Don't say Uncle8888 so bad. Here to poke Big Dream! ME & MY MONEY, the sundaytimes June 30, 2013,
This young investor who is at 25 and hopes to have passive income of $10,000 and retire by 45.
This young chap is more realistic than last Sunday Young Investor.
This is how YOUNG thinks ...
Then you read on ...
small change, invest page 33,
This is what Lao Jiao spending 27 years around the financial markets and seen many of his friends attain financial independence thinks and advise ... "To be financially independent is to be able to maintain your desired standard of living, without ever facing the risk of running out of money." "Trusting the vagaries of the stock market to try to achieve that goal is really too much like a roll of dice."
Now, let Uncle8888 shares with you one of Uncle8888's Wealth Formula ....
Investment Dream or Truth?= Expectation on Portfolio's Return minus Reality Are you having a dream that is so big? High expectation on future portfolio's return and low reality in life.
But, the reality in life: No 1: Inflation will really bite us hard! The same passive income at 20 years ago cannot buy the same bowl of beef noodle at Kovan now! When Uncle8888 first ate his beef noodle at Kovan, it was $2.50 and this morning he paid $4.50
No 2: There will be future Black Swans in our investing horizon. Black Swans may cause minor or major reset in our portfolio's return.
No 3: How to re-invest for growth when we keep eating away our passive income during retirement?
So what should be the right formula?
Investment Truth = LowExpectation on Portfolio's Return minus HighReality???
Reality of inflation rate on passive income!
After 40 years, you will need $380K passive income and not $120K!!!
Mid-Life Crisis @ 40s
By 40s, we should be honest with ourselves are we still the Red Man who is climbing the Corporate Ladder to reach the annual million dollars pay package.
If we can't then how? Then you may have little choice; but seriously putting in your body and soul into climbing the other ladder - Investment Ladder.
At 40s, if you are still thinking about it; then you may be in for rude shock later. Because, at 50s, you may be running out of time to ride the next few market cycles to implement Retirement Income For Life investing strategies.
Nowadays, Uncle8888 is more gracious to share his investment strategies even with his colleagues and even conducted Retirement Income For Life seminar at "unofficial" meeting.
But, we all know the fact. In office, colleagues are your worse enemies who may often eat your lunch.
Somehow, Uncle8888 who is at the Edge of Financial Independence now thinks differently.
When Uncle8888 looks at his colleagues who are at 40s; he is looking at his past images while his colleagues who are at their 40s may be looking at him as their future images.
How to climb Investment Ladder?
Many people may have read this book.
But how many people have uncovered the Link of
to the Secret of Wealth Formula!
You will be able to uncover your own investing strategies to achieve your Retirement Income for Life Goal!
SINGAPORE: The Monetary Authority of Singapore (MAS) has introduced additional new measures to cool the property market.
central bank said in a statement on Friday that the new rules, which
will take effect on Saturday, will ensure that a property buyer's
monthly payments do not exceed 60 per cent of his income.
TDSR (total debt servicing ratio) will apply to loans for the purchase
of all types of property, loans secured on property, and the
re-financing of all such loans," it said.
MAS said the rules will
help strengthen credit underwriting practices of financial institutions
and encourage financial prudence among borrowers.
MAS will also refine rules related to the application of the existing Loan-to Value (LTV) limits on housing loans.
bank said these refinements seek to ensure the effectiveness of the
loan limits that were put in place to cool investment demand in the
In particular, they aim to prevent home buyers
from circumventing the tighter loan limits on second and subsequent
When working out loans to be granted to home
buyers, banks will have to consider the monthly repayment for the
property loan that the borrower is applying for, plus all his other
outstanding debt obligations.
Banks will also have to apply a
specified medium-term interest rate or the prevailing market interest
rate, whichever is higher, to the property loan that the borrower is
The financial institutions will also have to
discount at least 30 per cent of the borrower's variable income, such as
bonuses, and rental income.
MAS said its inspection of banks
showed uneven practices with respect to the application of debt
servicing ratios and highlighted areas for improvement in credit
Using a Goal-based Investing Approach by setting a 10-year progressive Goal Targets to achieve for each year from 2012 to 2021.
Year 2: H1 2013 Result Achieved 12.5% of 2021 Goal Target.
Portfolio XIRR Track, measure and visualise! Without doing it how to revise investing strategies and improve year-on-year investing performance?
My portfolio XIRR includes all investible cash plus the current stocks value at market closing price as on 28 Jun 2013.
Since one year ago: +2.1% Since 1 Nov 2008: +6.7% Since 1 Jan 2003: +10.9% Since 1 Jan 2000: +9.8% Riding the market cycles of Bull and Bear
Liquidity and Permanency
Liquidity of Capital for the Next Bear and Permanency of staying Invested for the Next Bull!
Having taken back 100% of Investing Capital as War Chest for the next Bear; it is like Year 2000 all over again; but this time Uncle8888 is armed with Master Degree in Stock Market and going for PhD. in Stock Market.
It is going to be more exciting!
This time, regular readers will be able to watch "Full Time" actions on how investing lessons for PhD course are conducted here. In the last two courses, readers could only manage to watch "Half Time" actions as Uncle8888 started to blog in 2006.
Yards are set for a deep-water rig orders bonanza with a
massive requirement for newbuild units to handle an expected explosion
in exploration drilling demand over the next decade, according to a
leading UK-based research firm.
NEW YORK (Reuters) - U.S. stocks
climbed for a third straight day on Thursday after comments from
several Federal Reserve officials soothed concerns that the central bank
would begin to reduce its stimulus efforts in the near future.
The Dow Jones industrial average closed back above 15,000 for the
first time since June 19. The Dow scored its third consecutive day of
triple-digit point gains for the first time since October 4-6, 2011.
The rally helped the S&P 500 post its best three-day run since
January after three Fed policymakers sought to downplay the notion that
the central bank would bring an imminent end to its accommodative
monetary policy, known as quantitative easing.
"I think the Fed is trying to delicately prepare the markets for an
eventual ending of QE3," said David Carter, chief investment officer of
Lenox Wealth Advisors in New York.
"The Fed has bent over backwards to introduce this huge program over
the past few years to get the economy going. The last thing the Fed
wants to do is pull the plug too fast and have the economy go down the
Thursday's advance was again broad-based. Nine of the 10 S&P 500
industry sectors gained, with financials, industrials and consumer
discretionary shares leading the way. Stocks also got a lift from
economic data showing a decline in weekly jobless claims and
improvements in consumer spending and income.
Volatility erupted in the stock market after Fed Chairman Ben
Bernanke said last week that the central bank could begin to reduce its
$85 billion in monthly bond purchases later this year and end the
program altogether by mid-2014 if economic conditions improve.
On Thursday, William Dudley, president of the Federal Reserve Bank
of New York, said the Fed's asset purchases would be more aggressive
than the timeline Bernanke had outlined if U.S. economic growth and the
labor market prove weaker than expected.
Dudley stressed that slowing the pace of the Fed's bond buying would
depend not on calendar dates but on the economic outlook, which
While the S&P 500 remains more than 3 percent below its all-time
closing high of 1,669.16 reached on May 21, it has rallied 2.6 percent
over the past three sessions after numerous Fed officials have sought to
calm markets roiled by expectations of tighter monetary policy.
Volume was about average as some 6.3 billion shares changed hands on
U.S. exchanges. More than 80 percent of stocks traded on the New York
Stock Exchange advanced.
Atlanta Federal Reserve Bank
President Dennis Lockhart echoed Dudley's comments, saying the pace of
the Fed's purchases remained contingent on evolving economic conditions.
The Dow Jones Industrial Average (^DJI) rose 114.35 points or 0.77 percent, to end at 15,024.49. The S&P 500 (^GSPC) gained 9.94 points or 0.62 percent, to finish at 1,613.20. The Nasdaq Composite (^IXIC) added 25.64 points or 0.76 percent, to close at 3,401.86.
Hewlett-Packard (HPQ) was the Dow's best performer, advancing 3.2 percent to $24.77. Bank of America (BAC) also ranked among the Dow's top gainers, adding 2 percent to $13.01.
A separate report showed consumer spending rose 0.3 percent last
month while incomes grew 0.5 percent, the largest gain since February.
Pending home sales rose 6.7 percent to their highest since December
Our attention span is being attacked from many angles these days.
With cell phones beeping constantly, email messages popping up on the
screen all the time and a good dose of social media alerts thrown into
the mix, it's difficult to focus on the true meaning of many pieces of financial advice.
Here are a few financial rules of thumb that seem unreasonable on the
surface, but will actually help you achieve a comfortable retirement:
Get used to losing money in the stock market. You
might think I was crazy if I just blurted out this sentence as
retirement advice without further explanation. But those who are the
most successful with making their money work for them are also the most
used to losing money.
Financial market valuations are
volatile. If you check every day, the value of your investments in the
stock market will often be less than they were the previous day. And
let's not forget the severe market declines
that we often hear about. But the picture over the long term improves
dramatically, because the economy will continue to grow and equity
investors will eventually benefit from taking that risk. Those who are
able to stomach the volatility will benefit the most. Can you stomach
the short-term pain and reap the long-term rewards?
Appreciate being a loner. No one wants to live a
life feeling lonely, but this doesn't mean you have to follow the herd
and practice commonly accepted habits. Borrowing money to pay for
everything seems to be the norm these days, but it doesn't mean you have
to dive deep into debt
just like so many others. Keeping up with the Joneses is a common
behavior, but if you follow suit you'll have to work many more years to
save enough for retirement. Sometimes, being a loner is the best
decision you can make.
Practice the art of being oblivious. I used to spend quite a bit of time researching the specifics
of everything I buy, because I believed I could save money if I knew
what to look for. But as I learned the ins and outs of every product, I
ended up paying much more because many of the extra features would
suddenly seem useful. Instead of just getting the cheapest one that fit
my initial need, the more expensive versions seemed logical because I
developed an expert eye to tell the difference in quality.
By all means,
be an expert on stuff you truly care about. As for the rest of the
products in the world, stay native.
Try working fewer hours than everyone else. Why work forever
just to pay for material possessions? So many people work long hours to
earn more money, but they don't even have time to enjoy the money they
are making. Then they waste it on useless things, and the extra income
doesn't even make them happy because they are so stressed out from all
the time and energy they are required to put into their work.
Why not spend less time working
by buying less stuff? You will get to spend more time with your family
and actually get to enjoy the stuff you do own. And if that leads to early retirement
because you realize that you don't really need to spend that much to be
happy, you'll really cut down on the hours you need to work during your
8 Exhibition Street: 100% leased to tenants in the financial, aviation, tax and transaction services sectors - PHOTO: KEPPEL CORPORATION LIMITED
KEPPEL Reit has acquired a 50 per cent stake in a freehold
office building, 8 Exhibition Street in Australia, for A$160.2 million
Located in the prime part of the Melbourne central business district,
the 35-storey freehold commercial building has a total net lettable
area of about 480,309 sq ft with 3,304 sq ft of ancillary retail space
on the ground floor.
The building has a 4.5 star NABERS energy rating.
"This is a rare opportunity to acquire a freehold premium grade
office building in the most prime part of Melbourne's CBD and will add
to Keppel Reit's sterling portfolio of commercial assets in Singapore
and in the key cities of Australia," said Ng Hsueh Ling, chief executive
officer of Keppel Reit Management, the manager of the real estate
Mr Ong: Delighted that the records were set just six months into the year - BT PHOTO: ARTHUR LEE
CONSTRUCTION company Lian Beng Group continues to upsize its record order book, which now stands at $1.4 billion.
In a regulatory filing yesterday, it announced that its wholly owned
subsidiary Lian Beng Construction (1988) had been awarded a contract
worth $115 million to build a condominium along Flora Drive in Pasir
The contract period is from this month to October 2015.
Under the agreement, Lian Beng will build nine eight-storey
residential blocks and other amenities such as a clubhouse, a basement
carpark, tennis courts and a swimming pool for the condo's developer,
Stocks closed sharply higher for a second
session Wednesday after the weaker-than-expected final read on
first-quarter gross domestic product diminished worries that the Fed
would rein in its stimulus measures in the immediate future.
The Dow Jones Industrial Average rallied 149.83 points, or 1.02 percent, to end at 14,910.14, led by Boeing and Home Depot, after logging a triple-digit gain in the previous session. The blue-chip index posted its 14th triple-digit move of the month.
The S&P 500 jumped 15.23 points, or 0.96 percent, to close at 1,603.26. And the Nasdaq bounced 28.34 points, or 0.85 percent, to finish at 3,376.22.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, declined near 17.
SINGAPORE—Singapore Press Holdings Ltd.,
the city-state's largest publishing company, has delayed a planned
initial public offering of a real-estate investment trust due to weak
global markets, people with knowledge of the deal said Monday.
The offering was expected to raise as much as 540 million Singapore dollars (US$423 million).
SPH's decision comes as other companies in Asia either scrap or scale
back planned offerings due to falling markets that have pushed share
prices of some new trust listings sharply lower.
Jittery global investors have dumped emerging market stocks and
currencies in recent weeks due to indications that the U.S. Federal
Reserve may being winding down its monetary stimulus later this year. A
liquidity crisis China's financial system and the country's slowing
economic growth have also darkened investors' moods.
SPH had planned to start taking orders from institutional investors
this week, one of the people with knowledge of the matter said. It still
plans to proceed with the offering when the time is right but the delay
to order-taking means the REIT isn't likely to list in early July as
originally planned, another person said.
A company spokesman told The Wall Street Journal that the company is
"monitoring market conditions and will make an announcement at the
The company last week secured shareholders' approval for the REIT,
which would own two of the company's Singapore shopping malls, the
Paragon and Clementi Mall.
SPH had hoped to benefit from investors' strong interest in trusts.
Dividend-paying investments such as REITs had been in demand in recent
years as monetary stimulus from central banks in developed markets kept
interest rates low.
The first steel has been cut on what Petronas claims will be
the world's first operational floating liquefied natural gas vessel.
Petronas revealed on Tuesday that construction of the
unit had started at Daewoo Shipbuilding & Marine Engineering's
shipyard in Okpo, South Korea.
Once completed, the vessel will be
capable of producing 1.2 million tonnes per annum of LNG and is destined
for Petronas' Kanowit gas field which lies about 180 kilometres off the
coast of Sarawak, Malaysia.
Daewoo and Technip were handed the
engineering, procurement, construction, installation and commissioning
contract for the FLNG vessel in June last year.
said on Tuesday the start of construction of the FLNG unit marked a
major milestone as it looks to meet its commissioning schedule of 2015,
which would likely make the Kanowit the first operational FLNG project
in the world.
The FLNG vessel will be 300 metres long, 60 metres wide and 33 metres deep and have a storage capacity of 177,000 cubic metres.
Daewoo started construction of an FLNG vessel for Shell in October last year which is destined for the Anglo-Dutch supermajor's Prelude field off Western Australia.
FLNG unit will be capable of producing 3.6 million tonnes per annum of
LNG, plus sizeable quantities of condensate and LPG, however the Prelude
project is not expected to commmence production until 2017.
Stocks closed in the red but well off
their session lows Monday, as Treasury prices rose in choppy trading
following comments from some Fed policymakers that downplayed worries
over the end to the central bank's bond-buying program.
Treasury prices gained in choppy trading. The benchmark 10-year note
yield were just below 2.53 percent after earlier pushing around 2.66
The Dow Jones Industrial Average slumped 139.84 points, or 0.94 percent, to close at 14,659.56, dragged by Bank of America and Hewlett-Packard. Still, the blue-chip index ended off their lows after being down nearly 250 points at its session low.
The S&P 500 fell 19.34 points, or 1.21 percent, to finish at 1,573.09. The Nasdaq tumbled 36.49 points, or 1.09 percent, to end at 3,320.76.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended above 20.
Does Permanent Portfolio still effective in wealth preservation?
US bond funds lose a record US$47.2b in June: TrimTabs
Bond prices have been falling since the end of May when
Federal Reserve Chairman Ben Bernanke said the US central bank could
ease its US$85 billion a month purchases of bonds should the economy
continue to recover - PHOTO: REUTERS
BOND mutual funds and bond exchange-traded funds have lost a
combined US$47.2 billion in June, the biggest monthly loss on record and
exceeding outflows in October 2008, the climax of the global banking
crisis, according to research firm TrimTabs Investment Research.
TrimTabs said bond mutual funds shed US$39.9 billion this month
through to June 18, while bond exchange-traded funds lost US$7.3
billion. In October 2008, US$41.8 billion flew out of the bond funds,
the previous record amount.
"Fund investors are unloading bonds at a record pace," TrimTabs said.
"These record outflows are occurring even though the average bond
fund's 5.0 per cent loss since the start of May pales in comparison to
the losses at the height of the financial crisis."
As retirees, we need to avoid two big money mistakes commonly made by many retirees during their financial planning for retirement income for life.
No 1: Not adequately factor in year-on-year inflation for retirement income cash flow. Our passive income (e.g. dividend income from stocks) from our investment portfolio is never inflation proof or inflation adjusted. When we need to top up any short fall in our retirement income, we may then commit the bigger No 2 money mistake.
No 2: We are forced to sell assets when the market is slumping to meet shortfall in retirement income. This is definitely a Game killing move!
Uncle8888 is most or less done with his two taps cash flow solution for retirement income for life.
Stocks took a sharp nosedive across the
board Thursday, with the Dow and the S&P 500 posting their worst day
of 2013, after Federal Reserve Chairman Ben Bernanke hinted the central
bank may scale back its asset purchases later this year
With the declines from the last two sessions, the Dow and S&P 500 wiped out all of their gains from May and June.
The Dow Jones Industrial Average
plummeted 353.87 points, or 2.34 percent, to end at 14,758.32, with all
30 components in the red. The last time the blue-chip index closed down
more than 300 points was last November. The Dow is down more than 5
percent since its May closing high.
The S&P 500
tanked 40.74 points, or 2.50 percent, to close at 1,588.19, crashing
through a key 1,598 level that traders had been watching. And the Nasdaq tumbled 78.57 points, or 2.28 percent, to finish at 3,364.63.
All three major averages were back in negative territory for the week,
and on track for their fourth-weekly decline in the last five weeks.
Gold took another beating on Thursday, falling close to a
three-year low after Federal Reserve Chairman Ben Bernanke's comments on
Wednesday that bond buying could be slowed later this year.
Investors dumped the precious metal, which traded as low as $1,289 per ounce
The number of millionaires in Singapore increased
10.3 per cent to reach 101,000 last year, revealed a new wealth report
by Capgemini and RBC Wealth Management.
SINGAPORE: The number of millionaires in Singapore
increased 10.3 per cent to reach 101,000 last year, revealed a new
wealth report by Capgemini and RBC Wealth Management.
The survey tracks high-net-worth individuals with investable assets of US$1 million or more.
collective wealth of the super-rich in Singapore also expanded by over
11 per cent to US$489 billion in 2012, revealed the survey.
to the global rebound in equity and property markets, North America
reclaimed its top position as the region with the most millionaires
while Asia-Pacific led overall wealth growth.
However investors in
Asia have proven to more risk-averse, focusing more on wealth
preservation than creation and preferring to put their money in real
estate, cash and deposits.
Barend Janssens, Head of Wealth
Management, Emerging Markets at RBC Wealth Management , said: "Asia
Pacific is less... influenced by the equity markets and the fixed income
The variety of investments that are made by high net worth
individuals in Asia, and also their underpinning wealth in their
companies, which are very often first and second generation owned family
companies, as well as their real estate portfolios, is making our
outlook very much focused on a positive trend for Asia Pacific
Stocks accelerated their selloff in the
final hour of trading to end near session lows Wednesday, after the
Federal Reserve said it will maintain its bond-buying program, though
Chairman Ben Bernanke hinted that the central bank plans to moderate
purchases later this year.
The Dow Jones Industrial Average
tumbled 206.04 points, or 1.35 percent, to end at 15,112.19, wiping out
most of its gains from the last two sessions.
All 30 Dow components
finished in the red, dragged by Verizon and AT&T. The blue-chip index logged its seventh-straight triple-digit move.
The S&P 500 slumped 22.88 points, or 1.39 percent, to finish at 1,628.93. And the Nasdaq fell 38.98 points, or 1.12 percent, to close at 3,443.20.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, finished above 16.
Stocks rallied to finish near session
highs Tuesday, with the Dow soaring nearly 150 points, as members of the
Federal Reserve kicked off their two-day meeting to discuss the future
of the central bank's bond-buying program.
"All eyes are on the Fed," said John Fox, co-manager of the FAM Value
Fund. "Economic news has been fine and continues the trend that we've
been on, but tomorrow's going to have much bigger impact on what happens
this week…but with inflation low and the job picture not satisfactory
yet, I don't see a reason for the Fed to change anything."
[DUBAI/SINGAPORE] HSBC Holdings has been appointed to manage a
public share offer of a joint venture firm that owns and operates a US$1
billion water and power project in Oman, two banking sources said on
Singapore's Sembcorp Utilities, a unit of Sembcorp Industries, has a
60 per cent stake in the Sembcorp Salalah Power and Water Company. Oman
Investment Corp owns 35 per cent and Instrata Capital 5 per cent in the
Sembcorp said in June that it planned an initial public offering of the joint venture firm this year.
The joint venture firm must offload at least 35 per cent of its
capital through an IPO on the Muscat bourse as part of a mandatory
requirement in the Gulf state which requires private sector utilities to
list shares locally.
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