Me & My Money Series (Sunday Times)

[KopiKat]

It will be interesting if we have a long term plot of these percentages or the 200k quarterly buyers as I would like to know during the period 2003-2007 where did singaporeans place their money in.

My guess is "Property". It is remain as a guess unless i can find a reference to back it up, but i am pretty confident on the "guess"

Refer to Post #720 (pg 72 of this thread) by 'swakoo',

[Image: sghouseholdsbalancesheet1997-2011markedup.jpg]

[CityFarmer]

It will be interesting if we have a long term plot of these percentages or the 200k quarterly buyers as I would like to know during the period 2003-2007 where did singaporeans place their money in.

My guess is "Property". It is remain as a guess unless i can find a reference to back it up, but i am pretty confident on the "guess"

Refer to Post #720 (pg 72 of this thread) by 'swakoo',

[Image: sghouseholdsbalancesheet1997-2011markedup.jpg]

Yes, thanks for the reference. I miss the swakoo post which i should not.

Thanks anyway to KopiKat and swakoo

[Musicwhiz]

Hmm, I'm a little puzzled - isn't the Mercedes Benz an item of extravagance?

The Straits Times
May 27, 2012
me & my money
Early bird profits from industrial properties
Businessman snapped up sites before market was hot; assets put in investment vehicle for children

By Joyce Teo

Industrial property was hardly on the radar for retail investors in 2004 but businessman Joe Fam saw an opportunity beckoning and he went for it, snapping up some promising sites.

But the world has caught up since and Mr Fam, 52, has backed off, maintaining that prices have gone too high, although he has held on to three freehold properties.

'When everybody rushes into the market, you have to get out.'

He has a private investment vehicle that holds all the assets he and his wife have so they can one day smoothly pass on the wealth to their children.

Property is something of a sideline. Mr Fam founded GlucosCare International in 1999 with health-care company Wen Ken and an angel investor as partners.

He wanted to develop a natural product to tackle high blood sugar. GlucosCare Tea is sold in pharmacies like Guardian, Watsons and Unity, among other places. Clinical trials have been done in China, India and Bangladesh, and are now being done here.

Mr Fam, who is also part of Wen Ken's executive committee, dubs himself a non-conformist, one who knew from a young age that he wanted to chart his own destiny.

He studied and worked in Australia, then applied for a working holiday visa in London and landed a well-paid marketing job there. That allowed him to travel extensively in Europe before returning to Singapore in the late 1980s.

Mr Fam is married to Ms Lim Siew Bee, 50, a housewife. They have two children, Victoria, 14, and Elizabeth, 10.

Q: Are you a spender or saver?

I am more of a saver than a spender. My approach to money is that it should be invested in appreciating assets and there should be just enough funds left in the bank for household needs as this yields low interest.

As a rule of thumb, almost 40 per cent of my monthly income is invested while the rest is spent on household and lifestyle needs.

My wife and I believe in providing the children with a good education and we spend time moulding them and teaching them the right values like honesty and being hard-working. Whether they are academically inclined depends on God.

What is wrong must be made right and no one is above the law. Such values must be inculcated from a young age. I would rather they grow up to be mediocre than someone smart but on the wrong side of the law.

As much as we like to save for our old age, we also believe in enjoying life when we are able to, as life is short.

When we reach a certain age, there will be some things that we will not be able to do or enjoy. So I aim for work-life balance. I try to have dinner with my family if I am in town and go on family trips at least once a year.

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

An average of about $4,000.

It's a good idea to make use of credit cards in the daily consumption of goods and services as there's free credit for 30 days. But it must be paid off when due, so as not to attract late fees and high interest costs.

Q: What financial planning have you done for yourself?

My wife and I have a private investment vehicle that invests in a few companies, several properties, investment-linked insurance and equities. This way, the estate planning is very clean if something untoward were to happen to me.

I also did it for the children. It'll be easier to pass on our wealth. It's a lot cleaner and there's no need for them to squabble over it. They don't have to sell the properties, for instance. They can just split the income.

When you are in your 50s, you hope that your capital investment will be preserved and be able to give you passive income.

In the late 1990s, I invested in a few companies, of which the one worth mentioning is GlucosCare International. I also invested in residential properties in the 1990s but have sold them all.

As I am the breadwinner, I have term life and critical illness insurance coverage so that my family is protected.

I am into conservative gearing for better investment returns. If I borrow $1 million paying a 2 per cent interest cost and I can get a 7 per cent yield, then literally speaking, I can use other people's money for a $50,000 gain per annum.

My rule of thumb is not to exceed 60 per cent of whatever assets I pledged to the bank so that in case there is a market correction, I will still be able to meet the obligations.

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

I come from a humble family and am the youngest child. I have two brothers and one sister. My father died when I was nine so my mother had to work very hard as a housemaid to support us.

She taught us to be honest and hard-working.

My elder siblings had to forfeit their education and work to help my mum sustain the family. We are fortunate to have strong family bonds.

For this, I am always grateful to my mother and siblings. From a very young age, I treasured money and knew it has to be earned. I also learnt to be very resourceful.

I managed to get the Lee Foundation to fund my bachelor's degree in Australia, which I am very grateful for.

I still had to earn money for my living expenses, but I was turned away several times when I applied to work as a waiter as most employers considered my inexperience a major drawback.

It taught me to be bold and tenacious, and at one of the interviews, I offered to work for free in exchange for a job. I picked up the ropes within a couple of months and could then nail other waiting jobs that paid well.

Q: How did you get interested in investing?

I started investing in stocks in my early 30s when I was still single. It was a bull market during the early 1990s and I thought I could seek better return of investment from my money than having it stay in the bank.

Q: What properties do you own?

My wife and I now own three freehold industrial properties. We bought them at a time when prices were relatively low, at below $300 per sq ft.

They are all tenanted out and the rental is enough to cover the monthly finance costs. I started investing in industrial properties around 2004-2005. The yield was at 7 to 8 per cent and is now 6 to 7 per cent.

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

Honestly, I have not bought anything that is extravagant or luxurious. Perhaps it is time to pamper myself.

Q: What's your retirement plan?

My plan is to train some younger colleagues to take over my active day-to-day operations at Wen Ken group so that I can just focus on strategic issues.

If I retire completely from work, my mental alertness will rot even faster than I would like it to. Financially, I am quite independent now.

Q: Home is now...

We are living in a four-bedroom terrace house in Bukit Timah, which we bought at a reasonable price in 2004. The value has gone up significantly.

Q: I drive...

A silver E-Class Mercedes-Benz

joyceteo@sph.com.sg

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WORST AND BEST BETS

Q: What's been your worst investment?

In 1997, I started a trading company in a South Asian country by partnering a local.

I put in about US$50,000. It was not that significant but the amount of time and energy I spent in cultivating the market was not worth the returns. The money was nearly gone after three years, when I wrapped up the business.

Running a start-up, I lacked resources and manpower, so I thought my local partner could help drive the company and monitor the market.

But having an operation under remote control is easier said than done. The experience taught me that I had to look for a solution to overcome my shortcomings - resources and manpower.

I learnt that I must leverage other people's strengths to give me the necessary support. In addition, I must have a close working relation with my partner.

Q: And your best?

An industrial warehouse unit at Delta House. I bought it for $550,000 in 2006 and sold it in 2009 for $1.4 million.

I reinvested the realised funds in some industrial properties instead of residential ones, as I think residential prices have gone way beyond the affordability of the mass market.

[Drizzt]

interesting that industrial yield is 6-7%

[kazukirai]

Hmm, I'm a little puzzled - isn't the Mercedes Benz an item of extravagance?

Actually, it depends on what he uses it for.

If it's purely for transport, then probably it's an all-out extravagance.

But in business circles, even things like cars or the house you stay in may end up opening some doors for business. It's for impression. Not that I agree that business should be done this way but unfortunately, that's the way reality is sometimes.

[WolfT]

If he has a few mil then it is not extravagant at all,
also depends on when he bought it?

[Temperament]

Hmm, I'm a little puzzled - isn't the Mercedes Benz an item of extravagance?

Actually, it depends on what he uses it for.

If it's purely for transport, then probably it's an all-out extravagance.

But in business circles, even things like cars or the house you stay in may end up opening some doors for business. It's for impression. Not that I agree that business should be done this way but unfortunately, that's the way reality is sometimes.

Ya lol, if he drives a clunker, 1st impression will be does he has the capital/resource to do business? How to give my trust to him? On the other hand why the HDB's millionaire-next-door needs a Mercedes?

[Behappyalways]

'If you are motivated by money, you will sell if someone offers you 10 times the price. But I think you will get a better price eventually if you don't think of the money.'

From The Sunday Times

BROTHERS STARTED YOUNG

Mr Woon Wee Teng and his brothers have been collecting art almost their entire lives.

He started collecting Buddhist art when he was in Primary 5 and his first few pieces were talismans and Buddha statues given to him by monks.

'Buddhist art is for protection and was not meant to have monetary value,' he said. 'But they turned out to be collectors' items and there is a market for them.'

Today, the brothers' collection of Buddhist art has grown to include sculptures, scrolls, paintings and more. It includes a rare gilt bronze Acouye Guanyin from the Dali Kingdom that dates back to 1172.

'We also collect modern art by artists like Andy Warhol and Damien Hirst, Hindu art and some Christian works, jade and jewellery and so on,' said Mr Woon.

Among the brothers, he has been the main one involved in acquiring Buddhist art.

'I had the intuition that I would be able to piece together a great collection. I had the interest and the foresight,' he said. 'In my late 20s, people were not chasing these Buddhist art pieces so I got good prices. I could pay a few thousand for paintings, which are now worth millions.'

The collection is now so big that it is housed in several places, including his Burn Hall mansion near Durham in Britain, his brothers' homes in Singapore as well as bank vaults.

Some items will soon be moved to two 3,000 sq ft warehouses being built in Yishun.

The funds for buying art come from the Woon's family business and also privately from the four brothers.

'We do the business, make the money and we share,' said Mr Woon. 'We love art and we support artists. You need patrons in art. We've always supported young artists, whether they are here or overseas.

'If I cannot build a museum, I will part with the collection in the hope that someone can build it. To me, a museum is a university of the future.'

Have they sold off any of their other beloved purchases, especially those that could reap a handsome profit?

'Buddha statues are not for sale but the rest, we sometimes let go of some pieces for a profit,' he said, adding that the brothers see themselves as custodians of their Buddhist art.

Elder brother Tek Seng told The Sunday Times that he sold a painting by Chinese artist Wu Guanzhong seven years ago for $200,000. He had bought it for $10,000 in 1990.

Mr Woon Wee Teng also once let go of 40,000 pieces of Buddhist art at an undisclosed price, to start a world Buddhist museum. 'It's a source of pride to have a major collection in the family,' he said. 'If you are motivated by money, you will sell if someone offers you 10 times the price. But I think you will get a better price eventually if you don't think of the money.'

Joyce Teo

[Musicwhiz]

My hat off to this couple - they are frugal, do not own a car in Singapore and do not display a lot of material wealth, yet are happy with their lives and also do charity work! Thumbs up!

The only thing I felt was a little strange - no bad investments? Doesn't mean you don't sell anything means you have no bad investments, but possibly it could be because they are very conservative....

The Straits Times
Jun 3, 2012
A simple life - the root of sensible living
Dental specialist is thrifty, opts for public transport and has little material desire

By Joyce Teo

Dr Ansgar Cheng has been a dentist for 22 years and can easily drive home from his workplace at Mount Elizabeth Medical Centre but chooses to take the bus instead.

'In Singapore, public transportation is efficient and rather extensive,' he says, adding that it also makes more financial sense to take public transport than to buy and upkeep a car.

Besides, he and his wife are now used to relaxing in the bus or cab while making their way to and from their home around the Bugis area.

He leads a simple life, wears a plastic Casio watch to work and says he has little desire for material goods.

Money is just a tool, he says. 'You have to use it for your daily needs. The rest you keep, grow and you share, and not necessarily with your own family.'

Dr Cheng, 46, is a prosthodontist with Specialist Dental Group, an adjunct associate professor at the National University of Singapore and an honorary clinical associate professor at the University of Hong Kong.

In 2004, he and his wife - both permanent residents - relocated from Canada to Singapore as he says it is a very safe place where everything works and it has an excellent reputation as a medical hub.

Dr Cheng, who is from Hong Kong, has been married for 20 years to Ms Moonlake Lee, 43, the director of business affairs at Specialist Dental Group.

They have two daughters: Allie, nine, and Hana, eight.

Q: Are you a spender or saver?

I am generally a saver but I do spend when necessary on items that are important and have long-term value.

Once in a while, I will spend on my family - when we celebrate special occasions, for instance.

We are generally cautious about how we use money and we try to ensure that cash is readily available so that it can be deployed when we see good opportunities.

A certain portion goes to family support, charitable causes and church tithing every month. I also support my high school in Hong Kong, for example, when it needs funds to purchase new equipment.

We don't give our kids pocket money as they take packed lunches to school. We reason with them and try to teach them the value of money.

We want our kids to grow up with the right values. They don't have tonnes of toys but they do have a lot of books.

On Sunday evenings, they will say: 'Can we not eat out? It's a waste of money.'

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

A few thousand dollars for professional and household expenses.

My wife makes sure our bills are paid through credit cards so that we can benefit from the perks. We pay in full through Giro each month.

Q: What financial planning have you done for yourself?

I learnt about financial planning from my uncle, Tom, who said: 'Be a useful person to the people around you. Be reliable, spend less than you make, and invest the rest. Then you may be fine.'

When I was newly married, I worried about what would happen to my wife if I were to meet with an untimely end.

We concluded that she should invest in her education, so she became a highly educated person with a few post-graduate degrees in business and law.

With those qualifications and her exceptional talent and energy, I know she has the best insurance that no money can buy.

My most valuable asset in life is my education.

Not only did my professional training allow me to have a day job, but it also allowed me to associate with many teachers, highly intelligent individuals, colleagues and interesting people whom I can learn from.

Insurance-wise, we have term life policies as well as disability insurance, hospitalisation and surgical insurance, and critical illness insurance for peace of mind.

We are generally conservative in our investments, preferring to look long term, and we adopt a buy-and-hold strategy.

We stick with blue chip shares locally and internationally. We also have a three-bedroom condominium in the city area here, which we rent out.

We bought it a couple of years ago and the value has risen, but we have no plans to sell it. We have no plans to buy another property now as prices are very high.

Most of our money is in the bank. The interest is not high but the money is liquid.

We stay within our area of competence.

We won't go near landbanking, for instance. We know of a landbanking firm that is not truthful - the land they are selling is actually not in the area that they claimed.

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

I grew up in Hong Kong with a hardworking father who was involved in various small businesses. He has a great sense of humour, loves his family and lives a balanced life.

My mother is a very talented woman who made many important business decisions with my father. She is a full-time homemaker and is always willing to listen to her kids.

Through a lot of luck and hard work, my parents successfully saw my three elder sisters and I graduate from the University of Hong Kong.

We eventually went overseas for our post-graduate education.

Q: How did you get interested in investing?

I have heard my parents talk about business since I was young. Thus, the idea of working hard and getting money to work harder for you is not alien to me.

The best investment philosophy I learnt in the US, where I had studied and worked, was: 'Invest in yourself'. When people know how to catch fish, there is no need to give out fish.

Q: What property do you own?

A 1,300 sq ft condo unit around the Bugis area. We bought it a few years ago at a reasonable price.

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

When I was six, I was made to purchase a tiny golden mouse with my entire net worth of approximately US$73. That was the time when gold was at about US$40 an ounce.

I still have that little gold mouse, and even at the current gold price of about US$1,600 (S$2,000), I have absolutely no use for that piece of shiny metal.

I thus concluded that precious metals are fine but are of little practical value.

Q: What's your retirement plan?

My parents never retired. They just moved from one thing to another.

Like them, I do not have a retirement plan.

I plan to keep healthy and busy for as long as possible.

I am financially independent because I consume very little and have close to zero desire for most material needs.

The amount of money you need during retirement depends on your needs. You can limit your needs.

Q: Home is now...

Our condo around the Bugis area, which allows us to walk our girls to school daily.

Q: I drive...

I drive only once a year - when I'm in the US for meetings.

I enjoy whatever subcompact car the cheapest car rental company presents to me.

My wife and I take the cab or bus to work and we take the bus home.

joyceteo@sph.com.sg

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WORST AND BEST BETS

Q: What is your worst investment to date?

None as we rarely sell our investments.

Q: What is your best investment to date?

I can only say it's my family and my move here.

[Drizzt]

thats a good one.