Author: Create Wealth Through Long-Term Investing and Short-Term Trading

What is good Financial Planning? (2)

Wednesday, 15 June 2011 Read? What is good Financial Planning? Uncle8888 has been following the current hot debate on financial/retirement planning arising from this news article SINGAPORE – New financial advisory firm MoneyOwl, as its name suggests, wants to help Singaporeans make wise financial decisions that include integrating schemes such as the Central Provident Fund (CPF). Hmm .. so Uncle8888 has made wise financial decisions with his Three Taps Solution model for sustainable retirement income for life! LOL! The Golden Formula for a good financial planning Good Financial Planning = Saving + Insurance + Investment Tap 1 : Savings in CPF OA...

Read More

Just Spend Below Our Means During Our Wealth Accumulation Phase We Should Be Financially Secured (2)

Read? Just Spend Below Our Means During Our Wealth Accumulation Phase We Should Be Financially Secured Next, based on his 15 years of real savings at Dec 2016, Uncle8888 will do simplified version of retirement planning for his retirement income starting from 2017 (age 61) under portfolio return and its associated withdrawal rate and period. Assuming yearly inflation rate is at 2.5% A) 3% Yield, 5% Withdrawal rate, 21 years @ 81 B) 4% Yield, 6% Withdrawal rate, 19 years @ 79 C) 5% Yield, 7% Withdrawal rate, 18 years @ 78 Option A can be achieved by index investing e.g. STI ETF...

Read More

Just Spend Below Our Means During Our Wealth Accumulation Phase We Should Be Financially Secured

Since Jan 2002; Uncle8888 has been downloading his bank monthly statement and tracked them diligently till now. Monthly Yearly A real life example of single household income earner since 1995 who has supported a family of 5 members including expenses for his three children’s university study. (1) Total earned income after tax from his full-time job as employee from Jan 2002 to Sep 2016 (2) Total mandatory CPF contributions from Jan 2002 to Sep 2016 (3) Total earned income after tax and CPF from Jan 2002 to Sep 2016 (4) Total household expenses from Jan 2002 to Dec...

Read More

Clearing debts early for a "Peace of Mind" is Overrated – Here’s why???

Uncle8888 has lived long enough to meet real people who have been retrenched in their late 40s and 50s. Their difference when they are retrenched: Worry less or worry more Concern less or concern more Peace of mind or Troubled mind Read? Key word Retrenched Huge difference between “Having debts” and “Having debts on negative net worth” Having debts doesn’t means negative net worth. Know the difference! Having debts on negative net worth is potentially troubled mind when you are retrenched in your late...

Read More

How Do We Know Or Feel The Financial Impact/Burden Of Yearly Inflation After Two Decades Of Inflation??? (2)

Read? How Do We Know Or Feel The Financial Impact/Burden Of Yearly Inflation After Two Decades Of Inflation??? Beware of inflation, inflation and inflation! It is what financial planners and bloggers have been chanting on preparing for retirement! Looking at Uncle8888’s own past 16 years of data points since 2002; not sure why it didn’t match up any closer to inflation theory. May be he needs more data points in the next one or two decades to finally see the financial impact/burden of yearly inflation!...

Read More

Dow erases gains for the year, tumbles more than 600 points as stocks extend October swoon

CW8888: Few more trading days to go before October Effect ended. Stocks plummeted on Wednesday as a sharp drop in tech shares and worries about corporate earnings added fuel to this month’s steep pullback. The Dow Jones Industrial Average dropped 608.01 points at 24,583.42 and erased all of its gains for 2018. The S&P 500 dropped 3.1 percent to 2,656.10 and also turned negative for the year. The Nasdaq Composite fell 4.4 percent to 7,108.40— entering correction territory — as Facebook, Amazon, Netflix and Alphabet all traded lower. “An increasingly murky macro picture is clouding the 2019 earnings outlook...

Read More

Temasek’s first public bond offer more than 8 times subscribed

Read? Temasek’s first public bond offer more than 8 times subscribed SINGAPORE: Temasek Holdings’ first public bond offer for retail investors was more than eight times subscribed, said the Singapore state investment firm on Tuesday (Oct 23) after the close of the offer. Valid applications of around S$1.68 billion were received for S$200 million worth of bonds offered to the public, said Temasek. CW : Hmm … lots of cash not going to the stock market to invest? So many retail investors/savers prefer Return of Capital than Return on...

Read More

Earn More, Save More And Invest Well???

Where should we honestly and diligently focus before reaching FI, FIRE or FIRe? If more investment bloggers in Sinagpore are upfront and more transparent to show the their ratio of their earned income, saving vs net investment gains up to date. It is quite clear where should we focus once we see that picture? Invest/trade to achieve or escape? Earn more to achieve or escape? Some time; Uncle8888 feels that too many investment bloggers in Singapore have over rated on the investing and not on the earning part. Earn more then only we can work on the saving part to...

Read More

Keppel’s Multi-baggers stock M1

Walau! 45. M1 is not a new business for Keppel. Keppel was one of the founding shareholders in 1994, before its telephone service was launched in 1997, and the IPO in 2002. We have worked with and supported M1 for over 20 years, and it has yielded very good returns. 46. Keppel has invested S$170 million over the years, and in return received S$737 million of dividends and proceeds from the sale of some shares. In addition, Keppel’s present 19.33% stake, held through Keppel T&T, had a market value of S$291 million as at 21 September 2018, before we announced our offer. 47. In short, M1...

Read More

Is CPF OA 2.5% Compound Interests A Low Return On Capital???

Read? Salutation To This Warrior: 17 Years Long Service And Outstanding Award For Bringing Food To Monks In The Temple Of Capital No re-investing of dividends from Kep Corp which was bought in Sep 2001 at $1.32 till now. All dividends were refunded through CPFIS back to CPF OA to earn 2.5% compound interest since Dec 2001. After 17 years, ROC based on total compounded interests from Dec 2001 to Dec 2018 = 135% Average ROC per year = 7.9% The beauty of compounding will only happen near the tail end and then it will make the Average looks attractive. Compounding interest...

Read More

Real Challenge To Assumption By FI, FIRE or FIRe Investment Bloggers

Read? Singaporeans’ average life expectancy forecast to rise to 85.4 years in 2040: Study CW8888: Did you get your FI, FIRE or FIRe number right based on your assumption? SINGAPORE: Singaporeans will be living longer lives in 2040, according to a study by the Institute for Health Metrics and Evaluation (IHME). The result of the study released on Wednesday (Oct 17), ranks Singapore third in the world, with an average life expectancy of 85.4 years in the year 2040. Those living in Spain are forecast to have the longest life expectancy, at 85.8 years, followed closely by Japan at 85.7...

Read More

A three-way test for your portfolio??? (2)

Read? A three-way test for your portfolio??? Read?  ‘Studying hard’ not a sure-win to investment success 4. Practise diversification (having a portfolio made up solely of Singapore stocks is not proper diversification) and don’t keep actively trading around. Every time when Uncle8888 reads something like this : Diversify, diversify, diversify .  Don’t be Panda or Koala in the stock market; you will be become extinct very soon! Chun bo; after more than 17 years with only Singapore socks in SGX; Uncle8888 still haven’t become extinct! It is never about the Method! There is no such thing as the right Method for anyone....

Read More

Like us on Facebook

Follow us on Twitter