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

Work Less and Gone Fishing Planning Room (2)

Read? Work Less and Gone Fishing Planning Room (1) Some understanding from the book: “What Color Is Your Parachute? For Retirement.” Why “Enough Money” Isn’t Enough? If life is a journey and retirement is a journey too. First, a true journey always has an element of the unknown. Second, there is a need to maintain well-being in this journey. Well-being It has three distinct dimensions: Prosperity (material abundance) Health (a sound body) Happiness (a positive subjective experience) We need all three dimensions in our retirement journey. A Recipe for Retirement Here’s an analogy for how the dimensions of well-being...

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How Much Do You Need for Your Retirement?

Read? Uncomfortable With Draw-down Method? – 2nd Visit I have revised the worksheet for Retirement Planning with simulation function for me to key in various parameters for CPF OA, CPF Life, Cash, Passive and Active Portfolio, etc… I just need to play around with the various parameters till I get “Yeah!” and that is the amount that I need for my retirement or I need to “Try again”. For example:When ROC = 7% for Active Portfolio . Not yet ready for retirement. Try again! For example:When ROC = 8.8% for Active Portfolio...

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High Dividend Yield Stocks? – Part 8

Read older post on? High Dividend Yield Stocks? – Part 7 I believe all investors will love high dividend yield unless you are a day trader who don’t really need to care on dividend. Imagine a high dividend yield bandwagon is rolling past you. A few people on the back of the wagon are partying and playing music of their lives and singing the song of high yield. You may be unable to resist the sweet sounds being played and run to join the party. But, before you jump on the bandwagon, you may want to wonder a bit as there can be more than...

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Understanding Stock Market Risks – Updated

You may often hear this – Investing in Stock Market is risky. In fact, investment of any kind including setting up your own business by nature is risky, and can potentially cause you lose some or all your investing or initial capital. Actually as a paid employee you also face similar risks of losing your job when you approach 40s or 50s. It is a well known fact that HR department update this list of employees in these age groups during annual budget exercise. So what are the possible Stock Market Risks and how can we as retail investors...

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Help me! I am still losing money in my Investment Quadrant – Part 1

“Successful stock investing starts from stock analysis and continue from it.” – Createwealth8888 Some DIY retail stock investors are still not very clear between Stock Analysis and Stock Investing. Many are still stuck in the stage of Stock Analysis and didn’t really advance themselves into the stage of Stock Investing. Knowledge, skills and mindset related to Stock Analysis and Stock Investing is different and require different approach. Stock Analysis Stock Analysis is about having a view on the market and/or a stock by either fundamental analysis or technical analysis or both. Some may even throw in Hope Analysis in addition...

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No safety net in trading futures, options or forex!!! – 2nd Revisit

No safety net in trading futures, options or forex!!! – Revisit Win or lose. No Hold please! If you dislike the ideas of losing your money then it is better for you to avoid forex, futures and options as such financial instruments are invented for the purpose of winning and losing. You can’t really hold on to them as there will be time decay risks and incur additional financial costs for holding them overnight. No Time to watch the market If you don’t have plenty of time to watch the market, how could you afford the time and efforts to...

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Understanding Stock Market Risks – No 7 Risk

Understanding Stock Market Risks – No 6 Risk This Great Bear of 2008 taught me there is another risk to think about: 7. Dilution Risk Even if you only invest in blue chips that are strategically important to Singapore and the government will never allow them to fail. So there is very little risk of complete failure but you are still expose to the dilution risk i.e. your interests in your holding get diluted by these companies injecting more capitals to strengthen up their balance sheets by raising more capitals through private placement or right issues. Read...

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How to retire?

By Cheng Huang Leng Four Pre-Conditions for Retirement I retired in year 2000 at age 52. I am now 61, thus I can claim that I got more experience at retirement than most! I thought I should share my experience with mariners because I have seen too many friends and neighbours who became so bored that they have become a nuisance to their spouse and children and to others! A few of them have solved the problem by going back to work. They were able to do so because they have a skill/expertise that is still in demand. The rest...

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Portfolio Management – Rate of Returns

Portfolio Management – Diversification Is Your Friend – Part 2 What is your method for stock picking? FA or TA or just buying on any major pullbacks or corrections? What is your objective of coming into the stock market? Having a positive returns over a long-term period If your objective is to have a long-term (20 – 30 years) positive returns on your portfolio with re-investing all dividends and periodic adding of sizable capital, do you really need to do any serious FA or TA? I don’t think so. Probably you just need to save enough money to buy some on...

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Q1 2010 Quarterly Performance Report

“However beautiful the strategy, you should occasionally look at the results.” – Winston Churchill “What gets measured, gets managed.” – Peter Drucker 1. Year Goal Hit Rate Year Goal Hit Rate improved by +4.8% from 14.4% in  Q1 2009 to 19.2% in Q1 2010. (In 2003, I set some bullish progressive year goals from 2003 to 2011. 2010 Year Goal is 74.9% of 2009 Total Salary including all CPF contributions. Quite a big goal!) 2. Active Investing Performance Since 1 Nov 08 1. ROC from 3.1% to 34.3% (I don’t use stop loss so no negative ROC. Never blindly...

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5 Myths About ETFs – Part 3

5 Myths About ETFs – Part 2 Does STI ETF really give average market return? I still think that STI ETF is just another beast in the stock market and its behavior is no different from any other beasts in the stock market – some are hares, some are tortoise, and some are dying and waiting to be buried. If you look at the price volatility of STI ETF, it can be scary depending when you last bought it. Read...

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Buy And Hold – Is this the best use of limited capital? – Part 2

Buy And Hold – Is this the best use of limited capital? There will never be short of debates on passive income vs capital gain. No absolutely right or wrong method. I like both but treat them differently. My income from stock dividend just forms part of the minimum sum of Yearly Earning Goal. Yearly Earning Goal = Stock Dividends + Capital Gains I split my portfolio into two parts: Passive Investing: Passive Income from stock dividends Active Investing:  Active Income from capital gains. Passive Income forms part of the safety net if I fail to make Active Income from...

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Is Your Company Hoarding Too Much Cash For You? – Part 4

Understanding cash flow Cash flow is the amount of cash generated from all sources within a specific period of time. Cash can be generated by the following: from operations from owners’ equity from loans from investing from one-time activity such as an asset sale A cash rich company does not mean it is a highly profitable company or its future earning growth is secured. Cash flow and Profit is not the same. Cash flow is the money that flows in and out of the firm from operations, financing activities, and investing activities. Profit, also called net income, is what remains from sales revenue after all the...

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Olam – Amazing recovery!

Olam Q2 gain hits quarterly record of $158.9m OLAM International yesterday reported its best ever quarterly performance and for the first time, declared an interim dividend of 2 cents a share. Chief executive officer Sunny Verghese said the company could pay a dividend midway through the fiscal year because of its strong first-half performance and good visibility for the rest of the year. Read...

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Protecting Our Portfolio From The Next Bear – Revisit

Market Truism: Every Bear market is followed by a Bull Market, and every Bull market is followed by the Next Bear market. Protecting Our Portfolio From The Next Bear Portfolio Management – Diversification Is Your Friend. http://createwealth8888.blogspot.com/2009/10/portfolio-management-passive-income.html “However beautiful the strategy, you should occasionally look at the results.“ – Winston Churchill Let look at the results: As on last Friday closing @ 2684, STI has lost -8.5% of its value from its recent high @ 2934 while my portfolio value has lost -4.1%. What really help? Read...

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