What If You Strike $10 million ToTo Tonight

What if you strike the $10 million ToTo tonight? I use to dream that if I strike ToTo, I will write a resignation letter to my boss and ask him go fly a kite. I will not serve my notice period and just pay off my notice period and get the hell out of there. That was when I was in the cost center of a company.

When I was in the profit center of a company. I dreamt that if I strike ToTo, I will photostat and blow up my winning ticket and paste it on the wall behind my desk. Boss walks in and ask for my sales figures, I will just use my thumb and beckon to the winning ticket stuck on the wall. I will do whatever figures I like since more work I do does not necessarily equate fairly to what I will be paid.

But unfortunately, I never did strike...

But fortunately, I have left corporate and in my opinion strike my lottery. I have realised that be it in the cost center or profit center of any company, there is one thing in common. The company.

The company always comes with bureaucracy and red tapes. There is always office politics. There is always colleagues that is just doing things for their own agendas. There are always bosses that never seem to understand. There are always fixed working hours to abide by. Many a times you do things you never undertsand why. Nobody cares about your opinions. You never get to leave on time and if you do you get dirty looks. And you are never paid enough.

But of course, being in a profit center of a company is still better than being in a cost center. Got a little more bargaining power. Can speak a little louder. Demand a little more. But still being in a profit center still cannot make up for all the bad reasons associated with a company.

So do you know if you are in a cost center or profit center. To determine, does your work contribute directly to the profitability of your company? Yes, profit center. No, cost center. Don't know/ Don't care... you are bored and disengaged at work.. highly cost center.

So what will you do if you strike the 10 million tonight?

I am sure you already have your dreams thought out already. But first you must buy the ticket first, second you must strike....

But if an opportunity arise so that you can live your dreams? Will you take it? How much will you spend getting it? How much time will you invest checking it out?

I am currently looking for partners that are business oriented, customer focused, creative and intelligent. Being handsome or pretty is an added advantage... Just kidding.. though I am serious about looking for partners. Must be prepared to travel.

Only looking for Singaporeans or PR. Age between 21 and 40. If you are a fresh graduate with big dreams, you will also be considered.

Opportunity is not given to the chosen few, but the few who chose.

If you fit the above description and more, email me your resume at tngjinyau@gmail.com.

Investing? Diversify!

Just sold off some investments I did 2 years ago in funds. Did these investments with a bank I was before. Been sometime I looked at it and thought now is a good time with the whole Cyprus issue and all.

Walked into the bank and asked for my portfolio. I glanced at the printed copy of my portfolio and was dismayed to find a particular fund that showed -12% under the rate of return column. Looked at the fund that was at negative 12%, Global Property. Alamak since when I have this fund man! Probably I did, it was one of those decisions I made that since global property has been going down the only way is up. Wrong call....

Glanced at the other funds I had. An asian managed dividend paying fund and a Singapore fund. 5% (excluding the dividends I got over 2years) and 29% respectively. Woohoo! Whatever losses I made in the property fund is nicely covered by my other 2 funds.

I have been an advocate of long term investments (though 2 years ain't that long term, but this is tactical asset allocation), diversified asset allocation and dollar cost averaging. This strategy has helped give potential returns of about 10% per year. Though like they say past experience is not indicative of future performance, but diversification has helped all the time.

Some of you may argue that Tang 10% could be something I do in an hour. Sure but will you tell me if you lost 10% in an hour? The fact is if something can give you a potential return of 10% in an hour it also potentially can give you 10% losses in the same hour. And that, like I have mentioned in my previous post is not investment but speculation.

And again it is not wrong to speculate, but do so only when you have core financial planning done then go speculate, knowing that losing 10% in an hour is not going to affect future plans. In fact, even if you lost all your money in the casino or spent it on all the quick picks in every Singapore Pools in Singapore for the 10 million price draw, you are rest assured that future plans will not be affected, then go ahead do it! Come on admit it, we all dream that one day when we tio the Toto we will throw resignation letter in our bosses face.

I have secretly dreamed that if I did tio the Toto, I will photocopy and blow up my Toto ticket and paste it behind me in my work station, then chill and do minimal work just to hit KPI, just to justify my existence. My winnings left in a dividend paying fund drawing 4%, for every million it is $40,000, can sustain my daily living and working is just getting more money from the company. Boss walks out of the room and say Tang your performance not up to standard, without looking at him, I use my thumb to beckon him to look at my winning ticket. Boss no choice walks back into room. If only....

Sigh...

But that was corporate life. Now I am the boss, resignation letter I throw in my own face :).

So before you foray into investments ask yourself some questions:

1. How long is my time horizon?
2. Is my core financial portfolio in place?
3. How much am I able to lose?
4. Is the investments I am going into diversified?

There are many solutions that fit different needs and risk profile so start taking action, because what you do today will impact your future.

The Problem With Investments

The problem with investments is that many expect money put in today make money tomorrow or very quickly. Thats not investing, its speculating. It does not help that many people are drawn into advertisements that tell you, you can make millions with just 15 mins everyday. They claim they found the success formula in investing and they are here to share their knowledge bacause they feel good things must share. Their sharing cost $3000 plus. Eeerrr since when did sharing become a commodity?

I knew of somebody that paid that kind of money and when I asked them for their lesson notes, I saw them using charts of companies during 2003 and 2004 period. Any idiot with a dart and a list of stocks during 2003-2004 can make money in equities. Stick the piece of paper on the wall, throw the dart at it. Whichever stock the dart hit you buy, to make it more challenging do it blind folded.

I started to realise that many "investors" is running on greed and these marketers of these programs are capitalising on it. You will notice that these advertisements will be the most rampant when the economy is at a slump and the only way for the economy is up.

And greed caused problems to these "investors" too. Many have bought into technology stocks or funds in year 2000. In 2003 when I was in the bank I met numerous customers that have a negative return on their investments and 99.9% of them has most, if not all, of their portfolio in technology. Why?

Greed has driven the mass buying of technology as tech stocks in 2000 was in favour. Tech funds was doing almost 10% a week! And people were optimistic of the new era of internet. If you think about it, in 2000 if you were a startup company with a laptop and called yourself something.com your shares will be flying off the shelf. But what assets is supporting these share value? You and your laptop....

So whats the difference between investing and speculation. We all know speculation, put money today and try to make a reaping in a very short time. But investing is putting your money in and knowing it will give you a return in a longer time frame because of good fundamentals in a company or fund. Those of you who have watched Forrest Gump will know what I mean. At the ending sequence he said he found some piece of paper his grandfather left behind and it had a picture of an Apple on it. Thats investing but still kinda high risk cos his grandfather may have just put his money in one company. What if it had failed?

There were many more lessons in investments like asset allocation, diversification and time horizon. These I picked up through many discussions with my clients. And some of these lessons are hilarious. I remembered doing road show and when an uncle walked past, i casually asked if he did investments. Yes he said. Wa uncle good! What you invest in? He replied, 4D, toto, big sweep, soccer. Wa uncle not only you invest you also know how to diversify ah? He never became my client but its people like these that makes my job so much more interesting and enriching.

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