$1m gone in one year: Widow of killed Changi Airport worker is now broke

[GPD]

LionFlyer,
I don't think you understand what Yeowiki is saying.

If he does meant to talk about CPF, that would leave his post as a somewhat of a strawman no? Since the CPF situation does not really apply to the said article and if he wanted to talk about fixed payouts, he could have used an annuity as his starting point. I would leave it to him as the ultimate arbitrator.

I was replying to the following question.

I wonder why the paper publish this?

It might be mere coincidence that the article was published with the CPF being a hot topic recently and many singaporeans are asking for their withdrawal of CPF in lump sum. Hey, it is even featured in the first page of Sunday Times.

Actually, they can probably find a dozen Singaporeans that are in such dire conditions due to their squandering of their CPF money. But, I applaud them for finding a good example that is neither a Singaporean, nor anything to do with CPF money and at the same time, give a big hint of what will happen to those who are unable to manage their finance and yet will like to withdraw all their CPF at 55.

Unfortunately, from the look of it, most people will not get the intended hint or hidden message.

The only value is I see from the publishing of this article is a warning that there are always people who are more than ready to abuse goodwill. For some people, you give them a fish, they will trade for a rod and learn to caught more fish. But there are are enough people out there who CHOOSE to eat it and come back for more.

[Temperament]

Rubbish! She is not uneducated and to think that she is trained in accounting. The kind of money she had, most people don't even get near in their whole life. I hope her children grow up with the right thinking.

I agree RUBBISH! Who says uneducated or lowly educated (NTC 2 only - me) can't have a business mind? If you have you will slowly educate yourself. What books are for?

VBs here should educate their wives and their children on financial literacy. No point leaving a huge fortune to be squander away in X years.

And don't be 'geow' to your wife and children, hoping they will learn thrift. After you passed away, they will have a party. See the life of Hetty Green.


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Completely agreed.
In fact while we are still around we should let our children handle quite a "large" sum of money to invest in the market. And not suddenly your children come into even much larger sum of money when you are not around. They may be shocked by the amount of money/assets and in their moment of grief is the worse time to handle finance.
And if they show they can not handle investments, then you can have different plans for them.

[chialc88]

T,
I don't see this as a trouble with investing or knowledge of investment.

I see this as a Wind-fall mindset.
When we had inherited something huge, what should be a right mindset in handling these sudden wealth?

For me, very easy, I just dump into properties and don't touch them.

Ask me to invest in business?
#1. I am a believer of hands-on approach. If I am only a sleeping partner, don't even talk to me. I must play an active role in all business venture.

T,
rgds to give a sizable amount of $$$ for children to "practice".
I had my reservations.

Love Compassion


Earth day - save the world everyday.

[Temperament]

T,
I don't see this as a trouble with investing or knowledge of investment.

I see this as a Wind-fall mindset.
When we had inherited something huge, what should be a right mindset in handling these sudden wealth?

For me, very easy, I just dump into properties and don't touch them.

Ask me to invest in business?
#1. I am a believer of hands-on approach. If I am only a sleeping partner, don't even talk to me. I must play an active role in all business venture.

T,
rgds to give a sizable amount of $$$ for children to "practice".
I had my reservations.

Love Compassion


Earth day - save the world everyday.

i agree we should have our reservations first. So you can observe how your son handles or uses money for number of years. Then whether he has common sense or business sense in some of his dealings in money matters. Then whether he is interested in investing in the markets. If he is, then it is better now then when you are not around anymore.
You can then share your wisdom of investing in the market after so many years of investing.
It is all because no use of just trying to teach him about investing in the market by talking only. It's very hard to really very difficult for him to feel it when his skin (ah my money becomes his money) is not in the market.
Having say all these, it is much easier for me to let him have some real practice in the market because i have only one son. Sorry, it may not be practical for everyone to do like me.

[weijian]

Unfortunately, from the look of it, most people will not get the intended hint or hidden message.

The comparison was always meant to be subtle. Driving this thought of 'one may not always be able to handle sudden wealth' unconsciously into the mind will work more effectively than a blatant apple-to-apple comparison. An apple-to-apple comparison will most probably make pissed-off ST readers cast it off as head knowledge.

T,
I don't see this as a trouble with investing or knowledge of investment.

I see this as a Wind-fall mindset.
When we had inherited something huge, what should be a right mindset in handling these sudden wealth?

Rich people who are able to cultivate their temperament before their wealth, will stay rich as long as their temperament level equals/exceeds their wealth level.

Just like temperament in investing, temperament in handling wealth cannot come overnight. It is the exception, rather than the rule, that has the necessary temperament (humility, contentment, correct money values, the ability to resist the crowd etc) ready to handle a sudden inheritance or surge in wealth.
The rule will be better off growing their temperament slowly, and allowing their wealth to commensurately catch up.

Jack Ma and Co had the vision to prepare their employees years ahead for their eventual windfall:
http://www.theglobeandmail.com/report-on...e18991738/

[Temperament]

Unfortunately, from the look of it, most people will not get the intended hint or hidden message.

The comparison was always meant to be subtle. Driving this thought of 'one may not always be able to handle sudden wealth' unconsciously into the mind will work more effectively than a blatant apple-to-apple comparison. An apple-to-apple comparison will most probably make pissed-off ST readers cast it off as head knowledge.

T,
I don't see this as a trouble with investing or knowledge of investment.

I see this as a Wind-fall mindset.
When we had inherited something huge, what should be a right mindset in handling these sudden wealth?

Rich people who are able to cultivate their temperament before their wealth, will stay rich as long as their temperament level equals/exceeds their wealth level.

Just like temperament in investing, temperament in handling wealth cannot come overnight. It is the exception, rather than the rule, that has the necessary temperament (humility, contentment, correct money values, the ability to resist the crowd etc) ready to handle a sudden inheritance or surge in wealth.
The rule will be better off growing their temperament slowly, and allowing their wealth to commensurately catch up.

Jack Ma and Co had the vision to prepare their employees years ahead for their eventual windfall:
http://www.theglobeandmail.com/report-on...e18991738/

Very well put.
Anything that suddenly comes into being is always very traumatic not to mention shocking too, to some people. There is no such thing as "One step you reach the heavens", as the Chinese saying goes.
So that's why also "Chiang Se Lau De Lak".
(Excuse me for my poor literal translation.)

[kazukirai]

Speaking of leaving wealth to descendants/beneficiaries who can't handle it...any VBs thought of leaving behind your assets in a trust? Just curious because it seems to be more common in the West but there is a probability that the generation(s) after the one that created the wealth might turn out to be incompetent at managing their finances.

Having said that, the structure and payout is important. I read the story of the Johnson & Johnson dynasty (the book's called "Crazy Rich") and most of the later generations had highly dysfunctional lives thanks to their incomes from their trust fund.

[GPD]

There are two issues/topics here. The abuse of people's goodwill and handling of a sudden windfall. I am primarily pissed off at the first whether the abuse is intentional or not.

For the handling of the sudden windfall, I believe it voiced down more towards the person's character. However, even a very sensible person may be surprised at the decisions or choices he/she made when it does happened to him/her.

For someone who is sensible, it probably serves as a reminder if he/she catches the hint. For someone who isn't, it nothing more than another piece of "news".

[CityFarmer]

Rubbish! She is not uneducated and to think that she is trained in accounting. The kind of money she had, most people don't even get near in their whole life. I hope her children grow up with the right thinking.

I agree RUBBISH! Who says uneducated or lowly educated (NTC 2 only - me) can't have a business mind? If you have you will slowly educate yourself. What books are for?

VBs here should educate their wives and their children on financial literacy. No point leaving a huge fortune to be squander away in X years.

And don't be 'geow' to your wife and children, hoping they will learn thrift. After you passed away, they will have a party. See the life of Hetty Green.


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Financial literacy is a very important life skill. It is a very meaningful and useful gift that you can give to your kid(s).

I wish VB can do a small part in improving financial literacy of general public.

[opmi]

Speaking of leaving wealth to descendants/beneficiaries who can't handle it...any VBs thought of leaving behind your assets in a trust? Just curious because it seems to be more common in the West but there is a probability that the generation(s) after the one that created the wealth might turn out to be incompetent at managing their finances.

Having said that, the structure and payout is important. I read the story of the Johnson & Johnson dynasty (the book's called "Crazy Rich") and most of the later generations had highly dysfunctional lives thanks to their incomes from their trust fund.

Regarding the inheritance, it is about incentives and motivations.

Trust funds babies simply don't have incentive and motivation to work hard.

Anything seen as 'ah kong' money will be squandered away.

An important lesson in financial education is resisting instant gratification. Anyone who cannot fight this urge, will find it hard to accumulate assets, even though they are very hardworking.




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