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23-01-2011, 11:03 AM
Jan 23, 2011
me & my money
Making a very healthy living
Mum of 2 traded life in the fast lane for a time- and rewards-rich career in direct selling
By Lorna Tan, Senior Correspondent
When she was regional director of Baring Securities in Japan, Ms Amy Yip clocked 15-hour work days, with little time for her family. The long hours also took a toll on her health.
In 1996, she joined global direct selling firm Nu Skin Enterprises.
'I wanted to spend more time with my two sons but my job required me to put in long hours, including travelling in the Asia-Pacific region. It came to a point where my kids no longer cried when I left the house but they did each time the nanny left the house,' said Hong Kong-born Ms Yip, now 50.
A typical day for her now starts at 5am, and she spends about four hours on breathing, meditation and yoga exercises, before breakfast and starting work. Besides more time and improved health, the monetary benefits of distributing Nu Skin products were good too.
Ms Yip and her family left Japan for Singapore in 2001, when Nu Skin opened an office here. She also wanted a bilingual education for her sons. Based here since then, she has expanded her Nu Skin business distribution network to 20 countries - including Japan, Malaysia, Indonesia, Mexico, Africa and Russia - some of which she has not even visited.
In 2003, she became a Nu Skin US$ Million Circle Member, a title given to distributors who have made at least US$1 million (S$1.3 million).
Last month, she was also crowned the overall global winner of the 'Keep Your Age a Mystery' photo challenge - a testimony to the Nu Skin ageLOC products that she uses faithfully.
Ms Yip graduated from the University of Hong Kong with a bachelor's degree in social sciences in 1982. She joined Bank of America in Hong Kong as a loans officer, where she stayed until 1986, when she followed her Shanghai-born husband Gary Lee to Tokyo.
She had a one-year stint as a trainee on Japan equity sales at SG Warburg before joining Baring Securities in 1987. A year later, she became its regional director.
Mr Lee, 51, who was a forex trader at Citibank and UBS, became a Nu Skin distributor in 2000. The couple have two sons, Colin, 22, and Gabriel, 18.
Q: Are you a spender or saver?
I think I am a big spender, but only on things and issues I consider valuable and important. My thinking could be a bit ahead of its time. For example, I spend a lot on health and travel but I prefer not to own a car and instead take public transport for environmental reasons. I also refrain from buying jewellery.
Q: How much do you charge to your credit cards every month?
My husband, a qualified accountant, is the chief financial officer of the family. Whenever I need money, I simply ask him for it. I have no clear idea how much I spend really. I have three credit cards.
Q: What financial planning have you done for yourself?
My husband and I bought life insurance policies from our university classmate upon graduation, more to support him than because we truly understood the value of insurance. It turned out to be a great investment, as we were allotted free shares when the insurance company was listed later on.
I have life cover of US$1 million and our family's annual premiums are about US$45,000. I have a mix of whole-life, endowment and medical insurance plans.
To me, the essence of a good financial plan is the ability to provide a passive and recurring income for the second half of my life. That's why the Nu Skin platform was a no-brainer to my hubby and me right from the start. Instead of making premium contributions, we invest our time and effort in building an asset - a global distribution network - that generates current income as well as future residual income.
Now, we hardly touch equities and currencies as the effort to monitor such investments runs contrary to a healthy lifestyle. We lost our health during our finance career. Looking back, we think exchanging health for money is such a bad trade. I have about US$200,000 invested in some United States, China and Hong Kong stocks such as Nu Skin, Sinopac and Jiangxi Copper. I have two yuan accounts in China.
Q: Moneywise, what were your growing-up years like?
I was born in a wooden hut in Hong Kong and often saw my parents arguing over the lack of money. We lived in the small rented squatter hut for four years before moving to a rented public housing flat.
My father was a storekeeper in a drug kiosk. My mum took up odd jobs - including being a school cleaner and rubbish collector - that helped bring in money while still giving her time to take care of her two younger children and me.
When I was eight, I helped her clean the school. Two years later, I helped her collect rubbish during school days off. It was a strong motivating factor to get out of the poverty rut. I recall assuring her that I would take my family out of poverty when I grew up and started working. I had scholarships which funded my studies from primary school.
Q: How did you get interested in investing?
My university entrance exam results qualified me to enter the school of medicine, but I finally settled on economics and finance because of their promise of faster monetary payback.
Upon graduation, I joined Bank of America as a loans officer trainee. I had the chance to meet a number of rich and successful industrialists and entrepreneurs, some of whom were kind enough to teach me the proper concept of money and investment. Although I had no money to invest at the time, the experience gave me a good foundation.
I accompanied my husband to Tokyo in 1986 and entered the stockbroking sector there. In a short span of time, I figured out the golden rules in investment. They are 'follow the smart money' and 'the trend is your friend'. I stopped investing in Japanese equities in 1994. Since then, properties have been my only investment.
Q: What's your outlook on China's economy and your investments there?
Overall, I have a positive outlook. The reasons are the sheer size of the economy and the drive and entrepreneurial spirit of the Chinese. The trends of urbanisation, economic growth, currency appreciation and a reasonable inflation rate will be positive for my property investments in the coming five years.
Q: What property do you own?
Like most Asians, I believe in properties. Rather than focusing on high rental yields, I restrict my property investments to cities in Asia where I may actually live. My favourites are China, Hong Kong and Singapore.
Our first property in China was a 1,200 sq ft condo unit in the heart of Shanghai, in 1988. It was sold in 2003. I bought a condo unit and a villa in Chengdu in the same year. The total net size of both units is 6,000 sq ft and they are in a prime area. Both have appreciated in value by three times. The rental yields are about 4 per cent of current value.
In early 1993, I bought two condo units - 2,000 sq ft and 700 sq ft - in Hong Kong. My parents live in the bigger unit. The smaller unit is not rented out.
In 1989, I came to Singapore on a two-day business trip. I took the opportunity to view five condos and bought two units in District 9. One is a 3,000 sq ft unit while the other is 2,500 sq ft. Each unit cost below $1 million and I'm renting out the smaller one at $6,000 a month. Both have appreciated in value by a few times.
I bought a 1,300 sq ft unit in the Marina Bay Financial Centre area in 2006 and sold it last year after it went up nearly 50 per cent.
Q: What's the most extravagant thing you have bought?
When I was 27, I bought a silver Porsche 911 Tiptronic convertible. That was in 1987 and my husband and I were based in Japan. We were working such long hours we could literally count the number of times we drove it. It cost $150,000. I sold it in 1992 at a 70 per cent loss.
We were riding the economic boom in Japan and money seemed to fall from the sky. The race was for the most extravagant things. The high was at the moment of purchase. I am glad to have become grounded in the philosophy of going green, simple and for value.
Q: What's your retirement plan?
Nu Skin is my only business, my retirement plan and inheritance plan. I want to live the second half of my life without having to think about money, to have the freedom to choose the place and pace of work, live life to its fullest, set a positive example and die in my sleep. I'd also like to continue to give back to society. Presently, I make a monthly donation of 12 bags of vitameal via Nu Skin to children in Malawi and China. It is enough to support 12 kids monthly.
Q: Home is now...
My 3,000 sq ft condo unit in District 9. It is worth about $4 million.
Q: I drive...
Because of global warming and it not being cost effective to own a car, my family has been using public transport in the last 10 years.
lorna@sph.com.sg
WORST AND BEST BETS
Q: What has been your worst investment to date?
It was in a friend's trading business in Canada in 1992. I lost the entire investment amount of HK$1 million in 1999 when the business failed. I was a sleeping partner in that business and I learnt that I should not have touched it if I was not directly involved with it.
Q: And your best investment?
My two sons. It's priceless and phenomenal beyond any description.
My other good investment was buying into Japanese stock Nikkodo, which is a karaoke equipment maker. I remember the Nikkei index was 11,000 in 1986 and it reached 39,500 in 1989. In the late 1980s, I invested US$30,000 in Nikkodo and it went up more than 10 times within a year. My initial investment sum became US$300,000. The market trend was my friend.
me & my money
Making a very healthy living
Mum of 2 traded life in the fast lane for a time- and rewards-rich career in direct selling
By Lorna Tan, Senior Correspondent
When she was regional director of Baring Securities in Japan, Ms Amy Yip clocked 15-hour work days, with little time for her family. The long hours also took a toll on her health.
In 1996, she joined global direct selling firm Nu Skin Enterprises.
'I wanted to spend more time with my two sons but my job required me to put in long hours, including travelling in the Asia-Pacific region. It came to a point where my kids no longer cried when I left the house but they did each time the nanny left the house,' said Hong Kong-born Ms Yip, now 50.
A typical day for her now starts at 5am, and she spends about four hours on breathing, meditation and yoga exercises, before breakfast and starting work. Besides more time and improved health, the monetary benefits of distributing Nu Skin products were good too.
Ms Yip and her family left Japan for Singapore in 2001, when Nu Skin opened an office here. She also wanted a bilingual education for her sons. Based here since then, she has expanded her Nu Skin business distribution network to 20 countries - including Japan, Malaysia, Indonesia, Mexico, Africa and Russia - some of which she has not even visited.
In 2003, she became a Nu Skin US$ Million Circle Member, a title given to distributors who have made at least US$1 million (S$1.3 million).
Last month, she was also crowned the overall global winner of the 'Keep Your Age a Mystery' photo challenge - a testimony to the Nu Skin ageLOC products that she uses faithfully.
Ms Yip graduated from the University of Hong Kong with a bachelor's degree in social sciences in 1982. She joined Bank of America in Hong Kong as a loans officer, where she stayed until 1986, when she followed her Shanghai-born husband Gary Lee to Tokyo.
She had a one-year stint as a trainee on Japan equity sales at SG Warburg before joining Baring Securities in 1987. A year later, she became its regional director.
Mr Lee, 51, who was a forex trader at Citibank and UBS, became a Nu Skin distributor in 2000. The couple have two sons, Colin, 22, and Gabriel, 18.
Q: Are you a spender or saver?
I think I am a big spender, but only on things and issues I consider valuable and important. My thinking could be a bit ahead of its time. For example, I spend a lot on health and travel but I prefer not to own a car and instead take public transport for environmental reasons. I also refrain from buying jewellery.
Q: How much do you charge to your credit cards every month?
My husband, a qualified accountant, is the chief financial officer of the family. Whenever I need money, I simply ask him for it. I have no clear idea how much I spend really. I have three credit cards.
Q: What financial planning have you done for yourself?
My husband and I bought life insurance policies from our university classmate upon graduation, more to support him than because we truly understood the value of insurance. It turned out to be a great investment, as we were allotted free shares when the insurance company was listed later on.
I have life cover of US$1 million and our family's annual premiums are about US$45,000. I have a mix of whole-life, endowment and medical insurance plans.
To me, the essence of a good financial plan is the ability to provide a passive and recurring income for the second half of my life. That's why the Nu Skin platform was a no-brainer to my hubby and me right from the start. Instead of making premium contributions, we invest our time and effort in building an asset - a global distribution network - that generates current income as well as future residual income.
Now, we hardly touch equities and currencies as the effort to monitor such investments runs contrary to a healthy lifestyle. We lost our health during our finance career. Looking back, we think exchanging health for money is such a bad trade. I have about US$200,000 invested in some United States, China and Hong Kong stocks such as Nu Skin, Sinopac and Jiangxi Copper. I have two yuan accounts in China.
Q: Moneywise, what were your growing-up years like?
I was born in a wooden hut in Hong Kong and often saw my parents arguing over the lack of money. We lived in the small rented squatter hut for four years before moving to a rented public housing flat.
My father was a storekeeper in a drug kiosk. My mum took up odd jobs - including being a school cleaner and rubbish collector - that helped bring in money while still giving her time to take care of her two younger children and me.
When I was eight, I helped her clean the school. Two years later, I helped her collect rubbish during school days off. It was a strong motivating factor to get out of the poverty rut. I recall assuring her that I would take my family out of poverty when I grew up and started working. I had scholarships which funded my studies from primary school.
Q: How did you get interested in investing?
My university entrance exam results qualified me to enter the school of medicine, but I finally settled on economics and finance because of their promise of faster monetary payback.
Upon graduation, I joined Bank of America as a loans officer trainee. I had the chance to meet a number of rich and successful industrialists and entrepreneurs, some of whom were kind enough to teach me the proper concept of money and investment. Although I had no money to invest at the time, the experience gave me a good foundation.
I accompanied my husband to Tokyo in 1986 and entered the stockbroking sector there. In a short span of time, I figured out the golden rules in investment. They are 'follow the smart money' and 'the trend is your friend'. I stopped investing in Japanese equities in 1994. Since then, properties have been my only investment.
Q: What's your outlook on China's economy and your investments there?
Overall, I have a positive outlook. The reasons are the sheer size of the economy and the drive and entrepreneurial spirit of the Chinese. The trends of urbanisation, economic growth, currency appreciation and a reasonable inflation rate will be positive for my property investments in the coming five years.
Q: What property do you own?
Like most Asians, I believe in properties. Rather than focusing on high rental yields, I restrict my property investments to cities in Asia where I may actually live. My favourites are China, Hong Kong and Singapore.
Our first property in China was a 1,200 sq ft condo unit in the heart of Shanghai, in 1988. It was sold in 2003. I bought a condo unit and a villa in Chengdu in the same year. The total net size of both units is 6,000 sq ft and they are in a prime area. Both have appreciated in value by three times. The rental yields are about 4 per cent of current value.
In early 1993, I bought two condo units - 2,000 sq ft and 700 sq ft - in Hong Kong. My parents live in the bigger unit. The smaller unit is not rented out.
In 1989, I came to Singapore on a two-day business trip. I took the opportunity to view five condos and bought two units in District 9. One is a 3,000 sq ft unit while the other is 2,500 sq ft. Each unit cost below $1 million and I'm renting out the smaller one at $6,000 a month. Both have appreciated in value by a few times.
I bought a 1,300 sq ft unit in the Marina Bay Financial Centre area in 2006 and sold it last year after it went up nearly 50 per cent.
Q: What's the most extravagant thing you have bought?
When I was 27, I bought a silver Porsche 911 Tiptronic convertible. That was in 1987 and my husband and I were based in Japan. We were working such long hours we could literally count the number of times we drove it. It cost $150,000. I sold it in 1992 at a 70 per cent loss.
We were riding the economic boom in Japan and money seemed to fall from the sky. The race was for the most extravagant things. The high was at the moment of purchase. I am glad to have become grounded in the philosophy of going green, simple and for value.
Q: What's your retirement plan?
Nu Skin is my only business, my retirement plan and inheritance plan. I want to live the second half of my life without having to think about money, to have the freedom to choose the place and pace of work, live life to its fullest, set a positive example and die in my sleep. I'd also like to continue to give back to society. Presently, I make a monthly donation of 12 bags of vitameal via Nu Skin to children in Malawi and China. It is enough to support 12 kids monthly.
Q: Home is now...
My 3,000 sq ft condo unit in District 9. It is worth about $4 million.
Q: I drive...
Because of global warming and it not being cost effective to own a car, my family has been using public transport in the last 10 years.
lorna@sph.com.sg
WORST AND BEST BETS
Q: What has been your worst investment to date?
It was in a friend's trading business in Canada in 1992. I lost the entire investment amount of HK$1 million in 1999 when the business failed. I was a sleeping partner in that business and I learnt that I should not have touched it if I was not directly involved with it.
Q: And your best investment?
My two sons. It's priceless and phenomenal beyond any description.
My other good investment was buying into Japanese stock Nikkodo, which is a karaoke equipment maker. I remember the Nikkei index was 11,000 in 1986 and it reached 39,500 in 1989. In the late 1980s, I invested US$30,000 in Nikkodo and it went up more than 10 times within a year. My initial investment sum became US$300,000. The market trend was my friend.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
I agreed with you one hundred and one percent on your views from the OPM or OPT(time/effort) to properties to market trend.