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The 5th "Evening with AK and friends" was lots of fun.

Sunday, August 2, 2015

The fifth "Evening with AK and friends" was lots of fun, I thought.

For the first time, we had slides! Christopher Tan from Providend Ltd, the good people who brought us DIY Insurance, talked about CPF Life and Medishield Life and he used slides. Don't look at me, AK doesn't know how to use slides hor.

The audience was a bit shy. So, after the presentation by Chris which took about 45 minutes, I fired the first salvo as to how we can make use of the CPF to help us plan for retirement adequacy. 

Of course, this is something I have blogged about before many times but it is good to have affirmation from someone from the CPF Advisory Committee.

AK shaking hands with Chris.

There were also questions regarding insurance. I remember one on H&S and whether it is sensible to save money on H&S in our early years and upgrade later. Chris said it is not advisable because our health status could have changed by then.

I have said before that we should get the best H&S possible. I reminded the person who asked this question not to worry about the cost. Make the government pay for us. "So simple."

(I said "So simple" many times in the evening. I really like the new ad by VISA Paywave and how the old gentleman kept saying "So simple". Get an empty cup and put the phone in. Free loudspeaker. "So simple!")

There was also a question on the Singapore Savings Bond and we discussed how it might not be for everyone. Chris said the biggest advantage is that it is capital guaranteed and there is no penalty for early withdrawal.

I want to record my heartfelt thanks to Chris for taking the time to join us. It was an eye opener in more ways than one because he was so different compared to his TV appearances. He was joking and he was very funny. Unfortunately, I cannot reproduce his jokes here because they could cause him to be banished to Sentosa like Chia Thye Poh was once upon a time.

Chris reminded me of Song Seng Wun who is always prim and proper on TV but when giving talks at events, he would pepper his speech with jokes and Chinese dialect phrases.

AK can never go on TV because AK doesn't know how to be prim and proper. AK likes his inappropriate jokes too much. Alamak.

I spent some time talking about how we shouldn't just follow anyone to buy or sell some stock. I reminded everyone that we must understand ourselves, know our situations and size our positions accordingly. This is in light of the recent retreat in stock prices which has caused some distress for some readers.

There were mentions of specific stocks, the details of which I cannot remember by now. Noble, Wilmar, ST Engineering, Saizen REIT, Croesus Retail Trust, PRCT, PREH, Sabana REIT, AIMS AMP Capital Industrial REIT, SPH, OUE Limited, Marco Polo Marine etc.

Remember the pyramid and size our positions accordingly.

If we are losing sleep at night, we are probably over invested. If we are losing sleep at night, we probably don't know the business well enough to be confident in its prospects to accumulate on weakness.

Do comparative analysis. Why invest in Croesus Retail Trust instead of PCRT? Why AIMS AMP Capital Industrial REIT instead of Sabana REIT?

Why diversification is important in real estate investment? What is concentration risk? Used Saizen REIT as an example.

Noble and Wilmar are both in the commodities space. Is Wilmar a better investment compared to Noble? Why is Noble doing share buy backs? I don't know Noble well enough to comment in depth but I used my own experience in Marco Polo Marine as an example as to how the audience could approach the subject.

Always ask questions. If we are interested in income, ask how is the income generated. If we are interested in value, ask if it is undervalued. If we are interested in growth, ask about the prospects. In all these, examine not only the competence but also the integrity of the management. Are their interests aligned with shareholders'? Do their actions show this?

How to use a bit of TA to help us make sense of price movements? Remember, it is about price and not value when we use TA. It identifies supports, resistance and trends. It looks at patterns and signals. Positive and negative divergences give us a hint of what is to come.

OK, that is all I can remember, quick and dirty. If you are interested in finding out more, use the search function at the top right corner of my blog and you should find past blog posts on the topics. "So simple!"

There might or might not be another "Evening with AK and friends" this year as I explained to some in the audience. I found out that I will be invited to InvestX Congress as a panelist in October and, after that, I might want to take a holiday.

However, if there is going to be another "Evening with AK and friends", I will surely blog about it.

I had fun last night. I hope everyone had fun too.

Have a good weekend, everybody.

This makes me happy. :)

Related post:
The 5th "Evening with AK and friends."


AK71 said...

From my FB wall:

Vincent Teo:
I had a short stint with Noble couple of years ago. The company was being micro managed by the then CEO Rrichard Elman so much that no many outside people know how exactly their business model works. One more thing, take away their credit lines or jack up the credit cost and you will see the company fall apart immediately. That is why they are defending their credit rating with all their might.
July 31 at 6:54pm

AK71 said...

A rather long comment from me in a recent blog post:

Of course, whether we are right or not in our reasoning is something else.

joolaaah said...

Hi AK,

sorry as this is non related to the post. im having trouble understanding this statement from CPF

"The above interest rates include an extra 1% interest paid on the first $60,000 of a member’s combined balances (with up to $20,000 from the OA)."

does this means in order to qualify for the additional 1%, my OA needs at least 20k and with 40k coming from SA?

will the 1% still kick in on my SA if i have $0 balance in my OA and 60k in SA? i have just started working a couple of years and still figuring out which CPF accounts to max out first in order to yield the benefits of the risk free system.

AK71 said...

Hi joolaaah,

With up to $20,000 from the OA if we have money in the OA. ;)

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