The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

ASSI's Guest bloggers

What can we do to survive the haze?

Saturday, September 5, 2015

The haze is back and asthmatic people like AK are suffering again. My body is on a histamine overdrive. Runny nose. 

It could have been worse if not for the fact that I have an air purifier at home.

If you are very sensitive to air pollution like I am, then, better get an air purifier, turn it on and stay indoors as much as possible. 







If you have an air purifier and if the filter has not been replaced in many years, you should replace it because it is probably quite unhygienic by now.








If you must go out, please wear a N95 mask, not the type that AK wears when he makes public appearances hor.

If you are asthmatic, please always have your Salbutamol (Ventolin) puff with you:










If you are at home and feel generally irritable with a persistent runny nose, you might want to take a Piriton tablet and go take a nap. Don't have to see a doctor to get this. Just go to a pharmacy and ask for this:






The name is hard to pronounce and I always tell the pharmacist I want "generic Piriton". $2.00 for 50 pills.

This is an anti-histamine and what doctors would give us for runny nose anyway.

Of course, please go see a doctor if you feel seriously unwell.

OK, I just took a Piriton pill and I am going to take a nap now.

Related posts:
1. Get a new HEPA filter (air purifier).
2. 6 steps wearing the N95 mask.

Staying objective and being approximately right.

I keep telling people that AK is non-partisan. AK does not support political parties. AK supports policies that make sense.

Unfortunately, often people let emotions get the better of them and their minds get clouded. Human beings are rational creatures, supposedly. So, don't squander the gift of rationality. Be logical.

Although what I am going to share now might give rise to some people calling AK "pro-establishment" to put it nicely, I am really only being objective.


This happened on Facebook earlier:

 
Doolson Kool The town councils collectively lost millions in Lehman Brothers bonds but all was hush hush. So much talk about scrutiny and integrity. 


 
Assi AK Being objective, losing money in bad investments shows a lack of investment savvy. There is no civil or criminal liability. 


 
Doolson Kool I'm not sure if you are responding to me. However, it looks like we are on a different frequency here. I'm referring to the hush hush about TC's loss while PAP is screaming bloody scrutiny and integrity at WP. PAP's silence over the investment loss is deafening.
 

 
Assi AK Yes, it was in response to your comment. PAP TC lost money on Lemon Bros. It was a bad investment decision. Nothing else to say but if people want to scrutinise, they could. However, I doubt they could say much more than the fact that it was a bad investment. It is not an issue of integrity.
 

 
Doolson Kool In my opinion, it is an issue of integrity because PAP demands scrutiny of others but when the shit hits the fan in PAP's own backyard, they choose to remain silent. The silence is deafening.


Assi AK You must see what kind of shit it is. Some, you scrutinise. Some, don't bother. Doctor also wants to examine your stools only when he suspects you are seriously ill. Otherwise, why bother?


We need to be clear minded in personal finance and investments. We don't have perfect knowledge and can only make the best estimates. It is the same with many other things in life.

Like what Warren Buffett said before, it is about being approximately right.

However, when we are not clear minded, when we are irrational, then, our chances of being approximately right will be much lower.


This is about issues and not about politics. I support policies and not political parties.

Now, now, where is that cooking pot I borrowed from SMOL? Ah, here it is. Cover my head with it and, ok, can start throwing rotten eggs at me now.


Related post:
"Voted for WP in the last election..."
Once we have understood the system, we would be able to make informed decisions and even offer constructive criticism. If we haven't made the effort, we really don't know what we are criticising or, worse, condemning.

Consider making a donation to help needy students.

Thursday, September 3, 2015

Update: A good deed to end 2016.

--------------------------
From time to time, I would blog about how we should try to give back to society.

As I believe in the importance of education and how it would help not just an individual but also his family and future generations to have a better life, I have made yearly donations to NUS University Wide Bursaries.




This year, a significant portion of the money collected from organising "Evenings with AK and friends" and my other public appearances have found their way into the charity fund I am building.


Ultimately, I would still like to set up a foundation to help financially disadvantaged students in future but that is many years in the making. 

In the meantime, I will continue to make donations to causes which I find meaningful.







If you would like to help needy undergraduates as well, you might want to consider making a donation too.


The form can be downloaded here or you could make a donation online with a credit card here.




No amount of donation is too small. 

Every dollar counts.





In fact, I would be more impressed with a $10 donation from a regular office worker than a $50 donation from a successful millionaire business owner, for example. 

I am sure you know what I mean.

So, don't feel shy to make a small donation.






Helping to educate a person is really 功德无量 (which means "service to mankind and benefits beyond measure").

"The best thing a human being can do is to help another human being know more." - Charlie Munger






Click to enlarge.






---------------------
Received this in the mail today (31 December 2015):





An unexpected gift. A pleasant surprise.

A new pen for the new year. :)





Related posts:
1. One of the most noble things we can do.
2. Have money must also have a heart.
3. An appeal by AK71 for donations.

Do you make enough money and are you paid fairly? (AKA Do you need financial assistance or do you want it?)

Every so often, we will hear of people who say that we don't make enough money. 

Then, we might also hear of people who say we should have free education, free healthcare and the best is not have to pay for anything in Singapore.

Now, don't get me wrong, who wouldn't want to have free everything? 




In an imaginary and perfect world, perhaps, this dream would come true but until such a world is created, it would remain a dream.

Why would it remain a dream?

After all, there are people who are saying that it is possible to have free this and that. 

Once every few years like now, their voices are louder than usual.



When the Creator made this world, he made it so that we could live off the land. So, things should be free, right?





However, if we had wanted food, we would have had to hunt and gather. If we had wanted more, we would have had to work harder. 

Free? 

Free from having to pay with money, perhaps, but we would still have had to pay with time and effort.

Free? I hardly think so.

In an imaginary and perfect world, everyone would get everything for free and no one would have to pay for anything. 

In this real and imperfect world of ours, if someone is getting something for free, someone else is probably paying for it.





Really?

Things cannot be free?

So, how like that?

What to do?




Well, if we have to pay for the things we want in life and if we want to have a better life, we have to work harder and smarter. 

Our ancestors progressed from being hunters and gatherers to becoming sedentary farmers, for example. 

They spent long hours in the fields. 

They worked harder and smarter too.

Things haven't really changed.




Of course, we can talk about how some progressed to become landowners but that is the next step. 

For people who are not even contemplating working harder and smarter, that next step will remain elusive, as they remain where they are.

I understand that there are some people who genuinely have difficulties in making ends meet despite their best efforts. 

They could be physically or mentally handicapped. They could have issues at home that hampered their efforts. 

If we are a caring society, we will help these people. They might need monetary help and help should be offered.





If we are physically and mentally whole, if we do not have insurmountable problems at home, I do not think we have any good reason to complain that we don't have enough money. 

Why? 

If we want some money, go make some.

Such people don't need monetary help.

They want monetary help.

If monetary help is given to these people, they immediately become a burden to society.

1. 
A friend who was from a poor background asked if I could lend him about $800 to pay for his fees at a local polytechnic many years ago. 

Even though I wasn't making a lot of money back then, I lent him the money. 

He promptly paid me when he received his monthly salary. He is doing very well now.



2. 
Another friend who is also from a poor background asked if I could lend him $500 because he wanted to go to Hong Kong for a vacation with some friends. 

I was financially more comfortable by then and he knew I was. I rejected him. 


We are no longer friends, it seems.


I share these two examples to show how we have choices in life.

Being in Singapore, we are more fortunate than many in the world.

Overworked and underpaid? 

Then, make a change.








3.
I know a lady who was very well paid working in one of the big audit firms. She felt she was overworked and underpaid. 

I asked if conditions might be better in the other firms. She said they were all the same. 


Then, she wasn't overworked and underpaid. It was the industry norm. Her salary was easily thrice as much as mine back then!


4.

I know another lady who was relatively well paid working in one of the big law firms. She wanted shorter working hours. 

So, she took a pay cut and moved to a government statutory board. It was a trade and one she was happy with. 


If she had gone to another big law firm, conditions wouldn't have changed.


I share these two examples to show that, for most of us, if we want something, we have to give something. 




We cannot just take and not give.

At one time, I was holding two jobs. 

In fact, if I were to include a job in the informal sector of the economy, I had three jobs at one time. 

For a few years, I was working seven days a week. I am not very smart. So, I worked harder. 

I didn't have much of a social life and, I guess, I still don't. 

Mind you, I am not complaining.





Before we complain, before we ask for help, before we even ask for our CPF money to be returned to us at age 55 (which is another topic), stop and think if we are doing anything to improve our lives first. 

If we are doing something, ask if it is enough.

Related posts:
1. Do you want to be richer?
2. The very first step to becoming richer.
3. How to have a comfortable retirement?
4. How to tell if you are rich?
5. The Millionaire Next Door.

What is next for a 30 year old saving $36K a year?

Wednesday, September 2, 2015

On our road to financial security and financial freedom, if we are good savers, half the battle is won. If we make above average income and are able to save way more money than the average person, we could have won more than half the battle.

Y:
I have been highly focusing on saving money all these while, i seems to forget to grow the money.


Now that i am going to have a new home, albeit a small one. I do not want to want to put myself in a stage that i have to be consistently worrying about money. This is why i see that master AK has planned well and hope to point me in a better direction.


AK:
If you are a good saver and I think you are, that is half the battle won. like emoticon

As an investor, you have to think what kind of investor you want to be or most suitable to be. I will blog a bit about our conversation and a bit more later today.


For now, since you are a good saver, concentrate on doing it well. $3K a month means $36K a year or $360K in a decade. That is no small change.




Y:
I just wanna live and spend more time with my family, so i decided to work really hard for a number of years and save as much as i can when im still young. And right now, i think i am at the stage where i need to utilize the money i save to prepare for the next stage of my family.

 read your post of CPF SA account, so i plan to fill the SA account up when i still have the ability to do so.

just that, i am still figuring out all the STI ETF debate and reits dividend suitable for a short term investment. Personally, given i am such a "saver"-minded, i find it hard sometimes to let go of the money to invest. So i am still learning to take risk and go for whats best for me.

understand the risk of giving very specific advice as most likely Master AK will get blamed if things doesn't go as planned. I take your conversation as a sharing session, so that i can improve along the way. Thank you for taking your time to listen to me, Master AK!



Lots of money stashed away? That is a good problem!


AK:
OK, now I understand your situation and your mentality better. smile emoticon


If you are risk averse, then, risk free rates are what you should be going after. The only attractive risk free rates now are the ones we get from the CPF.


If you believe in saving money for retirement and if you believe in annuities, then, the CPF-SA is where you want to lock your money.


However, if you are not sure if you might need the money for a second property or to fund your children's tertiary education in future, then, you might want to do a voluntary contribution (VC) to your OA, SA and MA. There is no income tax relief for doing this unlike a CPF-SA top up but you will still get to enjoy pretty good risk free rates. wink emoticon


When it comes to investing, there is always some risk involved. You must be able to stomach market volatility. If you don't think you are the type, then, it might be a good idea to avoid.


If you want to try anyway, then, getting into an STI ETF through the services offered by POSB or OCBC and then putting in money regularly is probably less stressful an option.

Each one of us is different but we should be prudent and we should find our own way, a way that does the job and gives us peace of mind.

Related posts:
1. 30 years old with $150K liquid assets.
2. Greater financial well being is not beyond most of us.
3. Tea with Matthew Seah: OCBC BCIP.
4. Why should we buy a big and expensive home?
5. Get the most out of ASSI for financial security.

30 years old with $150K in liquid assets.

Tuesday, September 1, 2015

The Chinese have a saying that "one type of rice feeds hundred types of people". All of us are different and in many ways too.

So, I am somewhat wary of giving anyone specific advice as to what they should do in their plans for the future, especially when it has to do with growing their wealth.

I share general ideas regarding how to be prudent when it comes to personal finance matters as well as some ideas that have to do with investing in stocks and, sometimes, real estate. They are scattered throughout my blog.

I would say that before we set out on our journey, have our goals in mind. What do we want to achieve? Then, we must choose the route which we think is the most suitable for us.

To expand on the analogy, there could be a very short route available but it could be quite treacherous. Do we have the equipment and skills to take that path? There could be another route, longer but less of a thrill. Would that be a better choice?

Some might remember a blog post in which I shared my plan to retire by 45. Some might also remember how the plan was tweaked. In reality, I am sure it was tweaked more than once too.

Set goals and, with that, have plans but don't be too rigid. The only constant in life is change.






Y

Suppose you have such assets @ age 30 present:
-130k savings -20k stocks (50% bank, 50% REITS) -

less than 5k in CPF-OA, less than 5k in CPF-SA
-average monthly 3k savings (after all expenses)
How should one plan for short and long term investment goals?
short term - 1k savings to dividend stocks? long term - 1k saving per month to CPF SA account self top-up?
Would like to know how best to plan for the next 25 years! ty ty!

sorry master AK! trouble you to shed some light on investing. grin emoticon





Assi AK 
Assi AK

Hi Y,
This is a difficult question to answer because it would depend on each individual's circumstances and what they want.
 
I cannot answer in specifics but I have blogged about what fresh grads or young working adults might want to look at first. The blog posts are found in the right side bar of my blog.

 
I would say that prudent personal finance comes before investing and with plenty of savings, you seem to have done that well. smile emoticon

 
Then, we have to consider your personality. That would help determine if you might want to invest mostly for income or mostly for growth, for example.


Basically, understand yourself and understand your motivations and you will know where your money should go. This will help you avoid regrets. Peace of mind is priceless. smile emoticon

Assi AK
Assi AK

What I have done in my blog is to share my journey which includes sharing my motivations and my methods.

I invest mostly for income. I have done fairly well. However, this is not to say that this is the method for everyone. I am not dogmatic.


You are welcome to read my blog and see if what I do gels with what you would like to have. If it does, then, you could possibly do something similar. Cherry pick. wink emoticon

All the best on your journey. smile
 




So, spend some time to think of what you want in your life if you have not done so yet and see if what you are doing now will help you achieve your goals.

We probably can't get it absolutely right but having a plan and being realistic enough to recognise the need to change along the way will help us get it approximately right.

Honestly, that is good enough.

Related posts:
1. Have a plan, your own plan.
2. To retire by age 45, have a plan. (My goal, my plan.)
3. Blog posts in "Reads for undergrads and fresh grads" in the right side bar.
4. A conversation on the CPF and investing in stocks.
5. How to grow my wealth as I approach 40 years of age?

Real life lessons in matters regarding insurance.

Monday, August 31, 2015

This might sound familiar to some of us but I am more interested in sharing this with readers who have yet to buy insurance products or who are thinking of buying insurance products soon. Be careful.





Reader says...

Thank you so much for reading my email. More thank yous for the advice. 

I have a cousin who sold a whole life insurance to my dad (when he was 40+) for sum assured of $60,000 with CI rider. 

The monthly premium is $208 and my dad will have to pay the premiums until he turns 88 yrs old. 





Back then, I was only 20 and still studying. When my parents mentioned to this cousin (already resigned from AIA years ago), how they are going to pay as they most likely won't be working in their 70s and 80s, the cousin replied, "Your children can help to pay." Unknowingly or rather without consent, my sisters and I were in debt. 

Before purchasing the AIA whole life insurance, the cousin knew my dad had another whole life insurance with NTUC for sum assured of $25,000. 

The thing that pains me was that my cousin was starting out as an insurance agent, sales target became the motive.






Don't ask why. You just buy.


If I had the knowledge then, I would have questioned my cousin for not recommending a term insurance instead. 

For example, term insurance for sum assured of $50,000 or $100,000 until he is 70 or 75. Then the NTUC whole life ($25,000) will cover until 99 years of age. 

Of course, her commission will not be as much. Then again, what is the primary role of a financial planner?


Now my dad is 61 yrs old, I'm trying to convince my dad to cancel this AIA whole life insurance (yearly expense of $2500) and purchase a term insurance of $50,000 for the coverage period of 10 or 15 years.






Another case was my husband's brother who became a Manulife insurance agent and sold him an ILP. He has since resigned. 

In order to meet his sales target, he paid the premiums on behalf on my husband who was still in university that time. 

Now, when we reviewed this ILP policy, a total of $8000 premiums paid but the surrender value was only $5000. I told him that out of nowhere, you have lost $3000 within 5 years. 







Could have been better to put it in a bank let inflation erode or go for a holiday, which has at least some form of "payback". 

Although we felt very heart pain, at least it is a good lesson for both of us. If don't know, don't any how buy =p

Sorry for the ranting. These two cases are the best lessons learnt. 

I wish to have a good week and great health to write more posts. :) hehe 



Taken on a trip to Hong Kong:
The giant Buddha in Ngong Ping.







AK says...

I am quite happy to read your emails which put a smile on my face. :)

I am sorry but not surprised to hear of your dad and husbands' experience. 


My parents also had similar experience and the policies were all sold to them by relatives and friends. -.-"

With regards to your dad's case, unless he still has dependents, he doesn't even have to buy a term life policy till age 70 or 75. 







I don't know if you read my blog post on how I advised my dad to terminate his whole life policy because he no longer has dependents. 

We, his children, are all grown up and making our own money.

So, your dad could consider terminating his whole life policies and his cash flow will improve. 


Of course, he will probably be receiving a lump sum payment as well which he could use for a holiday or something else he has been thinking of doing. 

He should enjoy his golden years and not worry about paying for an insurance policy that has outlived its purpose. :)








The truth is nobody cares more about our money than we do.

Related posts:
1. Should I terminate an expensive ILP from a friend?
2. A true story about life insurance and grapes.
3. Consider terminating whole life insurance policies.
4. AK responds to Sumiko Tan's expensive lesson.
5. MediShield Life, free medical insurance and hospitalisation?

Saizen REIT: TKs.

Sunday, August 30, 2015

When I was a soldier in the Singapore Armed Forces, I learned a Hokkien phrase with the abbreviation "TK". It was one of those inane things that I picked up during those two and a half years that somehow got stuck in my mind. If you don't know what the abbreviation is, here is a hint: It has to do with size and a part of the male anatomy. OK, no more.

Anyway, today, I replied to an email from a reader about TKs. However, these are TKs of a very different nature. These are the TKs of the Japanese business world.

Hi AK,

I am currently trying to understand more about Saizen Reit, a stock that you happen to own. Hence, I would like to ask if you could share with me the structure of the REIT. I was reading their annual report and I could not understand the jargon.

Can you kindly explain about what is the relationship between Saizen and the TK operators because I do not understand who actually owns the properties. Thanks in advance for your help. 

I am a noobie trying to learn more about this Reit and I got confused by its structure.

Warm Regards,
KF




Hi KF,

The TK structure is one way foreigners can invest in Japanese real estate. It is a typical Japanese real estate investment structure, in fact. The TK or Tokumei kumiai is a legally binding contract.

So, when we buy into Saizen REIT, we are buying into a foreign investor that has a stake in these TKs. Saizen REIT has contributed money to the TKs and has the right to share in the profits but Saizen REIT is not allowed to run the TKs. This is why there are TK operators who are actually the local operational managers in Japan.

In case you are wondering, Saizen REIT is entitled to 97% of the profits generated by the TKs.

The investors own the assets in the TK, not the TK operators. Saizen REIT has invested money and they own the assets.

Best wishes,
AK

OK, I think I am going to have some rice and "tau kee" stewed in soya sauce for lunch.


See the TK? ;p



Related posts:
1. Deeply undervalued but is it a BUY for you?
2. Saizen REIT: Still a good investment for income?


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award