It’s time to take a break

Dear readers,

Merry Christmas and a Happy New Year.

Saw some Christmas decorations.

First millionaire is hard, second millionaire is easier

 

 

Source: Galerea

We have read umpteen times the rags to riches stories, though inspiring but ironically, those are the few who moves to the top of the pyramid. Most don’t. 

The gap between the rich and poor is not going and will never narrow. So the cliché: The rich get richer while the poor get poorer.

The first millionaire is always the most difficult, and if your definition of rich is at least a multi-millionaire then it’s as good as climbing Mt Everest on a wheelchair.

I will stick to a million.

For an average person who has $10,000 of surplus, should he invest intelligently, and receives conservatively a return of 10% p.a, he will need to compound that earning 48.3 times before he reaches his first million.

A millionaire with a million to invest, should he invest un-intelligently and receives a petty return of 10% p.a, he will need to compound that earning 7.2 times before he gets his next million.

This may be an overly simplistic view but consider the options between the two and the years required to make a million. Should the average person invests at the age of 30, he will become a millionaire when he reaches 78 years old.

The same goes to the rich man, he will be 37 when he gets his next million.

Notice I mentioned above – invest intelligently and invest un-intelligently. It’s easy for a person with a million dollar to be offered investment opportunities that yield him more than 10% a year. Consider the private financial products that are only available to the high net worth. This person isn’t too investment savvy if he manages to net only 10% p.a.

The average person who invested very intelligently is still running an unfair race with the rich. No private banking products for him. Limited capital means limited opportunities. 10% p.a could be a good year or normal profits, to make mega profits he will need to have superb foresight. That’s most probably the rags to riches stories we know. The rare accumulator of wealth. Most don’t.

This scenario is even more distinct in a capitalist economy.

So it’s better to be an un-intelligent man born with a silver spoon than an intelligent man born with little resources. MBAs and PHDs don’t count, a silver spoon is worth a lot more than paper qualifications with greater intrinsic value.

Who will be offered better opportunities? The one who mingles in a circle of rich men or the one who mingles in a circle of ordinary men, each with $10,000 in surplus?

Opportunities are not equal though every government would like you to believe otherwise. The rich and poor don’t start the race at the same level. Any changes in prices, most commonly petro, housing and commodities put the burden on poor while the autonomous increment hardly bothers the rich.

Look at the growth of wealth between the two classes and their autonomous spending, it’s a no brainer who’s getting all the knock-outs.

So…

Good fortune to you if you are rich and good luck to you if you aren’t. 

My wishlist for Christmas

I couldn’t wish for more bonuses given the ailing economy and global retrenchment, I am lucky that my company paid me bonus despite a slowdown. I simply cannot ask for more. I have only 1 wish for this Christmas………

A return air ticket to Mauritius!

 

Source: i.travelmail.co.uk

 

I have never been to this part of the world before. Always wanted to visit this place but no chance to do so. Sun, beach and resorts, the perfect holiday for this Christmas.

I have nothing to do with the banks

Source: wallstrip.com

My association with any bank is to park my money and to withdraw money. And there’s nothing more to it.

No investments though I do when I was a young investor.

I remembered once I walked into a bank to buy unit trusts. I was sold by a financial advisor, funds from Allianz. That wasn’t my choice but was persuaded by the sweet talker to part my money into the fund.

That’s the only time I took the advice of a “financial expert” for my investments. How unlucky, I lost my money for this “first time”. I hardly make losses on any investments, I am not bragging but I have always been “lucky” for my investments.

Don’t listen to them. They are either selling hot funds or newly launched funds to meet their quotas. Hot funds are easier to sell, I assume.

My returns are good if I pick my own funds and manage my own investments. Eventually, I lost money in Allianz while making an average of 20% from my other investments.

Looking at the way the banks handle the credit crunch, I feel a sense of relief that my relationship with the banks is nothing more than deposits/withdrawals/drafts. Investors are left in the lurch when Lehman collapsed. Forget it. I don’t need a “financial expert”. 

Until the banks show the initiatives to help the investors who invested their money with them, I rather invest directly than through the banks.

Be practical with welfare

Source: The Age

Just recently, The Newpaper published an article on a couple struggling with financial difficulties, not having a proper house for them and their 8 kids, despite the tough situation they are in they are wasteful in their lifestyle.

The sole breeder in the family left his job because he wasn’t happy with the job he held. He has a big family to feed and housing loan to pay. Financial planning is missing here.The family upgraded to a bigger house despite having huge burden on them. While being in a difficult situation like this they did not show the desire to get out of it.

We should help with eyes open and not for the sake of good gesture. They increase the costs to the society and apparently the sense of urgency is missing in this case and the burden goes to the society.

Hardworking tax payers are paying for their expenses. Maybe they assumed that it’s the society’s obligation to help them. Let’s get practical, assistance should only be given to people who really need it.

The authorities should stop assistance to those who refused self-salvation by being counterproductive. 

The Best I Could – Subhas Anandan

The Best I Could

 

Author: Subhas Anandan, one of Singapore’s most famous criminl lawyers.

He speaks his mind. He said law is not equal to the rich and poor and was rebuked by Attorney General, Mr. Walter Woon in the papers. 

I like to buy books after reading numerous reviews; there wasn’t any for this book when it was launched. So I took a quick look at the contents when I was at Borders, without much consideration I bought it. This is one of the very few books I own without reading any reviews.

I have no regret for paying $29.96 for this book. It was well written, half the book dedicates to Subhash Anandan and the rest of the book tells the stories of the trials he defended and the worst criminals he had faced. The book highlights some of the most diificult cases he handled during his 37 years in practice like the trial of  Anthony Ler, Chua Tiong Tiong, Tan Chor Jin etc…. More cases covered in his book.

I was surprised at his imprisonment (framed by police officer). And that makes him a very interesting character.

Some articles about him:

• His regrets
  
• Understanding Subhas
• His views on death sentence

Though interesting but the book is still not complete, I wished he could have gone into more details in the cases he mentioned, nevertheless, a good read. When I was at the MPH today, his books were taken off the shelves? or totally sold out? I could not find a single copy.

Thank you for not employing me

Source: Wikimedia

I have always wanted to join the banks after my National Service. However, my applications never got through for my lack of experience. 

That was years ago.

I am glad that the banks rejected me, I felt a loss at first but I guess it was a blessing in disguise. The banking industry is perhaps the most volatile with super high turnover.  have some offers from local banks last year and recently but I wanted more time to consider.

After DBS retrenchment of 900 employees despite making profits, I am glad that I am not working for the bank.

That’s just one bank. I will keep my options open. But this is one roller coaster industry I must say.

When MLM try to sell me a dream

This, by my sense should be a straight forward and very short post – I don’t believe in their stories. But I want to keep this post a little longer. Being a sceptic in almost everything I don’t know and if you have not read my previous post, I need to read 100 books per year and tons of information from the papers and internet, I guess I know a little bit more. But I still think that I am ignorant (that’s true! You can never know enough of everything).

I don’t really understand how the MLM economy works. Buffett says “Risk comes from not knowing what you are doing”. This sums up why I gave it a miss when I was approached by MLM marketers. The guru must be right in some way.

I am not going to give my money away to any scheme that I don’t understand. I cannot remember how many times I have been approached to “make money” with them.

This is the conversation between me and one of the marketers.

MLM: Hi sir. What you doing for a living?

Me: Why do you want to know?

MLM: Do you want to make more money?

Me: Of course I do (**What’s the catch?)

MLM: I have an opportunity for you to make more money.

Me: (**Almost there, I guess this man is from MLM, I should be 80% correct)

Me: What do you have to offer?

MLM: Do you like big cars and houses?

Me: Can you come straight to the point?

MLM: I want to invite you to a seminar.

Me: What kind of seminar?

MLM: On how to make money.

Me: Sorry. I am not interested.

MLM: Why not? I thought you want to make more money?

Me: (**Who doesn’t?)

Me: You from MLM?

MLM: We are dream weavers.

Me: Huh? (**Trying to sell me a dream?)

MLM: We have professionals like doctors and lawyers in our organisation. Why do you think these people join us?

(He didn’t want to answer me directly despite a straight forward question I thrown at him)

Me: How much do you make a month?

MLM: I am a high earner and I have endless stream of income without me being in the office, like now, talking to you. My income is still growing.

Me: No thanks. Whatever you say I am not interested.

(He wears a suit and gives out pamphlets each day outside the train station. He doesn’t look too successful to me.)

I have learnt over the years through my experience in the corporate world and during my childhood – never judge someone by the way he dresses. But I did this time. He is just not convincing enough.

I don’t believe in claims made by MLM on their products. Award winning products, patented products, new discoveries so on and so forth. In one ear and out the other.

Why do I need to read 100 books a year?

Not that I have want to but I have to. I have this quantum obsession for information, I feel bad if I missed reading for a single day. 

Even though I read a lot but I am barely a dweeb. 100 books a year will mean I have to finish 8 books per month, that’s about 2 books a week. I don’t usually make it since my work drains me for at least 8 hours a day and by the time I reached home I will be dead tired. Nevertheless, I try to accomplish that goal. Last year wasn’t too bad, 68 books in total.

I have no aspiration to be the most knowledgeable man on earth but I must know something not everything. 

What other obsessions do I have?

I have to read national papers, tabloids, Reuters, Economist, USA Today, Yahoo, Channelnewsasia and Time news via my feedreader. Not to mention the articles from various websites. I must have information and thank goodness, I don’t have a mega memory, but I was born with the abilities to pick up important messages within the information so I don’t have to remember everything.

I see the constant needs for me gather information as much as possible in the shortest time. Unless we are alike, I don’t think you will understand why an addict/ eccentric like me exist.

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