A Newbie Guide to Investing

[cif5000]

u can't add a tangible value for buying gifts for love ones, having a nice dinner, going for a nice getaway. of coz it costs money to do all that but its the smile on the opposite party which is worth a hundreds times more than that spent or that compounded for 30yrs.

That is a timely reminder.

Diamond ring - $8k;
Investment of $8k compounded at 8% over 30 years - $80k;
Smile on wife's face - priceless

When we got married, I was too poor to buy any decent size diamond and so I gave my wife a choice between a 0.1 carat diamond ring and a call option.

The call option allows her to redeem at zero cost a diamond ring and its size depends on the vesting period "compounded" at a rate of 0.1 carat per year.

After more than a decade, this off balance sheet liability has grown quite substantially. Fortunately, the growth on the asset side has outstripped this liability. Wife is happy, I am happier.

Hi cif5000,

Its time you help your wife exercise the option and grant her a new bonus option. She will be happier and you richer. muhahaha.

Although through thick and thin she wouldn't care, but hey... some gems are rare

Don't want to hijack the tread and the relevance is that investing is really "delayed gratification". Spend now and you get a little. Spend later and (hopefully) you have more satisfaction.

We are working out on exercising the option. I checked out the local store and it seems that the saving I can get if I bought the ring from USA is enough to pay for 2 return air tickets and accommodation. Oh well, being cheapskate can be quite addictive...