A letter from a 66-year-old retiree.

I have received many emails in my three years as a blogger. Of course, there were some unpleasant ones but, fortunately, most of them are not. Many are questions which I would try to answer to the best of my knowledge. As I am not a trained financial adviser, however, I am not allowed to give advisories and I have refrained from doing so.

 

 

Sometimes, I would share readers' emails here in my blog, especially those which I think are inspirational or those which I think readers might find beneficial in some way. Today, I received a bracing email from a 66-year-old retiree. 

 

Blogging is a very time and energy consuming activity but if I have been able to make a positive difference in the lives of people through my blogs, then, it is definitely worthwhile.

 

hi AK,

i am a 66 yr old retiree who came upon your blogpost ASSI about a year ago quite by chance.

i had dabbled in shares many many years ago and having been burnt i swore i wont touch the SGX ever again.

However, after selling off my apartment and cutting off the rental income last year i was in a bind

as there was no more income and saddled with cash earning practically nothing and being retired....

until i came upon your blogs on the REITS and especially AIMS and SABANA. i have vested in both since end of last year and have been comfortable with the passive income without the hassle of tenants , repairs , maintenance fees and taxes.

i do not think you fully realize how your intelligent, knowledgeable, and objective views have helped

people like me who previously only depended on tips and rumours with disastrous results.

not only have i benefited from your analysis but i have also learned alot from your gems

like 'i have begun not to be bothered with price movements and be more focused on passive income (something to that effect)'

most of all you come across to me as very sincere in wanting to help those who want it.

therefore i urge you to ignore those who are critical of you and yet devoid of any alternative views. (like those comments of your recent yahoo finance reprints)

.....

yours gratefully,

.......

Related posts:

1. A letter from a reader in his early 20s.

2. Article published in Yahoo! Finance Singapore (2).
3. To be richer, be comfortable with being invested.

Unrelated post:
See photos of my staycation in MBS: here.

Request for sponsorship.

"Astonished, we were."

Recently, I received what I thought to be a rather bizarre email.

As someone who is blogging for fun and making a bit of pocket money from ad placements etc, I never would have thought that I would be asked for a monetary sponsorship. Well, I was recently asked!

Apparently, the event will have:

1000 delegates:

• Age between 28 to 55
• Annual income more than $40,000
• Professionals, Managers, Executives and Businessmen (PMEBs)
• Entrepreneurs
• High Net Worth individuals

"There would be abundant opportunity to gain exposure for your site during the event."

The proposal listed various levels of sponsors. A monetary sponsorship of $500 would qualify for the Bronze Level while $10,000, the highest, would qualify for the Platinum Level.

 

At the Bronze Level, ASSI will get our "corporate logo" into the event and will be eligible to insert a "voucher" into the 3,000 goodie bags.

 

I was truly flabbergasted.

 

ASSI doesn't have any logo, let alone a corporate one and I would have to provide 3,000 vouchers on top of the $500 monetary sponsorship? Wow!

 

A friend told me in jest that I should be happy because it means that my blog has moved to a higher level. What higher level? People actually think that I am making serious money from blogging now? That is the higher level? I almost fell off my chair laughing.

 

Gaining more exposure for my blog would be good. If I am able to reach out to more people, sharing my ideas on financial freedom and my methods, why not?

 

If every reader would share my blog on Facebook, Twitter etc, I think it would be more than enough.

 

After all, I blog for free. Should I pay to promote my blog? I think not.

Where to buy silver bullion coins?

I have been asked by many people where to buy silver bullion coins in Singapore. My standard reply has always been for them to perform a search online with the same words as the title of this blog post and they will have a list of companies which sell the coins here.

Recently, a reader asked me not where to buy the coins but whether it is cheaper to buy the coins online than buying the coins from a seller in Singapore. I thought I should share my reply to him here with anyone who might have a similar question.

Email from reader:

I'm your blog new follower about 1 month, thanks for sharing all the great info.
Regarding the canadian maple leaf silver, can I get it in Singapore for a cheaper price or I have to buy it online?

1.  (SG company)
2.  (Online overseas company)

Please advise me the above 2 sites or your own views to get a cheaper price.

My reply on 01 December 2012:

I buy from Singapore sellers because I do not buy in large enough quantity to make any cost savings from buying online significant.

For example, if we buy a tube of 25 1oz silver bullion coins from (SG company) today, price is S$1,187 or S$47.50 an oz.

Spot silver is at US$33 an oz or about S$41. (SG company) brings in the coins in bulk and by ocean freight. So, their cost of freight is quite low. If we were to buy only 25 coins from Canada, we would have to use DHL Express Worldwide or Federal Express which would be expensive and could easily cost S$80 to S$100 for a 1kg parcel.

Anyway, (SG company) probably makes some S$6.00 per coin or 15% gross profit. I feel that it is fair. The biggest advantage for buyers is being able to bring the coins home with us immediately after making payment.

Note: I have replaced the names of the two companies the reader mentioned in his email with generics so as not to appear partial to any party.

Related posts:
1. Silver bullion coins.
2. Buy gold and silver as insurance.

Dungeons & Dragons: Druid/Wizard.

I used to play Advanced Dungeons & Dragons, never mind the claims by some religious groups that it was Satanic. Those were the days when we had to have a Dungeon Master (the guy who would tell the story and throw monsters and puzzles our way) in order to play. The rest of us players would role play certain characters and try to stay alive and complete the quests. We had to be imaginative, attentive and co-operative to succeed in the game.

These days, things have gone digital and the visuals could be quite stunning, leaving little to the imagination.

You know, I still have my 20 sided, 12 sided, 10 sided, 6 sided and 4 sided dice.

20 sided die.

Anyway, the blogmaster of Bully the Bear told me about this site which is a must visit for die hard D&D fans. Go try it out for yourself: What Kind of D&D Character Would You Be?

In the fantasy world of AD&D, I played a Chaotic Good Human Cleric. In real life, it seems that I am a True Neutral Human Druid/Wizard (3rd/2nd Level).

Ability Scores:
Strength-10
Dexterity-9
Constitution-12
Intelligence-13
Wisdom-13
Charisma-13

Alignment:
True Neutral A true neutral character does what seems to be a good idea. He doesn't feel strongly one way or the other when it comes to good vs. evil or law vs. chaos. Most true neutral characters exhibit a lack of conviction or bias rather than a commitment to neutrality. Such a character thinks of good as better than evil after all, he would rather have good neighbors and rulers than evil ones. Still, he's not personally committed to upholding good in any abstract or universal way. Some true neutral characters, on the other hand, commit themselves philosophically to neutrality. They see good, evil, law, and chaos as prejudices and dangerous extremes. They advocate the middle way of neutrality as the best, most balanced road in the long run. True neutral is the best alignment you can be because it means you act naturally, without prejudice or compulsion. However, true neutral can be a dangerous alignment when it represents apathy, indifference, and a lack of conviction.

Race:
Humans are the most adaptable of the common races. Short generations and a penchant for migration and conquest have made them physically diverse as well. Humans are often unorthodox in their dress, sporting unusual hairstyles, fanciful clothes, tattoos, and the like.

Primary Class:
Druids gain power not by ruling nature but by being at one with it. They hate the unnatural, including aberrations or undead, and destroy them where possible. Druids receive divine spells from nature, not the gods, and can gain an array of powers as they gain experience, including the ability to take the shapes of animals. The weapons and armor of a druid are restricted by their traditional oaths, not simply training. A druid's Wisdom score should be high, as this determines the maximum spell level that they can cast.

Secondary Class:
Wizards are arcane spellcasters who depend on intensive study to create their magic. To wizards, magic is not a talent but a difficult, rewarding art. When they are prepared for battle, wizards can use their spells to devastating effect. When caught by surprise, they are vulnerable. The wizard's strength is her spells, everything else is secondary. She learns new spells as she experiments and grows in experience, and she can also learn them from other wizards. In addition, over time a wizard learns to manipulate her spells so they go farther, work better, or are improved in some other way. A wizard can call a familiar- a small, magical, animal companion that serves her. With a high Intelligence, wizards are capable of casting very high levels of spells.

Detailed Results:
Alignment:
Lawful Good ----- XXXXXXXXXXXXXXXXXXXXXXX (23)
Neutral Good ---- XXXXXXXXXXXXXXXXXXXXXXX (23)
Chaotic Good ---- XXXXXXXXXXXXXXXXXX (18)
Lawful Neutral -- XXXXXXXXXXXXXXXXXXXXXXXX (24)
True Neutral ---- XXXXXXXXXXXXXXXXXXXXXXXX (24)
Chaotic Neutral - XXXXXXXXXXXXXXXXXXX (19)
Lawful Evil ----- XXXXXXXXXXX (11)
Neutral Evil ---- XXXXXXXXXXX (11)
Chaotic Evil ---- XXXXXX (6)

Law & Chaos:
Law ----- XXXXXXXXXX (10)
Neutral - XXXXXXXXXX (10)
Chaos --- XXXXX (5)

Good & Evil:
Good ---- XXXXXXXXXXXXX (13)
Neutral - XXXXXXXXXXXXXX (14)
Evil ---- X (1)

Race:
Human ---- XXXXXXXXXXXXX (13)
Dwarf ---- XXXXXX (6)
Elf ------ XXXXXXXXXX (10)
Gnome ---- XXXXXXXX (8)
Halfling - XXXXXXXXXXXX (12)
Half-Elf - XXXXXXXXXXX (11)
Half-Orc - XXXX (4)

Class:
Barbarian - (-4)
Bard ------ (-8)
Cleric ---- (-2)
Druid ----- XXXX (4)
Fighter --- (-2)
Monk ------ (-17)
Paladin --- (-19)
Ranger ---- (0)
Rogue ----- (0)
Sorcerer -- XX (2)
Wizard ---- XXXX (4)

Article published in Yahoo! Finance Singapore (2).

Each one of us will have to find our own way to cross the Eastern Sea. As long as we get across safely, who can say we are wrong in our methods?

Another old blog post of mine has been edited and published in Yahoo! Finance Singapore.

Link here: http://sg.finance.yahoo.com/news/debt-always-bad-071329360--sector.html

The original blog post (unedited):
Good debt is always good?

For sure, my way is not the only way and, indeed, it could even be unsuitable for some. I have always said that there is room for diversity in this world. As long as people are taking action to improve their financial health in a legitimate and effective way, can we say that they are wrong? No but we could possibly say they are not doing enough which becomes more subjective an exercise.

I only find those who wallow in self pity and entrap themselves in holes of their own making, blaming everyone else for their problems, unforgiveable. Worse, they might find comfort in the company of their own kind, going in a downward spiral. Could they help themselves? Yes, I believe.

I like to help myself by keeping an open mind and listening to what others have to say before I draw my own conclusions about things although I cannot guarantee that my personal bias would not color my decisions. This is probably as good as it gets.

Still, dare I hope that the response to this article would be more positive and civil than the last one?

Related post:
Article published in Yahoo! Finance Singapore.

Yongnam: EXPIRY OF WARRANTS - W121214.

Warrant Holders are reminded that in accordance with the terms and conditions of the Warrants, the rights to subscribe for new ordinary shares in the capital of the Company (the "New Shares") comprised in the Warrants will expire at 5:00 p.m. on Friday, 14 December 2012, after which time, any subscription rights comprised in the Warrants which have not been exercised will lapse and the Warrants will cease to be valid for any purpose whatsoever.

Read the full notice: here.

I wonder if anyone would actually bother to go through with this.

See my blog post of 14 July 2012:
Yongnam: Worried about warrants?

See photos of Marina Bay Sands which Yongnam had a big part in building. Photos were taken during my recent "staycation":
Singapore: Marina Bay Sands.

Tea with EY: Money talk, money laugh!

One of the most rewarding things about blogging is getting to "meet" people online. Reading comments from readers and replying to them is the most rewarding bit about blogging, I feel.

Don't just take my photo. Talk to me! ;p

Blogging is a form of social media and it is interaction with readers which makes it enriching for me as a blogger, not the paltry income from ads. Do you feel that other bloggers would agree with me? OK, there are XiaXues and Mr. Browns in blogosphere who are more likely to be enriched by income from ads but I wonder how common are they.

In recent weeks, a reader, EY, has been very regular in leaving comments in my blog. A great sense of humour and a sparkling style characterise her writing. Her comments are little gems which never fail to make me smile or chuckle. After my many requests, here is her first and, I hope, not last blog post as a guest contributor in ASSI.

In case you are wondering, no, I did not conduct an interview. The entire episode was conjured up by EY. I hope you enjoy reading the following as much as I did:

Money talk, money laugh!

All things are not created equal. Money too. In our complicated world, discrimination has to have its way. So money can’t just be money. It has to be good or bad, smart or dumb, clean or filthy, quick or slow, or simply put, it has to be juxtaposed. Money, in all its forms, has the largest contingent of believers and is capable of capturing the imagination and the souls of the young and the old, the hot-blooded and the bold. So for this first guest post (and maybe the only one!), AK and I should have a no-holds-barred money talk. I’ll be brutally honest and unabashedly irreverent, just so you would walk away with the last laugh.

AK: What are your views on money?

EY: Money is the loot of all beavers. Everyone would like to have some stashed away and all of us would love to have them grow on trees!

AK: Is there a difference between good money and bad money? How to tell them apart?

EY: Of course, there is.  Good money is the tragic hero that dies young. For no fault of his, he is often thrown after bad money and always dies an untimely death. While both are in the gaseous state after evaporation, good money tends to have a few more water droplets crystalising from the tears of the heart that has gone chilled.

AK: Which kind of money is most sought after?

EY: This is a difficult question. It depends on individual preferences, I guess. But there is no dispute that hot money goes places, for sexy is hard to resist.  It loves attention and has earned the celebrity status. Just be mindful it always sings to the tune that nothing lasts forever. On the other hand, money with hygiene issues is frowned upon by most.  But it is adored no less by opportunists looking to indulge in their washing fetish that would make it cleaner than clean. And then, there are many who think that size matters.  Big money beats small money hands down.  But big money is said to belong to the losers for every one claims he has lost it before. Borrowed money is the most learned of them all.  It chooses to work only for the rich to get enrolled into every asset class. Coffee money is the most eloquent and it speaks the hardest truth. But it has the bad habit of tooting the loudest under the table too. Quick money has its appeal if it is not always in a rush. It promises many spins like the roller coaster and never fails to take you back to where you begin. Then there is also this one kind that plays hard-to-get. It has no charms whatsoever and is only good at making you sweat and toil. It used to be faithful but now, it is only honest, at best. But if you ask me, I find prize money most attractive. I love its effortless beauty and the big bow that steals the show!

AK: So, what would you do to accumulate more money?

EY:  Buy more clothes with deep pockets and more shoes to walk the talk.

AK: What are your parting words to the readers of ASSI?

EY:  Thanks a bunch for the air time and I’ll like to share my favourite quote. Live every moment, laugh every day, and love beyond words. And in this context, it can be interpreted as live every moment for money to find you anytime, laugh every day to the bank, and love beyond words because money is on the other end!

Tea with AK71: 12-12-12.

Today is supposed to be an auspicious day according to the Chinese Feng Shui masters. Well, my day was filled with little hiccups and bumps. So, it was only so-so for me.

I was going through photos in my IXUS and watching the news on my old 14" CRT when this flashed on the screen. 

Perhaps, the day is only auspicious for weddings and car rental companies.

Many couples have picked the date 12-12-12 to tie the knot... such a special date will not come by for another century.

Based on statistics on the Registry of Marriages website, the number of couples that chose to get hitched (on 12-12-12)  is about four times more than the usual number seen in a weekend in December.

The auspicious date is also driving up demand for car rentals. (Channel NewsAsia, 9 Dec 12).

OK, finding out that my Mazda 2 is finally managing 15km/litre after a bit more than 2 years made me smile. Yeah!

Related post:
My new car's fuel consumption.

Be a real estate owner the easy way (2).

Two years ago, I blogged about someone telling me that there was a way to own properties with very little money or no money at all. Two months ago, I updated in the comments section of that blog post that he lost quite a bit of money doing it.

Today, I came across a blog post by Gerald Tay in Propwise.sg on "No Money Down" properties. His family is in property development and he shares his views on the claims by "gurus" that people could own properties with no money down at all.

I am recommending the blog post as a must read although it is a little bit of a teaser because there is a Part 2 yet to be published.

"Would you like to discover “Secrets of how to own properties with little or no money down?” or “How to own three properties with just one property?” The “gurus” will have you cough out thousands of dollars just to attend workshops or seminars that teach questionable investment techniques, claim you can own properties with no money down, pepper you with lots of crappy motivational talk, then sell you properties at the end of the workshop saying you must take action now and can soon be millionaires upon graduation."

Read blog post by Gerald Tay in Propwise.sg:
http://www.propwise.sg/no-money-down-properties-legit-scheme-or-scam/

Money is hard to make. We must make it hard to lose.

Related post:
Be a real estate owner the easy way.

Duck 2 Tee 2 T-shirts for US$6.00 each.

I have found another value for money deal. :)

6DollarShirts.com sells high quality, silk screened T-shirts to happy customers all around the globe.

We offer hundreds of pop culture and topical designs on dozens of colors for both guys and girls. We keep overhead and prices low as consumers are looking to stretch their dollar farther.

Despite the global economic downturn, our sales have actually increased. Why? Because US$6.00 for a silk screened t-shirt is very attractive; 10 shirts for US$50.00 is irresistible!




Duck 2 Tee 2.
US$6 for a 100% cotton tee. Designed and printed in the USA.

See:
All Printed Tees $6
Yes, for real. Get 10 Tees for only US$50.00!

No longer dependent on monthly wages. (To be a happy "peasant".)

When I was in primary school, I enjoyed reading Aesop's Fables. 

One I remember is the story of the grasshopper and the ant.





The fable concerns a grasshopper that has spent the warm months singing while the ant (or ants in some versions) worked to store up food for winter. 

When that season arrives, the grasshopper finds itself dying of hunger and begs the ant for food. 

To its reply when asked that it had sung all summer, it is rebuked for its idleness and advised to dance during the winter.

The story has been used to teach the virtues of hard work and the perils of improvidence. 

Some versions state a moral at the end along the lines of "Idleness brings want", "To work today is to eat tomorrow", "Beware of winter before it comes". (Source: Wikipedia).





It is easy to be lulled into a false sense of security when everything seems to be going our way. 

We must always save and make contingency plans for when things go wrong. 

When things go wrong, they often do without much warning.

This is one way I like to approach the topic of savings and investment whenever I get to talk to anyone about the importance of financial planning. 





Unfortunately, there will always be some who say that life is short and they should enjoy it while they can. 

If things go really bad and they have no options left, they could always end their lives. 

Really, I have been given such a response before not by one person but by a few people.





In a recent study, it was found that suicide rates often spike during economic downturns, and recent studies of rates in Greece, Spain and Italy have found similar trends.

Every rise of 1% in unemployment was accompanied by an increase in suicide rate of roughly 1%. (Source: The Business Times, Nov 6, 2012.)

We should all be ants instead of grasshoppers. 

Work and plan for the future.





Related to this, I just found out that I have been labelled a person with a "peasant mentality" when it comes to wealth building. 

A peasant "is a member of a traditional class of farmers, either laborers or owners of small farms... The majority of the people in the Middle Ages were peasants." (Source: Wikipedia)

Unfortunately, I was not born with a silver spoon in my mouth. 

Well, I could have had a silver spoon in my mouth but two generations ago, that spoon went to another branch of the tree. 

So, I am definitely of the masses and I can only do what I can with my limited resources to move upwards.





For me, to move from a time when I was dependent on my monthly wages to meet my living expenses to now when I no longer have to is an achievement. 

It could be a modest one in the eyes of "noblemen" and "aristocrats" but I will be happy enough to own a fully paid apartment, a fully paid car and to be free of all debt.

So, to the people who called me a "peasant", you are probably right in your description. 





I am a "peasant" and will probably remain a peasant but I hope to be a happy "peasant".

Related post:
Wage slaves should be fearful.

Don't be a yield pig, be a hardy pig.

We have heard or read in personal finance matters that we should not be a yield pig. Indeed, promises of very high yields in instruments which we could hardly understand should be looked at with great suspicion.

This does not, however, mean that we simply brush off high yields. After all, certain S-REITs were offering very high yields at the depths of the GFC a few years ago. People who sniffed at them in disdain back then could be sniffing for a different reason now.

We have to be courageous and careful at the same time. What my driving instructor told me years ago just came back to me. In driving, we have to be 胆大心细. So, if we wished to change lanes and we were only 胆大, we might end up in an accident. If we were only 心细, we might never make the change!

We must have the courage to be a contrarian when everyone flees a genuinely rewarding proposition and the courage to say "no" to something which seems too good to be true in the absence of a logical explanation.

This blog post is a reminder to myself as well. Money is hard to make and we have to make it hard to lose.

When I was in the USA, I saw this poster and it has nothing to do with personal finance. The only thing it has in common with this blog post is the word "pig"!

“Be a hardy pig, an income-generating vegetable garden, or an essential and productive tool.”

Anyway, it intrigued me enough to go online and read more about Oxfam. What they are doing is very meaningful and I would encourage you to read more about Oxfam and why "be a pig" at: Oxfam: Working together to end poverty and injustice!

In case you are wondering, no, this is not a paid advertisement. :)

More photos of my U.S. trip here:
Travel Photos and Videos.