As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

Currently; it about 54% to destination!

Click to email CW8888 or Email ID :

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
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Sunday, 28 June 2015

Got Goals. Got Plans. But No Shame!!! (2)

Read? Got Goals. Got Plans. But No Shame!!!

SMOL: Grasshoppers fly with BOTH wings. Ants have forgotten the art of flying after their maiden mating flight. More like the Queen conveniently don't share this truth with her daughters... 

Okay. Ants don't fly so ants lose out?

Never mind. Ants know that bad times and uncertainties are always some years ahead of them so they plan and plan. 

Got Plan A, Plan B and Plan C. 

They will crawl anyhow. They will crawl anywhere to build up bit by bit a large Reserve or Reservoir for the long Sunny days when Grasshoppers are dancing happily for the longest. Long summer. Shiok!

Tap 3 (Plan A: 10-years investment goals from 2012 to 2021)

Cash flow from his investment portfolio come from his realized net profit/loss (Uncle8888 won't like to sell at losses. He seldoms has net realized losses. If the paper losses become so unbearable; he will just write them off and take a hit on his performance for that year. It is non cash item like any company accounting principles) and dividends received for the year.

Since he is not an active trader most of his cash flow will come from dividends.

Ants don't anyhow pluck Goals from the sky hor! He will count using Microsoft Excel to the nearest decimal points and not akar akar using his 21 up and down fingers. :-)

His basis for his 10-year Goals for Tap 3

Tap 3 is his yearly goal to meet his yearly family living expenses for the next 10 years (2012 to 2021). His family living expenses are calculated from his historical expenses when he suddenly woke up and realized the importance of tracking his family expenses if he wanted to know "How Much Is Enough?". 

Trust but Verify! 

He trusts History but verify the Numbers with future inflation and with Chart, Graph and the Image. 

How Future You Will Thank You!

and when History becomes Goals.

His Goals is more commonly known by folks as passive income.  

Depending passive income from dividends? 

Someone has already said ...

I feel that dividend into is not very passive nor dependable. It is a good supplement but cannot be "depended" on.

Uncle8888 has known Mr. Market too well. We can't really trust Mr. Market and be too dependent on him to meet our day-to-day survival.

Know The Three Risks? Your Personal Finance and Investment - Three Risks That Are Seldom Actively Discussed by Personal Finance and Investment Bloggers

Ants are good at planning so he has Plan B (Tap 1 : His Large Reserve or Reservoir)

His assets for Tap 1 is NOT subjected to market asset pricing volatile so it is non-volatile asset class.

Tap 1 is normally closed and will only be turned on to top up Tap 3 when Tap 3 is not enough during poor market condition and dividends are not enough to cover his family living expenses.

Tap 1 is built with large capacity in mind to last till his EOL...

Plan C (Tap 2: Medical and Health Care Self Funding)

$XX,XXX as emergency cash + CPF MA, SA, and RA and also covered by MediShield and ElderShield.

Now, who said Ant cannot fly?


  1. works akway pay.

  2. CW,


    All I was pointing out was the mismatch between STRATEGY and GOALS; not about whether 1 wing or 2 wings better ;)

    And certainly not about bao chiak or not bao chiak.

    Before you get too defensive, listen to me for a moment ;)

    For a long only investor or mutual fund, you can only profit from a bull market; in a bear market, at best its not to lose money by getting into 100% cash. No? Your portfolio returns are highly dependent on the directional movement of STI.

    Its all about RELATIVE performance - so if the STI gains 20%, you outperform if you got 30% returns instead. Similarly, if STI tanks -20%, you still outperform if you "only" got a -10% hit to your portfolio.

    That's why long only mutual funds can only promise to make MORE money for you in a bull market, and lose LESS money in a bear market - sadly only 25% of fund managers can beat their benchmarks. Most of the time, we'll wish we had invested in a low cost passive index fund instead!

    Long only strategies can only have goals to be in X% outperformance AGAINST a given benchmark index.

    But your 10 year goals are based on ABSOLUTE returns!? That means your returns are NOT dependent on the directional movement of STI. But your tool kit does not include making money in down markets... (Don''t hit the face!)

    This you have found out during the down years of 2007 and 2008. With a long only strategy, what can you do to hit your predetermined SMART goal? (Don't lose money already super duper; never mind still want to hit goal and make money!?)

    Somehow I don't thing you have the foresight to already plan 2007 and 2008 to be down years so you had NEGATIVE goals for these years so you can still hit them with relative performance even though your portfolio is in the red.

    Just look at you goals for the next 10 years? You don't foresee a down year for STI for the next 10 years?

    You are well read and experienced. Surely you know the difference between RELATIVE and ABSOLUTE returns ;)

    If your strategy is based on: Market goes up I hit my goals, market goes down I just suck my thumb, how's that any different from passive indexing?

    1. For long only investors, we should be looking at decade-based goals e.g. on 10th year, on the next 10th year or 20th yr, or 30th year.

      It is 10 years Cumulative Goals. This year no hit. No shame. Next year no hit. No shame!

      On the 10th year still no hit all 10 years Cumulative Goals, Shame on me! :-( :-( :-(

      Yeap. During bear market; try not to lose too much and during bull market try to win much more.

      At every 10th year, can we laugh to the Bank?

    2. CW,

      Well said!

      Excellent parry!

      It's such a pleasure to sharpen my saw against your grindstone ;)

      When people say create a circle of competence, I do think they have our kind of "relationship" in mind... LOL!

      What's the point of surrounding ourselves with "yes man"?

      A lesser man would have started calling me "names", or send "regards" to my mother....

      No Sir.

      You are a true gentleman :)

      Cheers and a toast to you!
      The grasshopper bows to the giant of ants

      P.S. We continue till the end of days OK? So fun when opposite sides of the same coin poke each other :)

  3. Like running your Marathon, you can run, run faster, run slower, walk, run faster again, you are a winner when you reach the finishing line.

    You are the Finisher! No shame when you are walking along the way!


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