Retiring a millionaire is not a dream!

I recently received an email from a reader in his mid 20s who just joined the workforce. Reading my blog at the recommendation of a friend, he wrote that he felt encouraged and sceptical at the same time. 

He wondered if it is really possible for him to become a millionaire (without having to sell his future flat) when he finally retires. Do you feel the same way he feels?

If we were to squirrel away $50 more per month in a biscuit tin from age 30 to 60, we would save another $18,000!




With the increasingly high costs of living in Singapore, it is easy to think that it is no longer possible to retire wealthy and having a million dollars in liquid assets seems to be a popular yardstick. 

I have a feeling that this belief is widespread amongst the young and, perhaps, the slightly less young too. 

This belief is very dangerous! It could be a self fulfilling prophecy!

Hey! Young people out there, listen up! You can become a millionaire by the time you reach retirement age or earlier! What's more, this is possible without even counting the money in your CPF or the value of your flat! 

AK is not pulling your leg. It is true.

I don't know how much money you make a month. I don't know how much money you spend a month. 

Of course, you know that I would say you should increase your income and reduce your expenses as the first step to wealth building. You already know that.

I won't tell you how much money you should spend a month. How could I tell you? Everyone's circumstances are different.

What I can tell you is how much money you should at least save a month! 

Now, based on this and with the knowlege of how much money you are spending every month, you would know how much money you must make a month to achieve the target of having a million dollars in liquid assets by the time you reach retirement age.

Young people have the most valuable asset in the world and that is time! Young people have time on their side.

The younger we start saving and investing for our retirement, the easier it is going to be. I know we hear this all the time from insurance salespeople and often, we brush them off because we believe that they are just out to make money from us. 

Well, AK is not an insurance agent and I am not going to make money from you listening to me. So, don't brush me off.

So, listen, what the insurance salespeople say is true. Yes, it is.





Now, let's work our calculators!

How much should we be saving and investing every month if we would like to have a million dollars in liquid assets by the age of 65?

Taking the example of the 25 year old reader who wrote to me, S$650, give or take a few dollars. Yes, only S$650 a month! Accumulate savings, buy stocks of good companies with about 5% dividend yield a year and re-invest the dividends. 

Saying nothing of possible capital gains, voila, you would have $1,000,000 by age 65!

The power of compounding is amazing and I have blogged about how money in our CPF-SA will grow 50% every 10 years even if we were to stop contributions today and this is from an annual interest of 4%!

What about the not so young? Well, if we start at age 30, we would need to put aside about S$880 a month. Not so bad. 

What about age 35? Ah, S$1,200 a month. Still manageable. 

Then, age 40? Hmmmm... S$1,680 a month. 

Later at age 45? S$2,430 a month! 

Wah! Sorry, I shouldn't shout.

OK, don't ask me for the monthly amounts for age 46 and above. I am in cold sweat.





Now, when I blogged about my passive income from S-REITs, I said that it is always hardest at the start. The Chinese say 凡事起头难. Hard to start but start we must.

To the 25 year old reader, believe me when I say that if you keep at it, your annual investment gains will eventually exceed the annual sum that you are saving and investing. 

Yes, your annual investment gains will exceed S$7,800 at some point in time and it will continue to grow if you continue to do the right thing.

Now, pause and picture that. Are you smiling?

If you know anyone who feels the same way this 25 year old felt, tell them that AK will shake them hard by the shoulders. 

Nah, let's not be violent. 

Just tell them to read this blog post. 

It won't take too much time but it could change someone's life.

Remember, all of us can do it!

Related posts:
1. 7 steps to passive income from stocks.
2. If we are not rich, don't act rich.
3. Warren Buffet, the world's greatest money maker
4. Rich Dad, Poor Dad: 2 are better than 1.
5. Recommended books for FA and TA.
6. 7 money habits of AK71's.
7. What is $1 million at retirement?
8. Achieving $1 million in retirement funds.

L'OCCITANE Shea Butter Foot Cream.

Almost two years ago, I blogged about moisturisers, admitting that I use them. Well, I still use them! Recently, I discovered shea butter!

"Shea butter is a solid fatty oil made from the nuts of Karite Nut trees, also known as Mangifolia, that grow in the semi-arid savannah regions of West and Central Africa. Shea butter is sometimes called “women’s gold,” because extracting the butter from the nuts gives employment and income to hundreds of thousands of rural African village women. Shea butter is so non-toxic and beneficial that it is used in foods and cooking as well as soaps and beauty products." Source: www.care2.com

I actually bought a big tube (150ml) from L'OCCITANE at the recommendation of a good friend. It says Shea Butter Foot Cream but I use it on my hands and elbows too. It really works and the moisturising effect is long lasting compared to other moisturisers I have used before.

My tube of L'OCCITANE Shea Butter Foot Cream.

Now, instead of using Aesop's Resurrection Hand Balm (which is more expensive), I use this Shea Butter Foot Cream on my feet. Massaging the cream well into my heels before going to sleep, it prevents cracked heels. As it contains lavender essential oil as well, massaging it into my hands, the scent which is very soothing helps me sleep better too.

This is good stuff and to anyone who is thinking of a hand and foot moisturiser, you might want to give this a try. Inexpensive and effective, this can be bought online for US$36.00 per tube and it ships free to your address in Singapore. You could also be eligible for some discounts.

Find out here at this link:
L'Occitane Shea Butter Foot Cream 150ml/5.2oz

Related post:
Should guys use hand moisturisers?

Old Chang Kee: Have my curry puff and eat it too.

Time really flies! It really does not feel like I have been a shareholder of Old Chang Kee since October 2011 but it is true! 

I have been a shareholder of the company for more than a year now.

Today, I made a decision to sell half of my shares in Old Chang Kee. 

Why not hold? Well, it has more than doubled from my buy price.

The decision is not based on TA since it is such a thinly traded and volatile stock. 

The decision is more based on FA as I feel that although it is a great company with characteristics similar to See's Candies which Warren Buffet likes so much, valuation is now rather rich.

Then, here comes the interesting part. 

Why have I chosen to sell at 57c or higher? 

Why not 55c or 56c? 

For those of you who think that AK is a savvy investor with profound insights or thoughts, this could change your mind (hahaha..).

Well, my entry price was 26c a share. A doubling of the share price would see 52c a share. 

Old Chang Kee recently announced a 5c dividend which is payable sometime next month. So, 52c + 5c = 57c. 

Tadah! Rocket science at its best.





Why not sell all my shares then? 

Well, apart from the 5c bumper dividend declared, I really don't know why Mr. Market is so into Old Chang Kee suddenly. 

Could there be something brewing that is more delicious than the comfort fast food that Old Chang Kee is famous for?

Being minority shareholders, we are usually slower in getting any type of news, if at all. So, I am keeping half of my shares (which are free of cost now) just in case. 





Of course, then, I will still receive the bumper dividend to be paid out to shareholders next month. Yummy!

Related posts:
1. Old Chang Kee: Special interim dividend.
2. Old Chang Kee: Initiated long position at 26c.

If we are not rich, don't act rich!

We are familiar with excuses. 

We hear them all the time and, sometimes, we also make some. 

I am being honest. 

Yes, sometimes, I make excuses.

"I cannot save money because I don't make much."

Heard this before?




We have to earn money and save money. 

Basically, that is the way most of us start building up our wealth. 

For those lucky enough not to have to do that, skip to the next step which is to invest. 

Of course, there are those who are extremely lucky who don't need to invest but if you are reading my blog, I don't think you belong to this group of people.

Anyway, this blog post is off the cuff and if you have friends or family members who are not saving money, justifying their inaction by saying they make too little, send them the link to this blog post or share this in any social media, whichever you find easier.

Now, this may sound jaded as I have said it before many times and that is we should run our lives like we would run a business! 

We must try to contain costs and increase revenue!




Contain costs? 

Yes, what do we spend our money on? 

Are they needs or wants? 

If they are wants, cut them immediately. 

Mercilessly. 

If they are needs? 

Are there any cheaper alternatives which do the job just as well?

If we were always going to Starbucks et al for our coffee fix, we could start by bringing a packet of 3 in 1 coffee mix to work every day. 

That's coffee too and I think that would set us back by 20c a day instead of $5 (I don't know how much Starbucks coffee costs and this is just an educated guess)! 

Doesn't sound too difficult, does it? 




Don't brush it off! 

Savings add up especially if we do it in every aspect of our lives!

The worst type of costs is the type we really have great difficulty escaping from due to bad decisions leading to long term commitments. 

Can you think of some?




Here goes. 

Just because our friends or family members have a car (or two) or a condo (or two), it does not mean that we should have them too. 

Just because our friends or family members are married and have two or three children, it does not mean we should do it too. 

Always think carefully, plan ahead before making such huge commitments. 

They could really haunt us later on, otherwise.

For anyone, especially those who have trapped themselves into huge, longer term expenses which they cannot easily escape from, who says they cannot save money because they don't make much? 

Ask what is the logical thing to do? 

Increase revenue!

Increase revenue? 

Yes, find ways of making more money. 

Unless we are severely handicapped mentally or physically, there is no excuse for not being able to make more money in a country like ours where opportunities abound! 

Often, people are just lazy or picky.



There are a few well known bloggers who are private tutors by night. 

I even know a blogger who was a DJ by night! 

I know someone who helps out in his family's chicken rice store on weekends and I have a friend who sells her cakes and cookies to friends who appreciate them.

In case you are wondering, all of them have day jobs and have about the same amount of free time as any other person with a day job, everything else being equal. 

They have a choice on what they would do with their free time just like anyone else.

Please choose and choose wisely.



Once we are on this journey of containing costs and increasing revenue, we should naturally be saving money. 

A pertinent question to ask is how much should we save? 

Personally, I have been asked that before by many people and I always tell them that if they do not feel that they are sacrificing something in the process, they are not saving enough. 

Remember the Starbucks coffee example earlier?

We can do it!

Of course, "sacrifice" is a subjective concept. Someone might think that sacrificing Starbucks coffee for coffee from a neighbourhood coffeeshop is enough. 

Well, there is still savings, I reckon. 

I am not dogmatic when it comes to details. It is the concept that I want to share. 

It is the spirit I wish for every person to embrace.




Perhaps, what is most important to remember is this:

If we are not rich, don't act rich! We have to work harder to save money because we are not rich! If we act rich when we are not, we will never be rich!

For more blog posts on the topic, please refer to the right side bar and look for the box titled "Wealth Creation: Earn and save."




"When you do these things, people assume you are an intelligent, important and responsible person."

I guess I know why some stock market gurus like to show off their expensive purchases now.

LOL! Oops.

Bad AK! Bad AK!



---------------------------------
Related posts:
1. Not enough money to be married.
2. Rich Dad, Poor Dad: 2 are better than 1.

This could interest you:
The Richest Man in Babylon & the Magic Story: Two Classic Parables about Achieving Wealth and Personal Success

The Richest Man in Babylon is a story of Arkad, a person of humble origins who became the richest man in Babylon. Discover the attitudes and behavior that bring wealth and happiness.

The Magic Story is a story about Jay who saw how his once struggling friend became a man of achievement. Find out how his friend did it.

Show less

A new Sun has risen.

SunVic Chemical Holdings made history today appointing a 26 year old as CEO, possibly the youngest CEO of a listed company in Singapore, as reported by The Business Times.

26 year old Sun Xiao will take over from his father, Sun Liping. Sun Xiao graduated from Curtin University of Technology more than two years ago and joined the company as an intern. He became deputy CEO last May.

I think it comes as no surprise that people think Sun Xiao is somewhat young for the job. How often do we hear of an employee with only 2 years of working experience being promoted to the position of CEO?

Mr. Mak Yuen Teen of NUS Business School said that it is the job of the nominating committee to justify the decision. Why is Sun Xiao the best person for the job? How was he chosen?

See what they said:

"The nominating committee and the board have after considering the relevant industrial experience of Mr. Sun Xiao, found him suitable for the position of CEO and have approved his appointment with immediate effect." Duh...

Sun Liping has almost 62% interest in SunVic. Other shareholders can be unhappy and object until the cows come home but this is definitely one of the things which minority shareholders of family controlled companies could possibly have to live with.

Remember my recent blog post? Who you know is important, isn't it?

Related post:
Discrimination: Get real!

Yongnam: The ADR effect!

In October last year, Yongnam had a roadshow for overseas investors. In that roadshow, it was revealed that they were getting their shares traded as ADRs in the USA. This has happened and their ADRs commenced trading on 8 January 2013.

"This market platform will allow Yongnam shares to trade more easily on an international basis, enable the Company to diversify its shareholder base, encourage trading liquidity, and improve access to new capital markets." (Yongnam)

Mr. Market certainly likes the news!

If 26.5c should be taken out, then, I see 28c as the next resistance level to watch with 29c as a much stronger resistance which could be tested under very bullish circumstances.

Of course, we can only wonder if share price would go even higher tomorrow or the day after.

What are ADRs?

ADR stands for American depositary receipt and it is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.

ADRs were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them. (Source: Investopedia)

Related posts:
1. Yongnam: Worried about warrants?
2. A Christmas collection of charts.

Fly with AK71.

These were two shots I took from my window seat as the plane was flying over Narita, Japan.

These sights made the very uncomfortable flight more bearable.

See some of my past vacation photos in Japan: here.

Related post:
Singapore-Japan-USA

Wilmar, China Minzhong and Sound Global.

Wilmar's share price could not overcome the resistance provided by the descending 200d MA. Look out for a retest of the support which approximates the 100d MA at $3.20. I would buy more if that should be tested.

China Minzhong's share price has established 86.5c as the resistance to watch. There is still a chance of a pull back to support provided by the rising 100d MA. I have sold some at resistance as a hedge and if support should be tested, I would probably buy more. Breaking resistance at 86.5c could see share price heading towards $1.00.

Two dojis in a row suggest indecision on the part of Mr. Market with Sound Global although a higher high on the MACD suggests a strong positive momentum and we could see price pushing higher. Expecting a band of resistance from 68c to 70c while expecting a band of support from 59c to 61.5c.

Related posts:
1. Wilmar: Testing resistance with strong momentum.
2. China Minzhong: What are we to do?
3. Sound Global: Another resistance level broken.

Discrimination: Get real!

Fortunate are those who have not encountered discrimination anywhere! Actually, they might not be fortunate, they could just be delusional!

In the real world, discrimination takes place all the time and everywhere!

Are you good looking? If you are, you are lucky because you are assumed to be good in many other things even though you might not be. Well, would we rather be around good looking people or ugly people? Now, be honest.

Are you a man? If you are, you are lucky because in jobs which both sexes are able to take on, employers would favour men to women. 

Why? 

Men don't get pregnant. They don't have to take leave to give birth and take care of babies as a consequence.

Are you young? If you are, you are lucky because you have more mileage left in you than older people. Generally, employers prefer to have younger workers.

Are you well connected? If you are, you are lucky because who you know is more important than what you know! This is the bombshell!

There are probably many other ways in which people suffer discrimination: racial discrimination, religious discrimination, weight discrimination, class discrimination or even political affiliation discrimination!

If we are receiving the shorter end of the stick, of course, we can complain all we want about how unfair things are. However, the real world is never fair.

If we feel that we are a victim of discrimination, what can we do? Look for greener pastures, I suppose, as discrimination is probably hard to eliminate.

If we feel that we have been wrongfully dismissed, we could approach the Ministry of Manpower and here is the link: 

Claims, Complaints and Appeals.

That discrimination exists in all its forms should be one of the first lessons we learn in life unless we do not live in the real world.
---------------------
Added (3 Feb 17):

Related post:
Tea with AK71: Looking good.

Five steps to take in REIT investment.

Now, I would not tell people if it is a good time to buy or to sell anything in the stock market. Regular readers know this. It is only on hindsight that we could tell if it was a good time to buy or to sell. Everyone has perfect hindsight. Not very useful, is it?


I know I have many more than a thousand blog posts by now and it would probably take quite a bit of time to trawl through them but I have hand picked a few and provided hyperlinks in the right side bar for your easy reference.

In this blog post, I want to share what I think I can safely share with anyone without getting into trouble and that is my general approach to the issue of investing in REITs. I try not to be repetitive but it is hard to avoid repeating at least some of the stuff I have said before in earlier blog posts.

Step one, know what is a REIT. Yes, don't laugh! People buy things just because it is the flavour of the month or year sometimes. It is true! Know what is a REIT and whether it fits your investment objectives. If you don't know what you want out of your investments, please leave your money in your bank account. 

Step two, if investing in REITs fits your investment objectives, look at the numbers of the different REITs available and see if you like them. If you read my blog posts on the different REITs I am vested in over the last 2 to 3 years, you will get an idea of what I look out for when I examine their financial reports. My approach is by no means fool proof but I believe that it does a pretty decent job.

Step three, if you like the numbers of certain REITs even at their current unit prices, then, they are still good investments for you! Doesn't sound like a difficult conclusion to arrive at, does it?

Step four, decide how much of each REIT you want to buy into at the current unit prices. As a percentage of your total investible cash, how much would you be comfortable with investing? Now, this is a very personal question. Some people are conservative while some are bolder. Two people could have the same belief that being partially invested while keeping a war chest ready is the way to do it but differ as to the proportion of investible cash to use.

Step five, buy, hold and monitor. Yes, don't think that everything is hunky-dory after making your investments. You want to monitor how they are doing on a quarterly basis. Keep track of macro trends and think how these could affect your investments. If you stay on top of things, you will feel confident in your investments and if there should be opportunities to buy more on the cheap, you would be able to act decisively. By the same token, you would also know when prices are somewhat rich and that partial or full divestment could be a good choice.


------------------------------



Technical Analysis For Dummies dumps the confusing jargon and unreadable charts for basic explanations and practical guidance.





Free shipping globally.

Go to:
Technical Analysis for Dummies

For those who prefer e-books:
Technical Analysis For Dummies

Visiting an indecent (even lewd) shop.

Remember the big hoo hah about the gigantic poster of a half naked man at Knightsbridge? Actually, that was not a poster. It was more like an enormous mural!

The images which would put most Singaporean men (including myself) to shame were on two walls at the corner of the building, a few storeys high!

For those of more puritanical persuasion, you might want to avert your eyes because here is a flesh  flash back:

A while back, I went with a friend who was visiting. She went with her camera in hand and took photos with the lone topless hunk in the shop. After that, the nightmare began. Nightmare? Now, now, don't be naughty.

Too dark! Too many steps! Too many angular handrails!

I don't have very good night vision and I had to squint in the very dimly litted interior and would suddenly go blind in areas with spotlights which made me even more blind as I walked into dimmer areas again. As I went up and down the steps, I walked into the corners of the handrails at least twice. I had the haematoma to show for it too!

The shirts on sale were somewhat too thick for our climate. Of course, the prices were too rich for me. Anyway, if you guessed that I probably walked away empty handed, you are right. No prizes though. Too easy.

You might be interested in reading my older blog post on Abercrombie & Fitch.

Hint: you would also want to read the comments section.

Read the blog post here:
Ad by Abercrombie & Fitch is indecent (even lewd)!

See my staycation photos at Hard Rock Hotel, Singapore: here.

Marco Polo: Longer term buy on weakness.

The lower highs on the CMF suggest a weakening of smart money flow into the stock. The MACD, however, shows a strong positive momentum with a higher high in the process of forming.

Candlestick analysis gives cause for caution as two dojis and a black candle were formed in the last three sessions. However, the much higher volume as price pushed higher compared to the much reduced volume in the black candle day suggests a lack of sellers' conviction.

CMF shows higher lows on the weekly chart. This suggests that there is less money moving out of the stock in the longer term. MACD has turned positive and MACD histogram has formed a higher high, In the event of a retracement, support is at 38c while a stronger support is at 36.5c.

To me, it is quite clear that Marco Polo remains a longer term buy on weakness.

Related post:
Marco Polo: A neglected gem.

For those who prefer e-books:
Technical Analysis For Dummies