Tuesday, 31 May 2016
BOOKSTORE chain Popular Holdings said that its non-executive chairman Ramayah Vangatharaman, 66, passed away on Sunday.
Read? Popular Holdings chairman passes away, aged 66
The longer you work, the more money you'll have for retirement. But the longer you work, the less time you'll have to enjoy that retirement. — Wall Street Journal
Money is important for retirement in that it is a means of survival, a foundation for comfort, and a tool to accomplish some of your life’s goals. It can’t guarantee happiness or health or love, however. And regardless of how much you have set aside, money cannot buy creative fulfillment. The key to a happy retirement is to have enough money to live on, but not enough to worry about.
— How to Retire Happy, Wild, and Free
Most of the time, whatever decision we made there will be opportunity costs or trade off.
No free lunch of our choice and preference!
Monday, 30 May 2016
Uncle8888 is still learning this wisdom and Maths of 10% of investment portfolio in Gold/Silver as a hedge!
Quote : Rolf Suey29 May 2016 at 21:57
In my course of life, I witness one funny phenomenon:
Average middle class striving for financial freedom and condemn the rich that they are lavish n not frugal and that is incorrect. Imagine even stepping into a condo can be a crime because later u may be attracted to buy and can never achieve FF.
Ultra hi net worth people looking at the middle class saving every single cents n yet still struggle in life. UHNW strive for more business success to earn more money (not to be lavish) but to have self-fulfillment in “earning”!
Sometimes I really wondered if both belongs to the same mindset category, just wear different clothings.
The one that beats both category is those who truly know themselves and what they really want in life and strive towards it. In the process creates value for people around them.
His GCTO: "I 67 still working. You 60 want to retire?"
Uncle8888: "The difference is I am sick man and not much time left!" :-) Giving his GCTO a politically correct answer. LOL!
Actually, an honest answer to his GCTO should be. "How can you retire? Once you retired you won't be surrounded by many Yes Men supporting whatever you said!" LOL!
One colleague remarked why you keep going to Taiwan?
For financial independence, Uncle8888 uses his past household expenses to know how much is enough and for his overseas destination travelling plan; he uses Google search e.g. "What to do in Taipei", "What to do in Yilan", "What to do in Hualien" and cover those that looked interesting to him. This one way to know what is enough?
Taipei (台北) – Jiaoxi (礁溪) – Toucheng (頭城) - (Yilan 宜蘭) – Luodong (羅東) – Suao (蘇澳) - Nan-Fan-Ao Fishing Port (南方澳渔港) - Hualien (花蓮) -Taroko National Park (太魯閣國家公園) - Taipei (台北)
Air ticket and hotels are all booked.
Sunday, 29 May 2016
Uncle8888 is still thinking of better way of passing on his wealth to his surviving spouse ... if any.
In the meantime, this is the confirmed approach via Enhanced Nomination Scheme (ENS).
What is Enhanced Nomination Scheme (ENS) and when is it implemented?
Previously when a member passes away, the Board will distribute his CPF savings to his nominees as a lump sum in cash according to the proportion indicated in his nomination form.
The new ENS option (available from 1 January 2011) enables CPF members to transfer their CPF savings to their nominees’ CPF accounts when they pass away, subject to the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominees at the time of transfer.
To learn more about BHS, please visit here.
How does Enhanced Nomination Scheme (ENS) work?
At the point of nomination, a member can choose to have his CPF savings transferred to his nominees’ CPF accounts when he passes away via 2 options:
He can choose to credit his CPF savings into the nominee’s Special Account (SA) or Retirement Account (RA) first, up to the current Full Retirement Sum or Enhanced Retirement Sum. If there is excess beyond the current Full Retirement Sum or Enhanced Retirement Sum, it will then be credited to the nominee’s Medisave Account (MA), up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer.
Alternatively, he can choose to credit his CPF savings into the nominee’s MA first, up to the BHS applicable to the nominee at the time of transfer. Any excess beyond the BHS applicable to the nominee at the time of transfer will then be credited into the nominee’s SA or RA, up to the current Full Retirement Sum or Enhanced Retirement Sum.
Any balance after crediting into the respective accounts as described above will be paid in cash to the nominee. All crediting and payment processes are subject to prevailing CPF rules.
A member is allowed to indicate a single mode of nomination, that is, either cash, ENS or Special Needs Savings Scheme, for the same nominee.
Please note that the monies credited to the nominee’s CPF accounts can only be used or withdrawn in accordance with CPF laws.
Monies credited via ENS to a nominee’s MA, where the nominee is also a self-employed person, can be used to offset his MA liabilities.
To learn more about BHS, please visit here.
What is covered by Enhanced Nomination Scheme (ENS)?
The following will be distributed to your nominees in the proportion as stated in the nomination form:
The following are not covered by ENS:
(a) Cash and investments held in the CPF Investment Account under the CPF Investment Scheme-Ordinary Account (CPFIS-OA);
(b) Investments held under the CPF Investment Scheme-Special Account (CPFIS-SA);
(c) Dependants' Protection Scheme (DPS) claim proceeds * ; and
(d) Properties bought with CPF savings **.
Assets marked (a) and (b) form part of the deceased's estate and will be distributed according to the laws governing the estate.
* For DPS claim proceeds, please approach your insurer, Great Eastern Life or NTUC Income for more information.
** These will be distributed according to the manner of holding. If the property is held as joint tenancy, the deceased’s share of the property will pass by operation of law to the remaining surviving owner(s). Otherwise, the deceased’s share of the property will form part of the deceased’s estate.
Watch our 5 minute webcast on CPF Nomination to find out more on how CPF savings are distributed when one passes away.
Who are eligible to make an Enhanced Nomination Scheme (ENS) nomination?
All CPF members whose nominees are Singapore Citizens or Singapore Permanent Residents (SPRs) are eligible.
However, if the nominees are no longer Singapore Citizens or Singapore Permanent Residents (SPRs) at the time of disbursement, they will receive the bequeathed CPF monies in cash.
How do I sign up for Enhanced Nomination Scheme (ENS)?
Please visit any of our CPF Service Centres to make an ENS nomination. Our Customer Service Executives (CSEs) will assist and explain the nomination process to you. They will also act as your witnesses for the nomination.
Are there limits on the amount that can be allocated into a nominee's CPF accounts under Enhanced Nomination Scheme (ENS)? What are these limits?
Yes. A nominee can receive the bequeathed monies in his Special Account (SA)/Retirement Account (RA) up to the current Full Retirement Sum or Enhanced Retirement Sum and in his Medisave Account (MA) up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. These are also the existing limits for the Retirement Sum Topping-Up Scheme and the Medisave account (MA) respectively.
To learn more about BHS, please visit here.
What will happen to my existing nomination when I make a new Enhanced Nomination Scheme (ENS) nomination?
When you make a new ENS nomination, your existing nomination will be revoked. This will apply to all nominations made by you regardless of the mode of nomination (i.e., CASH, ENS or Special Needs Savings Scheme (SNSS)) for each of your nominee.
However, please note that the ENS nomination will not supersede your existing Minimum Sum Scheme nomination if you have made one.
Can members choose how the bequeathed assets will be distributed between the nominee's CPF accounts under Enhanced Nomination Scheme (ENS)?
Yes. Members have 2 options:
They may credit their savings to the nominee’s Special Account or Retirement Account (SA/RA) up to the current Full Retirement Sum or Enhanced Retirement Sum. Any excess will then be credited to the nominee’s Medisave Account (MA) up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. The balance will be paid to the nominee in cash.
Alternatively, they may credit their savings to the nominee’s MA up to the current BHS applicable to the nominee at the time of transfer. Any excess will then be credited to the nominee’s SA/RA up to current Full Retirement Sum or Enhanced Retirement Sum. The balance will be paid to the nominee in cash.
All crediting and payment processes are subject to prevailing CPF rules.
To learn more about BHS, please visit here.
Why are members not given a choice to nominate monies to the Ordinary Account of nominees under Enhanced Nomination Scheme (ENS)?
As ENS is meant to enable members to better provide for the retirement and healthcare needs of their dependants, monies cannot be nominated to the Ordinary Account.
Is it compulsory to transfer my CPF savings to my nominees' CPF accounts upon death?
No, it is optional. You may wish to consider this option if you wish to help your nominees set aside more money for their retirement and healthcare needs.
What will happen to the Enhanced Nomination Scheme (ENS) nominee's share of the CPF monies if he passes on before me?
If your nominee passes on before you, his share will be divided amongst the surviving nominees in the same proportion as their specified shares. You may revoke your nomination by submitting a Notice of Revocation of Nominations and we will pay your CPF savings to the Public Trustee for distribution to your family member(s) in accordance with the intestacy laws or inheritance certificate (for Muslims) in Singapore when you are no longer around. Alternatively, you can choose to make a new CPF nomination to have your CPF savings distributed according to your wishes.
What will happen to the Enhanced Nomination Scheme (ENS) nominee's share of the CPF monies if he passes on after me but before the disbursement of my CPF savings?
If your nominee passes on after you but before the disbursement of your CPF savings, we will credit his share into his CPF account as specified in the nomination form, subject to the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer. These monies will form part of his own CPF savings. If the nominee has made a nomination himself, his CPF savings (including bequeathed CPF monies), will be distributed to his nominee. If the nominee has not made a nomination, his CPF savings (including bequeathed CPF monies), will be distributed by the Public Trustee according to the intestacy laws.
Any excess monies beyond the current Full Retirement Sum or Enhanced Retirement Sum and the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer will be paid to the nominee's estate.
To learn more about BHS, please visit here.
How will my Enhanced Nomination Scheme (ENS) nominee receive my discounted SingTel (ST) shares?
Your ENS nominee will be given a choice to either (i) transfer the ST shares to his own Central Depository (Pte) Limited (CDP) account or (ii) ask CPF Board to sell the ST shares.
Under (ii), the proceeds from the sale of the ST shares, less transaction expenses, will then be credited to the nominee’s accounts in accordance to the chosen ENS option.
How can I cancel my Enhanced Nomination Scheme (ENS) nomination?
You can make a new nomination which will supersede your earlier nomination. Alternatively, you can submit a Notice of Revocation of Nominations to revoke all your previous nominations.
Please note that if you have revoked your nomination, your CPF monies will be distributed by the Public Trustee according to the intestacy laws / Inheritance Certificate (for Muslims).
Read? Our Story Influences Our Reality
Replacing the apes with stocks!
Uncle8888 didn't came to the stock market just to get better return on his saving. He came to the stock market with all his spare money that he could find. He set his investing goals to reach there!
It is either made or break as he has little spare cash left to add into his war chest as single income household with three growing up children! It is extremely difficult to have a second chance!
In fact, he didn't add a single cent into his war chest since inception of his investment portfolio in Jan 2000.
Do you worry that you can't retire in Singapore?
If yes, you should stop worrying about it and quickly join the Ants' Camp to prepare for your own retirement. You should start younger in your 40s and that gives you more time to look at other older Ants on how they have done it.
Investment Portfolio Income may not necessary be from stocks. It can be from renting out your spare rooms at your residential home or downgrading your current home and draw down on your residual cash proceeds from the sales of property.
Saturday, 28 May 2016
Read? Four Pillars in our life to support our happiness index (2)
Soon the new fitness corner in Punggol Park will be ready for use.
Uncle8888 will spend more time to keep fit using his body weight!
No "Italy"! Quite certain about it!
Friday, 27 May 2016
Yes. Both requires patience!
The difference lies in ...
In gardening, you can see it and still have some control over part of gardening processes with good knowledge and skills; but in fishing, you have to go with the tides of the day and night to catch big fish.
You cannot see anything else other than your fishing line above the sea. You cannot see the fish; but you must know where are the known spots where you or other fishermen have caught those fish before or you just try your luck at new spots to test the water!
So what do you think about the stock market?
Fishing or Gardening?
Read? What fishing can teach you about investing???
Tuesday, 24 May 2016
Uncle, how arh?
Real People. Real Investing outcome since 2006.
Look at the year carefully and think about it!
The advantage of investing early to compound our investment and this is what many investment bloggers wrote or advocate!
He started investing (early) in 2006 and then what happen ....
Uncle, how arh?
With net losses at -45%, his current investment portfolio and together with his war chest, he will need to generate at least 60% return just to break even from current losses.
Wait for the next market crash?
As parents, do we bring our unspent money to the coffin?
Should we dispense some of "their" money as gifts to our children and see them enjoying their gifts while we are still alive or wait until we are gone and then let them spend "their" money?
Uncle8888 has budgeted some of "their" money as Gifts for their special occasion like new home and wedding.
How wrong can it be?
Read? Why Financial Advice for Rich Singaporeans Won’t Work For You
To think about it for the above article.
Same as Why investing strategies from rich investment bloggers with their multi-millions dollar portfolio in Singapore may not work for you.
Monday, 23 May 2016
Government builds retirement schemes; but it is up to us to follow up with our implementation to build up sustainable retirement income for life on our own. We can start serious retirement planning in our 40s to retire at Singapore official retirement age @ 62.
Contribution from Raymond Ng with better and nicer one. :-)
Good thing must share around!
Sunday, 22 May 2016
Read? Save more than 60%. No need to invest??? (5)
Assuming Uncle8888 has decided to quit investing for cash flow and use his current War Chest as additional cash flow to fund his future household expenses.
Will he still have enough money to last till 2038 and how bad is it?
Knowing his past annual household expenses for family of 5 members since 2002
Using the highest annual household expenses since 2002 as the base number with annual inflation rate @ 2.5% to know how much money he has to last till 2038 when he is about 81 years old.
His Tap 1 can cover up to 79% so it is not too scary to think about it.
Saturday, 21 May 2016
Read? Save more than 60%. No need to invest??? (4)
Friday, 14 November 2014Today, at lunch. Uncle8888's female colleague in her early 30s asked this question:
Can save more than 60%. No need to invest. Right?
CW8888: That lunch with her and triggered the above blog post.
Last Thursday, Uncle8888 was having lunch with her again. She was glad that that Uncle8888 could retire voluntary. This is something that she doesn't see it happening for herself. She will have to keep working till her retirement by the company i.e. no voluntary retirement on her own as she still don't have faith in investing. It is just too risky!
Even with an Image to present an idea.
Embrace learning and re-learning. It can be improved for more visibility and understanding. When you can't write or describe it better then show it and explain it better. Right?
Don't stop there!
Keep learning and re-learning. It can be improved!
Wednesday, 18 May 2016
Tuesday, 17 May 2016
Did our investment portfolio growing bigger and bigger due to our contributions from our saving from earned income or due to compounding investment return?
Without adding a single cent to Uncle8888's investment portfolio since Jan 2000; the rise and fall of his investment portfolio is nothing more than just due to market timing and market actions.
This is how he sees it as he is not Gu Shen!
Where is the compounding investment return that is advocated by many investment bloggers?
He is not Gu Shen!
So it is like that hor!
Monday, 16 May 2016
Read? Are We Frugal When We Need Medical Treatment? We Need Class A???
Total Bill for B1 Ward treatment & stay for 3 days : $2,344.36
Govt subsidy for B1 : $393.91 or 16.8%
Deduct from Medisave : $1,350 (i.e. Consume 2.7% off MA of $49,800)
A&E : $110
Total Cash payable: $710.45
Read? Exactly One Year Later! The Unforgotten One Year Kopi Appointment!
May be when Uncle8888 retires in Sep 16 ... he may get more free kopi sessions when he walks around Singapore. LOL!
We, investment bloggers, are likely to receive email asking for fish so Uncle8888 is no different.
But , when you ask him for fish; he will reply you with a list of fishy questions to answer.
So far, few are able to pass through this fishy gate keeping strategy.
Do or do not. There is no try - Master Yoda
Sunday, 15 May 2016
If you have noticed in My Blog List; I have stopped this blog exchange reciprocity too if these blogs have vested commercial interests!
So take note of blog exchange and do it your own risks as Uncle8888 will just delete your email request and doesn't even reply to your request.
Read? Sickness or Longevity having close association to a person’s character and the exercise he or she does! (Part 2)
Keep it firmly in our Mind!
Exercise is PREVENTIVE measure and NOT corrective resolution to our developing poor body condition and health. Exercise can't!
Exercise is not our medicine, drugs or surgery. But, one thing that long distance jogging can help to throw out some symptom of poor health and body condition much earlier BUT, often we ignore them until it is too late or never. It is our job to catch the hints from failing body!
Uncle8888 admitted to AProf in TTSH; the root cause of this 4 days stay was due to his own carelessness of health care.
A 4 days hospital stay due to common FLU. Shit man!
Read? Acceptance and Becoming Senior Citizen! (2)
Long Distance Jogging - Do it "Naked" and "Boring" Way And Listen To The Hints Of Your Body!
Prevention is still better than Cure!
Uncle8888 doesn't run in any official Marathon Race. The last one Marathon Race was some years after NS and then no more.
He runs his own race at his own pace and does it naked and boring way i.e. no music earphone on his ears and listen to rhythms of his heart and breath. Stress out? Tired out? Listen and take note!
Our body will always hint out before any major failure!
Saturday, 14 May 2016
Is the real problem with the rice?
Eating prawns, sotongs, and crabs are bad?
The root cause is not the food.
This is what we do after eating them.
Do we sweat it out enough or we continue to sit too long on our butt?
What did you see and somewhat can you agree and practise it diligently?
Over the next few decades, we aim to collect interests, dividends and trading P/L.
That about all we need to do. This is called investing! Right?
NOTE: Special thanks to Raymond Ng for his continuous support and contributions to the community of readers!
Friday, 13 May 2016
Thursday, 12 May 2016
After reading Rich Dad Poor Dad in Dec 1999, and in Jan 2000, Uncle8888 has a mind flip and seriously began his investing journey and coupled with bulk of his saving locked up in CPF accounts over his lifetime of working as employee saying "Yes Boss!"; he has ...
Wednesday, 11 May 2016
Tuesday, 10 May 2016
Read? 40-60% of caregivers of dementia patients suffer from ‘significant stress’: TTSH study
This one is scary!
Got money also no use.
Monday, 9 May 2016
The cost of freedom or option to choose what we like to do is the cost of receiving less financial compensation or none. Sometime, we may even have to pay or trade off for it to happen.
Even for blogging, there is "cost" of freedom or option to choose whatever we like to post knowing few of these blog posts may be distasteful or disliked by some.
Freedom and choices are never free!
What "business" can we pick and choose our "customers" as we like and when like and then drop them whenever we dislike them?
Sunday, 8 May 2016
Read? Acceptance and Becoming Senior Citizen!
Senior citizens reading here. Better be aware and take note!
The discharge of sympathetic nerves innervating the skin is reduced in aged compared with middle-aged and young human subjects.
This reduction poses problems because blood flow to selected areas of skin play an important role in regulating body temperature. If these neurogenic thermoregulatory mechanisms are impaired by age, then engaging in heat-producing activities might be dangerous for older individuals. For example, doing heavy work on a hot, humid day in July or August might cause your body to generate and store heat more rapidly than it can get rid of it. This will lead to an elevation in body temperature and possibly to heat exhaustion or heat stroke. One sign that you are overdoing things is if you are losing a great deal of fluid through sweating.
Remembered some months back, after our outdoor team building activities, one younger colleague said: "Wah! You are fitter than many of us here!"
Being older and fit is never the same as being younger and fit; but being younger and not fit is not right. You have to do something about it!
Accepted and got started with this book and moves on to the next phase of life as senior citizen. :-)
Retiring but not rich so still need to watch his cash flow very closely to avoid falling into future financial pitfalls
Uncle8888's future cash flow from 2017 onwards will come from three sources:
Source 1: Fixed Income from Interests from CPF and FDs
Add on source 2 : Variable Bonus from Dividends
Add on source 3 : Performance Incentives or Claw Back
He is expected to be doing more activities on source 3 soon.
This is real part-time job with small carrot but BIG STICK.
This job is unlike his salary as employee with no claw back even he under-performed or under-achieved.
Saturday, 7 May 2016
Friday, 6 May 2016
Good read? The risk you can assume is determined by: your sleeping point, your age and the sources and dependability of your noninvestment income
It is more than investing for income.
That is the reason for Uncle8888's preferred model to build up sustainable retirement income for life - The dependability of your noninvestment income i.e. counting interests with partial asset draw-down strategy.
His Three Taps Solution
Lesser wealth but will likely to sleep better and worry less over future market cycles. This is the trade off! No free lunch in the market.
Thursday, 5 May 2016
Some bloggers are just blah blah without really opening their eyes wide open!
What Uncle8888 really see at StarBuck ...
Drinking expensive coffee or having expensive taste meh?
Most of them are renting a spot for doing their home works, studying or working. Cheap hourly rental with cool working environment with nice companions.
So what wrong with StarBuck?