A good Hesitation

A while back the local banks launched the sale of their preference share scheme. These preference shares promises a sizeable annual dividend of 5-6%. I was really tempted to subscribe for it but at the same time i balked at the minimium sum needed, $10,000. Sure i have this amount but to sink it in preference shares i had to think twice. I guess there was no peace. Coupled with my busy work schedule, i missed the application deadline for the shares. I was so glad that i missed the application because later i read an article from business times written by my finance professor from SMU. He has adviced the public that preference shares are not for young grads for me who are in the wealth accumulation stage because

1) Preference shares are not that liquid. YOu can't dispose of it to sell it for cash when you need it and the preference shares are only redeemed by the issuers i.e. the banks at god-know when?. Hence technically, your principle is considered lost... for a long long time...
2) Preference shares are only suitable for retiree folks with tonnes of cash to spare and look forward to a steady steam of income per year.

Thank God. Sometimes. the best way to grow the reserves is to do nothing for the moment......