Me & My Money Series (Sunday Times)

[mobo]

Actually stocks do produce decent return over the long term it seems, most of the time the pain comes from individual excessively trading and giving in to emotions.

Found this article http://moneyandco.weebly.com/uploads/2/1...eturns.pdf summing up STI returns over many years, seems that returns are quite stable if you can hold >10 years with sucumbing to yourself.

i can't speak for others only for myself. What you say is quite accurate. More than 25 years already in SGX Market. i will stay for life in Market provided God permits.
Shalom.
Amen.

Wow, you must be a really experienced uncle. My dad also bought shares since I was young of which he told me some he held for >20 years though he is mainly into property. Long term wise he also said made decent money in the stock market and finds it funny why people around him seem to struggle to break even.

I remember when I was young a lot of his boorish business friends during new year or other gatherings will always swing from "dua kang" about their stock investments to outright hostile condemnation about all this being a major conspiracy between the government and tycoons to cheat their hard earned money.

[Temperament]

Actually stocks do produce decent return over the long term it seems, most of the time the pain comes from individual excessively trading and giving in to emotions.

Found this article http://moneyandco.weebly.com/uploads/2/1...eturns.pdf summing up STI returns over many years, seems that returns are quite stable if you can hold >10 years with sucumbing to yourself.

i can't speak for others only for myself. What you say is quite accurate. More than 25 years already in SGX Market. i will stay for life in Market provided God permits.
Shalom.
Amen.

Wow, you must be a really experienced uncle. My dad also bought shares since I was young of which he told me some he held for >20 years though he is mainly into property. Long term wise he also said made decent money in the stock market and finds it funny why people around him seem to struggle to break even.

I remember when I was young a lot of his boorish business friends during new year or other gatherings will always swing from "dua kang" about their stock investments to outright hostile condemnation about all this being a major conspiracy between the government and tycoons to cheat their hard earned money.

Ha! Ha!
Just for laugh but it's the truth.
Women know all woman is the same
Only Some Men think she's different.

So is the Stock Market.
Is it so different?
Cheers!

[kazukirai]

Last week's Me & My Money. Sorry for the delay but my online access to ST was down for a few days.

Anyway, good example of a guy that earns a lot. One path to riches (if you don't want to invest prudently) is to earn a lot and keep some/most of it. More than one path leads to Rome. Seems like an entrepreneurial guy but I'm surprised at his choice of buying endowment plans.

Anyway, not sure why they have to mention that he comes from Neighbourhood school (not like that's a deal-breaker or important).

His wake-up call: 4-D first prize that's quickly spent
Rachael Boon

6 October 2013
Straits Times
© 2013 Singapore Press Holdings Limited

Neighbourhood school alumnus gets act together, becomes V-P at bank by age 29

He may have attended a so-called "neighbourhood" school, but Mr Mark Chng, 29, is now a vice-president at French bank Societe Generale, trading fixed-income products.

He had little interest in books while at Pioneer Secondary School and Yishun Junior College, but an experience in his late teens left a deep impression on him.

"About 10 years ago, I struck the first prize in 4-D and made $6,000 - it made me feel on top of the world," he said. "Without realising it, I spent all that money in two weeks, and it made me realise that if I want to lead a certain lifestyle, I'd better get my act together."

Although his A-level grades were not stellar, he managed to earn a spot at the Singapore Management University (SMU) to pursue a degree in finance and accounting.

"That really opened the doors into the banking world for me," he said. "The school collated all our resumes and sent them to prospective employers. In 2008, I received a call from a Swiss bank, which invited me for an interview."

And the rest is history.

It was not a smooth ride from the start as his employment was deferred by six months owing to the global financial crisis.

But once Mr Chng started full time at the Swiss bank, UBS, in December 2009, he was thrown into the deep end.

"I started executing trades within two weeks of getting the necessary licences," he recalls.

About three years later, he left to join Societe Generale, also trading fixed-income products such as bonds and interest rates derivatives. On average, he makes a five-figure sum every month.

And the knowledge and skills acquired on the job by serving institutional and corporate clients have come in handy too. Mr Chng takes a macro view when it comes to managing his personal finances, and monitors overseas market and currency trends.

Q: Are you a spender or a saver?

I'm pretty stingy when it comes to non-essential items and prefer to get the cheaper second-hand item.

But I'll splurge on gifts and holidays for my loved ones during the year-end festive periods.

I make it a point to save about 35 per cent of my salary.

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

On average, it can amount to about $5,000 across three credit cards. Some of it goes to work-related expenses as I do not have a separate corporate card.

The other big-ticket items are my monthly car instalments and petrol. I use cards which can earn me air miles and discounts on petrol.

Q: What financial planning have you done for yourself?

I regularly convert half my savings into US dollars and park it in my USD deposit account. I'm of the view that the US dollar will appreciate against the Singdollar as interest rates go up by 2015.

I also have money in an exchange-traded fund which tracks Chinese blue-chip stocks. I hold the long-term view that Chinese President Xi Jinping will be able to open up the country's investment arena to more quality foreign investment.

I also bought three endowment plans which can be cashed out in 10, 15 and 20 years respectively.

This will give me extra cash in hand if I opt for subsequent property investments, or it can be used for retirement.

On top of that, I have health insurance policies as well which can defray potential medical bills.

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

I was brought up in a middle-income family and received $20 a week in my secondary school days, and $50 in junior college as allowance. But it was never enough and I was keen to make more money.

In my teenage years, I'd earn extra pocket money by going door to door selling Christmas cards, and sold cameras and MP3 players at a retail store.

I was never afraid to try new things and that's probably the time I realised I had the personality and acumen to do sales.

Q: How did you get interested in investing?

I was studying finance and accounting at SMU and wanted to try out the theories I'd learnt in class.

I remember putting $2,000 into Allgreen Properties and ended up staring at its price movements whenever I had the chance, and it took up too much time. I sold it two weeks later for a small profit.

Q: What property do you own?

I bought a three-bedder condo at Bartley Ridge, which costs about $1.3 million, with my girlfriend earlier this year. We paid about $1,200 psf for the top-floor unit.

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

An IWC Portuguese watch which I bought late last year for $9,000. I bought it as a reward after receiving my bonus.

Q: What's your retirement plan?

Retirement is a good 25 years away at least. Last year, I started putting money into my Supplementary Retirement Scheme account for tax-saving purposes which can also form part of my retirement cookie jar. I can also cash out the three endowment plans if I need the money; and probably look at similar forced savings schemes along the road.

Q: Home is now...

A two-storey terraced house in Kembangan where I live with my mother, 62, and elder sister, 35.

Q: I drive...

A second-hand grey BMW Z4. I use it to commute to work and over the weekend for social activities with my family and friends.

rjscully@sph.com.sg

Singapore Press Holdings Limited

[mobo]

Last week's Me & My Money. Sorry for the delay but my online access to ST was down for a few days.

Anyway, good example of a guy that earns a lot. One path to riches (if you don't want to invest prudently) is to earn a lot and keep some/most of it. More than one path leads to Rome. Seems like an entrepreneurial guy but I'm surprised at his choice of buying endowment plans.

Anyway, not sure why they have to mention that he comes from Neighbourhood school (not like that's a deal-breaker or important).

His wake-up call: 4-D first prize that's quickly spent
Rachael Boon

6 October 2013
Straits Times
© 2013 Singapore Press Holdings Limited

Neighbourhood school alumnus gets act together, becomes V-P at bank by age 29

He may have attended a so-called "neighbourhood" school, but Mr Mark Chng, 29, is now a vice-president at French bank Societe Generale, trading fixed-income products.

He had little interest in books while at Pioneer Secondary School and Yishun Junior College, but an experience in his late teens left a deep impression on him.

"About 10 years ago, I struck the first prize in 4-D and made $6,000 - it made me feel on top of the world," he said. "Without realising it, I spent all that money in two weeks, and it made me realise that if I want to lead a certain lifestyle, I'd better get my act together."

Although his A-level grades were not stellar, he managed to earn a spot at the Singapore Management University (SMU) to pursue a degree in finance and accounting.

"That really opened the doors into the banking world for me," he said. "The school collated all our resumes and sent them to prospective employers. In 2008, I received a call from a Swiss bank, which invited me for an interview."

And the rest is history.

It was not a smooth ride from the start as his employment was deferred by six months owing to the global financial crisis.

But once Mr Chng started full time at the Swiss bank, UBS, in December 2009, he was thrown into the deep end.

"I started executing trades within two weeks of getting the necessary licences," he recalls.

About three years later, he left to join Societe Generale, also trading fixed-income products such as bonds and interest rates derivatives. On average, he makes a five-figure sum every month.

And the knowledge and skills acquired on the job by serving institutional and corporate clients have come in handy too. Mr Chng takes a macro view when it comes to managing his personal finances, and monitors overseas market and currency trends.

Q: Are you a spender or a saver?

I'm pretty stingy when it comes to non-essential items and prefer to get the cheaper second-hand item.

But I'll splurge on gifts and holidays for my loved ones during the year-end festive periods.

I make it a point to save about 35 per cent of my salary.

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

On average, it can amount to about $5,000 across three credit cards. Some of it goes to work-related expenses as I do not have a separate corporate card.

The other big-ticket items are my monthly car instalments and petrol. I use cards which can earn me air miles and discounts on petrol.

Q: What financial planning have you done for yourself?

I regularly convert half my savings into US dollars and park it in my USD deposit account. I'm of the view that the US dollar will appreciate against the Singdollar as interest rates go up by 2015.

I also have money in an exchange-traded fund which tracks Chinese blue-chip stocks. I hold the long-term view that Chinese President Xi Jinping will be able to open up the country's investment arena to more quality foreign investment.

I also bought three endowment plans which can be cashed out in 10, 15 and 20 years respectively.

This will give me extra cash in hand if I opt for subsequent property investments, or it can be used for retirement.

On top of that, I have health insurance policies as well which can defray potential medical bills.

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

I was brought up in a middle-income family and received $20 a week in my secondary school days, and $50 in junior college as allowance. But it was never enough and I was keen to make more money.

In my teenage years, I'd earn extra pocket money by going door to door selling Christmas cards, and sold cameras and MP3 players at a retail store.

I was never afraid to try new things and that's probably the time I realised I had the personality and acumen to do sales.

Q: How did you get interested in investing?

I was studying finance and accounting at SMU and wanted to try out the theories I'd learnt in class.

I remember putting $2,000 into Allgreen Properties and ended up staring at its price movements whenever I had the chance, and it took up too much time. I sold it two weeks later for a small profit.

Q: What property do you own?

I bought a three-bedder condo at Bartley Ridge, which costs about $1.3 million, with my girlfriend earlier this year. We paid about $1,200 psf for the top-floor unit.

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

An IWC Portuguese watch which I bought late last year for $9,000. I bought it as a reward after receiving my bonus.

Q: What's your retirement plan?

Retirement is a good 25 years away at least. Last year, I started putting money into my Supplementary Retirement Scheme account for tax-saving purposes which can also form part of my retirement cookie jar. I can also cash out the three endowment plans if I need the money; and probably look at similar forced savings schemes along the road.

Q: Home is now...

A two-storey terraced house in Kembangan where I live with my mother, 62, and elder sister, 35.

Q: I drive...

A second-hand grey BMW Z4. I use it to commute to work and over the weekend for social activities with my family and friends.

rjscully@sph.com.sg

Singapore Press Holdings Limited

The way the article is written seem to accentuate strongly that this guy has an amazing career stemming from the fact that he is a Vice President at 29. Just to put some context around it, being a VP in a bank before 30 is quite common due to hyper inflation of titles in this industry.

I have no doubt working in the front office brings in good money and it is commendable he manages to land himself a lucrative job, but just wanted to highlight his achievement is more from the fact he got himself a trading desk than because he is some high flier in a bank.

[opmi]

OK. At least this article is break from the 'I got a job. But i made my money from property' series.

A levels not so stellar. yet can get an interview at SMU. So it is not too bad either.

Treasury usually like to hire risk-takers. So he probably will stand out from the bookworms due to his sales and risk taking/gambling personality.

"The game of professional investment is intolerably boring and over-exacting to anyone who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll." - Keynes

[Muck]

Wow, I hold quite different views to this kid:
- accumulating USD
- buying investment ppty during boom
- buying endowment plans
- buying a glitzy car (even if second hand)
I won't do all these. Then again I'm not a banker so maybe I just think different (and I don't get preferential rates haha).

[kazukirai]

I think the headline resonated with most people here. At least it did for me. Not sure about his financial literacy course but I suppose with a class size of less than 10, it's a pretty cosy affair which is a plus. After all, there's evidence that financial literacy courses do more harm than good but I suspect this is referring to more of the 'a little knowledge does a lot of harm variety'. where tens, if not hundreds, of people are packed into the same room.

He's 34 and 'semi-retired'
Rachel Scully


13 October 2013
Straits Times
© 2013 Singapore Press Holdings Limited

Savvy investor makes sure he has the means to pursue meaningful purpose in life

He calls himself an ex-civil servant on a mission but Mr Douglas Chow first dreamt of starting a business when he was eight years old.

The seed was planted when his father, then a shipyard supervisor, was retrenched in the 1985 recession.

The elder Chow sold encyclopedias and roast duck for about two years before he secured a full-time job in the insurance industry.

"I would sometimes take orders for the roast duck from my teachers," he recalls.

Mr Chow, 34, knew that he had much to learn about business fundamentals before he could become an entrepreneur.

In 2004, he graduated with a degree in real estate but went on to join the finance industry.

"People thought I was a job-hopper, but I moved every time I wanted to learn something new and challenge myself," he says.

"I learnt about SME banking, initial public offerings, mergers and acquisitions, valuation as well as financial modelling from my former employers."

He then went on to obtain his masters in applied finance and spent three years in the Ministry of Trade and Industry.

Mr Chow left the ministry in April and has taken on that description of being an ex-civil servant on a mission.

"My friend lost $50,000 he put into a so-called wine investment firm - Premium Liquid Assets - and is one of many victims who fell prey to financial products sold here," says Mr Chow.

Other recent scams include The Gold Guarantee, Profitable Plots and the Sunshine Empire ponzi scheme.

"I don't think that Singaporeans should be losing their hard-earned money so easily because of a 'too good to be true' or unregulated investment," he adds.

"Maybe if they were equipped with some financial knowledge and skills - there would be less of such occurrences, especially for retirees."

This led to Mr Chow becoming a personal financial coach at his firm Empower Advisory.

In class sizes of fewer than 10 people, he explains to his students what company financial fundamentals and stock indicators are important to look out for before they invest in a stock.

Empower Advisory is not profit- driven although Mr Chow does charge, to cover overhead costs, he said. He also runs a retail business selling foldable and portable lifestyle products.

"I hope that more people can do their own 'homework' on a firm to make better informed choices," he said.

"That will serve as one layer of checks rather than relying solely on a product marketer or agent's word that this investment is a good deal."

Q: Are you a spender or a saver?

A mix of both. I spend on supplements to improve my health and well-being and things which can help me make things happen. Other than that, I consider myself a low maintenance person.

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

On average, I charge about $3,000 a month. The bulk of my spending is charged to two cards.

I make sure I pay my bills on time and use the accumulated points to redeem free gifts.

Q: What financial planning have you done for yourself?

I have health and life insurance policies as well as a savings endowment plan which can be cashed out when I hit 45. I also have investments in the local and United States stock market.

I look out for stocks of companies which have a sound business model, as well as those which are led by a strong personality.

For example, Las Vegas Sands is in the gambling industry - which is stable and sound when it comes to its business - and is led by billionaire Sheldon Adelson. During the recent crisis, he reached into his pockets to put up US$1 billion to restore confidence in the stock.

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

I grew up in a four-room HDB flat with eight people, including my parents, grandparents and relatives.

Money was tight at times but my parents never made us feel that we had to live from hand to mouth. Family trips would be to Malaysia and Thailand.

In my undergraduate days, I supplemented my allowance by conducting creative writing essay classes at a community centre.

Q: How did you get interested in investing?

I felt that investing was something I had to try out first before setting up my own business. It's a way of looking at other people's books - through annual reports and company results - and determining if that is a good call.

I remember the first stock I bought was SMRT back in 2004. I put in about $3,000 when its shares were about $1.15.

I saw it as a value investment because its business model was sound - it was a public transport operator and people use its services all the time.

Q: What property do you own?

I don't have one now. But I bought a condo unit at Eastpoint Green with a business associate in 2010 and rented it out before we sold it last year.

Q: What is your retirement plan?

I consider myself to be retired or semi-retired. As I am financially savvy and don't have much debt or commitments, I'm able to pursue meaningful ventures and live life on my own terms.

To me, retirement is not about slowing down in your sunset years and do what you couldn't when you were younger. It should be about pursuing a meaningful purpose in life.

Q: Home is now...

A four-room HDB flat in Ang Mo Kio where I live with my parents and elder brother.

Q: I drive...

A second-hand E200 Mercedes as well as a Citroen van which can be used for deliveries as I explore the option of going into a retail business.

I also have an electric foldable bicycle which can be conveniently rolled into the train.

rjscully@sph.com.sg

[FatBoi]

"I remember the first stock I bought was SMRT back in 2004. I put in about $3,000 when its shares were about $1.15.

I saw it as a value investment because its business model was sound - it was a public transport operator and people use its services all the time."

I hope it's a case that he was misquoted (or maybe I misread big time).
(1) SMRT business model is sound because it is a public transport operator and people use its services all the time??? Really? Then in the same light, maybe the same can be said of banks, telecom companies etc.
(2) A value investment because its business model is sound?? Really? A good business not necessarily makes a good investment, a lot has to do with entry price.

In the papers, Mr Chow also shared in the section "Worst & Best Bets" that a rough guide he uses to determine when to sell his stocks is when it gains a value of ~10%. But he did add that one must be mindful of the market movements, stock price indicators and the fundamentals of the underlying company to decide whether to take profit or allow the stock price to continue its course.

I am not too sure about the 10% "rule of thumb" but it seems that the most difficult decision for most investors is not what and when to buy but when to sell. The late Walter Schloss had the same problem too.

[CY09]

me too, the first stock I bought was SMRT back in 2010 when its shares were $2.10. I bought 1 lot.

I saw it as a good investment because its business model was "sound" - it was a public transport operator and people use its services all the time, actually the right phrase would be "I perceive it has a moat".

Eventually I sold it off at 1.785 in 2012. Two lessons learnt: 1) don't buy 1 lot as then the commission costed me $30 per transaction (that was before SCB came in), 2) Good investment does not mean we anyhow buy a business with strong moat, the price Mr. market offers is important

Still tracking SMRT's performance even though I have divested and still making investing mistakes along my journey

[pianist]

I think the headline resonated with most people here. At least it did for me.

how does it resonated with your - 34 part or semi-retired part?
and how to define semi-retired