Me & My Money Series (Sunday Times)

[Musicwhiz]

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 12, 2012
Keen investor doesn't sweat the small stuff
Serisys Solutions' general manager started out as a manic saver while working in London and believes in enjoying the fruits of her labour

By Joyce Teo

Ms Carolyn Seet had always wanted to live abroad, and achieved her dream soon after finishing her studies.

Armed with a psychology and philosophy degree from the National University of Singapore, an Association of Chartered Certified Accountants qualification and £800, she went off to London to find work in 1999 at the age of 27.

She found a banking job and returned to Singapore five years later with a British husband and son in tow.

Her philosophy: Life is short, just do it. It also comes through in the way she handles her money, right back to her first property.

"I spend when necessary, and won't sweat the small stuff," says the 40-year-old, now the general manager of the Singapore branch of Serisys Solutions, a capital markets IT solutions firm.

She did spend most of her years in London busy saving as she had little to spare then.

"I became a manic saver when I went to London because I had very little money. Then, I became an anal saver for about four years."

That changed when she returned home. "I realised life is too short. If I am not living the life I want to live, what's the point of saving so much?"

She is married to Mr Karl Chaundy, 41, a freelance jewellery designer and maker whom she met in part-time theatre school in London.

They have two boys, Rian, nine, and Liam, five.

Q: Are you a spender or saver?

I used to be a saver, but now I'm a bit more balanced. As we live only once, I decided that I should enjoy some of the fruits of my labour before I am physically unable to.

I can't take my wealth with me to my grave, so I am happy to spend on things that enrich my family's and friends' lives.

My view is that money is just an exchange - not just for material goods, but also for time and peace of mind.

I invest about 20 per cent to 25 per cent of my salary and save about 5 per cent to 10 per cent of it. The rest is spent on household needs and experiences like theatre and travel.

We travel twice a year and my younger son is in private childcare, which costs up to $1,000 a month. We eat in a lot, but we tend to spend on expensive ingredients like cheeses and premium meat. My husband is great at creating amazing meals.

My current fascination with sports and its related gadgets has also upped my spending. I love gadgets.

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

I charge about $8,000 to $9,000 to my cards - it includes my British fund investment - and I pay off my credit card debt religiously.

Q: What financial planning have you done for yourself?

I've invested in properties. I used to look at property, when the yields would cover interest risk. I don't believe in investing solely for capital gain as that comes about only if the asset generates a good cash flow in the first place.

Now, I just dabble in options. I am quite conservative and am satisfied making a few hundred bucks a month.

I also invest in stocks and have a reasonable sum invested in stable, long-term plays Coca-Cola and Yum! Brands Inc, which owns brands like KFC and Taco Bell.

I have enough insurance such that if anything happens to me, all mortgages would be repaid and enough cash flow will be generated for daily living and education.

Every month, I put some money into a 15-year British fund. My elder son is a British citizen so if he ever wants to study in Britain, there will be a nest egg there. My goal is not to give my children money but to help them out.
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WORST AND BEST BETS

Q: What is your best investment to date?

My London flat, which I bought in 2000. I invested just 3 per cent of the purchase price, which - plus closing costs such as legal fees and stamp duty - worked out to be about £6,000.

I sold it two years later for a profit of almost £60,000.

The cash-on-cash return was 1,000 per cent in 24 months.

Q: What is your worst investment to date?

I invested about £7,000 in a British fund in 2000.

Today, it's worth just as much, but given the forex rate now and inflation, I am worse off.

I did it because the market was smoking hot then, and I was new to that. Everyone believed it would go up forever. Plus, it was a tax shelter.

In hindsight, the money would have been better used to buy another property.

[pianist]

3 comments:

1) Is it still an gd idea to invest in a 15 year British fund investment to fund child education in London these days?

2) She said "Now, I just dabble in options. I am quite conservative and am satisfied making a few hundred bucks a month."

any buddies can share what is the most easy strategy to consistently make a few hundred bucks a month through options?

3) My London flat, which I bought in 2000. I invested just 3 per cent of the purchase price, which - plus closing costs such as legal fees and stamp duty - worked out to be about £6,000. I sold it two years later for a profit of almost £60,000.

that sounds like a 97% loan facility granted..is it possible?

[Drizzt]

there are delta neutral strategies like iron condor, iron butterflies that are income earning strategy.She most likely put up $3000 buying options on SPY or RUT. If the SPY or RUT falls within the price range and don't veer out, she pockets this "dividend"

For more explaination here Iron Condor Explained

[smallcaps]

'anal saver' ???
Colorectal doc???

[EnSabahNur]

'anal saver' ???
Colorectal doc???

That just means that she saves compulsively down to the last cent.

[Temperament]

lt looks like her earning power allow her to save, spend, & invest comfortably.

[Musicwhiz]

I find that Me & My Money has again degenerated - they seem unable to provide interviews as good as the Millionaire Teacher one (Andrew Hallam). This guy's got a very good head start - his dad helps him out with the rental of his flat and his mum gave him a $1,000 a month allowance while in JC (that's more than what a lot of low-wage workers earn - $800 a month). Also, she sponsored his entire car of $60,000.

I also find it incomprehensible that he says he is a "saver", yet spends $80,000 on car part and other mods (which ironically cost more than the car itself).

Granted he is a motivated individual who has managed to make $200,000 in commissions from his job, but I feel his penchant for cars means the money will be sucked into an Audi or BMW someday (he alludes to this).

And this line also sounds very weird - "The reason I invested in property is so that I can see the potential price appreciation of the apartment" - so is he investing for income, or capital gains? This seems to indicate he think prices can ONLY appreciate, which is the prevailing sentiment right now, I guess!

*For the full article, please visitthe website.

The Straits Times
www.straitstimes.com
Published on Aug 19, 2012
Undergrad makes it big as financial planner
Saver with early start in working life earns place at Million Dollar Round Table

By Joyce Teo

As a schoolkid, Roy Tang Tien Foo was a bit of a tearaway, a trouble- maker in class and not too good on the academic front. But efforts by his teachers and parents helped set him straight, instilling in him a strong work ethic.

Mr Tang, now 23, is a part-time financial planner. He comes from a well-to-do family but has not been afraid to work hard.

He was a tutor during his junior college days, worked as a part-time salesman and tried working as a property agent, but that failed as he did not get any calls even after spending a few thousand dollars on courses and printing brochures.
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The enterprise grew and he had up to 16 students at one point.

It was his mother, a senior sales director with Manulife Financial, who introduced him to financial planning early last year.

He was keen because he had seen how a friend, who was badly injured in a motorcycle accident, suffered because she had very little insurance.

She had to spend a year in hospital, including two months in intensive care and another two months in the high-dependency ward. The cost came to about $650,000 and, naturally, she needed a lot of help to pay the bill.

In his first six months as a financial planner, Mr Tang would stay in the office reading up on finance, at times until 3am or 5am.

"In the first year, my car radio was off as every minute, I was constantly thinking of what to say to my clients."

His hard work paid off and he qualified for the Million Dollar Round Table, which recognises the top 6 per cent in the life insurance industry worldwide.

He first sold to his good friends, relatives and a businessman he plays table tennis with. His clients now come through referrals.

Mr Tang, who has two older siblings, is pursuing his mechanical engineering degree at Nanyang Technological University.

Q: Are you a spender or saver?

I am more of a saver. I set aside money for the future and know how much I can spend. This reduces a lot of stress and any unwillingness to enjoy my income after all the hard work.

About 20 to 30 per cent of my income goes to my insurance and saving plans.

I spend another 20 to 30 per cent on car maintenance, my mortgage and shopping, and I save the rest for special purchases, holidays and emergency use.

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

About $2,000 to $3,000.

Q: What financial planning have you done for yourself?

I started planning for my future last year, when I purchased life insurance policies. I figured it is cheaper to buy them early.

I also invested in a property early this year, instead of leaving my money in the bank. Each month, the $3,800 rent more than covers the loan instalment of about $2,200. My dad gets the rent because he helps me manage the place, as well as collect the rent from my tenants.

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

I am fortunate to have been brought up in quite a well-to-do family.

My mother Christina Lee has been with Manulife Financial for more than 30 years while my father Johnson is a businessman.

My mother gave me sufficient pocket money so that I could cultivate the good habit of noting down my savings and spending. I got $1,000 a month when I was in junior college but I now pay for my school fees and expenses.

I have been trained since I was young to understand the value of money and money management. I would save my pocket money to buy bicycle parts, fishing rods and table tennis items.

As I grew older, I began to have other hobbies and realised my savings were no longer enough to feed my hobbies. That was when I started to work as a private tutor and a part-time salesman.

I always believe that I have to be financially responsible, to have a financial plan, save for a rainy day and spend within my means.

Q: How did you get interested in investing?

I started working at Manulife Financial early last year and earned my first lump sum of nearly $200,000 in commissions for that year.

As a financial planner, I know that leaving money in the bank will definitely not give me much returns so I consulted my dad, who has many years of experience investing in property, about investing in an apartment.

His advice was to look for an affordable property in town. So I bought an apartment at Pearls Centre in February for $760,000.

I decided to empty my bank account for it, so I paid a down payment of more than $180,000.

Once my account is empty, I feel like I have to work hard to fill it. Otherwise, if my account is full, I would slack off.

To be honest, I am not very good at making an investment. To me, making a right investment means capturing the right opportunities at the right time.

The reason I invested in property is so that I can see the potential price appreciation of the apartment.

Q: What property do you own?

An 800 sq ft apartment at Pearls Centre in Chinatown.

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

My 2005 Mitsubishi Evolution 9, which I bought in February for $60,000 cash. I thought of getting an Audi or a BMW as it would suit my job but I am still young and I am passionate about cars.

When I was 18, I used $5,000 of my savings to buy a 1980s Nissan Sunny. It leaked whenever it rained.

My mum then offered me $60,000 to buy a five-year-old Mazda RX8. But I then spent at least $80,000 on engine replacement, car servicing, and certain aftermarket modifications over four years.

Q: What's your retirement plan?

I plan to retire at the age of 65, though I aim to be financially independent by 40.

I will then be able to travel around the world, to explore and discover other cultures and parts of the world where few others have trod.

I dream of operating a franchise business selling bacon, pancakes and eggs for breakfast when I retire.

Q: Home is now...

A semi-detached house in Upper Thomson, where I live with my parents.

Q: I drive...

A yellow Mitsubishi Evolution 9.

joyceteo@sph.com.sg
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WORST AND BEST BETS

Q: What’s your best investment to date?

It would have to be my one and only property, the Pearls Centre apartment, as it is generating good rental of $3,800 a month and has collective sale potential.

I bought it in February this year.

Q: What’s your worst investment to date?

None so far

[weijian]

Hi musicwhiz,
Cut this young chap some slack! haha...
Apart from the fact that he had a good head start, which he readily admits, his parents seem to have drummed into him, the value of working to get what you want and making your $ work for you. This (beside his fast car), puts him ahead of many of his peers at his age.

I do agree that the interviews have 'took a step back' but i like the fact that these interviews are diversified across different age groups/careers/social classes - that kinda gives us readers, more unbiased sampling, and a better understanding of the population.

But I do find that property seems to pop up more than often, as the asset class that makes their best investment (not too surprising considered the property boom we have seen over the last 10years).

[pianist]

yup this is e hard truth - 1 in 6 households in sg is usd millionaire...so such news is nothing degenerating..in fact it reflects the actual kind of abundancies that kids now have in sg..

eg my neighbor's 4 kids age 18-27 yo. early this year, he bought them each a private condo unit 100% cash in their names no bank loans..bought a 3 storey bungalow also 100% cash no bank loan for his wife.
2 kids got one car each, he himself 1 car, his wife just bought another. i heard he was sayin early this year, coe hovering near 100k, better buy more cars first wait coe spike even higher..

[Muck]

Very risky financial behaviour... Dumping all liquidity into a property during the height of a boom. I wouldn't trust one cent to such so called financial planners. Then again, perhaps he doesn't think it risky for after all, knowing his parents would prob bail him out if he gets in trouble. That's the 'advantage' to young kids with rich financial backing - they can take the risks for potential upside, with little personal downside since they'll get bailed out. Moral hazard haha.