plan and Grow Rich. An experienced investor herself, Patsy firmly believes that investments are the only way to outpace inflation and play a vital role in retirement planning.
“Having a well-planned investment strategy is an important step to realising your financial goals. The earlier you have one, the sooner you’ll reach your financial freedom,” says Patsy.
Having worked & dabbled in a wide range of investment instruments, “The one lesson I have learnt across all the various ways of investing is that there is no get-rich-quick method.”
Here are Patsy’s investment (and life) tips.
Know your Strengths and Weaknesses
According to Patsy Khoo, two broad categories of investors prevail in the heady world of financial investing – active investors and everybody else. Active investors take on a more proactive role, constantly and closely monitoring financial markets while investing a sizeable amount of time and effort towards maximising their investments. The rest, on the other hand, fall into the majority of the investment population. Often hailing from industries other than the financial arena, this group of investors often lack the time and resources needed to fully grow and develop their hard-earned investment portfolios over a sustained period of time. Identify the category of investor you fall under and read on.
Do What Adds Value to your Life
Patsy relates a recent experience with one of her clients whose decision to actively manage his own investments ended up adversely affecting the performance of his investments. And his life.
“After the recent market downturn, my client revealed that handling his own investing during [the pandemic] period had led to issues such as insomnia because he was constantly worried about his investments. He knew he could not sustain this level of stress for long especially with his plans to start a family soon. He then decided to outsource his investments to me.”
After consulting with Patsy, who diligently assessed her client’s needs and risk profile, a realistic and reachable financial goal was mapped out for him. Patsy carefully worked out a comfortable investment budget and timeline that would realistically meet his financial objectives. 3 months since he handed over his portfolio to Patsy’s care, her client has a clear strategy for investment growth – a winning decision that has yielded positively in terms of portfolio performance and, most importantly, one that has given her client back his restful nights’ sleep.
Set Realistic Goals and Timelines
Patsy says many new investors have expectations that are unrealistic, “People cannot plan to own a house in two years’ time by starting to invest today and expect to be able to start funding their down payment two years down the road. This is almost akin to gambling – you throw the dice and you pray that it gives you the results you want.”
Proper investment strategies need to be developed for different needs and risk profiles, and it is crucial to set everybody’s expectations right when it comes to portfolio returns.
Be Patient, Trust the Process
Today, patience has become a virtue that is sorely lacking in most of us – thanks in no small part to the instant gratification culture we have all become accustomed to. Many investors get impatient when it comes to realising their portfolio gains. Clearly, track records indicate that timing and patience remain key factors in achieving investment success. According to many industry professionals like Patsy, most laypeople still hold on to misdirected notions about financial investments, particularly in relation to the time needed for such investments to yield results.
“The key to making your investments work for you is patience,” suggests Patsy. “The best returns are yielded over a longer period of time, that’s why Warren Buffett says that the best horizon for investments is forever,” she adds.
Get Started and Stay Disciplined
In Patsy’s opinion, the best time to start investing is actually yesterday. Even without an immediate goal, it is always good to start investing because by the time an individual needs the money, he or she will be pleasantly surprised with the positive effects of compounding interest. If there is a goal or milestone to be reached, work out the best route to reach that financial goal with a financial consultant. Ultimately, having a sound investment strategy with reasonable goals that can accommodate changing life stage needs will be advantageous, especially in the long run.
APEX ADVISORY GROUP
For Patsy Khoo, experience has also been one of life’s best teachers. Her early interest and active participation in the investment sector have been instrumental in her becoming one of IPPFA’s IPP’s TOP 10 financial consultants today. Armed with invaluable learnings garnered over her personal analysis of investment mechanisms, trends and outcomes over the years, Patsy has been advancing the investment portfolios for a wide range of clientele since joining IPPFA. From seasoned investors to those who adopt a more passive financial stance, Patsy’s single-minded focus has primarily been on building portfolios that outpace inflation and ultimately provide a comfortable retirement nest for her clients. To date, she has guided more than 200 mass affluent and high-net-worth clients towards total financial independence. Patsy’s achievements in the investment arena have won her a plethora of prestigious distinctions, including winning the coveted Million Dollar Round Table (MDRT) award in 2019 & 2020, and the APEX Advisory Group’s Top Producer award in 2019. Her charisma, personal dedication and perseverance to her profession have led to her achieving the rank of Associate Director at IPPFA in the short span of just two years.