Cory Diary : Macro-nomics - Where is my "Do" ?

Let face the fact, if one is able to get the macro picture just a step or two ahead, relatively consistent, he would probably be advising some political heads. And he won't be sitting here typing on his personal blog.


However is a good exercise for investor to at least know what the hell is going on with the world. And how the macro conditions impact his investment thereby devising a broader strategic plan rather than micro level investment decision to mitigate the impact and hopefully take advantage of it.


For a start I will take a broad look on 10 year STI chart. Why not max, 5 or 1 year chart. Just believe me lor lol. Ok ! The chart fits better to the human manageable level of cross over for myself. Does't mean is factual or agreed by experts. Is just me ! me !

Looks at the chart with the circle mark. Just didn't cut it right ? Hold my cash tight tight ? make sense ? If it does cut, this make the music complete ?! ( Do Re Mi Fa So La Ti Do) perfect time to add, 'tio bo" ? Joking lah.

If the green green line go further down instead, together with the red, oh oh. So let's pray hard no major negative news for this coming weeks lor.

Cory

20160411

Cory Diary : The Cost of Money

If I am to earn $1000 in a week while he takes 13 weeks for the same absolute amount, we both earn same $1000 in the world of Classical Relativity. In Special Relativity, he has aged 13 time faster than me. I am 13 times more efficient ! And Time is the Cost of Money.

Let's do an example from another perspective where I borrow $1000 instead. What's the holding cost between 1 year and 13 years ? See table below using compounding logics.

Years	Borrow	Interests	Cost of Money
1	$1,000	3%	$30.00
13	$1,000	3%	$468.53

In absolute amount, the cost is 47% of the $1000 for 13 years. Don't be blinded to holding cost. Is a huge one.

Cory

20160406

Cory Diary : Middle Age Crisis - do I have a plan ?

Remembered countless once running in the military with SBO, Helmet and Rifle. The run is like short 10 minutes but I swear is like forever. This is felt by most with varying fitness level. Reason being the pain to endure the gruelling training is agonizing. Time clicks at it slowest. After which when returned to bunk, an hour of rest time quickly past. Well I did feel good about my achievement after.

Time flies very fast when we are enjoying life. Most will likely earn good salary between age 35-45. And this is the time where we feel the power and the wealth generation capability of ourselves. The joy of family, car, kids, condo and vacations. But one thing fall to many folks especially those working in MNC. You can be made redundant at your prime for the very thing you have as the corporate renew itself with the business cycle with new blood and cost structure.

Life do not maintain an even course of distribution. It is up to us to even them out. Uneventful things happens to many. Just like sickness and death, it will comes. Unlike something beyond our control, fall of income or no income is a logical expectation that it can happen to many and not a rare occurrence. Therefore one must always be prepared for it. There is no excuse of not doing the required for the rainy days when we are in the height of earning power.

I always think how can I manage my life if I am to be retrenched. Do I have the needed skills to find equivalent salary scale job. Will I have to start from basic from economic standpoint since i may not be much better than a fresh graduate hire. Should I try to be housing agent or taxi driver ? Attempt some business ? Or am I capable to call it quit and retire for good. This needs to be planned out especially so for those with kids and non-working partner.

If one has done some homework, even a 50% saving of a 10K job may not be enough after 15 years of  good salary to maintain certain lifestyle. Once we know the limits and expectations, we understand the problem better and manage our budget wiser at our prime. So when the day comes we are prepared. Once we reach our goal, every day is a bonus.

For myself, I prefer to call it quit for good at the minimum end. Wife no work. Children at University. Life till 90.  Outstanding loans. Insurances. Allowances ... And then work back with my family on what we should do. Using a semi-passive portfolio to sustain my family expenses, and work back all my asset class to determine how much is needed. Then I determine how much I need to save to support my plan. I also need to figure out what I can cut and reduce to be practical. And what I can put back as I work longer. I also need to make sure I have sufficient experience and knowledge to tie me through the up and down of the markets. This comes in handy as I can be very speculative and learned some lessons. Notice all the the "I"s. Is about owning the problem. Not the government, parent, company or god.


Cory
20160328