Me & My Money Series (Sunday Times)

[Temperament]

Hello Kopitkat and weijian,

It's nice to hear inspirational personal stories of getting up where we fall!

We just have to make the best of the cards we are dealt.

Each generation have their own stories to tell.

Those working adults in the 60s have to live with the "shock" of being kicked out and all alone to fend for ourselves...

70s have to brave through 2 oil shocks....

80s we have high inflation and we priced ourselves into recession by raising wages to encourage "automation" (those were good old days when emploer CPF was 25%)... Remember Pan-Elec collapse? Talk about counter-party risks! Many brokers almost...

90s we have clob saga and 97 Asian Financial Crisis...

00s we have SARs, Dot-com crash, Iraq war...

What Temperament says is so true: 危 机 -有 危，就 有机.

What will 2012 bring? I've no clue! But I am optimistic - thanks to all the positive sharing! (Much better than moaning and complaining)

Hi SMOL,
Me have lived through all the crisis you have mentioned. If only i knew how to carpe diem every one of the crisis, i will be filthy rich now. Most of the time in the crisis, i were frightened like a "Blur Sotong". The most scary was the "SARS" - The Jaws of Death". No one was sure whether he could escape the JAWs of Death at that time. It was indeed the most frightful time of the day. So i recommend you to read the book by the late Anthony Yeo:- "IF Tomorrow Never Comes".
Cheers!

[Jared Seah]

Thanks Temperament for the recommendation!

[FA+TA]

Please read this thread for all Singaporeans to enhance their blood circulation.

http://www.transitioning.org/2011/11/22/...dismissal/

[Musicwhiz]

The Straits Times
Dec 4, 2011
me & my money
Let your pot of gold do the work
Top insurance director believes in saving for a fund that can earn passive income

By Joyce Teo

Mr Roland Tay joined AXA as an insurance adviser 15 years ago when he was 22. He became the top adviser, then the top manager, before becoming the top director.

He did so well that the firm created a new title for him last year - that of executive financial services director.

'When I started, I told myself that I wanted Roland Tay to be a household name in AXA in 10 years' time,' says the 37-year-old.

'The top guy was working 61/2 days a week and seeing three to five clients a day. So I worked seven days a week and aimed to see five to seven clients a day.'

It was a schedule he maintained in his first three working years, though Mr Tay says hard work alone is not enough for success.

'Working hard alone will not guarantee success. I am very fortunate to be in the right place, where it was recognised.'

Interestingly, Mr Tay says he used to be more of a follower and it was his national service stint that brought out the leadership potential in him.

'NS is very good in toughening people up. There, I was given ample opportunities to lead and challenged to perform,' he says.

'I realised I like to lead people to achieve something, to give them direction, to influence them through good or bad times.'

Mr Tay is married to Shermaine, 37, who helps him in his insurance business.

Q: Are you a spender or saver?

I am a saver. I invest 70 per cent of my annual income.

When it comes to spending, I do enjoy pampering myself with relaxing holidays.

I usually go on several holidays a year with my family and team associates.

Such breaks are important to me because it is quality time I spend with my loved ones without any budget constraints. For a long trip, I will pay for business class flights and can easily spend $20,000.

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

Every month, I charge about $12,000 to $15,000 to my two credit cards - one for work and the other for my personal expenses.

Q: What is your general approach to money and investing?

I believe in working hard for the money when you are young and energetic. It is important to start saving your first pot of gold to start earning passive income, until you reach a level where you are no longer solely dependent on your working income.

Money is not the most important thing in life, but it can buy you important things and help you make important decisions in life. It allows me to do the things I like to do without any financial constraints.

I personally do not believe in timing the market and investing all you have just because the market seems to be doing well. You should invest only the extra cash that you have so that you will not be caught in a difficult situation when the market is not doing well.

Q: What financial planning have you done for yourself?

I have health and life insurance policies worth nearly $3 million.

For wealth accumulation purposes, I have investment and endowment policies.

I first bought an investment- linked policy when I started at AXA and my portfolio of funds and bonds is now worth at least $2 million.

During the first decade of my career, I would put in about $1,000 a month. Now, I put in at least $50,000 every quarter. I treat it like a savings account.

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

I grew up in a family of four. My father was a bus driver in Sentosa and my late mother used to be a factory worker.

I knew at a young age that I wanted to be able to provide a good life for my loved ones.

Q: How did you get interested in investing?

I started investing when I started my career. I believed that I had to invest before I could even recommend my clients to do so.

It will be easier for you to achieve your financial goals if you start young.

Q: What property do you own?

A fully paid-up 1,300 sq ft condominium in Newton, which I bought about seven years ago for slightly more than $1.1 million. My budget then was about $500,000.

I bought another unit, a two-bedder, in the same condo a year later for investment. But I sold it too soon. I paid about $700,000-plus, and sold it several months later for a profit of $50,000 to $60,000.

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

Two Patek Philippe watches. One cost about $30,000 and the other about $20,000. I believe good watches can appreciate with time.

Q: What's your retirement plan?

I am in a business that allows me to work for life if I want to.

I would not want to retire as I am enjoying my work and I feel good to be able to help people. Money is no longer a strong motivator for me now.

I aim to achieve financial freedom by age 45. In order to achieve this goal, I invest regularly.

Q: Home is now...

The three-bedroom condominium in Newton.

Q: I drive...

A silver Saab convertible.

joyceteo@sph.com.sg

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

WORST AND BEST BETS

Q: What is your worst investment to date?

My worst investment was in the Malaysian shares I bought in 1997. I lost more than $10,000 and learnt that if you have no time to monitor stocks, it is best not to buy.

Q: And your best?

This is my AXA investment-linked policy, which has given me average annual returns of 7-9 per cent. I am a simple guy and I like to invest in something that I understand.

[Stocker]

It seems that most people make their "fortune " from properties.

[weijian]

this guy didnt really make his fortune from properties i reckon. I think the main bulk came from his AXA work and also his ILP (since it is his best investment)

On another note, i find it hard to believe that an ILP can give annual returns of 7-9% with dollar cost averaging. Based on the information given, he started out in ~1995. There were some bull markets but also the dotcom crash/GFC. To get 7-9%, it would have to involve some market timing i guess..

[tubecreamer]

>VQ: And your best?

This is my AXA investment-linked policy, which has given me average annual returns of 7-9 per cent. I am a simple guy and I like to invest in something that I understand.

I seriously doubt anyone can get a 7-9% returns on an ILP after deducting management funds and all.

And I question why a successful insurance agent like him would suggest such a thing.

I welcome any corrections and pls let me know if there is a tool that I can use to earn 7-9% ANNUALLY, I am very happy to be scolded for being biased against ILP and be proven wrong.

[Temperament]

>VQ: And your best?

This is my AXA investment-linked policy, which has given me average annual returns of 7-9 per cent. I am a simple guy and I like to invest in something that I understand.

I seriously doubt anyone can get a 7-9% returns on an ILP after deducting management funds and all.

And I question why a successful insurance agent like him would suggest such a thing.

I welcome any corrections and pls let me know if there is a tool that I can use to earn 7-9% ANNUALLY, I am very happy to be scolded for being biased against ILP and be proven wrong.

Me supports totally. i have my doubts too. ILP products are one of the worst product "invented" by Insurance. i "escape" investing in this product. too.

[KopiKat]

>VQ: And your best?

This is my AXA investment-linked policy, which has given me average annual returns of 7-9 per cent. I am a simple guy and I like to invest in something that I understand.

I seriously doubt anyone can get a 7-9% returns on an ILP after deducting management funds and all.

And I question why a successful insurance agent like him would suggest such a thing.

I welcome any corrections and pls let me know if there is a tool that I can use to earn 7-9% ANNUALLY, I am very happy to be scolded for being biased against ILP and be proven wrong.

Me supports totally. i have my doubts too. ILP products are one of the worst product "invented" by Insurance. i "escape" investing in this product. too.

Could it be that since he's a staff of AXA, there'd be no need to pay the exhorbitant commissions to AXA and it's thus possible to make good returns?? For the rest of us, we'd be just providing a good source of regular income to our agents if we were to buy ILPs.

[VIChris]

It is easy to invest in a good company with yield rate of 8% or more. At least you are in control of what you are investing...
ILP? Most cannot make it at all!