Uncle8888 has adopted a Goal-based Approach investing strategy by setting for himself a 10-year progressive Goal Targets to be achieved for each year from 2012 to 2021.
Our investing journey is not Horse Race or Rat Race where we compete against others. It is our investment Marathon Race where we set our own pace and compete against ourselves to win our own race. Year 3: H1 2014 Result Achieved 21.3% against 25%of 2021 Goal Targets.
(Too much cash rotting in the bank as war chest)
Investment Portfolio XIRR Track, Measure and Visualize! Without doing it; how to revise investing strategies and to improve year-on-year investing performance?
Investment Portfolio's XIRR includes all investable cash plus the current stocks value at market closing price as on 30 Jun 2014.
Since one year ago: +2.9% Since 1 Nov 2008: +6.1% Since 1 Jan 2003: +10.4% Since 1 Jan 2000: +9.5% Riding the market cycles of Bull and Bear
You can see the downside of not doing market timing. It is just riding up and down and not going anywhere!
Liquidity and Permanency
We have to maintainLiquidity of Capital (War Chest) for the Next Bear and Permanency of staying Invested for the next Bull since we can never be able to effectively time the market.
After taken back 100% of his Investing
Capital and some profits off the table for his War Chest; it is going to be like Year 2000 restart; except this time Uncle8888 is armed with Master Degree in Stock
Market and going for his PhD. in Stock Market.
It is going to be more exciting in the next Bear!
This time, regular readers will be able
to watch "Full Time" actions on how investing lessons for PhD course are
In the last two courses, readers could only watch "Half Time" actions since Uncle8888 has only started to blog in 2006.
When will Mr Bear come?
Retirement Income for Life
Tap 1: Survival Money
The cash flow from Tap 1 doesn't depend on stock market condition.
RETAIL investor interest in the stock market is growing. In the
past 12 months, more than 68,000 new Central Depository (CDP) Accounts
have been opened, the highest 12-month addition ever and one which
brings the total number of CDP acounts to 1.6 million.
At a press briefing last week on Singapore Exchange's ongoing retail
initiatives, SGX's senior vice-president for retail investors, Lynn
Gaspar, said that about half of all CDP accounts or a record-high
844,000 actually held some shares.
"Subscription to SGX's My Gateway's e-newsletter over the past 12
months has risen 21 per cent to 187,000 and the increase in unique
visitors to our website has been 45 per cent over the same period," she
However, she added that, notwithstanding the increase in interest,
the proportion of Singaporeans who invested in the stock market is still
low when compared with other markets.
"Only about 8-10 per cent of the population is in stocks, compared
with 20-25 per cent in Hong Kong and 15-20 per cent in Australia," said
Ms Gaspar. "If you assume the potential retail investor population to be
about three million people,only about one third has some direct
involvement in stocks while 62 per cent has never been in the market.Of
these people, about 400,000 are interested in getting into the market.
Based on a survey we conducted in 2012, we found that the barriers to
entry for these people are they don't know how to start, don't know
where to start and don't have the time or money."
The exchange believes it is important that the retail public gain awareness of how to invest in stocks.
"Singaporeans are today concerned with whether they have enough
savings for retirement" said Ms Gaspar. "I believe the question should
really be: how can I make my savings work harder for me?
The key lies in
starting early and having a diversified portfolio, including investing
in shares over the long term."
To help interested but inexperiened retail players gain some insights
into the stock market, SGX has partnered local firm TradeHero, which
offers a mobile market trading application that can be downloaded onto
The exchange is also offering up to $198,000 in prize money in its
StockWhiz contest which is open to Singapore residents aged 18 years and
above, the aim of which is to allow the public to learn to trade with
"TradeHero allows investors to trade using real-time prices," said Ms
Gaspar. "We feel this is a great chance for the public to gain
risk-free experience on how to trade."
In theory, it is much harder for retail investors to find blue chips multi-baggers.
In practice, it is still possible; but it is just mentally too stressful to carry ourselves through the market cycles of Greed and Fear.
Even at their lowest in 2009; Uncle8888's Kep Corp and Semb Corp were well above 100% mark!
While many of us are waiting patiently for the next market crash to do a big one; but how many of us have put in place mental strategies or exercises to see ourselves through the future market cycles of Greed and Fear!
NEW YORK (Reuters) - U.S. stocks
ended slightly lower on Thursday after the president of the Federal
Reserve Bank of St. Louis said interest-rate increases should come
sooner rather than later.
of the 10 S&P 500 sectors were in negative territory. The S&P
financial index (.SPSY) slipped 0.3 percent and ranked among those
leading the market's decline.
Louis Fed President James Bullard, in an interview with Fox Business
Network, reiterated his belief that raising rates by the end of the
first quarter of 2015 would be appropriate.
said the U.S. jobless rate will fall below 6 percent and inflation
looks likely to rise back to 2 percent later this year, putting the
economy closer to normal than most realize. Bullard is a non-voting
member of the Federal Open Markets Committee, the Fed's policy-making
The Fed had hinted
after its meeting this month about a slightly faster pace of
interest-rate increases starting next year, but suggested rates in the
long run would be lower than it had indicated previously.
There are current worries amongst investors that Keppel Corporation’s
offshore arm, Keppel Offshore & Marine, is facing increasing
competition from Chinese shipyards. However, what the company has
demonstrated here is that it is always looking to outdo its last
achievement and has its eyes fixed on the road ahead.
The contract also highlights the beauty of Keppel Offshore &
Marine’s employees and their ability to constantly seek new revenue
streams for the overall corporation. This is also evident in the way
Keppel Corporation has transformed itself from a business that had only a
lone shipyard; today, it’s into real estate, finance,
telecommunications, offshore oil & gas, and infrastructure.
People first came to know about Womack back in 1978 when John Train, a money manager, wrote an article for Fortune
magazine. In his 60 years of investing, Womack never had a loss on
balance. His investing technique was straight-forward. Wrote John Train:
“When during a bear market he would read in the papers that the
market was down to new lows and the experts were predicting that it was
sure to drop another 200 points in the Dow, the farmer would look
through a S&P Stock Guide and select around 30 stocks that had
fallen in price below $10—solid, profit making, unheard of companies
(pecan growers, home furnishings, etc.) and paid dividends. He would
come to Houston and buy a $25,000 “package” of them.
And then, one, two, three or four years later, when the stock
market was bubbling and the prophets were talking about the Dow hitting
1500, he would come to town and sell his whole package. It was as simple
Being a farmer, Womack likened buying shares to buying pigs. The
cheaper he could buy the pigs when the pork market was down, the higher
his profits would be when the market recovered. Warren Buffett would be
very proud of Womack; the former has a famous quote that goes, “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful”. During the most recent financial crisis between 2007 and 2009, “solid, profit-making” blue-chip companies with competitive advantages such as SIA Engineering Company (SGX: S59), Singapore Exchange (SGX: S68), and Keppel Corporation (SGX:
BN4) could be bought for as low as $1, $3, and $2 respectively. Five
years on since 2009, all the companies have recovered from their troughs
to deliver returns of between 100% and 450%, excluding dividends.
We will never know how low any share can reach during a market crash.
But neither did Womack know when a share would peak or reach its bottom
– he was just happy enough to “buy or sell in the bottom or top range of its fluctuations”.
You may ask how does one have the mental fortitude to buy companies
during a market crash? Mental fortitude can be cultivated by developing
in-depth knowledge about a company’s business fundamentals and its
management. If the market price is too low in relation to the growth
potential of the company, then the business may be a good buy.
So, the next time a financial meltdown occurs (it will, the only question is when), do remember Mr. Womack’s story.
Money pros who know him say none of Allan Mecham's
investing tactics are astonishingly difficult -- but for various
reasons, most investors don't use them.Ignore the economy
. Where is the economy going next quarter? Where is the S&P headed?
Mecham says he ignores those issues; instead, he looks for stable,
defensive businesses that can thrive whenever bad times come.
. Most mutual funds own dozens or even hundreds of stocks (regulations
usually require them to own at least 15). But to outperform with a big
portfolio, a manager has to outsmart the market simultaneously on a raft
of securities. Smaller funds and private-investment funds, which are
not under the same requirements, can rely on just six or eight stocks.
Don't sweat the spreadsheets
. Many Wall Street analysts build elaborate financial analyses to
calculate a company's earnings growth and other patterns. But some say
it's more productive to use that time trying to understand a company and
its industry -- the management, the competition, the customers and so
Think decades, not quarters
. Shareholders and managers tend to focus on companies' announcements of
quarterly or annual earnings, and whether they beat or miss analysts'
estimates. But some managers -- including one Warren Buffett -- say it's
more useful to try to figure out where a company will be in a decade or
Don't just do something. Stand there!One of the toughest things for investors to do is to sit still and do
nothing -- especially when nervous clients demand that they respond to
short-term fluctuations in the market. But most of the time, say a few
contrarians, inactivity is the right longer-term move. It's about
"keeping emotions from corroding the decision process," says Mecham.
Mr Chow Yew Yuen, Chief Operating Officer and CEO-Designate,
Keppel O&M, commented, "As with all our market established
proprietary designs, our new CAN DO drillship design was developed in
close consultation with customers, major oil companies and vendors. The
newly developed design is capable of handling next generation 20K psi
Since Keppel has long-term partnership with Maersk Drilling, may be got chance to sell their CAN DO drillship to Maersk.
By Joseph R. Fonseca
Tuesday, June 24, 2014
Maersk Drilling logo
Maersk Drilling has ordered four Blow Out Preventers
(BOPs) and two risers from GE Oil and Gas to be used in the Project 20K™
agreement with BP. The BOPs and risers are intended to be delivered and
deployed on two Maersk Drilling 20K™ Rigs by year-end 2018. The order
includes options for provision of further BOPs. The order is subject to
BP and Maersk Drilling taking the final investment decision on a 20K™
BP and Maersk Drilling announced in February 2013 a joint study
agreement to develop conceptual engineering designs for a new breed of
advanced technology drilling rigs that will be critical to unlocking the
next frontier of deepwater oil and gas resources. Called 20K™ Rigs, the
BP-Maersk Drilling agreement will result in developing deepwater
drilling rigs that can safely and efficiently operate in high-pressure
and high-temperature reservoirs up to 20,000 pounds per square inch and
350 degrees Fahrenheit.
Gary Jones, Vice President of BP’s Global Wells Organization, says “This
is a key milestone in progression of BP’s delivery of Project 20K™
technologies and supports our industry relationships toward the delivery
of standard industry solutions”.
In order to have the BOPs developed, qualified, tested and commissioned
to enable delivery of the 20K™ Rigs as early as 2018, the order has been
placed with GE Oil and Gas now. Going forward, Maersk Drilling will
engage in talks with various ship yards regarding the potential
construction of a series of 20K™ Rigs.
“GE Oil & Gas is proud to join with BP and Maersk Drilling in
developing new 20kpsi drilling system technologies to meet new
ultra-deepwater production goals,” says Andrew Way, president of GE Oil
& Gas - Drilling & Surface. “By drawing upon the combined
expertise of GE’s technology portfolio and operational excellence, we
are excited to provide one of the most advanced drilling systems the
industry has to offer.”
For Maersk Drilling, the order is another milestone in realization of the drilling contractor’s deepwater ambitions.
“Maersk Drilling has an ambition of becoming a significant player in the
ultra-deepwater market and to grow in what we call technically and
operationally challenging areas. Our agreement with BP on Project 20K™
fits perfectly into this strategy, and with the order of the Blow Out
Preventers, we are passing a key milestone in the development of a truly
purpose built 20K™ Rig. This project has been a unique opportunity to
work closely with BP and co-create a new rig design that is safe and
efficient and technologically best-in-class. The intention and our
expectation is to see a 20K™ Rig contract realized next year,” says
Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive
Board of the Maersk Group.
A jointly staffed engineering team located in Houston with back-office
support from Maersk Drilling’s headquarters in Copenhagen, Denmark, has
been working on the engineering studies required to select the design of
the 20K™ Rig, riser and blowout prevention systems. BP has estimated
the application of this technology across its own global portfolio alone
could potentially access an additional 10-20 billion barrels of
Facts about Project 20K™BP announced the launch of Project 20K™ in
February 2012, setting out its intention to develop technologies over
the next decade in four key areas: well designs and completions;
drilling rigs, riser and blowout prevention equipment; subsea production
systems; and well intervention and containment. 20K™ is a trade mark of
Banks in Singapore
will soon be required to keep certain amounts of easy-to-sell assets on
hand in the country to support themselves in times of stress.
The new liquidity framework applies to lenders with a “significant
retail presence” in the country and covers all currencies, Lim Hng
Kiang, the deputy chairman of the Monetary Authority of Singapore, or
MAS, said in a speech last night. Banks will also need to hold liquid
Singapore dollar assets separately to manage their liabilities in the
The so-called liquidity coverage ratio is part of an overhaul of
banking standards by the Group of 20 nations in response to the
financial crisis that followed Lehman Brothers Holdings Inc.’s 2008
collapse. MAS’s proposal comes six months after it warned that rising
global interest rates could weigh on household and corporate debt and pose risks for banks.
The requirement for overseas currency exposures “is going to be a
huge challenge for banks in Singapore, which is a major foreign-exchange
center and where the local economy is not the lion’s share of the
business,” Jim Antos, a Hong Kong-based analyst at Mizuho Securities
Asia Ltd., said by phone today. “It may be fine for banks in Ohio because there’s no foreign exposure, but not in Singapore.”
Under the global rules formulated by the Basel Committee on Banking Supervision,
banks must have enough assets on their books that they can sell to
survive a 30-day funding squeeze. The regulations, which allow assets
ranging from cash and central bank reserves to government bonds and some corporate debt, are set to be phased in from next year.
Foreign banks will need a Singapore dollar liquidity coverage ratio
of 100 percent, Lim said, meaning they would have to hold enough
high-quality, liquid assets to match net cash outflows during a month of
stress. He didn’t specify a deadline for meeting the requirement.
The coverage for other currencies will be 50 percent as their head offices are probably subject to similar ratios, he said. Citigroup Inc. (C), HSBC Holdings Plc and Standard Chartered Plc (STAN) are among foreign banks operating in the country.
For such firms, “while MAS recognizes that there may be cost
efficiencies in managing liquidity centrally at the group level, there
can be significant obstacles to the free movement of liquidity across
borders during a stress scenario,” said Lim, who is also the minister
for trade and industry.
MAS will consider a bank as having a significant retail presence if
its share of resident customer deposits exceeds 3 percent, and if it has
more than 150,000 depositors with balances of as much as S$250,000
Singapore, 25 June 2014 - With reference to the announcement dated 24 June 2014 by Golar LNG Limited (Golar LNG) on the launch of the offering of its common stock, we wish to confirm that Keppel Shipyard Ltd (Keppel Shipyard), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd, has signed a conditional contract with Golar Hilli Corporation, a subsidiary of Golar LNG, to perform the world’s first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel (FLNGV). This contract will become effective upon the fulfilment of several conditions precedent, including the receipt by Keppel Shipyard of the initial milestone payment. We will make a further announcement when the contract becomes effective. The aforementioned contract is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year.
[SINGAPORE] The number of properties up for auction by
mortgagees (or lenders) as well as their share of the number of
properties going under the hammer has hit a quarterly high in Q2.
Auctioneers say this reflects the difficulty that financially
stretched borrowers face in securing buyers for their properties since
the implementation of the total debt servicing ratio (TDSR) framework a
year ago. Because of this, financial institutions have had to repossess
more properties and put them up for auction.
The trend is expected to gain momentum as the rising supply of
non-landed private homes will make it harder for mortgagors (or
borrowers) to find buyers and thus dispose of their properties
themselves - resulting in more properties ending up as mortgagee sales.
Furthermore, the reduced inflow of expats into Singapore is shrinking
the pool of potential tenants, hitting rental incomes and hurting
owners' ability to service their loans.
Figures from Colliers International show that this quarter, 42
mortgagee sale properties have been put up for auction - almost double
the 22 in Q1 this year. In Q2 2013, the figure was just six properties.
The latest figure is the highest since Q3 2009, when 63 mortgagee
sale properties landed on the auction block. The first-half tally of 64
was double the 32 for the whole of last year - and also a big jump from
24 in 2012 and 39 in 2011.
In H1 this year, the number of properties put up for auction by owners was 192, down from 226 in the same year-ago period.
As a result, while the owner sales' share of properties put up for
auction has dropped from 93.4 per cent in full-year 2013 to 75 per cent
in H1 2014, the mortgagee sales' share has risen from 6.6 per cent to 25
per cent. On a quarterly basis, the mortagee sale share has doubled
from 16.7 per cent in Q1 this year to 33.9 per cent in Q2 - the highest
level since the 35.5 per cent share in Q1 2008 during the global crisis.
Colliers' analysis took into account information as at June 19 from
auction lists for the major houses for the month of June. While DTZ
conducted its auction last Thursday, Colliers, Knight Frank and JLL will
conduct theirs this week.
JLL's analysis shows that for January-May this year, 13 properties
(both owner and mortgagee sales) were sold for a total of nearly $26.2
million at auction. Of this, the mortgagee sales accounted for nine
properties which fetched $12.8 million.
For the whole of last year, 21 properties amounting to $99.6 million
were sold at auction, of which 10 properties totalling $12.6 million
involved mortgagee sales.
Typically, financial institutions provide some leeway to borrowers
who are experiencing difficulty servicing their mortgages by giving them
the first crack at finding a buyer as owner sales tend to fetch a
higher price compared with a mortgagee sale which is often seen as
distressed. However, the implementation of TDSR has made it difficult
for potential buyers to obtain credit.
"More buyers have also chosen to stay on the sidelines with a view
that prices will start to ease," noted JLL's head of auction and sales,
Mok Sze Sze.
As a result, said Colliers' deputy managing director Grace Ng, banks
have little choice but to respossess such properties - resulting in the
increase in mortgagee sale properties surfacing at auctions.
She added that due to exuberance at private housing launches in the
past few years, many buyers bought uncompleted properties "off plan"
with the non-savvy ending up with units that have undesirable
orientation or layout. Such owners now face difficulty finding buyers
While the majority of mortgagee properties ending up on the auction
block are residential, there are also signs of an increase in strata
industrial units, notes Ms Mok.
Going by Colliers' analysis, nearly 63 per cent of the mortgagee sale
properties that have been put up for auction in the first six months
are residential properties, followed by a 17.2 per cent share each for
industrial and retail properties.
Colliers' auction tomorrow will feature a mortgagee sale property at
Turquoise condo in Sentosa Cove. The 2,777-sq-ft four-plus-one bedroom
unit previously surfaced at an auction on April 30. It was withdrawn
without bids at the opening price of $5 million.
Another mortgagee property to be featured at the same auction is a
third-floor unit at the freehold Stevens Court. The 2,863-sq-ft unit has
five bedrooms. JLL's auction on Thursday will feature mortgagee sale
units at VisionCrest Residence, Residences@Killiney, The Floravale in
Westwood Avenue and a shop unit at 116 Yio Chu Kang Road. At Knight
Frank's auction today, a mortagee sale of a two-bedder at Dover Parkview
is expected to go under the hammer.
Sharon Lee, head of auctions at the firm, advises those having
problems servicing loans to be realistic. Given the buyer's market
today, one has to be aware that potential buyers would be anticipating
price corrections - instead of sticking to the last transacted price in
the project some time ago, she said.
SINGAPORE: The Consumer Price Index (CPI) rose 2.7 per
cent in May from a year ago, the highest since March 2013, according to
figures released by the Department of Statistics on Monday (June 23).
last month picked up pace from April, when the CPI rose 2.5 per cent
on-year following a rise of 1.2 per cent in March.
Authority of Singapore (MAS) attributed the rise to base effects
associated with the fluctuations in Certificate of Entitlement (COE)
premiums. Private road transport cost climbed by 8.1 per cent
in May, stronger than the 5.7 per cent rise in the preceding month,
mainly on account of the low base in May 2013. Petrol pump prices also
edged up at a faster pace than in April.
COE premiums were at a low in May 2013 after loan caps were imposed on car buyers.
for the certificates, which are needed for car ownership, gradually
rose as the market adjusted to borrowing restrictions, bumping up the
CPI a year on. "For the whole of last year, inflation in
Singapore...actually quite low, mainly due to the car inflation being at
the low level. What that means is that...due to the low base (last
year), we are likely to see higher inflation coming from cars (this
year), and it's not going to be a once-off thing," said UOB economist
Francis Tan. Authorities, however, expect car prices to add negligibly to inflation with the dissipation of the base effect.
cost rose by 0.9 per cent compared with 1.1 per cent in April, due to a
slower pace of increase in imputed rentals on owner-occupied
accommodation, MAS said.
MAS Core Inflation, which excludes the
cost of accommodation and private road transport, fell to 2.2 per cent
in May from 2.3 per cent in April, due to lower contributions from
services and food items.
Prices of retail items like clothing and
footwear declined in May. This can be attributed to the start of the
Great Singapore Sale. Authorities say domestic cost pressures,
particularly stemming from a tight labour market, are likely to remain
the primary source of inflation. They expect core inflation to stay elevated at 2 to 3 per cent in 2014, with headline inflation projected to ease.
It sees bigger growth opportunities in this segment than the ultra-high net worth group
By Siow Li Sen
DBS Bank is making rapid headway into that segment of banking
customers who are rich, but not rich enough to own a yacht or a private
jet - at least not yet.
For these "affluent" customers, however, ponying up for a Ferrari or some such expensive toy is not an issue.
DBS managing director Koh Kar Siong would know, as he is also the
regional head of the bank's "Treasures" and "Treasures Private"
A Treasures Private client (TPC) carries a DBS Insignia card with a
credit limit of up to $1 million and would "regularly" blow a quarter of
a million bucks on high-end cars, he said.
Such a client would have placed between $1.5 million and $5 million
in assets with the bank, which has built a base of more than 10,000 such
clients since launching Treasures Private three years ago.
It is today the fastest-growing segment of the group's wealth-management business, Mr Koh told reporters yesterday.
The bank's "Treasures" clients are those who have placed between
$350,000 and $1.5 million with the bank, while its private bank division
looks after the top tier - clients with more than $5 million.
"There's big room for growth because a lot of these people are now in priority banking," he said.
DBS has homed in on its TPC clients, assigning more than 200 TPC
relationship managers to them, because it saw opportunities in this
segment - more than in the segment of ultra-high net worth, yacht-owning
magnates with at least $30 million to their names.
A 2012 study by international management consulting firm Oliver Wyman
found that in Asia-Pacific, these super-rich - with at least US$25
million in assets - jointly hold about US$3 trillion. In contrast, those
below this stratosphere - the "poorer" ones with between US$1 million
and US$5 million - jointly hold US$5 trillion.
And the best thing? Sixty per cent of this US$5 trillion or so is under-served, or, in bank parlance, "unmanaged".
DBS's strategy to attracting TPCs is to offer them private bank
services, and these include access to pre-IPO sales, discretionary
portfolio management and other investment services.
These clients also have dedicated luxury airport lounges at Changi,
which offer massages, a full suite of banking services and free
limousine rides (in Singapore, Jakarta, Surabaya and Taiwan).
Last year, revenues from group wealth management rose 10.3 per cent
to almost $1 billion - faster than its growth rate of 9.7 per cent in
The increase came from strong gains in fee income (from product
sales), which rose 30 per cent last year; in contrast, the increase from
lending activities or net interest income was only 4 per cent.
The most popular investment products are equities, bonds and funds,
and the amount traded has steadily risen. "The ticket size has gone up,"
said Mr Koh.
TPC made up 18 per cent of group wealth-management revenues last
year, up from 3 per cent in 2011; it is projected to hit 25 per cent
next year, he said.
More TPC-type customers are projected to be knocking on DBS's door
too - Mr Koh expects 15 to 20 per cent more in the next few years.
Assets under management from wealth management clients, that is,
those with at least $350,000, grew to $109 billion last year, up from
$94 billion in 2012.
The key objective of this tracking exercise is NOT for the purpose of knowing where to reduce living expenses by cutting expenses e.g. no more StarBuck as it is deemed too expensive. Do we go to StarBuck to lim kopi and leave? To lim kopi and leave; we better do it at Kopithiam. Right?
The end goal of this tracking exercise to conservatively estimate one Magic Number to know how much is enough for us to reach financial independence stage and get out of rat race when staying employed is an option.
We also want to avoid the unsecured feeling of always NOT enough and for ever accumulating more wealth!
Some of us may have read it somewhere in the Web:
"When we are in heaven, our money will still be in the bank."
"We don't seem to have enough money to spend; but, when we are gone; there's still lots of money not spent.
The Minimum Sum Scheme was introduced in January 1987 to help CPF members set aside sufficient savings to support a basic standard of living during retirement. When the scheme was first started, members were required to set aside a sum of $30,000 in their Retirement Account when they turned 55 years old.
Look at the above chart; many were not meeting the minimum sum.
Just For Thinking ... SGX to help lower income earners to start investing with their squeezed out saving? 1. Unit share trading (investing) with low commission brokerage fee of 0.1% with no minimum fee. 2. Conduct free investor education. No product sponsorship for such training.
3. Only those with annual income of less than $XX,XXX are allowed.
CPF to help with better Return on CPF OA
1. First $50,000 : 6% 2. Next $50,000 : 4% 3. After that 2.5%
Uncle8888 is doing it simply and Excelly with one dedicated bank account for expenses : GIRO, ATM cash withdrawals, NETS, credit cards and ITR i.e. all cash out flow! Just once a month of less than 15 - 25 mins of effort to download the monthly statement. Copy and paste into Excel worksheet.
Add remark column and keying remarks for those non regular expenses that can be reduced or cut during bad times.
The whole idea here is NOT to sweat the small stuffs in tracking expenses.
Later SMOL will come and call him Excel King. LOL!
Explanation to the above chart:
Monthly family expenses for five members (Me and housewife and 3 children) is group into $500 different band on X-axis.
As an example onlyfor the purpose of explaining this chart. The number used is not his monthly actual expenses.
Below $2,000 : 1 (It only happened once. Probably, in that month we ate most of the meals at home or caught many fish and crabs enough for that month) $2,001 to $2,500 :16(There are 16 months of such expenses in this band since Jan 2001)
$2,501 to $3,000 :34 (There are 34 months of such expenses in this band since Jan 2001)
$3,001 to $3,500 :31 (There are 31 months of expenses in this band since Jan 2001)
NEW YORK: The Dow and S&P 500 edged to fresh
records on Friday as the chances rose for GE's acquisition of parts of
France's Alstom and fighting in Iraq lifted oil prices.
The Dow Jones Industrial Average rose 25.62 points (0.15 per cent) to 16,947.08, a new high.
S&P 500 advanced 3.39 points (0.17 per cent) to 1,962.87, while the
tech-rich Nasdaq Composite Index gained 8.71 points (0.20 per cent) to
General Electric shares added 0.2 per cent to $26.98
after the French government said it favored the company's proposal to
take over Alstom's energy assets for $16.8 billion over a rival bid by
Germany's Siemens and Japan's Mitsubishi Heavy Industries.
of the deal, France will take a dominant 20 per cent stake in Alstom by
buying two-thirds of the shares owned by French group Bouygues.
US oil prices moved to a fresh nine-month high of $107.26 a barrel as
the battle against Sunni extremists showed no signs of abating. Grand
Ayatollah Ali al-Sistani, Iraq's leading Shiite cleric, called on people
to unite to fight the insurgents.
Used-car company CarMax surged
16.5 per cent higher as it reported record quarterly sales and earnings
for the first quarter that easily topped expectations. Total unit sales
rose nearly 10 per cent.
Other companies to see gains included Dow
components Caterpillar (+2.0 per cent) and Johnson & Johnson (+1.4
per cent), Wells Fargo (+1.7 per cent) and American Airlines (+3.5 per
Shire Pharmaceuticals, which is based in Dublin but listed
in London and New York, rejected a $46 billion takeover proposal from US
company AbbVie. Shire said the bid "fundamentally undervalued" the
company and objected to AbbVie's plan to relocate its headquarters in
Britain for tax purposes.
Shire climbed 16.3 per cent, while AbbVie dropped 1.4 per cent.
company Oracle fell 4.0 per cent as fiscal fourth-quarter earnings came
in at 92 cents per share, three cents less than expected. Analysts said
the company's weak performance in cloud computing software was
Gun manufacturer Smith & Wesson
slumped 8.7 per cent as the company's outlook for fiscal 2015 sales of
$585-600 million lagged analyst estimates for $621.9 million.
prices were mixed. The yield on the 10-year US Treasury held steady at
2.62 per cent, the same level as Thursday. The yield on the 30-year
bond, slipped to 3.45 per cent from 3.46 per cent. Bond prices and
yields move inversely.
SINGAPORE: The number of high net worth individuals
(HNWI) in Singapore grew by 4.5 per cent last year to about 105,000,
lagging the global growth rate of 15 per cent amid a tapering in the
city-state’s home prices.
This is according to latest figures from
the annual World Wealth Report, released by Capgemini and RBC Wealth
Management on Wednesday night in the US (June 19, Thursday morning,
Singapore time). The report defines HNWI as someone with US$1 million or
more in investable assets. Capgemini and RBC said in a statement
that improving economic and equity market performance helped add 1.76
million people to the global HNWI population in 2013, while the
investable wealth of HNWIs grew by nearly 14 per cent to reach a record
high of US$52.62 trillion.
The United States, Japan, Germany and
China together accounted for nearly 60 per cent of the world's HNWI.
North America's HNWI population expanded by 16 per cent to 4.33 million,
while the Asia-Pacific region's grew by 17 per cent to reach 4.32
Looking ahead, global HNWI wealth is forecast to reach a
new high of US$64.3 trillion by 2016, representing 22 per cent growth
from 2013 levels and approximately US$12 trillion in new wealth,
Capgemini and RBC said.
Companies such as Jardine Matheson (SGX: J36), Dairy Farm (SGXL D01) and Keppel Corporation (SGX: BN4)can by no stretch of the imagination be described as a
Microsoft. But over the last decade or so, they have, nevertheless,
delivered outstanding returns.
The secret to super investing returns is therefore time, patience and
continually compounding the dividends that you receive year after year
after year. It is really that simple because investing is not hard.
In Practice: Real people, Real Super Investing Returns is here!
In investing, a good mantra to remember, in my opinion, is this:
“Keep it simple.”We do not need to know everything about every company;
we just need to know what we are good at and stick to it.
For example, Keppel Corp (SGX: BN4) might be an overly complex company
for some with its disparate business segments. Its businesses deal with
offshore & marine (it builds vessels and oil rigs), infrastructure
(it has logistics operations, warehouses, and even rents out data centre
capacity amongst other activities), and real estate (it develops and
owns many different types of properties). If you have trouble
understanding Keppel Corp, there’s no need to force yourself to understand it even if everyone around you is constantly harping about the company. There are always plenty of other fishes in the ocean.
When learning about investing,
you do not need to be thrown off when you come across something you
cannot understand or had happened to talk to someone who was throwing
out jargon after jargon. All you need to do is to remember this three
simple words: “Keep it simple”. Simple is often all you need in
What you will never hear at any investment seminars?
Uncle888 has lost count of the number of investment seminars and investment events he had attended. He was once photographed sitting at the front row of one event and then appeared in the following year Ads for that event. So far he has not heard any speakers saying ...
Compounding investment return can be NEGATIVE!
Everyre-investment of dividends collected and realized gains are
potentially at risks of negative compounding return. There is no such
thing as bao jiak re-investment. Sure huat!
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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