Buy Slowly But Still Lose!!! So How?

How often do we hear investment bloggers shouting that they are buying slowly?

We may buy slowly but we can still lose!

The last 4 stocks were bought slowly; but they were bought at the wrong market timing so they are still losing till now!

Slow but not necessary steady.

 

 
 

Investment Portfolio Benchmarking Among The World's Well Known Investors

Uncle8888 was reading an article on Temasek's investment return in the cyber space. 

How did Temasek perform among the world's well known investors over the past decades?

Really that bad?


Highlighted in Pink is for Temasek's investment return over the past years.

How about CW8888?


Okay lah! 

At least CW8888 is not at the bottom of the table. 


  

Romance of retirement very much alive

A36, FORUM, ST, 25 Dec 2015

Uncle8888 agreed with the writer's view!

Uncle8888 has been reading books on retirement planning from  NLB to prepare for his own retirement. 

This is one of the better models that he has discovered so far ...


Read? Future Cash Flow For Retirement Life???


We shouldn't worry too much over asset-draw strategy as we certainly deserve to spend our own money in our lifetime and just leave behind whatever unspent. 


He is planning in terms of future Cash Flow for his retirement life without leaving lots of money not spent.

The sources of his future cash flow will come from:

1) An investment portfolio that is generating just 4% yield p.a. at flat rate and non compounding. It is far better to be conservative when planning for future.

2) Yearly partial asset drawn on CPF OA and cash FDs till the last withdrawal on 2036

3) CPF RA, SA, MA and cash of $XX, XXX as self insured fund for medical and health care and also covered by enhanced medical shield. Here he will assume zero interest growth as it is very hard to predict future draw-down and even harder to calculate future interests growth. Zero is an accurate prediction. LOL!

4) Leaving behind a fully paid asset called home and investment portfolio for selling as guarantee "profits."
 

Using actuarial present value of his future cash flow (but, excluding the asset value of his investment portfolio and 4-rm HDB flat near Hougang MRT station) and total liabilities @ 2.5% year inflationary rate.



Latest update:

STI : Since Santa No Come in Dec 2015; then we shall wait for Capricon in Jan 2016?

If Capricorn no come in Jan 2016, what did we see from KISS STI chart?

Is CPF Accrued Interest for our housing loan increasing and we have to pay back one day when we sell our house?

Before 55 ....



 





No. Once we reach 55, this CPF accrued interest is game over!

 

Wealth Formula : On Cash Flow Part - Counting Interests!!!

Wealth = Assets Value + Cash Flow


Counting interests is not bad too when we are 55 and above!



Now, Uncle8888 has realized during this prolong period of bearish market environment that counting his interests for his non-market volatile assets is not stressful. Bulk of these expected interests can be easily counted during his lifetime. 

With the past highest annual household expenses since 2001 is already known, it just required simple Maths to count future interests receivable and assets draw-down to meet the highest expected annual household expenses at 2.5% inflation rate p.a. No other additional or complicated evaluation tool is required.




Currently, his Tap 1 has cash flow capacity to manage up to 89% of his past highest annual household expenses at 2.5% inflation rate p.a. using assets draw-down and future interests receivable strategy.

Unless ugly Black Swan happens, it should be quite comfortable for the rest of his lifetime on Earth.

When Is The Best Time To Invest???

Uncle, are you buying more now?

Hmmm ....

So when is the best time to buy?


When you have plenty of spare money AND you have plenty of time ahead of you AND you are still far away from meeting your final investing goals e.g. level of desired passive income exceeding your annual household expenses.

It is not when?

It is combination of when you have ...., what you have ....  and where you are going ....!

All three stars are aligned, it is time to act slowly according to your money management plan and investing goals. It is where you have control of when and not Mr. Market.


 

 

Merry Christmas & Happy New Year 2016!

Wishing you a Merry Christmas and Happy New Year 2016!

May all your wishes come true and dreams become reality!

Net Worth : Shocking Truth Behind The Numbers For An Investment And Finance Blogger After 16 Years!!! (2)

Read? Net Worth : Shocking Truth Behind The Numbers For An Investment And Finance Blogger After 16 Years!!!

Read?  You don't save your way out of poverty

Now, we see who is talking ....
 

This flowery man but no flowery talk!

SMOL:

My first pot of silver was from corporate life.

Making money when we have money - that's a whole another ball game.

Yes. Hidden in that little statement is something much deeper and profound. No worries. You'll stumble to the truth all in good time...

 

 

Read? Your Investment Portfolio is your Accelerator on the Road to Financial Independence! (3)

 

 

It took him 23 years to accumulate size-able capital to have real impact on net worth. In investing, our account size really matters! 

 

Historical CPF Interest Rate

Counting So Hard On How Much Money Is Enough?

In Apr 2004, after hearing the bad news from his doctor, he spent the next few months counting so hard on how much is enough for his family to survive through the next 15 years without too much financial hardship on them. 

How much is enough for the next 15 years till kids are independent on their own?

Where are the sources of funding?

With several insurance policies, CPF saving, investment portfolio and a fully paid 4 room HDB flat; the counting of money showed that it was not that bad. His family should be able to "tong" through the next 15 years without too much financial hardship.



Read? 10th Year Anniversary???

In the last few years, he also began to seriously start counting his money but at a more leisure and relax pace. This time, it is not about his family having to survive through financial hardship for the next XX years; it is about how much is enough for his spouse and himself to live comfortably and fulfilling their Bucket List.

This time, he really feels so good and see different life experience in counting money.

Until we can see the face of death more clearly, why so keen in counting money? But, it is better to start counting early as tomorrow may never come!

This is an answer to one Auntie's question on why he is so keen on tracking, updating and counting his money in his Balance Sheet!


 

Riding Market Cycles With Steady And Growing CAGR Year On Year Is Just A Market Myth!

No meh?

Net Worth : Shocking Truth Behind The Numbers For An Investment And Finance Blogger After 16 Years!!!

The Moral Of The Story ...

Don't forget the power of our human asset in wealth accumulation!


What we didn't measure and visualize it clearly in our thought; we may not really know it well - The reality and truth hiding behind it!

Uncle8888 has a long way to go as an effective retail investor!

What is the moral of the story for the young ones?

No Control Over it BUT we may still have some Control over it!

Read? Wealth Formula : Balancing Act!!! (2)

STI is crashing!!!

How can we still stay calm?
 
Learn from ancient wisdom:
 
 If you have a worry problem, do these three things:
1. Ask yourself: “What is the worst that can possibly happen?” 2. Prepare to accept it if you have to. 3. Then calmly proceed to improve on the worst.”
(Carnegie 49)


Fully understand wealth formula!

Wealth = Asset Value + Cash Flow

We have no control over the latest market pricing of our asset value; but we can still exercise some control over our assets allocation to ride and survive within our emotional tolerance level for future market volatility. 

Market volatility is part of the Game. We cannot escape from it if we are in the Game; but now with the visibility of rising interests rate from the recent historical low; higher is the way to go. Now, we have some control on how to slowly get out of the Game as higher cash flow from interests will be expected.


Stay Calm!

Falling asset value = falling cash flow?
 

Not really!
 
Falling asset value in the volatile market may have little or on effect on our cash flow when we have fairly large capital to ride the market volatility.

Asset value may be falling but rising cash flow from dividends and interests are expected over the next two years if we manage our assets allocation well!

See for yourself on these three images on why he can choose to stay calm!

There is reason in it!

 

FD Interest Rate Is Rising!

Renewal of battalion in the War Chest

This morning, one battalion was renewed at HL Finance @ 1.86% with one free gift.

Battalion has been renewed at rising rate i.e. 1.35%, 1.80% and now 1.86%



 

Properties put up for auction at 6-year high

MORE distressed properties were put up for auction this year, but barely a fraction were sold.

The number of auction properties rose to a six-year high of 796 in 2015, going by Colliers data which includes relistings, but the number that got sold was dismal at just 33.

This represents a success rate of just 4.1 per cent, down from an average of 6.2 per cent over the last five years.

HOW TO RETIRE? (5)

Read? HOW TO RETIRE? (4)

Read? Your Investment Portfolio is your Accelerator on the Road to Financial Independence! (4)

Next year, Uncle8888 will retire@60 and cease his earned income from human asset. 

So far what is his achievement from his human asset vs. his financial assets.

Comparing on absolute number:

His earnING income (@ last Friday market closing stock prices) from his investment portfolio over the last 16 years since Jan 2000 is about 20.3% against his total earned income after tax from his full time employment over 38.4 years (31 Dec 2015) since Aug 1977.

Comparing on annualized number based on number years of effort to accumulate:

Earning income from investment is up significantly to 48.9% against total earned income from full-time job on annualized basis.


He has no regret over his time, effort and energy spend over the last 16 years in learning to invest and without this additional contribution from his investment portfolio; he may not be able to retire @ 60.

Choice Of Interests Or Dividends? Cash Is Rotting Or Cash Is King???

Return of Capital then we will receive Interests but there is nothing for us to shout about.

Return On Capital then we may shout about our high yield on dividends

When we have capital it is a matter of choice between Interests or Dividends. A simple choice but it can be a tough decision to make.

Fed Reserve announces historic rate increase, first since 2006

CW8888: Santa Rally coming in STI?

WASHINGTON: The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signalling faith that the US economy had largely overcome the wounds of the 2007-2009 financial crisis.

The US central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 per cent and 0.50 per cent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.

"The Committee judges that there has been considerable improvement in labour market conditions this year, and it is reasonably confident that inflation will rise over the medium term to its 2 per cent objective," the Fed said in its policy statement, which was adopted unanimously.

The Fed made clear that the rate hike was a tentative beginning to a "gradual" tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.
"In light of the current shortfall of inflation from 2 per cent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate," the Fed said.

New economic projections from Fed policymakers were largely unchanged from September, with unemployment anticipated to fall to 4.7 per cent next year and economic growth at 2.4 per cent.
The statement and its promise of a gradual path represents a compromise between those who have been ready to raise rates for months and those who feel the economy is still at risk.

The median projected target interest rate for 2016 remained 1.375 per cent, implying four quarter-point rate hikes next year.

To edge that rate from its current near-zero level to between 0.25 per cent and 0.50 per cent, the Fed said it would set the interest it pays banks on excess reserves at 0.50 per cent, and said it would offer up to US$2 trillion in reverse repurchase agreements, an aggressive figure that shows its resolve to pull rates higher.
Financial markets had expected the rate hike, bolstered by recent U.S. data showing job growth continuing at a strong pace.

A Dec 9 Reuters poll showed the likelihood of a hike on Wednesday was 90 per cent, with economists forecasting the federal funds rate to be 1.0 per cent to 1.25 per cent by the end of 2016 and 2.25 per cent by the end of 2017.

The rate hike sets off an immediate test of new financial tools designed by the New York Fed for just this occasion, as well as a likely reshuffling of global capital as the reality of rising US rates sets in.

The impact on business and household borrowing costs is unclear. One of the issues policymakers will watch closely in coming days is how long-term mortgage rates, consumer loans and other forms of credit react to a rate hike meant not to slow an economic recovery but nurse monetary policy back to a more normal footing.

The Fed emphasized it would move gingerly into its tightening cycle. That was enough to produce a unanimous vote on the policy-setting Federal Open Market Committee, as even members who had argued publicly for delaying a rate hike delay went along with Fed Chair Janet Yellen and other policymakers.

- Reuters

FIRE!!! (2)

Read? FIRE!!!

Depending on which age group you are asking?

FIRE or FIRe?


Singapore government is extending Re-employment age from 65 to 67!


WHY?


Most folks in Uncle8888 generation don't even have any retirement plan to build sustainable retirement income for life. Many of us are/were still working in the same company for life. They don't even want or dare to job hop.



Nowadays, we have so many young folks in their 20s and 30s are talking about FIRE. Some openly declare their Goals!

Time has changed. Employers better watch out!

四段话

Thanks to Raymond for sharing this video!

Just Another Roller Coaster Ride in 2015???

The Secrets of Old Age

Read?Secrets of life in six words!

TO THOSE OF US WHO ARE ALREADY THERE AND TO THOSE WHO WILL SOON BE THERE. 

 

The Secrets of Old Age

 

Before middle age – Do not fear! 

 

After middle age – Do not regret! 

 

Enjoy Your Life While You Can 

 

Do not wait til you cannot even walk just to be sorry and to regret. As long as it is physically possible, visit places you wish to visit.

 

When there is an opportunity, get together with old classmates, old colleagues and old friends. 

 

The gathering is not just about eating; it’s just that there is not much time left. 

 

Money kept in the banks may not be really yours. 

 

When it is time to spend, just keep on spending, and treat yourself well as you’re getting old. 

 

Whatever you feel like eating, just eat! It is most important to be happy. 

 

Food which are good for health – eat often and more - but that is not everything. 

 

Things which are not good for health – eat less but once in a while do not abstain from them totally. 

 

Treat sickness with optimism. Whether you are poor or rich.

 

Everyone has to go through the birth, aging, sickness and death. There is no exception, that’s life.

 

Do not be afraid or worried when you are sick. 

 

Settle all the outstanding issues beforehand and you will be able to leave without regret. 

 

Let the doctors handle your body, God handles your life and loves you, but be in charge of your own moods. 

 

If worries can cure your sickness, then go ahead and worry. 

 

If worries can prolong your life, then go ahead and worry. 

 

If worries can exchange for happiness, then go ahead and worry. 

 

Our kids will make their own fortune with or without your help.

 

 

 

 

Look After Four Old Treasures: 

 

1. Your old body – pay more attention to health, you can only rely on yourself and be wise on this. 

 

2. Retirement funds – money that you have earned, it is best to keep them yourself and spend. 

 

3. Your old companion – treasure every moment with your other half, one of you will leave first. 

 

4. Your old friends – seize every opportunity to meet up with your friends. Such opportunities will become rare as time goes by.

 

WITH FRIENDS, EVERYDAY YOU MUST LAUGH, DANCE and BE HAPPY!

 

Running water does not flow back. So is life, make it your happiest!

ENJOY EVERY MOMENT OF YOUR LIFE!

Financial Advice for My New Son

Read? Financial Advice for My New Son

CW8888 likes best!

 7. The best thing money buys is control over your time. It gives you options and frees you from relying on someone else's priorities. One day you'll realize this freedom is one of the things that makes you truly happy.


That is the important reason why we, financial and investment bloggers tend to do - FIRE or FIRe.

The hate word from your bosses or VIPs!

..... by COB Today or Tomorrow 

Put aside what you are doing now and start working on someone else's priorities!

Focus or Diversify For Success In The Stock Market???

Too focus, we may fall into Growth, Value or Income trap. Right?

We have seen enough of real people, real examples in  the cyber world.

Focus for success in the stock market for average retail investors is questionable.

Sustainable Retirement Income For Life - Three Taps Solution - Revised slides

 Read? Sustainable Retirement Income For Life - Three Taps Solution - Revised slides

 

la papillion12 December 2015 at 22:03:00 GMT+8

 

What about the hidden magic tap no 4 - Children? Hahaha! Is that for the space on the lower left hand corner of your picture? Grow 3 trees for 20 over years, at least 1 or 2 can bear fruits right? No fruits, at least got some shade from the sun? No shade at least got some firewood for winter? LOL

 

RayNg13 December 2015 at 10:17:00 GMT+8

 

What about your current flat as last resort emergency fund? 

ReplyDelete

 

 

With the feedback from the gentlemen above, now the last slide has been revised to fill up the lower left hand corner. :-)