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.

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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

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Monday, 12 December 2016

The Difference Between Smart Financial Advice and Smart Financial Advice For You (3)

Read? The Difference Between Smart Financial Advice and Smart Financial Advice For You (2)

Net Worth and Cash Flow?

Rich Assets and Good Assets?

Big Fat Purse and Small Thin Wallet?

Single and Married with kid(s)?

Our parents are asset or liabilities

Not same hor!

Net Worth and Cash Flow : The difference is in its details

Government has provided nice incentives for us to plan for our own retirement planning. But when is the right time to take full financial benefits of it? This is not an easy decision to make especially so for younger couple with younger dependents. Why? 

Not so easy to understand!.

The decision making and thought process of committing this non reverse will require more than reading to fully understand whether this smart financial advice is really for us!

When comes to difficult financial situation and tricky financial equation; as parents, our parental love will put our children future and well being ways ahead of our own retirement. We will do whatever within our means to support them especially on health and education matters!

That is why we will continue to see some parents selling their assets to send their children to overseas university when their children cannot secure their choice of study in our local university!

Parents selling down whatever they have so they can raise medical fund to send their sick child for better medical treatment.

Parental love!

How many singles out there understand this tricky financial equation as parents?

Health, Wealth, Retirement Planning and Contingency Plan

How often when we have comprehensive insurance coverage we like to think that we are adequately covered for liquidity needs?

No! No! No!

When we are hit by critical medical condition; not all critical medical condition will lead to fast death and fast insurance claims to provide liquidity needs for our dependents over near term needs. 

This is when our retirement planning will transform to contingency plan looking for cash and Cash is King!

Should we rethink about mainstream's smart financial advice?

For those younger couples who have younger dependents; are your retirement plan also include some elements to revert to contingency plan when your life crisis strike upon you. 

Uncle8888 has been there before. When such thing happened; he didn't console himself how sound or solid was his retirement planning. How fat are his CPF accounts?

It was all about where is the cash? 

That is contingency plan as claims from insurance or CPF is far out of sight yet!

Sometime a living body doesn't worth much to a dead body! Since the body is not dead; the living body will continue to consume scare resources at the worst time of our life.

Sad but true!


  1. One bird in the hand is worth two in the "Cage"?

  2. I'm still climbing the mountain and I can concur to some of your experiences already. Lifestyle and kids cost inflation are very very real. I track my savings and expense mthly and that gives me confidence on my needs and decision making for 1-3 years plan. Building a big warchest allows me to capitalize opportunities when possible and useful for contingency plan too. Let me sleep better at night.

    I treat CPF as bonds but i like maturity less than 10 years haha. I only Top up to SA due to tax reasons.

    1. Tracking our expenses made it real and touching.

      Tax payable is something personal. Its benefit is also very personal. One must count and count and count its benefit. One bird in the hand is worth two in the "Cage"?

  3. CW,

    You've showed the dark side.

    Now I chime in for the side of light:

    Nothing is more frustrating than when opportunity knocks, we have no cash to participate as its locked up somewhere...

    But then again, if we no clue what to do with our surplus cash, giving it to big daddy can do us less damage as the majority of those who invested with CPIS have found out...

    I guess this is where the "investor" has to find out for himself - whether he belongs to the majority where the more they invest, the more they lose; or they are the luckier minority who are able to make more than what big daddy provides.

    1. Always will be dark and light side of any issue or consideration or decision. Never so straight forward. Just benefits only!


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