Maiden Voyage

It took me a long while before deciding to write a blog. A late adopter of trends and a firm believer of the Old Economy, I initially viewed blogs as an utter waste of time. However, I have been humbled by the sheer power of this simple yet effective medium to
1) unleash creative and destructive energies
2) reach out to millions of eyeballs
3) possibly make a pretty dime out of this
4) hone my writing skills … might want to publish a book or two before I die
5) touch lives??

Before I proceed (with extreme caution), I like to state upfront that I am not affiliated with any political parties. I neither possess any political agendas nor lofty political ideals. I will not cast racial slurs, incite social unrest or harm the innocent. I welcome constructive feedback but condemn condescending, one-liner/motherhood statements without any substantiation of facts or law. I speak with good intentions with the primary aim of spreading good tidings and sharing best practices.

I plan to focus on 3 key areas; Financial Stewardship, Career Management & Travel & Living. I might expand these selections and venture outside my comfort zones if time avails and passion prevails.

For starters, I will share my observations (means kbkb) about a contentious topic; Retirement Planning & the fiery trail of discussion it left behind.

Since the mid-2006 General Elections, we have witnessed once again how food prices, electricity tariffs, GST, ERP, Retirement age etc. etc. seem to amazingly inch upwards. While I believe there is no statistical finding to suggest these anomalies are caused by post GE activities, I am equally sure that statistical models might draw a reasonable conclusion to suggest some form of correlation. Any Einstein to attest to this Uniquely Singapore phenomenon?

So, with inflation (killing you softly with his song) plus the instability of jobs in the 21st century, can we actually survive and prosper well into our 80s? Will we live long enough to smell our CPF monies or whatever’s left of it?

Here, I will attempt to offer solutions what everyone can do to build wealth, the slow and steady way. These are simple steps for laying down the groundwork for future discussions as I take a deeper dive into each of these items.

1) Choose a right job which compensates you adequately. This reads “don’t work for free” and “don’t undercut yourself”. Make wise career choices. Your current job determines your next job. Turn passion into profits whenever possible. While I am not an expert in building a business, here are links which illustrate how two of my friends ditch well-paying jobs to pit their brains and skills against the harsh business world. Their passion and perseverance are indeed commendable and once again prove that you can achieve many things if you put your mind (and lots of dollars) into it. Links: http://www.chocabloc.biz/main.html; http://www.winkplay.com/

2) Automatically channel a fixed percentage of your monthly paycheck to different accounts, one for savings, one for investment, one for expenses etc. etc.  A no-brainer but how many of us follow this religiously? The discipline of discipline.

3) Live simply. Work out the math on how much is needed for bare survival every month. Consider how much you need to spend on housing, food, transport, handphone, insurance and other monthly/periodic bills. Add a 10% uplift for contingencies to the amount worked out and that should be the maximum spend per month. No ifs, No buts, No excuses for breaking this rule. As a sidenote, I am adhering to this strictly … and perhaps due to occupational hazard, I do track my expenses on spreadsheets.

4) Invest for the long term – We have a variety of ways to invest in the 21st century. Bonds, fixed deposits, structured deposits, stocks, warrants, unit trusts, forex, property, commodities, precious metals, fine art, gemstones. I have heard of people investing in carpark lots in Hong Kong due to their exorbitant property prices and carpark lots display income-generating, low-maintenance characteristics.Some people say the compounding effect is the 8th wonder of the world. Strive for a 8-10% compounded gain annually. Sounds difficult but there are multiple ways to invest which maximise gains and minimise risks in the long run. Stay the course and invest for the long haul. We must save enough to invest because savings alone will not go very far with our dismal interest rates.

5) Finally, set aside time and money for charitable causes, for family and friends, for hobbies, for enriching your minds and souls. Studies have shown (need to search to substantiate my claims) that folks who retire without hobbies die younger than those who keep their golden years active. Alzheimer’s & Parkinson’s are more likely to strike elderly folks, thus constituting an outflow of cash, at an age when you need it the most. So staying young at mind and heart is good defense against geriatric diseases. Good for the wallets too.

I have concluded my maiden entry. Now awaiting comments (dodging darts & daggers at the same time).