Tze Wei Growing Up

Its been an amazing 3 years already since my daughter has been brought into our world.

She has made me laugh, made me cry.

I can still remember when she first started teething. She has a fever and must have felt terrible. She was lying on my lap and she looked up at me with a 'help me' look on her face. She made me feel helpless. I had to go to the balcony just so I can shed a few tears for not being to help. Well, phases of a new parent..

But now looking at this video, you cannot help but agree that all was worth it.. the tears, the sleepless nights.

And I am sure this is just the beginning tp more tears and sleepless nights... but moments like these, priceless!

https://youtu.be/tTJPJtCZ5L4

Meritocracy

So the past week what have we learnt? I know I have learnt much more of the man that is so respected around the world. I learnt how he and his team built this mud flats to what it is today. Many may argue that it is not just him who have built Singapore, but it was his ideology, vision and foresight to make what Singapore what it is today. It took careful planning, meticulous execution and constant monitoring to ensure the peace and freedom we have today. Its having a purpose in life! And Mr Lee dedicated his whole life to that purpose.

But more importantly, it is about meritocracy. Its about efforts put in by individuals to ensure their own success. It is about creating equal opportunities for all gender, race and religion. It is creating these opportunities so that efforts can be rewarded. And its understanding that education is so important in a country like ours that does not have natural resources. 

But that also have a downside, with education the entrepreneurial spirit is lost. In the beginning when having a degree is something to look up upon, the few roles in upper management are taken by these degree holders. But when more and more people graduate with a degree, the few roles are now being competed by many. And with few supply for the higher demand of higher paying jobs and roles, it boils down to much frustration. And too many Singaporeans have also been indoctrinated by the Poor Dad syndrome that we fail to see other opportunities. 

For those who ain't familiar with Robert Kiosaki's 'Rich Dad, Poor Dad' book, let me just briefly explain it as best as I can. Robert Kiosaki had his own dad who believes that as long as you study hard, you will get a good job and good pay and you will stay employed for the rest of your life. He is poor dad. Robert Kiosaki also has a Rich Dad who is actually a friend's dad that is a business man who taught him the way with money and to let money work for you. Robert Kiosaki learnt a lot from his rich dad and the rest is history.

Many have also complained about how things are getting more expensive, about how difficult its going to retire in Singapore. Economics 101 tells us that inflation is an indicator of the health of an economy (Naysayers will say it is something we are all led into believing, then read my Conspiracy Theory post) and so if we know that fact then don't we all know things WILL be more expensive in future? So instead of complaining, ask yourself what have you done to your best capabilities to ensure your retirement is safe guarded? Is your best capabilities enough? What other positive actions can you do to ensure it is enough? There are things you can do today to ensure your retirement is secure. 

Please speak to me and we can explore all the things that can be done today. Do something today so that yourself tomorrow will thank.

So meritocracy, the effort you are going to take today to speak to me will ensure your succeeful retirement in future. 

With a Heavy Heart

And with a heavy heart, Singapore woke up to the news that our founding father has passed. A chapter of our history has closed but not forgotten. Though I have never met Lee Kuan Yew personally but everywhere you go you see the things that have been accomplished by him and his team.

A little red dot on the world map yet our economy challenges the big boys. Our passport, amazing! Our currency stable. Safety, unsurpassed.

And yet, everyday somebody out there curses all the things that have been done. Reading the FB post on people's wall, I am heartened to know that many is still appreciative.

I only wish I can be a fraction of what he is, to have touched so many lives in Singapore and the world. As a financial consultant my vision is to be able to touch as many lives as possible to help families understand the importance of financial planning. But the going is not always easy. People still scorn us, they think we are trying to sell them a product. Some will accept, some will not

Just like the policies of Singapore, not everybody will accept. The magnitude of how many lives LKY has touched is enormous and his legend will continue.

Now it is up to us to keep this going...

The Journey Of A Thousand Mile Begins With A Single Step

There has been much talk on retirement on the news papers recently. It seems that everybody knows its going to be expensive to retire here but none has done much about it. A quick calculation will tell you that you will need about $1.3 million if your expenses are $2,000 and you intend to retire in 20 years time and your years of retirement is 20 years. The calculations has taken an inflation of 3% into consideration. 

So if $1.3 million is what you will need to retire then what are you doing today to achieve it? Many have told me that they are saving every month. That's great! But too many did not consider the effects of inflation on their monies when they save. Lets take for example a savings instrument that gives us 0.5%, we save $1,000 for the next 20 years. You will get $253,000 after 20 years. 

Save in an instrument that gives you 2% for the next 20 years, $297,400. That is $44,400 more just by increasing your rate of return. 

The above assumes that whatever goods and services you pay for $1,000 today does not change in 20 years time. But if we take inflation into consideration, the value of your money, if you save in an instrument of 0.5% will be $185,942 and the value of your money in the the instrument that gives 2% will be $216,326.

Huh? Tang .. cheem leh! Ok, lets use an example which I have used in a previous post. Kopi o. 10 years ago, kopi o, $0.60. Today kopi o $1.00. So if we know that in 20 years time the cost of goods will also be increasing then we know that the same $253,000 that is saved will not buy us $253,000 worth of good in 20 years time. It will only get us $185,942 worth of goods and services in 20 years time. 

So how should we accumulate wealth so that we can buy the same amount of goods and services in 20 years time as we are spending today? There are few solutions:

1. Spend less

2. Save more

3. Save in a higher rate rate of return instrument

1. Spend Less

If you think you can sacrifice your lifestyle and not spend as much as what you are spending now during your retirement then, make a plan so you are sure of the expenses you want to cut at retirement. 

2. Save more

Lets use the example above, if you put $1,000 in the instrument that gives you 0.5% and get $253,000 in 20 years time. You want the same value in 20 years time, you will have to save $1,360 per month for the next 20 years in the same instrument. The extra $360 saved will offset the increase in the price of goods and service caused by inflation in 20 years time.

3. Save in higher rate of return instrument

You can also start saving in an instrument that will offset the inflation of 3% or invest in instruments that give you more than 3%. So depending on your risk profile, if you put the same $1,000 in an instrument that gives 5%, you will get $416,631 in 20 years time! An increase of about 60% from $253,000 with just an increase in 4.5% rate of return over 20 years!

There are many other strategies like delaying retirement, not retiring, ask children to support, work part time, collect tin can to sell, but importantly, whatever strategy you decide to take, talk to your financial consultant first. Your financial consultant can do up a retirement plan for you. He/She can calculate the figures for you so that you have a clearer picture of what to aim for. With that figure then you can make Specific and Measurable plans to achieve it. We will help you make Achievable and Relevant financial decision so that we will be in Time for your retirement.

So make a SMART choice today. Call your financial consultant if not email me for a no obligation consultation. tngjinyau@gmail.com Like they say, nobody plans to fail, but many fail to plan. Start your journey to your retirement with me today! The journey of a thousand mile begins with a single step.

The 20 Year Holiday!

September holidays for the schools are just over. Where did you go with your kids? What did you plan to make the holidays memorable for your kids. Well then again, the September school holidays are about studying for the upcoming exams and for those parents with kids taking the PSLE... its an intensive bootcamp to get them ready. 

We probably have started planning for the December holidays. And for those lucky few without kids planning for the holidays will always happen outside the school holiday periods so its less crowded and cheaper!

With the onslaught of travel promotions, we are constantly tempted to go travelling! But being Singaporeans, we always have to plan for our trips. Even for a 3 days trip we want to be able to make the most of the days as much as possible. We may even take up to 3 months planning for a 3 days trip. 

So how long should we be planning if we intend to take a 20 year holiday? What will you want to do if you have to take a 20 year holiday? What will your itinerary look like? How much money will you need for the 20 years holiday? But Tang who goes for a 20 years holiday??? Well everyone! Its called retirement.. like it or not, you will have to retire sooner or later. Now you can choose how your retirement looks like, or you can just live it up to fate. 

But if you were planning your dream getaway, will you leave it up to fate? Will you not even do a small budgetting to ascertain how long you can not work yet still enjoy your holiday? Most of us know that if we take a short holiday our job will still be around when we get back. So if we happen to overspend during a holiday, no problem, just be good, stay in Singapore and the next few months pay will settle the extra budget. But if you hit retirement and you overspend.... that should not happen if you take the effort to speak to me now. 

Many of us assume that retirement is long way off, we do not have to worry about it so soon. But if we took a week long holiday and we use one month to plan, then how long should a 20 years holiday take to plan? 

Please emal me tngjinyau@gmail.com for a no obligations discussion on your retirement plan. I will be happy to assist. 

Why So Serious?

A colleague commented that my blog is very serious. But financial planning and people's future is serious business. But yes, as financial planners we have fun too. So today I will like to touch on the topic of 'Ah Lians'. We have a colleague named B (just for ease of writing, not naming anybody in particular), we teased her about being ah lian. She insist that she is not, to a point where she actually wiki-ed the definition of ah lian. This is wiki's definition of Ah Lian.

It seems that the definition of ah lian in Wiki is more physical in appearance. Wiki defines them as uneducated and mix English with Chinese and dialect. Those people that may say tomorrow as tomolo. But with the education system in Singapore, there will be less and less ah lians on the street. Really?

This is my personal opinion, any likeness to anyone is strictly coincidental. There... disclaimer. I feel that ah lian is not a physical attribute as defined by Wiki. I feel that being lian is an attitude, a mannerism, a character, not just because of dyed hair and clothings. Talking loudly is also a physical attribute. But more importantly what are emotions and thoughts when they do that? 

I think that there is a beng or a lian in all of us. Just like some research on cancer has shown that all of us has the potential to contract cancer but some are just more prone to it. So there is a beng and a lian in all of us. We just fear coming out of the closet. Some will be more prone to have the lian/ beng syndrome with some symptoms showing, while some are more conscious.

I have walked down Raffles Place with clients during lunch time and they have admitted they just wish sometimes they want to push through all those people that seems to be walking too slowly taking up most of the sidewalk. But most people wouldn't because of social norms and what is expected as a normal human being. 

Lets imagine, you have a few people walking in front of you and blocking your normal walking speed. You shove those people aside and when they stare at you, you can loudly exclaim that they are blocking and if you want to walk so slowly, walk on the side! Those people blocking you will cower in fear or respect as you walk by. Come on, you have not fantasized about doing something like this before? Don't lie, I know you have.

I will confess to you now that I have dreamt of being a Godfather. Not the kind that dotes on little children. But the Mafia kind. The kind that my ring will be kissed by everyone in the 'familia'. I will also confess that I am an 'executive beng'. The kind that wears a tie, speaks good English and feels the urge to push people aside. But no I will never do it. I can start talking loudly if I know I have strength in numbers. Same rationale why ah bengs are in gangs. 

We all NEED to belong. It is a need of humans as identified in Maslow's Hierarchy of Needs. After the basic and safety needs are taken care of, people need to belong. They feel good once they are accepted.

Wiki also mentioned that ah bengs are usually involved in criminal activity, but aren't we all? We try and cheat on our parking coupon by tearing the 15 mins later than the time we arrive, we sometimes don't even want to put then revel in the joy we did not get a ticket for it. Sure we know that jaywalking is illegal but we also jaywalk just to save time. We also hate to be conforming and we want to be unique. We want to be different and this manifest into dyed hair for ah bengs and ah lians. For me, it manifest into a I-don't-care-what-you-think-I-like-to-wear-shorts-in-orchard-road attitude.

So my theory is that the same needs that drives us also drives the ah lians and ah bengs. So we have a lian or beng in all of us, we want to be different, we hope to be loud, we all have needs that have to be fulfilled, it just is fulfilled in different ways, either socially acceptable or socially unacceptable. So in summary, B you are LIAN.

First Death Claim

The inevitability of this job is having to do claims for clients, but never will I expect the first death claim to come from somebody who was relatively close to me, and cause of death was unnatural. He was somebody I had met last year. 

We had coffee almost every morning learning from each other for about 6 months. We talked about anything under the sun. He told me about how beautiful a family he had. He was the kind of guy that calls a male a 'bro' and female a 'sister'.

He is someone you will warm up to really quickly as he was a cheerful guy with a happy go lucky attitude, but I guess there are things about people you never really understand.

Few months ago, it was almost impossible to reach him. No more text, no more phone calls... nothing. All communication with him practically stopped. he never kept to his promse of staying in contact. We were suppose to have coffee. We were suppose to meet up but his phone was off. Now he is gone...

Why?

I have been asking this question ever since I heard the news last week. Why? Something I will bring to my grave as well.