Me & My Money Series (Sunday Times)

[kazukirai]

I actually agree with this - because now and then when I see the engineers, architects and designers around me, I ask myself how come they are earning less than the finance people and bankers? Yet I find them to be so much more creative in that they design and produce things (e.g. interior design, buildings, bridges etc). Yet they seem to get paid much less for their brainpower and expertise.

On the topic of earnings, and coming from an Arts and Social Science background, I think one of the most underpaid educations you can choose is a major like Social Work and the ultimate profession as a social worker- no free market forces to offer a competitive wage. And yet the tuition fees they pay are the same.

On the other hand, there's research that shows that doing good deeds cause the area of the brain that is associated with positive feedback to light up. So maybe we can argue that they sacrifice some money for that warm fuzzy feeling inside.

[momoeagle]

Haha.. yes indeed. Many of us are basically indulged in useless activities that basically exploiting stock market inefficiency.

I couldn't agree with you more. I vaguely remember you mentioning your day job as an engineer. I am confident you create more value to society as an engineer than as an exploiter of the inefficiencies of the financial markets. Indulging in indirect self-praise because I am also an engineer myself. Haha, let's be honest with ourselves. Would we engineers who create value for others rather exchange place with bank proprietary traders who make lots of money for themselves?

include me in as part of the group (Since i am an engineer too..lol)
Pre-2008, i had dreams to join the financial industry 1 day until i witnessed the immense greed and little value it brings to society at large.
Of course one could do philanthropy after he becomes rich to contribute back to mankind, but i reckon there's a lower probability for financial folks with oversized egos with self indulgent lifestyles, to do so.

So, if the choice lies before me now, i would choose an engineer. Pre-2008, it was the other way around.

It is pretty depressing to hear alot of bright prospects in spore, inspiring to join the financial sector after they graduate..when MAYBE, they could utilise their gifts in the sciences and make that litle more contribution to society/mankind at large.

Include me as an engineer too!

However, I'm planning to contribute back to society via teaching tuition to kids, writing educational study materials to document my knowledge before I forget, some of which (self praising here) I believe are rather unique ideas and methods of solutions.

Getting rich from this economically useful activity? Hopefully, but I'm not so sure yet, that's why at the end of the day, I'm still an engineer

[Zelphon]

Haha.. yes indeed. Many of us are basically indulged in useless activities that basically exploiting stock market inefficiency.

I couldn't agree with you more. I vaguely remember you mentioning your day job as an engineer. I am confident you create more value to society as an engineer than as an exploiter of the inefficiencies of the financial markets. Indulging in indirect self-praise because I am also an engineer myself. Haha, let's be honest with ourselves. Would we engineers who create value for others rather exchange place with bank proprietary traders who make lots of money for themselves?

include me in as part of the group (Since i am an engineer too..lol)
Pre-2008, i had dreams to join the financial industry 1 day until i witnessed the immense greed and little value it brings to society at large.
Of course one could do philanthropy after he becomes rich to contribute back to mankind, but i reckon there's a lower probability for financial folks with oversized egos with self indulgent lifestyles, to do so.

So, if the choice lies before me now, i would choose an engineer. Pre-2008, it was the other way around.

It is pretty depressing to hear alot of bright prospects in spore, inspiring to join the financial sector after they graduate..when MAYBE, they could utilise their gifts in the sciences and make that litle more contribution to society/mankind at large.

Include me as an engineer too!

However, I'm planning to contribute back to society via teaching tuition to kids, writing educational study materials to document my knowledge before I forget, some of which (self praising here) I believe are rather unique ideas and methods of solutions.

Getting rich from this economically useful activity? Hopefully, but I'm not so sure yet, that's why at the end of the day, I'm still an engineer

SO many Engineers ah....
Count me in leh..

Me still a LOWLY PAID ENGINEER after 5 yrs...
Haizzzz

[Musicwhiz]

Yes, quite surprised too that there are so many engineers!

Any accountants or bankers here in this forum?

[weijian]

lol..let me guess..
Engineers earn comparatively less, we need our $ to work for us to get out of the rat race earlier, n hence we r here (in this forum)
Accountant/bankers r either earning big bucks or too busy with their work to have spare time to surf forums..

[greypiggi]

Me engineer turn businessman... So also got time to surf forums?

[Musicwhiz]

No worst investment because she has not sold anything yet?? Huh?? That's a very weird answer indeed.........

The Straits Times
Nov 13, 2011
me & my money
Investing interest inspired by mum
Business owner now sets aside money for investments monthly

By Joyce Teo

Business owner Christine Mah, 31, knows the importance of investing only too well.

The single, who hails from Penang, was able to study at Monash University in Australia thanks to her mother's investment gains.

Her mother started to dabble in bonds, unit trusts and properties after learning about investing from her employer.

This interest has rubbed off on Ms Mah, who set aside money for investments from an early age and has now started doing so on a monthly basis.

She recently invested more than $100,000 of her money in her business - she partnered her former employer and started the House of Mini, a retail chain selling mini cupcakes and pastries, in April.

The idea came to her during a one-year work stint in Dubai, when she was helping Donut Empire set up stores there.

Her partner, who is familiar with franchising, suggested that they franchise House of Mini after the first store in Downtown East was well-received.

'It was more than I could have ever imagined doing when I started the business,' said Ms Mah, a Singapore permanent resident.

Within six months, there were five House of Mini stores. There will be 10 stores by the end of the year and next year, she and her partner plan to venture to Manila and possibly Kuala Lumpur. And that is when they plan to sell the business.

Q: Are you a spender or saver?

I am more of a saver, although I do spend on travelling as I love to travel.

Whether you are saving with a specific goal in mind or just for a rainy day, it is a good idea to put away some money on a regular basis. My monthly income varies, but in general, I try to save 40 per cent and invest about 20 per cent of the money.

I charge about $2,000 to $3,000 to my credit cards every month and I always pay my bills in full.

Q: What financial planning have you done for yourself?

Typically, I would want to put 30 per cent of the money set aside for my investments in insurance, 30 per cent in gold, and the rest in bonds and unit trusts.

I manage my investments, although I leave my portfolio of Malaysian bonds and unit trusts to my mother. I have started to send home $2,000 a month and she will help me invest the money.

Higher returns come with higher risks. As I'm a prudent investor, I'm looking at a rate of return of only 5 per cent.

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

I grew up with my mother and brother as my father died when I was only six.

My mother started as an administrative assistant at a civil engineering firm and is now a shareholder. She has been with the firm for the past 40 years. My brother owns an electrical and electronics firm.

Growing up in a single-parent family struggling to make ends meet, I learnt the value of money and the importance of savings from a young age.

Q: How did you get interested in investing?

It was during my teenage years, when I witnessed the changes in our family housing and lifestyle resulting from my mother's investments. She was quite aggressive then, investing in stocks and properties.

Q: When did you first start investing?

My mother helped me invest my red-packet money when I was young.

On my own, I bought a RM200,000 endowment policy when I received my first pay cheque. Half of my salary went into paying for the policy but my mother encouraged me to go for it.

Q: What property do you own?

In July, I invested in a serviced condo in a new development area in Penang on my mother's advice.

I bought it off-plan and the 1,100 sq ft unit, which is small by Malaysian standards, cost me RM500,000 (S$206,000).

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

My Toyota Rush, which cost me less than $100,000.

It's a good deal, considering certificates of entitlement are at an all-time high now, but cars, like all machinery, are depreciating assets.

Q: What's your retirement plan?

My goal is to be financially independent before the age of 40 and retire before I reach 50.

I would need between $8,000 and $10,000 a month in my golden years.

I can then spend more time with my family as well as on travelling. My dream is to be able to travel and visit my children and grandchildren.

I would also want to volunteer my time at charitable organisations such as the United Nations Children's Fund. I don't donate money to charity, I don't believe in it. You don't know how much money will go to those in need.

Q: Home is now....

A rented apartment at East View in Marine Parade. I hope to buy a place next year.

Q: I drive....

A black Toyota Rush.

-------------------------

WORST AND BEST BETS

Q: What is your worst investment to date?

None, because I have not sold any yet.

Q: What is your best investment to date?

My investment in gold with Tiara Tailings. I invested US$6,000 (S$7,700) and have already made half of that in profits alone. I get US$90 a day from it.

[weijian]

since her portfolio are mainly in insurance, unit trusts (dollar cost averaging kind?) and bonds (hold to maturity?) which may be longer term in nature/committment, i guess it could be true that she is not 'marking down to market' on potential losses.

Using the same logic as her 'best investment', just wondering whether she has managed to monetize her investments in Tiara Tailings? I did a quick search and Tiara Tailings may be one of those companies that promises a 1% investment/day kind - like a Ponzi scheme that can still pay out in the super bull run but is found to be naked when the tide falls.

[d.o.g.]

My investment in gold with Tiara Tailings. I invested US$6,000 (S$7,700) and have already made half of that in profits alone. I get US$90 a day from it.

PONZI ALERT!

1.5% a DAY? Even in simple interest terms that is over 500% a year. In compounded terms, the annual return is over 229x, in percentage terms that is 22,900% a year. Wake up people wake up.

This is even worse than those 2%/month gold "investments". The only businesses I know of that could possibly earn enough to fund a 1.5%/day cash flow liability are:

money laundering
sex slavery/forced prostitution
weapon smuggling
drug trafficking
loan sharking

In short, either the money is being used to fund organized crime, or this thing is a scam.

If I could operate a legitimate business that can earn enough to cover a 1.5%/day cost of capital, why would I tell anybody about it, let alone raise funds? All I need is to work a ho-hum job and save up the starting capital. Even if I start with only $1,000, by year end (assuming I cannot reinvest daily, only annually) I would have 5x the amount, $5k. 3 years after I start I would have 125x my capital or $125k. Another 3 years later I would have over $15m to my name. This from a starting capital of $1k, with annual reinvestment.

So find me a business where I can make 15,000x my money in 6 years. Google? Facebook? Maybe, but then why would I raise US$6k from a small investor, especially when I can start with only $1k? If I need more to start, say $1m, I can just call up a venture capital firm, show them the idea and the numbers, and they'll be happy to write a check for $1m, even $10m.

And the ridiculous numbers shown above assume annual reinvestment i.e. the 1.5%/day is accumulated and reinvested once a year. With daily reinvestment the money compounds at 229x a year and I would already make 52,000x my money after 2 years. So with $1k, after 2 years I would have over $52m. One year later I would have $12b to my name. So, again, find me a legitimate business where I can make 12 million times my money in 3 years.

[Musicwhiz]

Using the same logic as her 'best investment', just wondering whether she has managed to monetize her investments in Tiara Tailings? I did a quick search and Tiara Tailings may be one of those companies that promises a 1% investment/day kind - like a Ponzi scheme that can still pay out in the super bull run but is found to be naked when the tide falls.

That's very risky indeed - this kind of "Gold Investment" Ponzi type schemes.

And strange that paper profits are accounted for, but paper losses are not because they are "not sold" yet.