Singaporeans have to 'save longer for retirement'

 

 

 

Singaporean: 21% vs. Global 6%

 

 

 

 

 

 

 

Generally savvy savers but lack of knowledge in investment options

 

 

 

 

Dow notches 4-day winning streak, closes at record high

U.S. stocks closed near the flatline Wednesday but managed to eke further into record territory.

The Dow Jones industrial average closed about 24 points higher, at an all-time high, and notching a four-day winning streak.

The S&P 500 set all-time intraday highs, along with the Dow shortly after the open, and closed barely above the flatline. The Nasdaq composite lagged, closing about 17 points lower.

Trading for "passive income" using leverage vs Long-term investing for passive income using our own capital. (Time to Refresh it)

Friday, 31 January 2014

Read? Trading for "passive income" using leverage vs Long-term investing for passive income using our own capital.

When you have spend enough time reading, reading and reading many finance and investment blog postings over the years; but forget about those blog posts that have commercial interests in selling you courses.

 

Do you realise that Mr Market will always have his way to show us the right way to build our wealth from the stock market is through investing in companies growing their business revenues, cash flow and profits either through expanding, enhancing or innovating their products and services offering to their global consumers and producers?

 

 

Losing Is Part Of The Game. Don't Give Up Yet!

Yesterday, Uncle8888 was talking to this 62+ old years colleague who has been re-employed this year for another year on one-year contract basis.

He has given up on stock market after losing so much money in the past bear markets with a few ZERO baggers and expecting one more coming soon, EZRA.

He asked me about EZRA as he got large position in it. When we looked at the chart; it is quite obvious!


Most of us will lose money in the stock market. That is the only truth! Losing is part of the Game. Don't Give Up Yet!

What we read and hear in newspaper ads and in the cyber world are just advertisement. Not any different like slimming and six-pack ads in one easy way.

The truth, "Gurus" who are making money from investment courses don't lose money. Teaching method and executing method are two different skills.

Uncle8888 lost money; but he never has any doubt that he will give up on stocks and even stick to just stocks listed in SGX.

No global equities diversification.

No Gold.

No Silver.

No investment properties.

Just local stocks and Sing dollars.

He is still surviving. Let see for how long he can stay in this mode.

Simple may not be equal to ineffective.

Uncle8888 knew it in his heart as he tracks every details; count and measure everything that can be effectively pointed to his performance and strategy for revision and improvement. 

No illusion!

Dow Jones industrial average closed at a new all-time high, up 120.74 points, or 0.66 percent, at 18,347.67

The Dow Jones industrial average closed at a new all-time high, up 120.74 points, or 0.66 percent, at 18,347.67. The S&P 500, which closed at a new high on Monday, rose 14.98 points, or 0.7 percent, to 2,152.14. The Nasdaq composite added 34.18 points, or 0.69 percent, to 5,022.82. 

Book: Anatomy of the Bear

Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (5) - Refreshing It!

Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (5)


"When I told some colleagues that I dumped all available CPF money to pay up and took up only 5-year housing loan. I believe some of them might think that I was stupid not to take advantage of the cheapest loan available." - Createwealth8888

I know that the housing loan is the cheapest loan in town and I also heard many times from Mr Property Guru and Mr Banker that housing loan is GOOD DEBT if you are a savvy investor. Really ah?


The Past is not the Present. The Present is not the Future.

When will we know that we have made the right decision and bear the consequences and opportunities from this decision?

The next Crisis is of the equivalent magnitude of GFC or AFC will teach us great lesson for the rest of our time in the market, economy and our jobs.

Younger ones should ask your parents what are in their mind during AFC and GFC? What have they regretted not doing it?

Fitting And Recycle Into Teenagers' Bermuda Pants

This is definitely frugality!

This morning; Auntie8888 was sorting out some children old clothing's for collection by  one Welfare Home.

Auntie8888: Think you can fit into these pants now. Go and try out!

Wah! Uncle8888's waist really shrunk into his youth again!

No Italy!

He has the waist size of his children when they were teenagers. :-)

Conversation on retirement to an Entrepreneur (SME IT Vendor)

CW8888: I have already submitted Notice of Retirement. Last working day is 15 Sep 2016. The day after my 60th birthday.

Entrepreneur: Congratulations!  You will embark on the wonderful and peaceful golden years. I wish I could retire now. I just had my 61 birthday. I am dreaming of the golden years to come.

CW8888: Our GCTO, 67 is still working. :-)

Entrepreneur: That is different.  He is high up and surrounded by bright young and energetic and capable fellow managers.  His mind is the gold mine. But the world is changing so fast it is hard to catch-up all the time.

 

Something to think about on retirement, ACHIEVEMENT and IDENTITY relating to our jobs and role in an organization.

Now, who are those talking about retirement and WILL retire?

Check around?

It is RELATIVE. It Is All About Living Below Our Earned Income!!! How Difficult Can It Be?

Financial and retirement planning begins when we are living below our earned income.

How difficult can it be?
 
It is RELATIVE!

Consumerism is RELATIVE too!

Whether Single, DINK, DIWK, or SIWK.


With another 2.5 months of earned income and that will end Uncle8888's history of earned income (including employer and employee CPF contribution) in 15 Sep 2016.

A lifetime of earned income as salaried employee and soon it will be become his History!

Earned Income after Tax, Investment Portfolio Income (Dividends & net trading P/L) and household expenses

Old But Not Weak!

Have enough wealth but weak body is not the right way to go.

Old but not Weak is the better option to choose.

No free lunch. We will reap what we sow!

Uncle8888 has changed his night jogging for two weeks and looked like it is sustainable.

Instead of jogging to Lor Halus Bridge and back to Punggol Park.

 

 

 

 

Now, he changed his nightly routine to Jog one round Punggol Park and follows by Pull Ups. After each round; his pull up will be down from 3 to 2.X

 

Slowly; over time he will add on Sit Up next and then add on others.

 

 

 

 

 

 

 

 



Real Long Term Investing For This Life???

 

 

 

Looking at Temasek's Year-to-Year Income.

 

There is something to learn from it.

 

It is NOT just about dividends as portfolio income.

 

As real long-term retail investors looking for growth and not just income; this is a model to consider as income generation for life.

 

 

 

 

 

 

 

 

CW8888: This model is workable. Divestment as part of income streams.

 

 

 

 

 

 

 

 

 

 

Consumerism is NOT the Problem. Over and Under Consume is the Issue!!!

Over consume than our earning; it is not sustainable over long run and then we will not have enough to retire.

Under consume?

"When we are in heaven, our money will still be in the bank."

"We don't seem to have enough money to spend; but, when we are gone; there's still lots of money not spent.
 
Our money can never disappear when we are gone; someone else will get their hands on our own money and happily spend it!

Book: The Education of Value Investor

Guy Spier is a Zurich-based investor and author of a book on investing entitled The Education of a Value Investor.^[1] He is well known for bidding US$650,100 with Mohnish Pabrai for a charity lunch with Warren Buffett in June 2007.^[2] In 2009, he was featured in "the Checklist Manifesto", by Atul Gawande regarding his use of checklists as part of his investment process.^[3]

Spier manages the Aquamarine Fund, an investment partnership inspired by, and styled after Warren Buffett's 1950s investment partnerships. He is also an occasional financial commentator in the media.^[

 

 

After reading this book, Uncle8888 is more convinced that Losing is part of the Game.

 

How much can you stomach your paper losses in this Game?

 

These two guys paid USD650K to learn investment lessons directly from Warren Buffet.

 

They are investment Masters too!

 

What happened in 2008/2009 to these two investment Masters?

 

 

 

Guy: Down - 46.7%

 

Monash: Down -5X%???

 (since his paper loss was worse than Guy)

 

CW8888: Down -53%

 

Losing is part of the Game.

Even for investment Masters too.

 

Right?

 

The Take Away: The Key Test is our investment portfolio able to recover to pre-crisis level and beyond then our portfolio management, investing strategy and stocks pick should be okay.

 

 

 

 

 

If a Stock tumbles after you buy it; don't sell it for two years.

 

CW8888: How many retail investors can stomach it?
 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio resilience positions Temasek to meet more volatile and challenging market conditions

 

Singapore, Thursday 7 July 2016 – Singapore-based investment company Temasek today released its annual Temasek Review, reporting a net portfolio value of S$242 billion1, and closing the year in a net cash position on 31 March 2016.

Temasek’s dividend income was a steady S$8 billion last year. This is a robust 18 times over interest expense for the year ended 31 March 2016.

Temasek’s one-year Total Shareholder Return (TSR) was -9.02% for the year, reflecting share price declines of our listed investments, offset by the performance of unlisted assets. This represents a Total Dollar Return of negative S$24 billion.

Longer term 10-year and 20-year annualised TSRs were both 6%. TSR since our inception in 1974 was 15%.

 

 

 

 

CW8888's benchmarking among the world's well known long-term investors. One Man Gang vs. Temasek's Army of Investment Gurus

 

The Tale Of Three Old Men In The Same Office Space (True Story)

 

The office cubicles floor layout of the three old men.

 

 

 

 

 

 

 

The 60 is counting down to his voluntarily retirement in 69 days while 57 and 61 are facing with harsh reality of their current cash flow and net worth position and realized that they can't afford any voluntary retirement at 62.

 

They hope that their bosses will extend their re-employment to 67.

 

 

Many may think that these oldies in Uncle8888's generation got their HDB property cheap. Right? How come like that?

 

 

How come they can't afford to retire and their Future You "blame" or thank them?

 

Suffered Large Losses

 

Both 57 and 61 have lost heavily in their CPF Investment Account in AFC (1998).  Who to blame? Blame the Government for not having the foresight to protect CPF members. Government only knew how to react and introduce CPFIS investable fund up to 35% of CPF OA balance. (Go to CPF website for clearer details)

 

57 learnt his extreme painful lesson and chopped finger and NO LONGER talk about stocks.

 

Still NEVER till Uncle8888's last conversation with him on Uncle8888's "passive" income from his stock investment portfolio.

 

61 learnt his painful lessons and stopped speculating. His regret was not learning short-term trading and long-term investing strategies earlier.

 

 

Residential Property as Retirement Fund

 

Both of them took the path of their residential property as their retirement fund.

 

57 stopped speculating in stocks and took the property path. He has upgraded from three room HDB to 5 room HDB and currently still have a few years of mortgage to go.

 

He couldn't meet his MSS (BRS) at age of 55 and automatically has to pledge  50% of his HDB flat to meet MSS (BRS).

 

61 bought 5 room HDB as he was already thinking ahead of property as good asset. He was fully convinced of his view after losing big in stock market during AFC.

 

 

Your Resident Home as Retirement Fund?

 

It is NOT as easy or straight forward as many would like to think!

 

When their retirement get nearer; their worries are getting real and bigger.

 

They can't partially withdraw their HDB asset to fund their yearly or monthly household expenses.

 

They cannot suka suka just sell or take partial profits. They have to carefully plan out their "Future" and NOT to repeat another fatal mistake!

 

Not stressful. Then what?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovering Johore by Bus and Walk! - Pontian Round 2

Read? Discovering Johore by Bus and Walk!

Round 2 : Continue to explore Pontian with one night stay.

 

Pontian's River and Strait of Malacca

 

 

 

Lunch was at the same old SF Restaurant that we ate at the last trip.

 

After hearing us talking; the waitress said ... You from Singapore?

 

Hmm ... wah. She is going to quote us "special" price?

 

Ya. We are from Singapore. We are visiting our relative here!

 

Second time here!

 

 

 

 

 

 

Total Bill: RM 109 (One fish, one frog, fried baby sotong, and vegetable)

 

Previous bill : RM 87 (One fish & one vegetable)

 

Hmm ... Got "special" for the fish???

 

This fish and that previous fish not much different in size.

 

 

???

 

 

Hmm ... we walked around after the meal; we realized that there were two "new" seafood restaurants nearby since our last trip.

 

Competition is good for consumers!

 

Dinner

 

Pork satay was really good. We went for second round.

 

 

 

 

 

 

Lunch

 

The original Pontian Wanton Mee and more Otah!

 

 

 

 

 

Bought some Home Made Coffee Powder

 

 

 

 

Coffee Break before leaving for Home