Me & My Money Series (Sunday Times)

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So comes 2015 or 2016, we shall see more GRCs going to opposite sides? But i don't think many in the PAPYs really care. Especially those who have become Multi-millionaires many times over. Why should they? They have wealth to last for 3 generations or more. L&L's family maybe 10 generations or more. Sound simple ya? Don't forget "The truth is stranger than fiction. TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Quote “But it taught me never to enter the property market when it is at a high.”

Seem like prpperty investment is a no-brain investment unlike stocks dayin dayout reading ARs until your eyes pop-out. You just time the market correctly layback and collect money liao, sound easy.

Well older SG citizen guaranteed make money simply just purchase a HDB flat 20 or 30 yrs ago. This money given by govt most older citizen would agreed on this.

In 1965 my late parent bot a 700 sf (3 rooms) flat at Queenstown (C’wealth area) for only $6,200, now balance less than 52 yrs you think it worth how much? After staying free for the past 47 yrs, the value now is aro $320k, heehee no lar we dun stay there till now. However, in those days Ministers salary were only $3k.

In 1985/86 those private property are dirt cheap, but I have no money to buy.

In 1997/98 property dip again thereafter follow by a long property recession from 2003 (SAR) till 2006, the most recent good timing was Mar 2009.


So moving forward, when property going to correct by 25%??? (if above 25% I consider market crash, blood flowing out on the street)" Some claim to have crystal ball, said 2014/15, who are these people?

If past history was all there was to the game, the richest people would be librarians…quote ‘Warren Buffet’


Frankly, in the past most whose make money using this method to park their excess money are those 'less educated street smart businessman/contractors'. The other groups are speculators heavily leverage too make some money at the expense of risk, those older investors in 1997 kena burnt before will be more careful, good luck to the later group.
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(02-12-2012, 12:20 PM)Temperament Wrote: So comes 2015 or 2016, we shall see more GRCs going to opposite sides? But i don't think many in the PAPYs really care. Especially those who have become Multi-millionaires many times over. Why should they? They have wealth to last for 3 generations or more. L&L's family maybe 10 generations or more. Sound simple ya? Don't forget "The truth is stranger than fiction. TongueBig Grin
I think the PM of papy do care. If control of govt is taken by another party, you never know what the opp party will try to dig out or try to frame the previous ruling party. Remember Suharto, ex PM of Indonesia? Nobody knows he is rated as the most corrupted asian politician until he lost control of the govt.

Anyway i think its not money these pp want. Its power that they want.
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Start a business, work very very very hard, be thrifty.
I do think that this is a timeless method of how one can succeed no matter when you're born.

While is it still possible to start a retail business now, a physical shopfront is becoming
increasingly costly to run. The rental/cost of goods/manpower/etc, not as lucrative
as it used to be.
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(02-12-2012, 10:34 PM)Bibi Wrote:
(02-12-2012, 12:20 PM)Temperament Wrote: So comes 2015 or 2016, we shall see more GRCs going to opposite sides? But i don't think many in the PAPYs really care. Especially those who have become Multi-millionaires many times over. Why should they? They have wealth to last for 3 generations or more. L&L's family maybe 10 generations or more. Sound simple ya? Don't forget "The truth is stranger than fiction. TongueBig Grin
I think the PM of papy do care. If control of govt is taken by another party, you never know what the opp party will try to dig out or try to frame the previous ruling party. Remember Suharto, ex PM of Indonesia? Nobody knows he is rated as the most corrupted asian politician until he lost control of the govt.

Anyway i think its not money these pp want. Its power that they want.

Ha! Ha! Good Thinking. Remind me of Chinese's wisdom: "CHI HU NAN Sia". Of course with Power in your Hands, what is money? But i still think some of them may think of retirement at "SHANGRILLA" in case.... In other words no sweat to them if they want to leave SINK APORE. Especailly for those who are not POWER-CRAZY.TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
Quote : "...I remember my father would give me 30 cents as pocket money when I was in school, and the bus fare each way was 10 cents......"

It is interesting to note a child from a well off family was given 30 cents as daily pocket money in the 1950s. The single trip bus fare from Bugis to Istana is 10 cents during the same period. I guess the present day amount is $5 and 73 cents respectively?
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(03-12-2012, 11:28 AM)wsreader Wrote: Quote : "...I remember my father would give me 30 cents as pocket money when I was in school, and the bus fare each way was 10 cents......"

It is interesting to note a child from a well off family was given 30 cents as daily pocket money in the 1950s. The single trip bus fare from Bugis to Istana is 10 cents during the same period. I guess the present day amount is $5 and 73 cents respectively?

Not sure about pocket money these days... Tongue

What I do admire was the fact that she actually walked to save that money. Quite often I also choose to walk from one place to another with my family if the distance is just one MRT station away - most people think we're nuts but it's good exercise and as long as it's not thundering with rain or super-hot/humid I think a good walk would remind us not to rely too much on mechanical forms of transport.

Plus, it saves money too.... Big Grin
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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(03-12-2012, 11:41 AM)Musicwhiz Wrote:
(03-12-2012, 11:28 AM)wsreader Wrote: Quote : "...I remember my father would give me 30 cents as pocket money when I was in school, and the bus fare each way was 10 cents......"

It is interesting to note a child from a well off family was given 30 cents as daily pocket money in the 1950s. The single trip bus fare from Bugis to Istana is 10 cents during the same period. I guess the present day amount is $5 and 73 cents respectively?

Not sure about pocket money these days... Tongue

What I do admire was the fact that she actually walked to save that money. Quite often I also choose to walk from one place to another with my family if the distance is just one MRT station away - most people think we're nuts but it's good exercise and as long as it's not thundering with rain or super-hot/humid I think a good walk would remind us not to rely too much on mechanical forms of transport.

Plus, it saves money too.... Big Grin

NO, i don't think so. Most people who think you are nuts are nuts themselves. Why?

One day my wife forget to bring her SC. card. For 3 or 4 bus stops she was asked to pay $1.30. And the bus stops happen to be quite close to each other. In fact i walk quite often/week covering these 2 to 3 bus stops to buy food as we don't cook at all. Imagine if i take the bus to buy food often, how much more money i have to spend unnecessary for transport.
Therefore i usually cycle (both way) to 4 bus-stop's SMRT station to take a train. Sometimes, i even walk when i feel fine and want to do a little more "exertion"
Doctors think the more you move in your life, the longer you live your life. That's why i try to move as much as possible especially i am a retiree now. Big Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
actually more roads should be converted to walkways..as it seems like there are many people like to walk than car or buses..
personally when i am not in a rush, i will walk say from tanjong pajor station to farrer park station - takes me about 40min but the feeling is good. the only displeasant thing is the vehicular exhuast.
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Another inspiring story - two in a row! This guy is grounded and doesn't spend on ostentatious stuff, and like last week's interviewee, he also doesn't own a car!

Smart move to stay with his parents - this frees up both his properties for rental and he's earning $5,000 a month from them (wow!). But a slight correction here - technically he is NOT financially free if he needs $5,000/month because he is still paying mortgage installments, therefore the net rental income is probably much less thn $5,000 a month. So unless he can claim that he has enough savings to pay off BOTH mortgages any time, it's still not a situation where he can be termed "financially free". Still, he's definitely almost there compared to me! Tongue (although I also have to admit, my parents don't live in a Terrace house along 6th Avenue, sigh.... Sad )

The Straits Times
www.straitstimes.com
Published on Dec 09, 2012
me and my money
Just 32 and already financially independent

Financial adviser has pulled this off through disciplined saving and cautious investing

By Magdalen Ng

Financial adviser Damien Pang was inspired by a client to be financially free by the age of 35.

He said: "There was a lady client who was able to do so through good business acumen coupled with an unassuming lifestyle."

The 32-year-old reckons he has already achieved his goal through a disciplined saving habit and cautious investing.

"When I started out in the financial planning business, I did not want to be just another agent selling financial and insurance plans. Rather, I wanted to be able to live by example to show that it is possible to be financially free early through good and prudent financial discipline," he said.

Mr Pang is married to fellow financial adviser Isabelle Oh and they live with his parents.

The couple met during their student days at the Nanyang Technological University, where he graduated with a degree in business marketing.

He used to work in the luxury division of the L'Oreal group, specialising in marketing for high-end cosmetics and fragrances.

Q: Are you a spender or saver?

I am definitely a saver.

I always hold tightly to the principle of spending what's left after your savings, rather than saving what's left after spending.

I save around 70 per cent of my monthly income. Whenever I receive my pay, I quickly transfer part of it to a separate bank account so I will not be tempted to spend it. This is my opportunity fund and rainy day fund.

The remaining amount will be used to grow my portfolio of dividends and interest-yielding investments.

I started a "sugar mummy fund" with the intention of using the annual returns from it to pay for electronic gadgets and holidays with my family.

It was tough initially but I am now able to enjoy small overseas escapades and electronic purchases without dipping into my savings. That's the beauty of deferred enjoyment.

Q: How much do you charge to your credit cards every month?

I have only one credit card because I do not want the hassle of tracking multiple bills every month. I charge an average of $3,000 a month.

I also make it a point to pay off the bill fully as I firmly believe in spending only money that I have because enjoying future money now through credit is actually an unconscious act of pushing back one's retirement.

I tend to draw only $200 each time I go to the ATM because I have this fear that the more money I have in my wallet, the greater the temptation to buy things.

Q: What financial planning have you done for yourself?

I am not a hard-core investor, and I always tell my customers that I am a "safety first" person because I treasure a peaceful night's rest more than anything else.

Currently, I am keeping 50 per cent of my portfolio in liquid instruments in anticipation of any opportunities should the economy plunge. I manage it myself.

I have been able to achieve average returns of about 4 per cent to 5 per cent a year, and that is good enough for me even though it is only on par with inflation.

I have a weak heart for fluctuations, thus my investment objective is capital preservation while achieving net-worth growth through working and saving hard.

My insurance coverage is for $1million for death and disability.

I am also worried about critical illnesses because, in my line of work, I have witnessed Singaporeans diagnosed with cancer even at an early age. I recently increased my critical illnesses coverage to $500,000.

I also ensure that my hospital shield plan is up to date so that my medical bills are all covered and, should anything unforeseen happen to me, my family will be financially protected.

Q: Moneywise, what were your growing-up years like?

I grew up in a family of five. My dad was a factory production manager while my mum was a canteen operator.

We were not rich but also not lacking materially. Life was simple but happy. While we could not afford long and expensive overseas trips, we enjoyed driving trips to Malaysia and being able to spend quality time together.

I was forced to save as my parents would put aside all my red packet money in a savings account. I would cry because I didn't have a lot of money to buy toys.

Even while at university, I was given only $50 a week to spend and I had to budget and manage my expenses very carefully. This amount included my dating expenses with Isabelle back then.

However, I grew to appreciate these virtues of forced saving and thriftiness.

My parents finally felt that I was mature enough to handle my own money upon graduation. That was when they gave my POSB Bank book to me and, to my pleasant surprise, I discovered that my savings account had $50,000.

Q: How did you get interested in investing?

During the dot.com bubble, I got interested in investing because everyone seemed to be making money, no matter which stock they bought.

That period coincided with my National Service, and that was when I had the luxury to start reading more to find out about investments.

Q: What property do you own?

I own two properties in Singapore.

My first property is a 720 sq ft apartment in Tiong Bahru, which I bought in 2006. It has since doubled in value.

The second apartment is along Sixth Avenue. It is 1,200 sq ft and I bought it last year for $1.2 million. One of the nearby units was recently sold for about $1.6 million.

The two properties are rented out for about $5,000 a month.

Q: What's the most extravagant thing you have bought?

My properties have been my most extravagant purchases.

My wife always jokes that the economy will collapse if it has to wait for me to spend and that only property agents, taxi drivers, book sellers and durian stall-owners will earn my money.

Q: What's your retirement plan?

My initial plan was to be financially free by age 35 and I feel that I have achieved this goal.

However, I do not plan to retire at all and plan to continue with my passion of helping my customers stay financially protected at every stage of their lives.

My wife and I need around $5,000 a month, which is already taken care of by our passive income. We have also saved up enough to pay off both the mortgages should interest rates spike.

We have diversified our available cash into endowment plans so that we will have an extra lump sum of cash in future in addition to our passive income.

I want to ensure that I can enjoy my current lifestyle even after retirement and that my family is financially protected at all times.

Q: Home is now...

I am living with my parents in a terraced house along Sixth Avenue.

Q: I drive...

I travel around using public transport and this keeps my expenses low, which allows me to pay off my mortgages doubly fast.

songyuan@sph.com.sg
------------------------------
WORST AND BEST BETS

Q: What has been your worst investment to date?


It was during my NS (national service) days in 2003, when everything about information technology (IT) was the craze.

Without doing much research, I jumped onto the bandwagon and purchased some IT shares which plunged when the dot.com bubble burst.

I was a poor army boy with only a small capital so my losses were considered huge, percentage-wise, but small in absolute terms. I lost around $2,000 from the $5,000 investment. It was definitely painful and a well-taught lesson.

Q: And your best?

My best investment is marrying my wife, Isabelle.

She is my pillar of strength and the source of happiness in my life. I am blessed to have a wife who is contented to run after the bus and having simple meals at hawker centres without complaints all these years.

It is because of our common vision and values that enabled us to accumulate and achieve our financial freedom early. Truly, a good wife is worth far more than diamonds or rubies.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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