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Tea with FunShine: Diary of an investor.

Saturday, March 12, 2016

This is a well written guest blog by FunShine who is another good example of prudence in personal finance and discipline in investing for income:


Diary of an Investor

1. Ever since I have become more open with my portfolio, you get different friends asking or commenting on me for different things.

2. There are those that are surprised as some always thought that I am poor as I worked in social services for the past 11 years. I openly shared that my first job, the pay was only 1.6k after CPF. Plus I do not drive and live a frugal and prudent life other than my toy collecting hobby and my MTG hobby.

3. There is another group that asked how did you do it? I just say when my salary increase, I still live like how I will live based on my first job's pay. I invest and save the difference from my first job pay and last pay cheque.

4. My first job has taught me a lot on financial education and to always save for a rainy day. My first job is almost the same as those officers you see working in SSO that helps the poor and needy in SG.

5. There will be another group that will ask what to buy. To this group I say, go do your homework. And tell them I lost 30k by asking this kind of question.

6. Another group will come borrow money. To this group I say, I myself have good debt and I borrow money too at 2.5% to 4% interest backed by my asserts on loan to those that lend me money. What I do is take the money and invest it and generate a higher return. In the event if I fail, they can keep the assert I "pawn" to them which is more expensive then the money I borrow from them.

7. So if they ask again and still do not get it, I say can I charge you an interest of 5% if I lend you money? They understand and leave.

8. Of cos, there are my friends that is going through real hardship. I normally lend them up to $500 to help them tide through. There is a very firm and fixed pay date. No interest charge. If they go missing on me, I will just write off the $500 and be thankful that $500 can see the true colour of my friend that have questionable integrity. I am thankful as I will save lots of hours in my life with this friend since I will never see them again. So far I have lend more than 20 plus times and all the money has been returned.

9. Then you have another group. The friends that ask you to invest in them. My question is, is your "company" able to generate 5% to 20% ROI per year or on a long run? If no, it's better I place my money in the stock market or Oil/Gold/Silver ETF.

10. If they still pressed on, they will be bombarded by a tons of question from me:
A) Your current cash flow and Capex
B) Why are you raising funds
C) Future potential
D) SWOT
E) ROI in the next 5 years, 12 years
F) Succession planning

11. So far no one has passed this stage. I give to charities but I must know that is money well spend.

12. My this year's tax for my 10 months of work is only going to be $88. So you can probably work backward to think how much I give or put in SA or SRS if you bother to calculate.

13. Portfolio with the recent stocks bound up has been good. I am now just 40k short of being a priority banking customer, two months ago when the "sky was falling" and I got numerous messages on what to do, I was short of 50k. Normally I will just tell the "Sky is falling" group, why do you invest and why do you buy this company in the first place? If nothing change, just ignore the noise.

14. However, I will be selling 1/3 of my stocks in Mid April. As have a feeling that cash on hand will be good to take advantage of the upcoming opportunities.

15. My war chest consisting of OA-SA and SRS is still untouched. Market has not dropped to the point where I felt the need to open them. Will rather have good debt at 2.5% to 4% to buy them, then to tap on my war chest.

16. Preparing my heart now for quiet time. Just want to do a bit of sharing. Hope that what I share will help you in considering to live a prudent life and give more to others in need.

17. We need to be good stewards in all aspect of our lives. Thanks for reading.


Tea with FunShine: Investment Philosophy.

Tuesday, March 8, 2016

This is a guest blog by Funshine:

My Investment Philosophy

1. Bought OCBC 2 years ago before the rights issue. Traded it a little during that time ðŸ˜Š
2. Been buying all the way from $9+ till $7.69. Haven't booked my losses yet as I closed my books during June 2016.

3. Sitting on 15% lost on OCBC. To me there is no such thing as paper lost. Paper lost is only for people that wants to make themselves feel better so that they can wallow in self-pity.

4. Rather than indulge yourself in self-pity, might as well sell if you see no potential in the stock and transfer the funds to a better assert.

5. 23 April 2015 is the first day of operation for OCBC in Yangon. I hoped it will be a catalyst of growth in 5 years time.

6. Great Eastern results have not been too good from the last I read. OCBC is the parent company of Great Eastern.

7. Will increase till I have a 5% stake in SG banks based on my current portfolio.

8. Meanwhile been thinking for almost one quarter now to whether push one of my holding to 3.33% of my portfolio on a company that is investing in Ghana.

9. Pushing and confirmed going to increased my position to 6.67% of my portfolio on a country that is vested in Russia. That one, my time horizon will be 24 years if the company fundamentals does not change.

10. The Russia decision I at least ponder for 1.5 years, can't remember reading how many articles on it and I have been trying to speak to Russia people.

11. Investing is a lot of hard work. Although timing and luck plays a very big part. However, you can't be lucky and have perfect timing all the time if the duration is 20 years. I have friends that were so confident and one bad trade, they turn around and need to borrow money from me.

12. If you want quick money, go to a Casino or visit Singapore Pools. I spend $6 last week at Canada Lottery. The prize money is $60 million and one person won it.

13. If you can't afford to take the risk, please put in FD or buy Endowment. Even better just put in CPF.

14. When friends ask me what to buy, my opening statement is that this is not a good question. They will be stunned as suddenly I am rebuking them. I do that so that I can protect my friends.

15. My second response is I lost $30k from asking that question.

16. My next question to them is:
A) Why do you want to invest?
B) Why not just put in the bank?
C) Is this your spare cash?
D) What companies do you know?
E) Can you wait 20 years if we have a very weird and prolong bear market?

17. If I am pleased with the answer and the person have a bit of knowledge on Mr Market, my next question will be, are you an:
A) Dividend Income Investor
B) Growth Investor
C) Trader

18. As all three requires very different skill set.
A) Needs to plow through tons of reading and Fundamental Analysis
B) Macro Econs view, Govt Policy, Consumer taste and competitors need to be considered
C) Technical Analysis

19. However the most important skill to have which I am a firm believer of is IP. Investor psychology.

20. I have seen people with above normal IQ level but they lose big time in stocks market.

21. You are fighting with yourself as you embrace Mr Market. Mr Market may be your best friend at times. However, the next day, he can slapped you silly.

22. Do you have the temperaments for it?

23. I am very glad that my studies in Psychology and Management have given me a better footing.

24. Working for more than 10 years in social services has increased my mental resilient level and I got to know myself a lot more.

25. Lastly I believe in two things for investing or trading. Nothing is easy for the unwilling. What you do in your free time will determine how successful you will be.

26. If you have below average returns or worst then FD and you do not self reflect and ask why?

27. Please... Put your money is FD, CPF or Endowment. It will be better for you. You are responsible for your own money. Not someone else.

28. Thanks for reading. Going off to my Taiji class now to quieten my mind.

29. Keeping pace with Mr Market is not easy. On a 6 months break from work, living prudently and strangely I am traveling round the world. It's a oxymoron as traveling round the world and living prudently does not match. Oh well...

30. Best of luck or God bless as you continue your journey with Mr Market.


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A bit about the writer - FunShine
The writer hopes that his personal account will be a good read for people hoping to take small steps towards different degree of financial freedom.
FunShine has been working in the Community and Social Service Sector for over 10 years. It has always been an interesting sector to work in.
He has decided to take a 6 months break and live prudently, surviving on his dividends and interests for his personal expenses.
FunShine does not want to compete with the Joneses and is contented with his lifestyle.


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