As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Wednesday, 31 December 2014

Straits Times Index's report card for 2014

SINGAPORE: It has been a volatile year for the Straits Times Index (STI), but Singapore shares managed to show some resilience, closing at 3,365.15 on Wednesday (Dec 31). This works out to a gain of more than 6 per cent for the year as a whole.

Among the STI-constituent stocks, the top performing counter was commodity supplier Olam, which gained 33.2 per cent. The other counters within the top five were ComfortDelGro (up 29.35 per cent), Thai Beverage (up 27.78 per cent), DBS Group (up 20.47 per cent) and Jardine C&C (up 18.5 per cent). 

At the other end of the scale were offshore marine players such as Keppel and Sembcorp Industries, and casino operator Genting Singapore. The bottom five counters were SIA Engineering (down 15.76 per cent), Sembcorp Industries (down 18.64 per cent), Keppel Corp (down 20.91 per cent), Sembcorp Marine (down 26.38 per cent) and Genting Singapore (down 27.76 per cent). 

Among some of the widely-held stocks, SingTel rose by 6.56 per cent. Banking counters also pulled ahead - both DBS and UOB were among the top 10 gainers in the STI for the year, with DBS up 20.47 per cent and UOB up 15.76 per cent.

Keppel secures contract to perform second FLNG vessel conversion for Golar


Further to its earlier disclosure on 5 September 2014, Keppel Shipyard Limited (Keppel Shipyard), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), is pleased to announce that it has secured a firm contract from Golar Gimi Corporation (Golar Gimi), a subsidiary of Golar LNG Limited (Golar LNG), to perform the conversion of a second Moss Liquefied Natural Gas (LNG) carrier, the GIMI, into a Floating Liquefaction Vessel (FLNGV). The contract, which has become effective, is worth approximately US$705 million.  (CW8888: Note that it is US30 less than Golar Hilli @ US$735)

Mr Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "We are happy that Golar LNG is proceeding with their second FLNGV conversion, and would like to thank them for once again entrusting Keppel Shipyard as their lead contractor of choice. This second contract comes just six months after the first contract, and we are encouraged by this positive development. We, together with Golar LNG and our partner Black & Veatch, are confident that FLNGV conversion solutions are indeed the answer to a need to bring small and mid-scale Liquefied Natural Gas (LNG) supplies to market in a more timely and cost-efficient manner."

The conversion award of the GIMI marks the exercise of the first of two options, which were part of an earlier firm contract awarded by Golar to Keppel Shipyard for the conversion of another Moss LNG carrier, the HILLI, into an FLNGV.

The work scope for Keppel Shipyard in converting the GIMI is similar to that for the HILLI. Keppel Shipyard will provide the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. Keppel Shipyard will once again engage Black & Veatch, its trusted partner for the conversion of the HILLI, to provide design, procurement and commissioning support services for the topsides, as well as the liquefaction process utilising its established PRICO® technology.

Full construction activities of the GIMI will only commence when Keppel Shipyard receives a notice to proceed, expected to be issued no later than November 2015. In the meantime, orders for long-lead primary equipment such as gas turbines and cold boxes will be placed. The Golar Gimi FLNGV is expected to be delivered around 33 months after receipt of the notice to proceed.

The above is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation, the parent company of Keppel O&M, for the current financial year.


CW8888's Estimated Order Book








- End -

Full Year 2014 Investment Performance Report


 Read? Q3 2014 Investment Performance Report


A Goal-based Approach Investing Strategy

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. 


No! It is our investment Marathon Race where we set our own pace and compete against ourselves to win our own race.
 


Year 3: Full Year 2014 Result for Tap No 3 (Cash Flow from Investment Portfolio)

 

Achieved 26.1% against 25% of 2021 Goal Targets.






















 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 31 Dec 2014.


Since one year ago: -3.8%
Since 1 Nov 2008: +2.7%
Since 1 Jan 2003: +9.2%
Since 1 Jan 2000: +8.5%



 























The reality of riding market cycles of Bull and Bear
 













This reality cannot be anyhow extrapolated in any form of theoretical knowledge including the most popular form of compounding interests - the Eight Wonder of the World.

No. You can't!




Embracing Three Taps Solutions to Retirement Income For Life Model

































Uncle8888's Wealth's Formula:

Wealth = Asset Value + Cash Flow

Where Sustainable Cash Flow = Tap 1 + Tap 2 + Tap 3

and volatile market pricing of Asset Value becoming less significant.



Since Tap No 3 is enough to supply the liquidity needs; Tap No 1 will remain shut.






 

First Flat, First Home, Lasting Memories


Read? First Flat, First Home, Lasting Memories

Read? Seniors at successful ageing discussion say they prefer to age in place


Wishing You A Very Happy New Year in 2015!














Tuesday, 30 December 2014

How to set 2015 Investing Goals and can still win???



Follow me?

















In the volatile stock market, one year goal is a short-term and not so easy to meet. But, a longer term goals e.g. a 10-year Goals is likely to be easier. When we don't meet this year goal; we can console ourselves that next year we will meet it.

You can see it for yourself. How Uncle8888 cheat his yearly Goal? 

LOL!



Year 3 Goal: Achieved 26.1% vs Target 25%

Year 2 Goal: Miss. Never mind.The night is still young!

Year 1 Goal: Miss. Never mind.The night is still young!

Monday, 29 December 2014

Keppel AmFELS to build one of world’s largest land rigs for over US$100 million

Keppel AmFELS LLC, a US-based wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has won a contract valued at over US$100 million to build one of the world's largest land drilling rigs for a major operator.

Scheduled for delivery in mid-2016, Keppel AmFELS will be undertaking the engineering, procurement and construction of the rig. The rig will be capable of operating in harsh conditions.

Backed by comprehensive facilities and a highly-capable workforce, Keppel AmFELS has built up a strong track record in the construction, refurbishment, conversion, life extension and repair of a variety of drilling rigs.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.


-End-


CW8888's Estimated Order Book














Premium or Discount???



Just For Thinking ...


For most investment like properties and stocks, we will pay premium as somebody's profit; and we will get discount from someone's losses.

No?


Sunday, 28 December 2014

Investors are NOT Entrepreneurs???



Don't confuse investors over entrepreneurs?


Investors only care about investment return and payback period.

Most investors may NOT have any great stories to tell unless you belong to the class of Warren Buffet and Money Masters.

Entrepreneurs may have money to count and great stories to tell. But, before that can happen, they will have to sweat it out days and nights.


Who does the heavy lifting?


You or Your Money?




See the great difference!






 


Return My CPF. DBS 188% Total Return over 6 Years! Round 18: Sold @ $20.31 (3)


Read? Return My CPF. DBS 188% Total Return over 6 Years! Round 18: Sold @ $20.31 (2)


What next for DBS?

Got plans for Round 19?


Another round of laughter for Grasshoppers to enjoy!







Saturday, 27 December 2014

Your Investment Portfolio is your Accelerator on the Road to Financial Independence! (2)



Read? Your Investment Portfolio is your Accelerator on the Road to Financial Independence!

Read? Retirement Income For Life Planning Model



Uncle8888 has reached another major milestone in his journey and moving deeper into the Land of Financial Independence.






















Tap 1 Cash Flow Capacity: Able to provide at least 67% of Living Expenses  @ 3% inflation rate till 2036 (80 yrs old)
















Moving towards sustainable net worth by focusing more on future cash flow needs in his lifetime over future market cycles.



Wealth = Asset Value + Cash Flow
 













Friday, 26 December 2014

Return My CPF. DBS 188% Total Return over 6 Years! Round 18: Sold @ $20.31 (2)


Read? Return My CPF. DBS 188% Total Return over 6 Years! Round 18: Sold @ $20.31

Lady, You Can Be Free

Hi CreateWealth8888,

My lessons learnt is not so much about following. I knew when I picked it up that our favorite blogger got this at a very very cheap price. I think my bigger challenge is knowing when to let go before it sinks into a very pathetic state. I have a problem of letting things go. Maybe need to watch many times of Frozen :-).

Can you share some wisdom of how you typically let things go so that me and all our readers can learn from you !!!



Most of us will hate losses! Including Uncle8888

Somehow we need to take some losses in order not to lose our sleep in waiting. It is easier to sleep better hoping for recovery with smaller position sizing.

Size matters! Losing too much can cause heart attack!
 
See what he did in 2008 in order not to lose his sleep and having more nightmares.

Return My CPF. DBS 188% Total Return over 6 Years! Round 18: Sold @ $20.31


188%!!!

This is a Huat Number!



















Round 18: ROC +144.7%, 2,174 days, B $8.27 S 20.31

Round 17: ROC - 31.1%, 232 days, B $24.20 S $16.80
Round 16: ROC - 21.6%, 222 days, B $23.20 S $18.32
Round 15: ROC - 18.1%, 186 days, B $22.90 S $18.88
Round 14: ROC - 9.2%, 70 days, B $21.00 S $19.20
Round 13: ROC +9%, 65 days, B $20.50 S $22.50
Round 12: ROC +10.6%, 8 days, B $20.50 S $22.60




Total Return: 188% over 6 years or 20% CAGR!












GRANTHAM: 'US Fracking Is A Very Large Red Herring'




Jeremy Grantham is not a believer in the shale fracking boom.

Back in November, we highlighted Grantham's full quarterly letter to GMO clients, in which he said, among other things, that the US shale boom had been "a very large red herring."

So while some say the fracking boom has helped keep oil prices low and aided the US on its path to energy independence, Grantham thinks it might have set us on a path to nowhere.

"Its development has been remarkable," Grantham writes.

"It will surely be seen in the future as a real testimonial to the sheer energy of American engineering at its best, employing rapid trials and errors — with all of the risk-taking that approach involves — that the rest of the world finds so hard to emulate. Similarly, it will always stand out as remarkable proof that, so late in the realization of the risks of climate change and environmental damage, the US could expressly deregulate such a rapidly growing and potentially dangerous activity."

The overall thrust of Grantham's letter is that the world will soon be devoid of the resources it is going to need to sustain our current economic model, which over the past 150 or so years has been predicated on cheap energy, namely oil.

A concern Grantham has with fracking is that the boom hasn't been accompanied by any real concern as to the environmental damage it may be inflicting.  But Grantham is also hugely skeptical on the potency of the shale boom because it doesn't address the problem of our need for cheap oil.

Grantham writes: Fracking "has not prevented the underlying costs of traditional oil from continuing to rise rapidly  or the cash flow available to oil-producing countries like Saudi Arabia, Iran, and especially Venezuela from getting squeezed from both ends (rising costs and falling prices)."

And as we saw last week, OPEC announced that it would not impose production cuts despite the sharp decline in oil prices seen over the past few months, and it seems unlikely that Grantham would be surprised by this.

Because if your national economy is chiefly predicated on exporting oil, you have made your bed and therefore must lie in it as oil prices drop.

Markets COTD November 20

 Deutsche Bank The US shale boom, in one chart.

But the US boom, which as Grantham notes has accounted for almost all of the increase in global oil production over the past several years, has been undertaken by companies, not countries.

And so with an eye toward profit, Grantham writes, these companies "have drilled, as always, the best parts of the best fields first, and because the first two years of flow are basically all we get in fracking, we should have expected considerably better financial results by now. The aggregate financial results allow for the possibility that fracking costs have been underestimated by corporations and understated in the press."

And with a decline in oil prices set off by too much supply, it will be these companies that are forced to pare production, which will reduce supply, which will create — once again — expensive oil.

"The current fall in price does nothing to offset the squeeze on the total economy from rising costs," Grantham writes. "It merely transfers massive amounts of income from one subgroup (oil producers) to another (oil consumers), in a largely zero-sum game.


fredgraph (1) 

FRED


"Oil consumers tend to spend more and save less than oil companies so short-term impacts are favorable. But we should not be carried away with enthusiasm because the declining investment from the oil industry will lower future growth. When, as now, oil costs are still rising even as prices fall there is of course a particularly savage effect on the profits of oil companies, squeezed from both ends.

"They must and will rapidly adapt by reducing expenditures and therefore oil production with the fairly obvious result that prices will rise again. The only longer-term price relief and net benefit to the economy will come when either we reverse recent history and start to find more oil more cheaply, which will be like waiting for pigs to fly, or when cheaper sources of energy displace oil."

And so for Jeremy Grantham, nothing fundamental has changed about our relationship with oil:  pigs still don't fly. 




Thursday, 25 December 2014

DBS


Likely No STI Bear in 2014???




Wednesday, 24 December 2014

Golar signs Heads of Agreement for the development of a Floating Liquefaction export project in Cameroon



Golar LNG Ltd ("Golar") today announced the signing of a Heads of Agreement (the "HOA") with Societe Nationale de Hydrocarbures ("SNH") and Perenco Cameroon ("Perenco") for the development of a floating liquefied natural gas export project (the "Project") located 20km off the coast of Cameroon and utilizing Golar's floating liquefaction technology (GoFLNG). 

The HOA is premised on the allocation of 500 bcf of natural gas reserves from offshore Kribi fields, which will be exported to global markets via the GoFLNG facility Golar HIlli, now under construction at the Keppel Shipyard in Singapore. 

Golar will provide the liquefaction facilities and services under a tolling agreement to SNH and Perenco as owners of the upstream joint venture who also intend to produce LPG's for the local market in association with the Project.   It is anticipated that the allocated reserves will be produced at the rate of some 1.2 million tonnes of LNG per annum over an approximate eight year period. 

It is expected that during the first half of 2015 definitive commercial agreements will be executed and necessary licenses and approvals secured for the production, liquefaction, and export of the reserves, and that production will commence in the first half of 2017.   The Project will be the first floating LNG export project in Africa and will see Cameroon joining the small number of LNG exporting nations.  

Golar is one of the world's largest independent owners and operators of LNG carriers with over 40 years of industry experience. Golar's innovation delivered the world's first Floating Storage and Regasification Units (FSRU) based on the conversion of existing LNG carriers. The project in Cameroon now demonstrates Golar's latest strategic move to extend its business model further upstream by deploying its floating liquefaction technology (GoFLNG). The objective is to become the industry's leading integrated midstream LNG services provider, supporting resource owners, gas producers and gas consumers.


US stocks soar to new record as growth accelerates

NEW YORK: The Dow stock index closed above 18,000 for the first time ever on Tuesday (Dec 23) after government data estimated third-quarter US economic growth at a spectacular five per cent.

The blue-chip index crossed its latest threshold within moments of the market opening and stayed above 18,000 the rest of the session, continuing a so-called "Santa Claus rally" that began after last week's US Federal Reserve meeting.

The Dow Jones Industrial Average finished at 18,024.17, up 64.73 points (0.36 per cent). The broad-based S&P 500 also notched a fresh record, gaining 3.63 points (0.17 per cent) to 2,082.17, while the tech-rich Nasdaq Composite Index dropped 16.00 (0.33 per cent) to 4,765.42.

At five per cent, US growth for the third quarter was the best since 2003. The figure, described as "mind-blowing" by one analyst, was also better than the 3.9 per cent previously estimated by the government and the 4.3 per cent projected by analysts.

Spending for consumption rose 3.2 per cent, the biggest jump since the end of 2013. Analysts also cited strong growth in defence spending and exports.

The US growth figures showed "an economy firing on all cylinders for the first time in many quarters," said Chris Low, chief economist at FTN Financial.

However, the good cheer was offset somewhat by US durable goods orders - an indicator of business investment - which fell 0.7 per cent in November.

Low said the durable goods orders implies that fourth-quarter capital spending will decline, perhaps sharply, "suggesting blockbuster growth in the third quarter will be followed by a distinctly slower Q4."

Tuesday's record was the Dow's 36th in 2014, according to S&P Dow Jones Indices. The latest spate of equity records follow Wednesday's Fed meeting, at which the US central bank kept interest rates low, gave a fairly upbeat assessment of the economy and said it would be "patient" before raising rates.


Tuesday, 23 December 2014

Powerful Compounding Machine At Work???


Your CPF Investment Account may be your best compounding machine at work. Think about it?

Uncle8888 rarely touches his CPF Investment Account. When he touches it; there should be already plenty of blood in the street.



Uncle8888 used his CPF Investment Account to hold his multi-baggers: Kep Corp, Semb Corp and DBS.

Together with his monthly CPF Employee and Employer contribution plus yearly dividends received from Kep Corp, Semb Corp, and DBS; his total CPF wealth has grown at 15.3% compound rate p.a. from Jan 2002 to 23 Dec 2014.

Powerful compounding machine at work. Right?


Uncle8888 hopes that you may like to seriously think it again if you are at ease of deploying your CPF investment account anytime as you like. 


Close to risk free compounding machine at work as long as PAP is still the Government!



Merry Christmas to you!





























Wish for Santa Rally to end 2014. Ho Ho!


What did the headline in this news tell us about investing???











































Monday, 22 December 2014

What is your Greatest Investment Return???



Your XX% CAGR on your investment portfolio?



Do we count ourselves among the world best money masters?


No?

Then our greatest investment return is from our human asset.  Our human asset will generate earned investment return. It is earned and it is for us to keep. 

Our financial assets will just generate earning investment return. It is earning and Mr. Market at his own time and own Will can take it back without letting us know in advance. Some can hide; but most can't escape!





Sunday, 21 December 2014

DBS


Saturday, 20 December 2014

Don't Smoke. Don't Drink. Don't Drive. Don't Casino. Don't Gamble 4D. Don't Call Chicken??? (2)


Read? Don't Smoke. Don't Drink. Don't Drive. Don't Casino. Don't Gamble 4D. Don't Call Chicken???


Next ...

How to reduce your expenses farther?


Living one or two level below what you can afford then you can save enough investing capital as your war chest.

Some examples on how Uncle8888 has more money to invest for his war chest by doing these.


He could afford 5-room HDB flat; but he bought a 4-room.

He could afford 4-room HDB flat in Toa Payoh but he rather live in ulu Hougang (previously known as Punggol Rd. It was later renamed to Hougang to sound not so ulu)

He could afford a car but he took bus and taxi. In fact, in his office he is one of very few oldies who don't drive. A car as convenience is not an excuse to drive and not even having three kids. Taxi service is not that bad.


Oh! For convenience and save time?


Ask why are we always in hurry to save more time. 

Why others got so much time and we are seem always short of it? 

How come like that? Something is not right? 


He could afford expensive toys for his three kids; but he rather brought his kids to playgrounds, parks and beaches.


Those are some of things he has done to reduce expenses.








Knowledge is not power, execution is!


Just For Thinking ...


Remember that knowledge is not power, execution is. Execution trumps knowledge every day of the week. Just make a little bit of progress each day or each week and before you know it, your path to financial freedom will be realized.-  Mary Callahan Erdoes



CW8888:

There are plenty of finance and investment books to borrow from our NLB.   It will take us months to read most of them.


There are more than enough finance and investment blogs, forums, cboxes to follow and keep us busy for hours reading them.

There are plenty of free and independent detailed company analysis and stock views put up by our favorite writers for us to read and digest and then to agree, accept and follow through based on their views and "recommendations".

  

So are we still lack of knowledge?





 

The most important thing from Paul Tudor Jones


"The most important thing for me from that is that defense is ten times more important than offense. The wealth you have can be so ephemeral; you have to be very focused on the downside at all times.

"When you have a good position in something, you don't need to look at it, it will take care of itself. Where you need to be focused is where you're losing money, and that's actually when people generally don't want to look: "My account's going down. I don't even want to open it." So I've created a process overtime whereby risk control is the number one single most important focus that I have, every day walking in. I want to know I'm not losing it.

 

" If you lose 50%, it takes 100% to get back to where you started-and that takes something you can never get back: time." 




Investing in our Human Asset still generate better investment return???



Disagree?

Not for you?

Return on Human Asset is earned and for us to keep!

Investment Return is always just earning.


Know the big difference!







Friday, 19 December 2014

$60,000 profit in 4 days!!!


Just For Laugh ....



He has showed it to you publicly with full disclosure.


$60,000 profit in 4 days!


He bought Kep Corp @ $7.97, 100 lots on 15 Dec 2014

Today, 19 Dec 2014, Kep Corp closed @ $8.60



Who is he?











Keppel Corp's CEO. Mr. Loh!
















DBS Said to Consider SocGen Tie-Up for Coutts International Bid




DBS Group Holdings Ltd. (DBS) is in talks to team up with Societe Generale SA in its bid for Royal Bank of Scotland Group Plc’s international private-banking operations, people with knowledge of the matter said.

DBS was among banks that submitted first-round offers for Coutts International this month, the people said, asking not to be named as the details are private. A potential bid with Societe Generale, if successful, would see the Singapore lender take over Coutts International’s Asian operations while the French bank would assume the rest of the business, one person said.

Southeast Asia’s biggest lender has been pursuing acquisitions to expand in private banking as the ranks of wealthy in the region increase. DBS completed the $220 million purchase of Societe Generale SA (GLE)’s Asian wealth-management business in October, boosting its assets under management to S$88 billion ($67 billion).

Coutts International could fetch $600 million to $900 million, a person with knowledge of the matter said this month. DBS spokeswoman Edna Koh and Jolyon Barthorpe, a spokesman for Societe Generale in Paris, declined to comment.

RBS said in a memo in August that it was examining options including a sale of Coutts’s overseas business, as it shifts its focus to wealthy clients in the U.K. Chief Executive Ross McEwan is eliminating thousands of jobs and cutting about 1 billion pounds ($1.6 billion) in costs as he seeks to reverse six straight annual losses.

Coutts International had 32.6 billion Swiss francs ($33.2 billion) of assets under management at the end of 2013. RBS isn’t selling the U.K. arm of Coutts, which counts Queen Elizabeth II among its customers. The private bank has roots in 1692, before the Bank of England was founded.


Hyflux consortium awarded S$328m project in Oman


SINGAPORE: A consortium, comprising Hyflux and National Power and Water Co, has been awarded an international tender to design, build, own and operate an independent water project in Qurayyat, Oman.

The project, worth an estimated US$250 million (S$328 million), was awarded by the government-owned Oman Power and Water Procurement Co (OPWP), Hyflux said in a news release issued on Friday (Dec 19).

It involves a seawater reverse osmosis desalination plant with a designed capacity of 200,000 cubic metres per day. Under the letter of award, the consortium will need to further finalise details of the project with OPWP, and the award is contingent upon satisfying certain conditions precedent.

The project is scheduled to commence commercial operation by May 2017 under a 20-year water purchase agreement with OPWP.

Hyflux’s role includes turnkey engineering, procurement and construction (EPC) – a contract valued at US$210 million – as well as operations and maintenance of the plant. Hyflux said the project is not expected to have a material financial impact on the company for the financial year ending Dec 31, 2014.

Your Road To Financial Independence is no different from Jugglers???



The least difficult way is to juggle only three balls which is the most basic to achieve and to impress at your social gathering and parties.
















3 Balls equivalent is like staying Single or DINK (Dual Income No Kids) to achieve financial independence. 

You are likely to be able to perform and achieve with more practices and coaching.




When you add kid, more kids and a housewife to your juggling performance with Single Household Income , when you can still perform and achieve. 


You are Superstar like this man!
























Your road to financial independence can be least difficult or extremely challenging. 

It is your personal choice! How many balls you want to juggle?

But, don't worry!

The good news is many have attempted more than three balls and they also made it great.


BTW, we will all reap what we sow

The last phase of our life will NOT be like everyday counting how much money we have achieved over our lifetime.  We can open our eyes wide by looking at our parents, grandparent and grand relatives. What did you really observe?

How about visiting Tan Tock Seng Eye Clinic? What did you really observe? 

No escape, most and if not all old people will be visiting one of the eye clinics in Singapore. This is long consultation and long waiting time in between. 



How about more money?

Unfortunately, Uncle8888 knew it first hand, when we are dementia, we don't even know this thing called ....









Sometime, we DON'T even know the way home after living in the area for XX years. We need our caregivers to bring us home. Scary! Right?



The most important thing at this stage of our life. 

Who is our caregiver? Godson or Goddaughter?












Thursday, 18 December 2014

Can you put a $ value FOR a good night's sleep???



We need to know ourselves what keep us awake at nights?


After close to 60 years of sleeping across economics, financial and market cycles, Uncle8888 knows well enough what will keep him awake at nights?


1. Lack of money to pay bills.

2. The thought of being retrenched and out of job for a long time.

3. The thought of having to sell his stocks at market low to fund his family living expenses



That is why he tracks his family living expenses of five and forecast what is the likely future living expenses for two unemployed @ 2.5% inflationary rate for reasonable cash flow to fund his lifelong living expenses and put a $ value FOR a good night sleep.
















  








If you have a worry problem, do these three things: 

1. Ask yourself: “What is the worst that can possibly happen?” 

2. Prepare to accept it if you have to. 

3. Then calmly proceed to improve on the worst.” 

(Carnegie 49)



Just do it!

We will regret on things we didn't do them rather on things that we have done to keep us sleeping at nights.


Wednesday, 17 December 2014

SCI


Tuesday, 16 December 2014

Future Cash Flow For Retirement Life???



Uncle8888 strongly agreed with  Focus less on Net Worth. Think more in terms of Cash Flow


Read? It’s safe to invest entire life savings in stocks. But it can be safer!!! (3)


"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.

 


He is planning in terms of future Cash Flow for his retirement life without leaving lots of money not spent.


The sources of his future cash flow will come from:

1) An investment portfolio generating just 4% yield p.a. at flat rate and non compounding.

2) Yearly partial asset drawn on CPF OA and cash FDs till the last withdrawal on 2036

3) CPF RA, SA and MA as self insured fund for medical and health care and also covered by enhanced medical shield. Assume zero growth.



Using actuarial present value of his future cash flow (excluding the asset value of investment portfolio) and total liabilities @ 2.5% year inflationary rate.





































Now, he can reduce his tensions and worries over future market cycles.












Monday, 15 December 2014

CPF Contribution and Allocation Rates from 1 January 2015


From 1 January 2015, the CPF contribution rates for all employees will be increased to help them save more for retirement and healthcare needs. The following will apply to wages earned from 1 January 2015:


Increase in Employer’s CPF Contribution Rates

For employees aged below 50 or above 65 years, the employer contribution rates will be increased by 1 percentage point. The increase in CPF contribution will be allocated to the Medisave Account.


For employees aged above 50 to 55 years or above 55 to 65 years, the employer contribution rates will be increased by 2 and 1.5 percentage points respectively. The increase in CPF contribution will be allocated to the Medisave and Special Accounts.


Increase in Employee’s CPF Contribution Rates

For employees aged above 50 to 55 years, the employee contribution rates will be increased by 0.5 percentage point. For those earning wages of >$500 to <$750, the contribution rates will continue to be phased-in. The increase in CPF contribution will be allocated to the Ordinary Account.


From 2015, the CPF Annual Limit will be increased to $31,450


The Ordinary Wage Ceiling remains unchanged.



Age Group
Before 1 Jan 2015
Wef 1 Jan 2015
35 and below
16%
17%
35-45
16%
17%
45-50
16%
17%
50-55
14%
16%
55-60
10.5%
12%
60-65
7%
8.5%
Above 65
6.5%
7.5%




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