Me & My Money Series (Sunday Times)

[Big Toe]

What we can see is that this lady probably has got her retirement plans covered.
By way of inheritance or by her new business(if it turns out well).

Retirement planning is actually quite a dynamic affair.
There are lots of ways of doing that, including starting a business.
Unlike a salaried worker(suddenly viewed as invalid after 62),
a viable business can generate a lifetime of earnings.
The same can be said of property investments.

I think the financial planners have screwed us into thinking
the only way to retire comfortably is to buy into their products and
have a 'sound retirement plan'. But the world is ever changing,
so we have to be open to other forms of retirement planning as well.

[Musicwhiz]

What we can see is that this lady probably has got her retirement plans covered.
By way of inheritance or by her new business(if it turns out well).

Unlike a salaried worker(suddenly viewed as invalid after 62),
a viable business can generate a lifetime of earnings.

Hmm, well she has only just become a shareholder of Irene's Creation after meeting the boss; and there's no mention of how well this business is doing in terms of market share, revenues or profits. I guess in this sense investing in the fashion business in a private company is very similar to buying shares off a stock exchange - both involve investing in a sound business to reap the benefits through capital gains and dividends.

While I do agree a viable business can generate a lifetime of earnings, it must also be run well and most of the time it means the owner has to be personally involved. Take the example of Boustead, MTQ and Kingsmen - the founders are still busily running the show and cannot technically "retire".

But for investors who purchase shares in these companies, they can literally "retire" and let the founders and Management generate the passive income on their behalf. So the difference between owning a private business and part of a listed business is that for the former, you probably have to invest more sweat and tears running it (unless you are a passive shareholder - in this case it was not mentioned if this lady is one), versus a passive investment in an established business (e.g. blue chips).

Just my 2-cents.

[Big Toe]

You are right MW, there is more sweat and tears running a private business.
The key difference between the 2 is 1. Control 2. Satisfaction.

Shareholders of public companies have very little say in the running of its business.
There is also no transparency in a lot of them. The CEO and board has almost full control,
not much shareholders can say or do about it. So the person at the helm must be an upright and capable fellow.

In running a business, you'll be in full control, success or failure lies in your hands. If it goes well, you get satisfaction & will be duly rewarded , if it fails, there is no one else to blame but oneself.

It's very much like boarding a ship. Would you rather be a captain or a passenger?

Let's put it another way, perhaps many of the folks here are very successful people and are working for big multinational companies.
But a lot of these multinational companies have very humble beginnings and are started by ordinary folks like you and I.

[Musicwhiz]

The Straits Times
Aug 28, 2011
me & my money
Tech firm founder 'inventor at heart'
No engineering background but he has passion for tech

By Magdalen Ng

Founder of technology firm Stratech Systems David Chew deals with the newest and best technologies in his daily work.

The company designs, develops, implements and maintains informational technologies and advanced technology systems, and counts the US Department of Homeland Security and the Singapore Ministry of Defence as some of its clients.

Recently the firm also announced plans to acquire an 80 per cent stake in South Korea-incorporated Global Telecom for US$7.6 million (S$9.2 million).

However, the 53-year-old does not have a background in engineering.

'But I have a passion for technology,' he said, 'and am pretty much an inventor at heart'.

Mr Chew has a background in sales and marketing.

'I see myself as a conductor in an orchestra. I understand music, can probably play a bit of the piano and some of the other instruments, but I have the best pianist, violinist and cellist. Together, we make beautiful music.'

His wife Leong Sook Ching, 45, is Stratech's deputy chairman. They have two children, Phoebe, 14, and David RJ, 11.

Q: Are you a spender or saver?

I am both. I spend about two-thirds of what I make; one-third I give back to the community through tithing and other donations.

Every year, we also spend at least a week in Tokyo in December, but because of the nuclear contamination, we are not sure if we can continue with this tradition.

My family loves to cook and host at home, rather than go out on special occasions. So we do spend quite a bit on groceries. Our weekly grocery bill is about $1,000, and one of our favourite supermarkets is Meidi-ya at Liang Court.

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

I have a few credit cards, and I do not charge more than $10,000 a month to each card. I pay off the bills monthly so I do not incur the high interest fees.

This amount does not include the occasional buying of gifts for my wife and children.

Q: What financial planning have you done for yourself?

I am quite thorough. If I take out any loans, I make sure that they are insured. For example, I have two policies that will provide me with insurance beyond $20 million. This is to ensure that if anything does happen to me, the family would not be saddled with any debt whatsoever. That is a very important part of my financial planning.

Other than properties and art, I leave the rest to a private banker to handle.

I have spent at least $3 million on my art collection, which I hope to be able to pass to the next generation.

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

I had very humble beginnings. I was brought up in a family in which my father was a teacher at a time when teachers weren't given the due recognition they have today, with reasonably attractive pay packages. My mother has always been a housewife. We were comfortable but we never really had a lot of money. My younger brother is the head of technology in Stratech.

The lesson that I learnt from my parents is the same one I'm trying to teach my children. You do not need to be extravagant, but there is no harm going for quality.

I may walk into an art gallery and buy something I really like that is worth $350,000 and not blink. But I would be terribly upset if someone short-changes me by $1. It is not about absolute dollars and cents, but the values behind it.

Q: How did you get interested in investing?

I guess it was born out of necessity.

The reality of retirement is stark. No matter how much cash one may have in one's hands, it is finite. It is only going to deplete with time.

Investment is an inevitable thing, irrespective of how you invest. It can be the buying of a piece of property. Over time it appreciates in value, and it would be nice if you can afford to pass it on to your next generation.

Q: What property do you own?

I own a bungalow off Holland Road, which I bought 12 years ago. The land alone was $11 million and the house cost about $4 million to build.

I also own a three-bedroom apartment in the Tanglin area, which my in-laws are living in. It cost about $1 million.

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

Twelve years ago, when the new Mercedes SL500 was launched, I gave that to my wife as her present for that year. At about $400,000, it was probably one of the most extravagant single items that I have bought. It was really nice because that year, some magazines listed the car as 'a present to die for'.

Somewhere along the way, we decided that we did not need it, but have regretted selling it since. Now I am anxiously waiting for the new SL500 to be launched in 2013, and my wife is wondering if she will be getting another present.

Q: What's your retirement plan?

My private banker and I have a very simple rule. At the end of the day, even if the time comes for me to retire, the assets that I have and the returns must enable me to at least maintain my current lifestyle. And if possible, for my family to maintain the same after I am no longer around.

My private banker and his team are working towards that. I do not think 20 per cent to 30 per cent per annum returns are realistic and sustainable. I use a more reasonable benchmark of about 10 per cent target returns.

Q: Home is now...

My landed property off Holland Road.

Q: I drive...

A Mercedes S500 and a GL450. I'm a Mercedes Benz person.

songyuan@sph.com.sg

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WORST AND BEST BETS

Q: My worst investment to date...

There was a time when I was dealing with another private banker, about 10 years ago, and that was probably the first time in my life I was thrown into a financial quandary, because overall, the investments went sour.

I lost several million dollars, and if it had not been properly managed, it could have caused a major upheaval.

The private banker that I am dealing with today, together with his boss at that time, helped me restructure and literally get me out of the rut.

Q: My best investment to date...

In every way, my piece of property in Holland Road is my best investment so far. It is worth at least three times the figures combined, of what I spent for the land and building the house. Almost every day, we have either buyers or property agents asking if we are keen to sell. But as far as I am concerned, we are planning to keep this as a family mansion.

[Musicwhiz]

The Straits Times
Sep 4, 2011
me & my money
Dressed for success
But it's not money that drives lifestyle coach Lionel Lim, who has simple needs - he does not drive and spends just 30% of his income

By Magdalen Ng

It is hard to believe that lifestyle and fitness coach Lionel Lim was a shy, acne-prone and sickly kid.

Said the 35-year-old former civil servant: 'It just shows that if I can do it, there is hope for the masses.'

Now an entrepreneur, he manages a lifestyle academy that trains individuals, providing customised courses for teenagers and adults on grooming, fitness, wellness and communication arts.

Mr Lim, who is single, graduated with an honours degree from the Faculty of Arts and Social Sciences at the National University of Singapore (NUS). He also has a diploma in style coaching from Britain's Style Coaching Institute.

He said: 'I feel these skills are important to modern-day teens and adults seeking refinement in their lives and careers, but these are things that are not taught in school.'

Q: Are you a spender or saver?

I see myself more as a saver. I have three bank accounts - one for personal savings, one for investments and one for business expenses. Having separate accounts helps me closely monitor and manage my finances.

On average, I spend about 30 per cent of my income, which ranges from $8,000 to $10,000 monthly. I invest 35 per cent and save the rest.

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

I charge only about $200 to my credit cards a month, unless I'm buying big-ticket items like business materials, personal development courses, electrical appliances, furniture or spa packages.

I have five credit cards and usually charge to my Standard Chartered card as it helps me accumulate points which I can use to offset my yearly insurance premiums. I always make it a point to pay off my credit card bills every month.

I withdraw about $600 a month from the ATM.

Q: What financial planning have you done for yourself?

Besides my four insurance policies which are for life, critical illness and savings, my investment portfolio covers both the short term and long term.

They include stocks and shares, investment funds of various sorts for different tenures, land banking and art pieces.

My shares are mainly blue chips, including SingTel, Singapore Press Holdings and the local banks.

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

My dad was a businessman supplying baby prams to department stores while mum is a homemaker.

The business was doing relatively okay until he wound it up in 1997. As a kid, I never had to worry about my school fees or whether there would be food on the table for the next meal.

Although I'm the only child, my parents instilled the notion of being financially independent since I was young. I started working part-time as a sales promoter at Best Denki after my A levels. And while my peers were enjoying their varsity breaks, I held temporary jobs during each break at the NUS.

It was more than just earning my own keep because with each stint, I also honed my people management, computer and sales skills.

Q: How did you get interested in investing?

I watched my dad invest in shares when I was young. It intrigued me as he would have these share certificates in the past before it went scripless. But I began seriously investing only after graduation when I had enough money of my own.

My first investment was similarly in shares but, unlike dad who also bought Malaysian shares, I chose a local blue chip. Then I used both my CPF and investment monies to invest in various funds with the tenure ranging from two years to 10 years. About four years ago, I went into land banking.

Q: What property do you own?

I co-own a two-storey terraced house in the MacPherson area with my mother. It is a family property which we have owned for a long time, so I do not know how much it was bought for. My father died in 2006. It is currently worth about $1.8 million.

Q: What is the most extravagant thing you have bought?

One of the two most extravagant things I have bought would be my toy collection, estimated at $6,000, and housed in a personal toy museum made of glass built at the cost of $20,000.

I also got myself a Tods bag which cost about $1,800. I bought it at the airport about a year ago while waiting to board the plane as the flight was delayed. I walked into the shop and came out less than five minutes later with the bag. I have no regrets as it was love at first sight.

Q: What's your retirement plan?

I envisage that I would need about $2,000 a month when I retire as our money is going to depreciate as the years go by.

Although I'm in my 30s, I am financially relaxed and comfortable but continue to work because I enjoy what I do. Extra income does not excite me as much as the opportunity to do something I truly enjoy and the sense of accomplishment of having scaled a higher peak in my career.

Q: Home is now....

The terraced house in MacPherson which we refurbished in 2007.

Q: I drive....

I prefer to be driven as it allows me to concentrate on planning for business and my coaching lessons, so I mostly take taxis.

songyuan@sph.com.sg

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WORST AND BEST BETS

Q: My worst investment to date...

My worst investment was a business venture; a partner ran away with the company's money.

He told clients to transfer the monies into his personal account instead of the company's account. Although the loss was about $2,000, which may not be a huge sum, it taught me to be more prudent when it came to managing my finances - a mantra which has served me well all these years.

Q: My best investment to date...

Although my investments in various instruments are giving me good returns, I consider my best investment to be the lifestyle transformation business I started.

Not only does it allow me to earn more than what I used to earn as an employee, but also I get to make a positive impact on the lives of others.

I have transformed the lives of close to 1,000 people in more than 80 different companies and schools in the span of about three years, through my workshops and training. This intrinsic satisfaction is something that cannot be measured in dollars and cents but is so much more meaningful.

[piggo]

Proud kid in wealthy family, making good $ via family connections. What's new?

[Musicwhiz]

Proud kid in wealthy family, making good $ via family connections. What's new?

Haha you sound pretty cynical.

I guess yes he's got good connections and this interview was probably to create awareness of his lifestyle courses and seminars. Then again, I have to give it to him for being frugal and being able to save so much of his income. He also does not own a car unlike other "successful" entrepreneurs, and his investment property is shared with his mother so I guess he is careful about leverage.

Altogether, this does not make for a "value-added" interview but it does give some insights as to how entrepreneurs manage their wealth.

Just my 2-cents.

[yeokiwi]

I have transformed the lives of close to 1,000 people in more than 80 different companies and schools in the span of about three years, through my workshops and training. This intrinsic satisfaction is something that cannot be measured in dollars and cents but is so much more meaningful.

Trainers always have this belief that they make a difference to the life of the trainees.
Most of the times, after the training and the "free" lunches, everything goes back normal.

I think the only transformation that I am sure of is his wallet thickness

[pianist]

as far as i know, insurance premiums charged to standard chartered card don't fetch points...so there is some untruths in his statement

[kazukirai]

as far as i know, insurance premiums charged to standard chartered card don't fetch points...so there is some untruths in his statement

I think you misread it.

I have five credit cards and usually charge to my Standard Chartered card as it helps me accumulate points which I can use to offset my yearly insurance premiums. I always make it a point to pay off my credit card bills every month.

Sounds like using points accumulated on SCB card to pay off the yearly premium. I've heard of a Prudential credit card which does of the same thing but I don't know the details.

Any Buddies heard of this or using this?

---

Proud kid in wealthy family, making good $ via family connections. What's new?

Actually, I think the fact that he worked in jobs like a Best Denki Salesman during his school hols say a lot about the kind of person he is.

And for someone who teaches/coaches people about style, he only thinks that he'll need $2000/month when he retires. That doesn't sound like a very high-maintenance kind of life.

After all, one can't choose the cards that we've been dealt but we can choose how we play them.