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.

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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

Saturday, 16 April 2016

Question of Net Worth vs. Cash Flow??? (2)

Read? Question of Net Worth vs. Cash Flow???

An interesting question for Uncle8888 to think and answer it.

The true measure of your wealth is how much you would be worth if you lost all your money
Answer: He will be worthless or zero value. Even with his dead body it is still the same as he has no life insurance coverage.
With his zero human asset; he has to plan and manage his financial wealth carefully like what most Ants do.
Ants know exactly what are their numbers.
His net worth is classified into three categories:
(1) Non-market volatile assets (All cash and CPF OA but exclude emergency cash)
(2) Self-insured medical and health fund (CPF RA, SA, MA, and emergency cash)
(3) Volatile assets (stocks in local SGX)
His total cash flow will be coming from three sources:
Estimated Total Cash Flow Outcome for 2016
After Uncle8888's 60th birthday in Sep 2016, he will UNJOB himself from the corporate world from minding Bosses' KPIs to minding his own money and receives cash flow as follows:

(1) Basic Annual Pay (It is more like fixed income with small variation on year-to-year) : Interests

(2) Variable Bonus: Dividends from his local SGX stocks portfolio.

(3) Performance Incentive or Claw backTrading P/L. This is 100% performance based on his trading skill or craft. It is either incentive or claw back. 



  1. CW,


    You must be dying to share the above when you wrote your original post.

    Just have to wait for someone to be baited ;)

    You har!

  2. CW,

    By the way, nice touch on the Life Insurance bit ;)

    We don't need Life Insurance when:

    1) We have no dependents.

    2) Our dependents can take care of themselves when we are gone (Now that's good parenting! And you trust your children will take care of their mom).

    3) Our networth is already higher than the coverage (Provided we can say no to snake oil selling sun tanning machines to us).

    I tell you, there are super salespersons out there who can sell sun tanning machines in equatorial Singapore! Clap, clap.

    1. sometimes life insurance is not for coverage. ;)

    2. and before we see another deluge of replies,
      neither am I referring to any of the following:
      - returns from life insurance funds
      - returns from investment funds
      - peace of mind
      - gift to loved ones
      - once again, not referring to coverage
      - tax (singapore no need)
      - nominations/wills

    3. SMK,


      I played the role of one of the dots in the Ying Yang Tao symbol; you took the role of the other dot ;)

      Of course there can be other reasons ;)

      And I bet most new insurance agents can't answer you either! But to those of us who can sell ice to Eskimos, its just another "objection" to overcome before the customer signs on the dot ;)

      By the way, I'm impressed with the "creativity" of our mainland brethren who bought Life Insurance policies in HK to legally get RMB out of China!?

      When borrowing big sums from "ah longs", the smarter loan sharks will insist you the borrower take out a Life Insurance policy... I better stop here ;)

  3. New buzz word around the HNW circle is estate planning. Buy high premium life insurance. Use the life insurance as a collateral to leverage their investment. Agents , PB bankers and traders take a cut in between. Money makes the world go round n round!

    1. Siew Mun,

      The high class "ah long" version ;)

      No need afraid you can't pay up; just as long the banks can catch hold of you so you can't "zhao lor" ;)

      Everyone is concerned about the borrower's health, "When you going to die? Need any help?"

      Since biblical times, usury is good business! But then, we may end up on the wrong side of eternity...

      Success is always measured by what we have to sacrifice to achieve it :(

  4. I am glad my post offered some food for thought :)


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