Dispute over HDB flat inheritance. Alamak! Why like that?

I have blogged about how we should not think of children as money trees before.

See:
What is our attitude towards children?

I have also blogged about how children should not treat parents as their ATMs before.

See:
My parents are my ATM.

When it comes to money issues, even family members can become enemies.

These topics are so sensitive and views are so diverse that whenever I blog about them, I am likely to get some negative feedback.

Some readers even told me they had to stop reading my blogs for a while to recover from my blunt and, what they thought, unpalatable views.

This is why the Chinese people say:

谈钱伤感情

When we talk about money, it hurts feelings. 

Hard truth.

When I read about someone who was the eldest amongst three children complaining online about how he was not in his parents' will, it was somewhat poignant. 

This is because I am also the eldest with two younger siblings in my family.

Apparently, being the eldest child, he gave his parents the most financial support. 

He felt unloved and hurt that they had excluded him from their will.

What's in the will?

A HDB flat and nothing else.

His parents told him that he already had a flat of his own while his younger siblings didn't.

He went on to lament that he didn't ask to be the first born child and that, perhaps, he should have been more selfish.

Perhaps, he should have given his parents less financial support and put more money towards preparing for his own retirement instead.

I have said before that we work towards financial freedom because we want to have options.

We want to have the freedom to choose what we want to do with our time without having to worry about money.

Unfortunately, there are things in life which we have to live with.

All we can do is to make the best of the situation.

Sometimes, life just throws lemons at us.

I have said before that we have to be a bit cynical in life and being calculative is not a bad thing per se.

However, when it comes to my parents, this does not apply.

When I think about providing for my parents so that they don't have to worry about money in their old age, I do not think of possible future returns.

Children being nice to their parents so that they could get into their parents' good books all in the hope of receiving financial inheritance?

I have seen it in Chinese drama.

It was just drama, I thought.

Who thinks that way in real life?

Well, now, from time to time, I am reminded that some people actually do.

What my parents choose to do with their assets is their business.

I might have opinions which I would share with them but the final decision is theirs.

In fact, in a recent conversation with my mom, I told her to will everything to my two younger siblings.

She asked me why I didn't want her money?

I think she might have felt surprised and, maybe, even a bit offended.

I told her I didn't need her money and that she should give it to whoever might need it more in the family.

In fact, I told her she should try to spend more money on herself first.

Why shouldn't she?

It isn't a bad way to think.

Or is it?

For sure, I am not in the complainant's shoes.

I just felt the blogging bug bit me when I read the story because we are both the eldest of three children and we both provide the most financial support to our parents.

The complainant is going to feel miserable if he does not snap out of this feeling that he should be rewarded financially (eventually) for what he is doing for his parents.

If his parents were to find out, they would feel miserable too.

At the end of the day, if he is not hurting for money, it is just money.

I always say that if a problem can be solved with money, it really isn't a problem if we have the money.

There are more important things in life than money.

“Resentment is like drinking poison and waiting for the other person to die.” Carrie Fisher.

References:
1. Worried as dividends reduced.
2. Inflation and my budget.
3. To better mental health.

$460K scammed. Chen Liping & Lin Meijiaos' lesson?

I have not been watching anything on TV for many years. 

I don't even know who are the new stars in local dramas.

I only know Zoe Tay, Chew Chor Meng and people in that age group.

Alamak.

Did I just reveal my age?

Anyway, when I read that Chen Liping and Lin Meijiao got scammed, I was stunned like vegetable.

Then, I felt sad.

Really, really sad.

Why like that?

Source: Today Online.

I don't know how rich they are but how they just handed over hundreds of thousands of dollars to a friend to pass to another friend was mind boggling.

They thought it was to be used for some investment which would make them more money.

No due diligence whatsoever.

Yes, I get it that it was a friend they trusted.

I am using the past tense, yes.

So, shouldn't we trust our friends?

Oh, I am not going there.

Bu yao hai wo.

We can trust (some) friends.

However, this case is about putting our trust in a friend's friend.

We don't even know that person who is going to be "investing" the money!

Sigh.

I hope Chen Liping and Lin Meijiao remember this lesson for a long time.

I have no malice when I say this.

I really do mean well.

Like I said, I don't know how rich they are but, for most of us, it would be very depressing to lose that kind of money.

It wasn't even due to a bad investment decision.

To me, they were simply too easy going with their money.

It made them easy targets for cheats.

It was worse than being sold unsuitable products by financial advisers.

Remember this blog from 10 years ago?
Nobody cares more about our money than we do!

Indeed.

If we don't care about our money, our money won't stay around long enough to care for us.

It is not a bad thing to be a bit cynical in life.

Not too cynical.

Just a bit.

Related posts:
1. Taking candy from babies.
2. Advice from a fraudster.

YouTube! Level up! $1.3m! Average but rich!

Restarting my YouTube channel a few months ago, I didn't think it would stick.

When I started the channel 12 years ago, it was just to share some of the videos I took while on vacations.

That sputtered out pretty quickly.

Then, 2 years ago, I thought of sharing my adventures in Neverwinter but not many readers were interested.

8 months ago, although I suspected that not many readers would be interested, I thought of sharing some Genshin Impact gameplay.

It should have ended there.

However, I went on to experiment with making "audio books" or "audio pages" to be more exact as I kept the videos very short.

Without really knowing it, I have been doing this for 8 months now!

Stunned like vegetable!

Like I told a fellow blogger recently, in my retirement, I am a bit spoilt.

If it isn't fun, I don't do it.

If I were to do something these days thinking about the money it makes or the money it might make, I doubt it would stick.

Yes, it is about work if we want to and not work if we have to.

Alamak.

Wrong word!

Not "work" lah.

OK, it is about having fun if we want to and not having fun if we have to!

This truly is levelling up!

Bad AK! Bad AK!

Anyway, after 8 months as a YouTuber, sort of, I have received some interesting comments from viewers.

Yes, now I get to say "viewers" instead of "readers" too.

Alamaks!

AK's videos no need to view one.

Only need to listen.

Oh dear, another wrong word.

OK, not "viewers" but "listeners."

One listener, CTH, sent me this comment today:

I am 48y old this year. 

Should have $1.3 million in my CPF by 65y old. 

Keeping fingers crossed. 

Been staying dirt cheap in mini HDB flat too small with wife and 2 teenagers kids (16y n 14y). 

Love the government subsidies and low property tax. 

Don't even know the pain of COE for a car, lol. 

People laugh at our cheap lifestyle for close to 2 decades. 

Your blog keeps us going. 

See you around. You're the man. :)

In response, I told CTH that financial prudence and patience will be rewarded.

All in good time.

We are all wired differently and have different circumstances.

However, unless we are badly disadvantaged, most of us in Singapore can be financially free if we do what is within our abilities to do.

It depends more on whether we have the willpower to do it.

This reminds me of another reader's story which I shared in this blog:

More passive income than "richer" friends.

To everyone on the journey to financial freedom, remember that average income workers can be rich too:

Average income workers have a choice to be rich!

If AK can do it, so can you!

AK's YouTube channel: HERE.

Recently published:
Largest investments updated.

An example of my vacation videos:  

An example of my Neverwinter videos:  

An example of my Genshin Impact videos:  

Good luck and have fun!

Buying crypto in 2023 despite big losses! Barbers jialat.

I am just talking to myself about some things an article in The Straits Times has mentioned.

How to help young people who are still enamored with cryptocurrencies despite the horrific crash?

OCBC says about 1 in 5 Singaporeans are invested in crytocurrencies.

On average, Gen Z and millenials who made losses lost 40 per cent from crypto investments.

Surprising thing is 39 per cent of those in their 20s are still likely to invest more in cryptocurrencies in the next 12 months despite their losses.

I will say 2 things here:

1. Buying cryptocurrencies in the hope that prices will go up so that they can make money by selling to someone else is not investing but it is speculating.

2. Buying more of any asset when Mr. Market offers a lower price is only a good investing idea if that asset is a bona fide income generating asset.

Anyway, how to help these young people?

World Economic Forum suggests that financial literacy education is key and suggests that people can use trusted blogs to learn about investing fundamentals.

AK wonders how can we tell which blogs are trustworthy and which are not?

Article went on to say that regulators should require companies selling or promoting financial products to have a "fiduciary standard of care."

Alamak.

Then, what happens to all the bloggers and Youtubers telling people to put money here and put money there for higher returns?

Some are also promoting get rich quick schemes in various forms?

Many if not most are sponsored to do promotions.

All will kena like that?

Remember not to ask barbers if we need a haircut?

Now, the barbers will tell you what haircut is better for you because they need to provide "fiduciary standard of hair."

Am I right to say that?

Barbers jin jialat like that if I am right.

The article says setting higher standards for financial services firms could protect young people better.

Operative word here is "better."

It won't protect anyone who is stubborn and who still wants to follow "evil" investment gurus.

Ignorance is bliss?

Blissfully ignorant?

Very headache but what to do?

References:

1. Gold, silver, and Bitcoin as insurance. (AK has some too.)
2. Walk F.I.R.E. enter demon?

Recently published:

Where to park emergency fund?

Lost $300,000 staking cryptocurrencies for higher returns.

Someone left me a comment and requested that it not be published.

Apparently, he lost quite a bit of money in cryptocurrencies.

He said that he used to follow my blog but found new ways of "investing" his money which he thought could generate wealth more quickly.

Things did not turn out well for him, unfortunately.

He said he should have heeded my advice on not getting into cryptocurrency which I said was like buying nothing with something.

(Eh, did I say that?)

He was surprised to read that I own some Bitcoin now but understood why I changed my mind.

For those who don't know or don't remember, read:

1. Gold, silver and Bitcoin as insurance.

2. Buy Bitcoin at long term support.

He shared that he lost big time on Luna and even on his Bitcoin and Ethereum which he staked for much higher returns than the interest income he could get from our local banks.

Apparently, some of the crypto lending platforms where he staked his coins became insolvent recently.

The comment made for very sad reading but I suppose the reader just needed an outlet.

Something I used to blog about pretty frequently was the subject of fraud.

When something sounds too good to be true, it probably is.

Before investing our money for income, it is important to make sure that it is a bona fide income generating asset.

This is especially true if it promises what seems like an incredibly high return.

Some past blogs which might be interesting especially to newer readers:

1. 24% yield in 24 months?

2. Investment with 6% a month return?

3. $71,000 lost in bogus investment?

4. EcoHouse: Questions we must ask.

5. Is Eagle Hospitality Trust worth it?

For something to promise a return of 20% per annum, it has to be generating a much higher return than that in order to be bona fide.

How likely is that?

If a return of higher than 20% per annum is bona fide, then, the next question to ask is whether that is sustainable?

For examples:

1. 14% ROI per annum?

2. Buy a bond fund that pays 7% per annum?

Remember, bloggers are just regular folks like you and me.

Don't read blogs thinking that they are always right.

I must say this because the person who left the comment said he was mostly influenced by blogs and YouTube videos to put more and more money in cryptocurrencies. 

When I did a search on staking cryptocurrencies, for example, I saw many "experts" telling people how to do it to become rich, focusing only on the high returns but not the high risk.

I have said before that bloggers (and now YouTubers too) who tell people that cryptocurrencies are investments are confused and they are confusing other people.

Cryptocurrencies might be digital assets but to put money in them thinking they would grow our wealth quickly is more speculating than investing.

We can invest in blockchain technology but not cryptocurrencies.

History doesn't repeat but it rhymes.

Anyway, after reading that comment, for many reasons, I just feel that a blog like this is necessary.

I suppose I also need an outlet after all that negativity in the reader's comment.

Thank goodness I have ASSI.

References:

1. 2Q 2022 passive income: Stronger.

2. My final word on cryptocurrencies.

Recently published:
Our CPF money is not our money?

You might want to watch or listen to this video:

Gold, silver and Bitcoin as insurance.

Long time readers of my blog might recall that I hold some gold and silver.

Some readers might find this surprising since value investors like Buffett and Munger do not believe in holding precious metals.

In case you are relatively new to my blog and want to find out more, please read the following blog:

Why investors for income buy gold and silver?

I don't want to rehash the old blog.

Too lazy. ;p

Anyway, it has been many years since I bought more gold and silver.

When I took a look recently, I found that, together, gold and silver formed only 2% of my portfolio.

This is lower than what I think I should have as insurance against fiat currencies.

I was watching some videos on the topic when I stumbled on a video by Robert Kiyosaki who has always said that keeping some gold and silver was sensible.

However, in that particular video, there was a twist because he was also talking about Bitcoin and why we should keep some.

That was very intriguing to me as I don't remember him talking about Bitcoin before. 

To be fair, I don't follow him and what I know about him is probably dated.

The last time I blogged about him was in 2013:

Rich Dad, Poor Dad!

Anyway, long time readers might remember what I thought of Bitcoin before.

If you don't remember or if you are new, read this blog:

My final word on Bitcoin and friends.

Like the Dollar, Bitcoin was a currency to me but unlike the Dollar, other than being a digital currency, Bitcoin was not a fiat currency.

Then, while looking for more information, I found a video by Kevin O'Leary who said that institutional investors are looking at Bitcoin not just as a currency but as a property to hold.

So, just like gold, many institutional investors are looking to hold some Bitcoin.

Why?

They believe that Bitcoin is digital gold and, just like gold, Bitcoin is supposed to be a good store of value.

Digital gold for a digital age.

The truth is Bitcoin has gained recognition and a higher level of acceptance. 

It has become increasingly mainstream.

The network effect is very strong here.

Source: Investopedia.

So, if we believe in having insurance against fiat currencies, we might want to hold some gold, silver and also Bitcoin.

I already have some gold and silver.

After watching those videos, I started thinking of getting some Bitcoin.

I admit that I am a dinosaur when it comes to tech stuff.

Don't even have Whatsapp.

I am very set in my ways and relatively comfortable with what I am doing and what I already have.

In a more recent blog on retirement drawdown strategy, I said that, in my retirement, I don't want to worry about outliving my savings.

So, my retirement funding strategy is such that I would probably never have to draw on my savings. 

In fact, my savings could even grow in my retirement.

See:
Retirement drawdown strategy.

However, never say never.

Murphy's Law.

Fiat currencies are very flawed, after all, and having a crisis mentality and getting some insurance is probably a good idea.

So, I believe we need some insurance for this which is why I hold some gold and silver.

Just like how I stepped out of my comfort zone this year when I got some exposure to Chinese tech stocks, I decided to step out of my comfort zone once more to get some Bitcoin.

Why not simply get more gold and silver?

I could do that but, like I said earlier, digital gold is for a digital age.

I don't know what the future will bring but I really like "Sword Art Online" and "Log Horizon."

Is the Metaverse all hype or would it become mainstream?

I don't know.

I made the decision to get some Bitcoin some time after I decided to get some exposure to Chinese tech and both decisions surprised me for a short while.

Why a short while?

Well, considering that the prices of Chinese tech stocks and Bitcoin had already plunged significantly, maybe, it wasn't so surprising that I got interested when I did.

Anyway, the plan was to have Bitcoin make up 2% to 3% of my portfolio.

Then, together, gold, silver and Bitcoin would form 4% to 5% of my portfolio.

Ray Dalio's perspective on having a small percentage of our portfolio in Bitcoin for the sake of diversification resonates with me:

Still, I have only bought a tiny bit of Bitcoin so far and it isn't even 0.5% of my portfolio yet.

Why did I not buy more?

To invest in Chinese tech was to invest in undervalued productive assets and I nibbled even though price was down trending.

It was just to get a foot in the door.

In comparison, I cannot tell if Bitcoin is undervalued nor is Bitcoin a productive asset.

Bitcoin is just like gold and silver.

Alamak! 

How like that?

All I have to depend on is technical analysis.

Very dangerous for me as I am probably somewhat rusty and could get tetanus from the exercise.

Anyway, I am in no hurry to have Bitcoin form 2% to 3% of my portfolio.

I will take my time.

Bitcoin's price is very volatile and big price swings are pretty normal.

Looking at the chart, I see what is possibly a bear flag, Bitcoin could go higher before plunging again in price.

So, after getting my smallest toe in the door earlier in the week, I will pace myself and accumulate whenever price swings lower.

I might get some Etherium too as that's the runner up to Bitcoin in terms of market cap so that I wouldn't be putting all the eggs in one basket.

However, Etherium is not exactly digital gold and, so, exposure to Etherium should be relatively small.

What about Litecoin?

Litecoin is digital silver like Bitcoin is digital gold.

However, buying Litecoin using Gemini, the crypto exchange I signed up with, requires me to use Bitcoin to do so.

So, to avoid paying more commission, I will mostly stick to Bitcoin.

OK, back to the present.

Drumroll, please.

I have done it!

I am a newly minted holder of Bitcoin.

2022 is turning out to be a year of surprises on a personal level.

 

Like I said, after my initial tiny purchase, the strategy is to accumulate mainly Bitcoin whenever its price weakens.

With this strategy, if Bitcoin weakens in price, I buy more and if Bitcoin appreciates in price, it means I wouldn't have to buy as much to have it hit 2% to 3% of my portfolio.

So, whichever direction Bitcoin goes, I am good with it.

OK, long time readers know I believe in keeping an emergency fund.

Emergency fund is in a chest labelled: "CODE BLUE!"

See:

How much should we have in our emergency fund?

All my gold, silver and Bitcoin will go into another chest.

This chest will be labelled: "CODE RED!"

Please note that I am not getting Bitcoin because of some get rich quick idea. 

We want to be careful as there are people who would pitch it that way.

Source: MAS.

Remember, nobody cares more about our money than we do!

Recently published:
Recession is coming and cash is trash.

Related posts:

1. Investing with some common sense.

2. Nobody cares more about our money than we do!

3. Largest investments updated (1Q 2022.)

Retiring by 40 is a fantasy for most and AK talks to himself.

Imagine a guy in Singapore who is in his 20s.

Imagine he is in love with a female and they decide to get married right after graduation.

Imagine they decide to buy a flat or a condo right away.

Imagine them having 2 or 3 children in the next three years.

Imagine the wife becoming a stay at home mom after having their first child.

Imagine them buying a family car.

Can they retire early?

Well, if they are born with silver spoons in their mouths, yes.

Otherwise, early retirement is highly unlikely unless they got very lucky.

The title of this blog might look familiar to some readers because part of it is taken from a much longer title from a recent article in Today.

Links to financial planning sites littered that article but I guess that is normal since Today isn't a hobbyist blogger like AK.

Anyway, if we want something and if we don't plan it right, we won't get that something.

So, if an early retirement is what we want, then, we must know what will help and what won't.

How to achieve early retirement?

In a nutshell:

Build wealth and avoid wealth destruction.

In more than a decade of blogging, this is something I have blogged about extensively.

I won't rehash since I am lazy.

Instead, I will point interested readers to some blogs here in ASSI which might provide food for thought.

1. A happy marriage is worth waiting for!

2. Do you want to be richer?

3. How to upsize CPF savings from $100K to $225K?

4. Good habits now for a comfortable retirement!

5. If we are not rich, don't act rich!

6. 3 good reasons to buy a car.

7. How to have children and a comfortable retirement?

Finally, we need insurance but know what is necessary and don't overpay.

See:

What is the purpose of insurance and are we overpaying?

To be fair, retiring by 40 was a fantasy for AK too.

AK only retired a few months before he turned 45.

See:

To retire by age 45, start with a plan.

There are so many blogs in ASSI and I might have missed some useful ones. 

However, the above blogs should be good enough to make many readers lose sleep for many nights.

Jokes aside, for an average person in Singapore who wants an early retirement, it isn't impossible.

It does need good planning and disciplined execution.

Now, why is an early retirement a fantasy for most in Singapore?

If AK can do it, so can you!

Believe it!

Gambatte!

Related posts:
1. Planning for retirement early made early retirement possible.

2. Why did AK want an early retirement?

If you are using the mobile version of ASSI and would like to read more related posts, go to the full web version of ASSI by scrolling to the bottom of this page and clicking on the link.

Links to more posts in the left and right sidebars can be found.

In conversation with AK 2019 (Part 2).

Reader #1 says...
Do you feel that there’s a REIT in Singapore which we could buy and hold forever?

AK says...
I thought I could hold First REIT forever.

I changed my mind. 😜

Now, I wonder if I could hold AA REIT forever?

I think we have to be prepared for changes because they do happen.

Related post:
Largest investments updated (3Q 2019).

Reader #2 says...
I noticed that you hardly talked about Forex Trading.

May I know if you could share your thoughts on it?

Actually I’m asking this because one of my friends is doing it and he advertised it on his Facebook recently

AK says...
FOREX trading.

Hmm.

I dunno anything about trading in currencies.

It isn't something I can value.

I made a mention of this in my blogs on Bitcoin.

Bad AK! Bad AK! 😛


Related post:
My final word on Bitcoin and friends.





Reader #3 says...
Now lippo seems to hv "fixed" the mess.

U think for ppl like me who never get (First REIT), can consider?

Can heal?

AK says...
Bandaged :p

You see my blog on why I sold and you decide for yourself. 😉

Related post:
Sold First REIT.






Reader #4 says...
AK, I want to show my friend your $1m CPF meme but the link is gone. 
Send it to me ok?

AK says...
Sure. 
Hope you song song gao Jurong. ;p

See:
This guy has $800K in his CPF (AK responds to HWZ forum).




Been a while since I took a photo of my breakfast.

Two hard boiled eggs eaten with a sprinkling of salt and black pepper.

A glass of warm water infused with ginseng roots.

New readers might want to read:
You are not successful in Singapore unless you do this!

1Q 2019 passive income.

Sometimes, I hear people say that time slows to a crawl once they are retired.

I find that strange because time flies faster than ever for me in my retirement.

Again, 3 months have gone past me in the blink of an eye.

Again, I am reminded that time is too precious for us to simply keep exchanging it for money.

See:
Why did I want an early retirement?

Yes, some people say that time is money.

For me, I say time is more precious than money.

Don't be a wage slave but also don't be in a situation where we have too much money and not enough time.

See:
Financial freedom and not enough time.





Now that the philosophical moment is over, how much did I receive in 1Q 2019?

S$ 71,052.90

Sounds like a lot of money, doesn't it?

It sounds like a lot to me, anyway.

It is this much because of RHT Health Trust's bumper income distribution which is not going to be repeated.

If we disregard RHT Health Trust, my largest passive income contributors in 1Q 2019 are:

1. SingTel

2. AA REIT

3. IREIT 

For most of us, investing for income will most likely make a meaningful difference to our financial health.

I believe that patience will be rewarded and it is often so for me.

If AK can do it, so can you!

Believe it.

Believe in yourself.

Related posts:
1. 2018 passive income.

2. Income tax payable 2019.

2018 CPF savings in a pie chart. (Growing CPF savings.)

There is always some risk when it comes to investing in stocks and there will always be some degree of price volatility.

Not everyone is able or willing to take risk when it comes to their money and not everyone is able to stomach price volatility well.

Some get sick from the volatility and some even die from it.

This is why we are fortunate in Singapore to have the CPF.







CPF members should take full advantage of this risk free and volatility free instrument that pays reasonably attractive coupons.

Yes, I say coupons because I look at my CPF savings as the risk free and volatility free investment grade bond component of my investment portfolio.






Having a meaningful amount of CPF savings will give most of us peace of mind as we cannot reasonably expect every year to be a good year for our investments.

In my retirement, lacking mandatory contributions to my CPF account, I have been voluntarily contributing to my CPF account and here is what it looks like at the end of 2018:

$845,373 at the end of 2018 and that was at the ripe old age of 47 too.

By age 55, more likely than not, my CPF savings will be in excess of $1 million.

To the very rich, $1 million might not be a lot of money but to the vast majority of us, I am sure it will make a meaningful difference in funding our retirement.

This is why I share my CPF story.

Unless we are handicapped in some way, I believe that if we put in enough effort, we can become CPF millionaires.






If you are a CPF member and have yet to max out the benefits of your membership (think FRS and BHS), read this blog:

CPF is all we need unless we are very rich.


Many or most Singaporeans do not realise what a good thing the CPF is.

Haven't reached the prevailing Full Retirement Sum (FRS) in your CPF account and thinking of buying a bond fund?

If you have yet to hit the Full Retirement Sum, why bother with bond funds?









Want a financially more secure retirement?

It is really as easy as ABC, er, I mean as easy as CPF.

Believe me when I say:

If AK can do it, so can you!




If you haven't listened to the song, listen, there is a hidden message.





Related posts:
1. Voluntary contribution to CPF MA (2019).
2. CPF interest earned in 2018.
3. Financial security plain and simple.