Retirement. Children’s Tertiary Education. Financial Freedom. These are a list of goals that most people are always thinking about most of the time. And all of those will lead us to one activity – Investments. But Investment is such a high risk activity! Or is it? Is there a way to help us to minimize the risk yet able to comfortably invest? That would lead us to the concept of Buying “Insurance” on Investment!
So what exactly is Buying “Insurance” on Investment? Basically this concept originates from Robert Kiyosaki teachings. He advocates whenever you buy a property, we don’t first look at the capital gain, we look at the cashflow first! Why? Because Cashflow protects the property owner from fluctuation of property prices. If prices dipped, the owner is still fine as the Cashflow is still there. However, if we just pray for capital gain, then if the prices dipped, we are probably going to cry: And that is why so many investors faced financial suicide.
So if one is not buying property, does it mean that we cannot apply Buying “Insurance” on Investment? Not true. With regards to Paper Assets, we too can do it. How? Simply by Dollar Cost Averaging (DCA) or a Monthly Investment Program (MIP). BUT DCA DO NOT work for every stock, mutual funds or unit trust you can find on earth. Try doing DCA on a Technology fund or a Japan fund?:) You get nowhere… This is why Investment Focus is so important. DCA works best in a volatile upward trending stock or fund.In addition, when using DCA, we are less likely to time the market which is over the long run, DCA have shown statistically perform better than market timers:)
Talk to your Financial Planner, insist a Dollar Cost Averaging or Monthly Investment Program into a volatile upward trending fund! Over the long run it will definitely benefit you and your family 
Max Tay is a Personal Finance “Restructuring” Specialist who is very passionate about educating and empowering individuals with Financial Intelligence to be Financially Free! He strongly believes in educating people through Cashflow Game. Visit http://www.myCashFlowGame.com.sg to register for the next CashFlow Game!