Cory Diary : Net Worth Allocation

Millionaire

In 2023, achieving millionaire status in Singapore after 20 years in the workforce is not an unattainable feat for those with reasonably good jobs and savings. The compounding effects of CPF and Property appreciation have made it easier to reach this milestone. However, missing out on either of these can have a significant impact on one's finances.

For those who have not yet reached millionaire net worth, this could be due to personal or family commitments. However, it is important to note that a million dollars today is not the same as 20 years ago. Assuming a typical job that allows for annual savings of $24k, a 3% annual increase with no investment or a 4.5% return on investment can make a significant difference over 20 years.

Below table tells you the differences in total after 20 years. 

Managing Risks

Investing in something that provides a 4.5% return, such as CPF SA at 4%, is a good base as the capital is protected. Reits, stocks, properties, SSB, and FDs are also options, but it is crucial to ensure that the principal is not compromised and to understand the cost of capital if investing outside of CPF.

Recent research on millionaires shows that equity is not the primary path to wealth. Cash, bonds, property, and business also play a significant role. As a salaried worker, it may not be possible to have a business, so it is essential to allocate net worth across different categories. The chart below shows a typical allocation for net worth, but it is important to note that movement between categories over time is necessary to arrive at this point.

Overall, achieving millionaire net worth is achievable with discipline and smart investment choices. Building a diverse portfolio and allocating net worth appropriately can help achieve financial goals and provide peace of mind in the long run.

Net Worth Allocation

Below is chart that I am tracking into. As a typical salaried worker I do not have business. There is minimal buffers in my computation so no sandbagging. What we don't see is the movement overtime between the categories to arrive at this point. For example one could have sold a property and realised large amount of cash previously. So read it as current status on allocation.

Chart allocation of Net Worth

Broadly speaking, this looks quite similar to peace of mind plan. I would like higher value in property allocation and this take it's own time to materialize as in possible property appreciates while other categories reduces through expenses when we step into retirement mode.

Cory

2023-03-29

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Cory Diary : Financial Investment Updates

Have not been posting lately so thought is good to document down current Market situation and actions I did. First in recent days, Tesla has faced significant down hill in stock price. As I mentioned before in  previous article, growth stocks that do not provide dividend basically means there is no cushion or support to stock price when market in down turn or bad news.  It's market valuation basically determine by market forces which can be macro or engineered through different investment instrument.

I suspect the deep sell down in Tesla likely is due to popularity if investors selling put options for income that suffered the recent meltdown. Despite reduction in Tesla investment, and lower allocation down to single digit percentage, the capital loss is still quite sizeable. So on hindsight I should have reduced further my allocation to minimize the extreme volatility. The reason why the portfolio is mainly dividend based investments.

The Base Line Investment Support

In-addition to Equity, continued to do SSB renewals to higher rates. This is quite welcome as the bulk of the investment is for housing loan emergency needs and managed to lock strong rates for next 10 years. Will continue to renew various batches as opportunity arises.

Short term Cash in Saving is further reduced by taking up 6 months T-Bills. Managed to get recent 4%+ batches. This is carefully timed to need of cash flow.

Another good news is DBS Multiplier has adjusted the interest rates to 4.1% for those that meet all the conditions which I did. Keep in mind that the rate can also be easily adjusted down when macro force changes.

Also did some Fixed Deposits at 3.8% rate. Not that great but enough to park it for 5 months such that I can only use it 5 months later from my itchy hands.

Saving Cash

Continue to review and adjust this segment of Cash constantly to make sure every bullet tapped from it is efficiently utilized to support dividend income. There is huge temptation to average down into Tesla however I am past my Prime and Risk Tolerance. Nevertheless will constantly review my thoughts and maybe do micro injections if there is good buffer. The basic idea for me is Tesla is selling a dream of generational wealth so the investment is long term. Longer than Reits therefore the allocation is more absolute rather than in percentage to portfolio.

Cory

2022-12-29

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Cory Diary : Jolted in my Sleep

I have this Fear again. Remembered the series of relapse after graduating of occasional lingering dreams that I am late for exam, not ready on certain subject, missing important classes etc. So I am fully aware on my emotional fear deep down coming to formulate my dreams.

The recent fear is in similar situation where after the human mind is conditioned to do things resulting in stress accumulation. And when it ended or plan to end in this case, the dark side appears in our lingering dream. Is something like PSTD though probably in milder form.

I have been working for more than 20 years and now towards early retirement and semi is not in the card yet. Knowing myself psychologically, I need to be mathematically safe before I take the leapt. Yes, the binary problem which I just blogged in my last article. Is pretty hard to shake it off. That's the angle that may come useful to explore too.

For now what are the things broadly. Is basically Money. How many people is not ? Money cannot solve everything but no money definitely cannot.

1.    Young Family

2.    Home Loan

3.    Portfolio Safety and Returns

4.    Maximize CPF VC Contribution till 55

So probably occasional jolts won't subsides till I get my Math right on my income generation asset or robust plan to get it through. And maybe after will still have few instances of recurrences.

Financial Status

Working Expenses Fund

Two years of working expenses in cash

CPF

CPF RA will kick in on Age 65 which will supplement my income after 14 years. This also align my daughters age to college. To optimize my returns, I need to maximize VC till 55 where SA allocation is at it's highest. This potentially means tapping on free cash that I am reluctant to make. The plan is to ensure my investment bonds are reduced accordingly to zero except for SSB. Fortunately, the amounts will match what I needed and likely more. 

Whether I will contribute further after 55 will depends on Free Cash Flow and CPF policies. It will be interesting to know by then.

Non-Salary Income

Dividend Income today is capable to cover annual Home Loan. So technically speaking, there is no worry of paying housing loan. Whatever additional free cash will be for living expenses. And that's the point. Living expenses sufficiency. So the crux of the matter is I will be quite dependent on this dividend income for living expenses if I am to retire today.

I still have rental income support as well that I have yet bring onto the table. Well I have decided this income leftover will be buffer since I am not allocating Loan payment on it.  Rental income covers Maintenance, Tax, Repairs, Upgrade, Insurance Payments and Parental Allowances. As you can see, Rental income is quite sizeable therefore I think is a bad idea not to let local benefits from rental market which can well support their retirement.

14 years of Home Loan Outstanding

Currently,

Reserved Two years of Home Loan Installment in cash

Secured Three years of Home Loan Installment in Bond

I could eliminate the Two years of reserved cash to 6 months, this will optimize my returns. The three years in bonds will be use for general emergency long term as the returns are reasonable. 

Opportunity Fund

10% of  Portfolio Opportunity Fund currently. This fund is critical because is active managed and helps to grow my dividend income. How to maximize it returns will be tougher as I may need it quickly. Putting them into bond or fixed returns that affects my response time or sell price won't be good either.

Maybe maintaining 15% of portfolio value for Opportunity fund seems a better balance and not too much idle. One way is to sell some of my portfolio when the market is in euphoria stage. This will secure 15% needed with shrinking portfolio value and growing cash. Dividend will be reduced. However since I have some idle free cash now, I should have them injected to increase my opportunity fund instead.

Market Returns

Well after going through so much on managing my finance, it looks like I am set to go. The final is the broad market returns. Frankly Speaking, Investing in Stock Market has been fruitful exercise. See below chart on over the years return. Absolute Profit vs Year.

The cumulative gains switching to dividend play has been amazing. To be be truthful I don't see myself getting rich from it versus the Net Worth I have accumulated. The gains likely mirror similar to a landlord. 

Even though I have stepped into US market a little. Most of my Portfolio gains over the years are still unrealised gain being a dividend player.

Looking at the chart carefully since 2018, if we include this year, there will be 3 years of strong profitable returns. The chance of 4th in the Year 2022 is lesser based on my track record. Maybe time for me to be prepared for a curve ball. So my take is I will hold on to the larger Opportunity Fund amount more stringently.

If the market continues to move up in my 4th year, I am happy else I have a larger Opportunity fund to buy in. Sounds like an exciting plan though mitigated.

In summary

The plan will be as follow except that the stage in blue will need to be very careful.

2 Year cash reduced to 6 months -> 15% Opportunity Fund -> Invest fund greater than 15% opportunity allocated -> Grow dividend well above annual home loan -> Support living expenses

Retirement where Living Expenses is covered by Increase in Dividend Income above loan and returns outside Shares dividends. No draw down planned.

End Goal

15% opportunity fund

Home loan covered by dividend income

Living expenses covered by additional incomes

2 years of living expenses

3 years of general emergency fund

6 months of cash buffer

Quite sure this will not be the end of it. I will be back again to straighten things out.

Cory

2021-0627

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Cory Diary : Saving and Frugality

To start in proper - Saving is the act of spending less than you earn in income, and placing the remainder into a reserve account for later use. How much ability to save ties somewhat to frugality.

Being Frugal

To me it could means minimize wastage. It can be avoiding large wastage of uneaten food. Imagine the amount of saving from uneaten food of each meal as it forms a large part of our basic cost. However, we cannot trade it over balance diet else illness may visit us which will cost a lot more. Fortunately I do not have crave for titbits and soft drinks. So on both health and saving wise, stars are aligned for me.

If we do often enough, drinking Starbuck instead of KopiTiam where the marginal utility may not be very wide for me, saving could be quite significant. Probably 3 times.  So frequency matters in this case. If it provides high satisfaction for your life, do go ahead for your daily Starbuck, while I enjoy my kopi siew tie !

There are items in home we should never brought home. Unused bulky exercise equipment. Souvenirs or tons of  fur toys that we never really appreciate when brought home. I would go as far to include massage chair. That's doesn't mean you should if it does bring you big comfort. Being frugal also means able to focus on big ticket items. If Tesla car design is what you need, while it could be luxury for some, may not be for others. Maybe we can go for Model 3 instead of X. 

To some others could be stringent control of expenses. I find this unnecessary "suffering" for myself. What we need to take is a balance approach in life before our mind get conditioned to think is ok. Some could think that's the way however I beg to differ. People who track down to tiny expenses daily, for years. Take a step back and think, are you the character type that will  spurt or time is better spend else where to grow your income unless you telling me your life is to keep track of such. I close my case.

We should still go for occasional social, cab when is not convenience to use the rail and short holidays. And no way I want to be late for work or appointment just to save on taxi fares. Being early for a meeting may put me in a better shape to kickstart my working day and further my career and therefore income. Once in a long while maybe a delayed major trip. Delay gratification helps but don't push it out too far out. What this mean is we should try to expand our life to some extend to appreciate and enjoy within reasonable budget constraints while we compound our money but not to stop us on to get better on appreciating humanity and cultures.

Things I valued is like walking out in the morning through the garden to freshen up my mind on the way to nearby kopi shop to take my breakfast. I could spend like $5 and enjoy slightly finer things in life. I know some would try to cut down to $2 or have it at home eating bread from QAF. If that's is what one preferred is ok too if that's what you enjoy to do but make sure you do ! A short chat with the stall employees and cleaner brighten up the day.

As one may remember I got a notebook recently after many years till if I find the efficiency beginning to be a drag. Is not like I am stingy to get a new one in a shorter time period but the old unit I had was a power itself for my needs till auxiliary parts start to weaken. And I decided to look for medium range value or better. 

Being excessive in saving habits or subconsciously could have unintended consequences when ones life in earth is limited. And yes we live only once ! So don't waste our life time just to skim in everything or for argument sake in most. Often we are so busy we miss out other aspect of life which form our existence in this world instead of enjoying the process of it. I was single for a long time. While people admired the freedom I had which I do have, deep down in my heart, if I could married and have kids, making like full circle, I would. But I am not going to trade it without getting the right partner. Luckily, I did but is ok if we are not as we will find different option paths of different life and my expenses rocketed. Yup, it REALLY does but I am happy. That's what matter.

Personally, the best way is to find ways to improve our earning and this could be spending more to improve ourselves, skillset and broadening our perspective in life. Looking for way to improve our value in the company and leading project to improve efficiency. Time is money too so we need to watch the fine balance between them.

I come up 2 scenarios of different people just to give us a thought in perspectives. Is not trying to convey spending beyond our means definitely or trying to achieve FI by ensuring lifestyle remains the same after salary tripled. I do not think is ok for one to do that. There is no prize saving the extra Million to beat the others when our life is limited. I am more like Scenario 1 Person 3 in the past. Now working towards Scenario 2 Person 3. Not the exact amount of salary though but you know what I mean. 

To sum up my idea using above table. Using Scenario 1 assuming varied income with same expenses. Person 3 saving is 13 times ! of person 1. This is a little extreme of higher earning but continue to maintain low expenses of one who only draw 3k years ago.

Scenario 2 is where as one income grow, we adjust our spending. Person 1 in this scenario tried many means to squeeze saving.

Scenario 1 of person 1 and Scenario 2 of Person 2 and 3 are options we could possibly choose. Lesser saving when one is earning less, by proportion. And adjusting for better lifestyle when people earns more. We still ride on larger absolute savings. That's what earning more is about, winning both ways. The Way of life.

Cory

2021-0104

Cory Diary : Financial Updates

Salary

To most people, the largest impact will be Salary Income. Well, at least for my generation. :) Within the organization we have been asked to prepare a small list for possible retrenchment if there is insufficient attrition. This is not like we are doing bad. The company is doing quite well but I guess the top management always like to see constant lifting of performance bar, talent flows, cost structure etc. It does cross my mind whether should I ask for voluntary however money is always not enough even though financially I am quite ahead on average. 

I am now in the mode to work as long as possible as I am on my comfort pace. The idea of constant cash injection into my saving account, occasional Bonus and then Stock rewards in-additional to other benefits can be quite "addictive" rather than the fear which I think always lies right at the bottom which will surface occasionally when I feel not enough money to invest. To put in easier context to understand, every month of work remuneration equals to a paid holiday vacation for the family. That's how hard to let go.

In-addition to that, able to contribute actively in the workforce and seeing products you are part of is always fulfilling other than being in constant InTouch with the industry and people. Often as well the satisfaction of able to lead and guide members of my team and colleagues will feel rewarding as it does need certainly level of seniority skillset often lacking in the company. I have seen people who work on projects for many quarters when the scope is not really practical or required. This is a sign of lacking experience people who can close them in minutes. So much effort spend on useless projects. Maybe there are too many Project Managers just to keep everyone busy and paid.

Asset Allocation

It has been some time that I have not been Tallying up my asset. I feel the need to do this to move forward as there are competing areas we need to review, balance and invest. Cash, salary, dividends, trades, loans, credit, local/oversea, current/non-current are all the moving parts. How much buffers or spare cash after emergency, housing etc. There are many saving and investment accounts to check. Basically it boils down to Cashflow and Return. To move I need to have a good view on past and current for the future. This is how I derive my Total Net Worth too. Asset wise reach ATH due to gain in company stocks else I think is a flat quarter. Kind of lucky.

There need to be comparison when I talk about adjustments. Here's the previous post. ( link )

Investment Accounts

There's a decrease in investment account as I invested more. Cash is up too. So Probably I could re-balance them. Fixed deposits are now mainly in oversea accounts as I plan to eliminate most of FD locally. Emergency cash is now saving cash. Similarly, Bond will be on downtrend except for SSB which is under Gov securities.

CPF

CPF has expanded due to top ups. And this hope to be annual affair before Age 55. I plan to try out SA investing just to have a good ideal on the Shielding Process. Overall, CPF is a portion of retirement plan and my expectation is Stock will really be the key after I retired.

Expenses

There is a few big ticket items. One is I feel Rei needs a boost in immunity and decided to provide her a RSV. 1K cost in nanny for each girls. A coway air purifier. Coming expenses will be new set of clothing for Xin as she has reached 2 year old. Tax Payment. Have been contemplating to move to a larger apartment but currently at back burner. This could change anytime.

Tesla

I did a quick glance through the recent correction in US Market and most of the spike has been worn off and is back to the manageable slope of growth path. Having step into US market proper, there are opportunities that I could setup more funding on them. One of my favorite is Tesla. Right now the invest amount is minimal but I could expanded my investment exponentially if opportunity arise. Market can still come down as valuation wise is still quite rich across the board.

Tesla is already a profitable company in 2020. However, the profit looks emerging which means trying to use PE to rate them will give you a very high value which looks very expensive but misleading. Price has swing down from 800s to 500s and back up to near 700s. The swing is wild which I never expects that being new to this market.

For Tesla current PE ratio is 1083. Astronomical number. However the earning could doubled quickly from 0.64 to 1.28 and the PE could come crashing down to 500s. I am not saying it will be this for sure but for a high growth company which is just profitable, the potential is there. The EV Car is real and selling well and limited by it's production capacity. Is a calculated bet as they are a prime mover of the industry just like Apple on Mobile Phone. You know they are doing well when there aren't need for Sales People. The signs are all there of a successful company on a path of prosperity.

I am quite excited with US stocks even though they are still a small portion of my overall equities.

Reits

Singapore Reit market has been shaken by recent yield spike despite the overall yield is still very low in the grand scheme of thing. So I am quite confident to continue to add. The Reit yield is now quite attractive for example Ascendas and MINT both hit more than 5%. I did a timing trades selling significant portion of my Ascendas when the price peaks to a point I sold too much and need to buy back some just in case I am wrong. That's a good move this Q1 and has been in buying back mode since. That's a few coway saved.

Later batches do takes time to build up as purchases are spaced out in case the retraction drawn out is long. I do not want to be a in situation that my precious fund dry up too early which will be bad for the mean values and missing out a much better yield returns. This also helps to maintain sufficient War Chest which are pooled together not to get depleted before any major crash.

Trading Accounts

Finally, to make thing slightly complex I have a few trading accounts. Trading cost is now a growing concern for me as this point of time. I have been using DBS Treasure for a large portion of my trades now. The transfer of fund is also make easy being connected to the saving accounts. However for US trades I am still going through Poems - Cash Management. We will explore later as we grow over there.

Dividend

Dividend wise for Q1 is a little slow. In summary. Take this with quarterly and half yearly in context for different stocks. Theoretical max is now $57k annual as each time there is market draw down I will start buying bigger which helps to boost my dividend. I hope to be able to achieve $60k mid term.

Syfe

Starting to explore Syfe and probably a few more similar products if any out there for diversification. This is more for legacy planning on how my family can continue to invest in a more assisted way. And will likely to do some try out as this will be easier for wife to manage instead of stock pickings. I have never been keen on Unit Trusts as to me is a black box that can be easily manipulated or affected by a few individuals. I could be totally wrong on this perception but I will still be ok. Robo Advisor platform maybe a new dimension of investment which seems much better, harder to be manipulated and we have more controls. Anyway i could be wrong but is first step in learning.

Cory

2021-0316

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Cory Diary : Late Night Chat - CPF

Last night I have a chat with wife like 2.30 am as she was tied up with work while I was trying to manage my CPF accounts in preparation for retirement plans. This aren't a systematic work discussion but kind of jumping in and out from one topic to another and then jump back to previous again. 

We talked about the worst case scenario like both of us decided to call it quit. How financially we able to continue to manage our expenses and taking care of our babies. And what outstanding to get our financials in order. 

Progress on CPF nominations which I have been procrastinating for a while, and how we can use CPF to supplement our expenses. I still have few years before hitting 55 so if we have to do something on topping up CPF using cash, is time.

I could release my fixed deposits that has been tied down. Singapore Saving Bond will be the core backup for emergency loan installments.

One of the possibility open up is for her to take 6 months leave-in-absence to take care of our household while continues to have nanny to care for the toddlers during our day time. She still want to keep her job.

She also propose to make active her saving available for future investment with my guidance. This will give our family a boost on dividend income. So I thought this is great. We have been reserving this option as additional emergency fund. However, this will take a while as we need to map this out more carefully.

Nominations

Long time since I last did my nomination so is time to update them. The Online nomination is cool. Hopefully it get processed. Few minutes job in the actual submission but need to get two witnesses with SingPass access for the declarations. I also found from 1M65 Telegram that if we nominated minors, they will have to wait till 18 before they get distributed. Here's the link if you like to find out more. (PTO)

Discounted Singtel Shares

Found some Singtel shares in my CPF which I just requested to be sold. Ouch ! for not managing them actively. Last traded my Singtel Shares in Year 2019 on some leftover shares as I do not see strong future of the business. This will simplify administration.

Singtel is one of best performing counter based on investment life of the stock. Today with the banking license, I have yet to see fundamental change that will improve the business significantly though it can still be profitable. 

CPF Interests

Have my SA Account Max to FRS mainly through OA to SA Transfers. And now exploring VC3AC(Top-up to all 3 CPF Accounts). This is interesting because is not via Retirement Sum Topping-Up Scheme ( RSTU) so we can do SA shielding later as I understand if we still can later. The main idea is that this option allows me to continue piling up my SA other than regular work contribution (MC). The downside is that some allocations depending on age group will  go to OA and MA. There is annual limits that we can contribute so every year before 55 counts.1M65 is great source of info in Telegram. 

My hope is that we could live off with some interests off CPF after 55 without touching the principals in OA and SA. What this mean is as someone feedback in my blog and from the Telegram Chat is that we should withdraw interests earned from OA and SA in the 2nd half of the year, preferably later months to allow interests YTD to accumulate before they get credited as principal in Jan next year. This will ensure the OA and SA Principals remain untouched. This is after 55 where the SA is FRS into RA and we have left over monies in CPF OS and SA.

Children CPF

Just requested for my children CPF details to be make available to me for verification. I have done some samples top-up into their accounts recently and would like to understand this further. Currently just nominal sum into RSTU. Some people prefer VC3AC as this will make the funds available to their children in their OA for housing and MA for their Medical. I thought this is neat idea.

Please DYODD as I am new to this journey. With that of my sharing, hope you have some ideas too.

Cory

2021-0113

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Cory Diary : Increasing my active investment for Passive Dividends

The Goal

The Covid-19 throws a spanner on increasing Portfolio to $1.3M quickly from 1.2M as in we need to be careful in our investment injection by $100k which is part of Warchest. So why this amount ?

.

Here's the link because of the compounding effect @1.3M per my lifestyle. (contingent to yield 5.3% able to maintain @ 1% growth). However if the stock price keeps increasing but business fundamental weaken or not enough improvement, the yield will be lowered. To compensate it, higher cash inject will be needed or expenses reset as we age. Hope I don't lose you by now !

Let me explain again using Reit term. if the stock price increase by 1% (Growth), and we have corresponding reduction in yield say -1% (DPU in cents maintain), it kind of neutralize the compounding effect. This is not good as we lose that year of compounding. So DPU has to increase accordingly to maintain the yield. If is not which could be, and to bring the portfolio backup,  we need to increase our investment through injection or we spend less to support the injection. Get it ?

Of-course we can increase our yield by investing in riskier asset to maintain it but this is not sustainable long term and will mean Portfolio keeps getting RISKIER over time .... . And that is Dangerous which some people may make, like me on what I feel right now  ? LOL

Therefore, come to think of it, is not so easy as the calculation is a simplified model. To mitigate it therefore using above example, if 1% growth of 1.3M that is equal to $13k has to come out of Real growth. When there is no DPU growth, we need to inject in this amount of $13k or spend less to support it roughly.

This is why advocating dividend re-investing is important or injection from saving if you have a job as changing stock aren't easy for same quality. But the key is capital gain has it's price to fulfill for dividend investing.

Something new today.

Cheers

Cory

2020-0726

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Cory Diary : Net Worth - Just looking at the Chart

This update shows the impact of Covid-19 to Net Worth. The top green and white lines include property net value but won't be reflective in current scenario due to much reduced transaction for reference. If the crisis deepened, we should see the Property net value to reduce and therefore lower level lines.

The Cyan line is the liquid line and current YTD is roughly the same as start of year. Basically recovery of the stock market and some saving from the first half year. At personal level there is V-shaped recovery in asset.

The Yellow line is the investment in Stock market and Gov securities which in total maintained. Showing some similar story of nearly a V-shaped recovery. However, equity dividend expectation has increased to $62k at current invested amount.

With major items like Tax, Parental allowances, Confinement costs and most of normal cost for 2nd daughter delivery already paid, 2nd half should see higher net worth unless the stock market has 2nd dip. This is mitigated with sizable FD, SSB and cash. Investment wise,  retaining dividends, saving and 75% of warchest amount remaining for it.


Cory
2020-0628

Cory Diary : Poverty

More than 20 years ago,  I worked in a local company and has a good Malaysian friend as lunch buddy. As a young graduate then whereas he is very experience and knowledgeable but lesser educated. In one of our discussion, we talked about stocks and he commented he don't have enough saving to do that. I could not comprehend that time because I am just new into the job and have enough money to dabble in stock market. Fast forward today, I think there are variety of reason probably. This is best summaries by this teacher below on pitfall that can fall into us today.

A Video which I thought is excellent from this Chinese Teacher who is able to collect wealth of information on why people are poor. A lot of controversy however this makes us think how to do thing more smartly. How can we not fall back below poverty line. How can we be richer.

I hope this can help some of us.


Cory
2020-0521

Cory Diary : Feedspot

Just get to know about Feedspot recently from an IN friend.

https://www.feedspot.com/ 

https://blog.feedspot.com/singapore_investment_blogs/

"Top 75 Singapore Investment Blogs" . Proud to know I hit 38 :)

Cory

2019-1222

Cory Diary : Be very careful - listening

Often in leadership training, Listening is a Core Skill. The ability and willingness to listen can give us a very different picture on our conclusion and values. That's why communication and empathy is important. Your willingness to bring down your judgement and let the lava flows.

During the course of my work blockages happen therefore sometimes I do have disagreements with colleagues.  However, I have a practice of keep thinking about the problem and why people have different views from our "100% Right" ours. This are intelligent people. We are suppose to think logically for the same problem which often not ! Overnight our brain will sub-consciously think about it , and the picture formed with the Eureka moment.

We can extend this ideas to recent event such as HK democracy movements. Often we will see the deepening violence by Rioters. Many Singaporean will conclude is no reason for violence. Frankly, my thoughts will be HK people aren't less stupid than us. Like us, their economy is on toe to toe competing with us. So why the 6 months of violence and protests ? This question will ring in my head as I try to form the rationale.

Many will say this are spoil brats kids. Hold on, didn't we have millions marches on their side ? How about the landslide victory by Pro-democracy candidates in Hong Kong's district council elections ? This doesn't make a lot of sense. We know Violence is bad. But what Media tells us do not match with the "Results". And that's the point with brain washing on the Media inclinations. That's the power of Media. It can Brainwashed even intelligent humans into tamed animals. See what happen if done in a national scale without the other opposing media except a single authoritative one. We can have a whole generation breed align to state doctrine sub-consciously even on very smart people. In rare situations, a few will takes the Red Pills.

Same thing this can applies to stock market. When you have analysts, Guru in forums or even bloggers pushing for specific stock recommendation or ideas. The interesting thing about this is that they do not need to lie. They don't have to. They just have to present what they like you to see and keep quiet on opposing arguments to "brainwash" you.

And this is what I like about American democracy. We have CNN and Fox News out there competing each other on opposing stunts to brainwash the public on Trump/Republicans and Democrats. A lot of noise certainly but it can be worst if is one-sided Blue Pills.



Cory

2019-1125

Cory Diary : When Family Planning and Financial do not mix ... we have lesser babies

I have an exchange with a guy recently on why Singapore has dwindling birth rate. The reason he gives are cost of living and job security. Not surprisingly this looks common among developed world therefore internally I feel this reasons are derived from common sense logic and need not necessary be the case. We barely scratch the surface of the truth which I think could start from Stress.

Stress can comes from anywhere. Jobless, Insecurity, Lack of Self Confidence, No Money ... . But why mainly developed world ? Because we think too much. As we have better education, ability to plan ahead and see further actually becomes a hindrance to family planning. We also start to procrastinate for life partner as well. On top of this, lifestyle has changed and arrange marriage loses it's tradition and shine.

When the guy is in mid 30s and above, and more financially secure, sadly our lady biological rhythm do not change with time. When she hits 35, fertilization deteriorate rapidly. Women start to have difficulty getting pregnant as years go by. Even if she does, there is higher risk of birth defects and miscarriages.

To add further, Stress impacts on animal and humans alike. Our reproductive systems shutdown and we have more secondary effect like illness. An extract from an article. " In animal populations, as in humans, some individuals have better coping mechanisms to deal with stress, which gives them an adaptive advantage.".

The luckier ones have parent helps.  The much longer route would to be wait for financially security. How many hits it and in time is the problem. Unless one able to climb the corporate ladder quickly or in covert jobs this won't be easy. Personally I feel the easiest route would be not to think too much. Maybe the plan is to forget about family planning and just go ahead. :)


Cory
2018-1024

Cory Diary : Why are we trying to beat the system ?

Apartment loan

When I bought my apartment years ago, I wanted to have more cash flow therefore decided to tap of CPF OA. By then I have some knowledge on Good Debts.  Fast forward now, if I have to go through this again today, I would have leave CPF alone. First of all the amount I tapped is just 5% of the housing value. The hassle is not only unnecessary, and if the amount is to be compounded, I would have less saving in total as I need to pay myself the CPF interests that has been borrowed. In addition for comparison, CPF is AAA rated, backed by Singapore government. If I am to buy a private bond, it would be much lesser returns and unwarranted risk to private companies. This totally do not make sense for myself as my exposure to CPF is not major.


Minimum Sum

By age 55, I could withdraw amount above minimum sum. I would expect a number of people to do that. Let's think about it. Why are we so keen to withdraw the monies. CPF is design to support our retirement and to safe guard our golden years. So it seems illogical why people is rushing out the door once they hit the age. The main reason could be the mistrust of institutions. The other is they just want to spend it before their times are up. Both of which is illogical to me. For one, most of my monies will still be denominated in Singapore dollars. And if there are distress in government debts, even saving bank could be frozen or cut. So is either I have a stake in Singapore future or am I not. The later reason on money available to spend is not only irresponsible but there are high risk of financial difficulties if one reached 70s-90s. The one viable scenario I could think of is when I am much way above the minimum sum that drawing some out will give a better return (Not guaranteed) or lifestyle which I COULD AFFORD.


My CPF Plan

Unlike other segments where there are risks, CPF is safer than bonds of good interests. Personally to me this one of the best available investment tool available to be managed at portfolio level offering stability and respectable growth. Ironically, the lock-in is the best part of the system which provide robust protection to citizen. As most of my assets are Non-CPF it will be unlikely I will ever need to do early withdrawal. This will form a nice retirement portion to supplement my monthly income at 65. If I could exchange off min sum at 55 for higher interests, I would opt-in !















I am sorry if there are dissenting voices due to political differences therefore CPF. To me this is purely my personal judgement on financial standpoint as an average investor to go along with the system available to work with us. At the end, if there are money in my CPF-Life once I passed, that's my legacy to my children definitely but certainly I would't want to be HDB as this could mean I have failed as a parent to bring up my children sufficiently.


Cory
2018-1023