OUE C-REIT.

OUE Limited is spinning off OUE Bayfront in Singapore and Lippo Plaza in Shanghai into a REIT. Seems like OUE Limited is actively recycling capital and trying to catch whatever remaining interest investors might have in a REIT IPO. Just barely half a year ago, they listed OUE Hospitality Trust and I blogged about that here.

OUE C-REIT is the name of the latest offer. It will be priced at 80c a unit and will offer a distribution yield of 6.8% or a DPU of about 5.44c.

I believe that this IPO is a plus for OUE Limited shareholders just like the listing of SPH REIT was good for SPH shareholders. However, I don't think OUE C-REIT is attractive as an investment for the same reason that I thought SPH REIT was not attractive compared to SPH as an investment. You might be interested in that blog post. Read it: here.

I like the fact that OUE Limited has given a commitment to support the REIT by offering assets at a discount to valuation in future. This is something that the Lippo Group has done for LMIR and First REIT as well. After all, it is the same family that is in control of OUE Limited. Yes, OUE Limited is a 55% owned subsidiary of the Lippo Group.

I also like the fact that OUE Limited will retain a 45 to 50% stake in OUE C-REIT which will see their interests more aligned with those of minority unit holders in the REIT since any action taken which might hurt minority unit holders will hurt the sponsor, OUE Limited, most.

Having said this, we have to remember that the sponsor would have reaped most of the benefits from the IPO and the higher distribution yield is a result of income support given by the sponsor. If there were no such support, the distribution yield is actually 5.56%, almost 20% lower.

Over the next couple of years, if the REIT manager is able to fill up all the vacant space in the two initial properties and achieve positive rental reversions in re-leasing, the REIT could deliver a yield of 6.8% without any support.

However, with interest rates set to increase, we could see a heavier debt burden come 2017 when most of the REIT's debt mature. This could wipe out any hope of maintaining the relatively attractive distribution yield now unless unit price of the REIT declined.

The REIT could grow DPU through accretive purchases from its sponsor, of course, but with gearing ratio relatively high at 41% or so now, it would probably have to resort to equity fund raising either in the form of a rights issue or private placements. Unit holders should be prepared for this.

All investments are good at the right price and to invest in OUE C-REIT for income, I would only be interested if it should offer a much higher distribution yield, given the considerations above.

Related posts:
1. A strategy to grow wealth and augment income.
2. 2013 full year income from S-REITs.

Home of Luz Shinsaibashi, a mall owned by Croesus Retail Trust.

10 March 2017:
Reader:
I am at Osaka, is this the trust that is listed in Singapore?



----------------------------
I just published a blog post on Dōtonbori in Osaka.

This is, of course, the place where we find Luz Shinsaibashi, a mall owned by Croesus Retail Trust.

If you are interested to see more photos of Dōtonbori, come to my travel blog: here.

Related post:
Croesus Retail Trust: Motivations and risks.

The TOP blog post of all time in ASSI!

One might think that the blog post which has received the most number of pageviews in ASSI has to do with personal finance or investment. It stands to reason, doesn't it? So, which blog post is it?

Since many people like step by step instructions, could "7 steps to passive income from the stock market" be the top blog post?

Or perhaps it is one of the blog posts on my full year income from S-REITs since they usually generate many comments and well wishes from readers.

Intuitively, we know that people are drawn to reading scandals and tragedies. People seem to have a morbid fascination with other people's misfortune. So, maybe my blog posts on China Minzhong's scuffle with a short seller made it to the top.

Well, I suppose the list could go on.

The results?

Click to enlarge.

Startling. Beaten by a stuffed toy.

Related post:
Singing Bone Hello Kitty.

Achieving financial freedom is a family affair.

"Don't worry about money. Concentrate on your studies. Leave money matters to us."

This is something well meaning parents might tell their children but this is an example of how a good intention might actually be taking a step backward.

More enlightened parents will encourage their children to save money, highlighting the virtues of saving. 

This is probably the most basic level. 

Parents who don't even do this are doing a poor job of parenting. 

I won't mince my words here.





Financially savvy parents might, then, take their children's savings and invest in income generating assets. 

This will help to build a stronger financial foundation for their children. 

If the parents do a very good job, the children could have an easier time in adulthood.





Financially savvy and more enlightened parents will teach their children the ways to make money work for them as early as possible. 

This is a case of teaching someone how to fish and not just giving a basket full of fish to him. 

Parents who fall into this category are probably very rare. 

Well, at least I have not met any yet.

I blogged about how I got my primary school going niece interested in investing before. 

She understands not only why she should be saving money but also how she could use her savings to generate passive income now. 

It is not enough to save money, she has to make the money work for her.

Some might tell me that children should enjoy their childhoods and I am being too realistic. 

Well, I never did believe in Santa Claus as a boy. 





Seeing how my dad's business almost went bankrupt and the problems it caused for the family when I was in primary school forced me to grow up rather quickly. 

No Santa Clause came during Christmas to drop us any goodies.

We could have financial problems one day if we do not do the right things today. Be realistic.

Financial problems will not magically disappear. Be realistic.





What is the best thing to do?

Be prepared and get everyone in the family involved, yes, including the children.

I see some parents coddle their children to the extent of spoiling them. 

I am sure examples of such parents are pretty common in Singapore. 

I see them all the time.

The economy has been chugging along in Singapore and unemployment rate has been low and many people are drunk on cheap money. 

Conspicuous consumption has risen.





If you buy things you don't need, you will soon sell things you need.
- Warren Buffett.

If you are reading this blog post, I gather that you are interested in achieving financial freedom. 

If you have children or when you have children, please take the next step.

Your children will thank you in future.




Related posts:
1. Teaching young children financial literacy.
2. At what age to start investing in stocks?
3. Rich Dad, Poor Dad: 2 are better than 1.
4. Little Book That Beats The Market.
5. Warren Buffett: Illustrated.

Financial security: 5 points you ignore at your own risk.

I wrote something in response to an article which was shared by a guest blogger. The essence of my response were these 5 points:

1. Have an emergency fund and beef up our Medisave Account.

2. Have a good H&S plan with a rider to cover deductibles.

3. Live well below our means.

4. Know the difference between needs and wants.

5. Create a passive income stream.

Want to know what kind of article would draw such a response from me? This:
"I have a 6 figure salary but I am in financial trouble."

If we are able to tick off each of the 5 points I have listed, chances are that situations like this are totally avoidable, barring catastrophic events.

Don't think that we are invincible. Don't be extravagant. Don't be a wage slave. Don't put ourselves at risk of financial trouble.

It is not even about becoming a millionaire, it is about becoming financially secure and we don't have to be a millionaire to have financial security.

"I have pledged — to you, the rating agencies and myself – to always run Berkshire with more ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits." 
- Warren Buffett.

On that note, have a great weekend!

Related posts:
1. Get free medical insurance in Singapore.
2. A meaningful emergency fund is important.
3. Think you cannot reduce your spending?
4. Don't see money, won't spend money.
5. Wage slaves should be fearful.

What I do before I buy or sell a stock.

People sometimes ask me what kind of software do I use to keep track of investments or to decide what and when to buy and sell. They are always amused by the blank stare I give them.

AK71 is very old school which is a nice way of saying I am outdated when it comes to technology. No kidding.

OK, want an example of how I work? Here is a recent one:

This is the most recent of my scribbles regarding Yongnam.

Yes, I scribble on bits of paper (and hope I don't lose them which I rarely do, anyway).

Some of you might recognise what has been scribbled on the piece of paper. Technical analysis (TA). I usually do this when I have decided to buy or sell based on fundamentals and, yes, I scribble fundamental analyses (FA) I have done on pieces of paper too.

Some of my scribbles get organised and make it to my blog as fully fleshed out articles but many never do. Well, in my pre-blogging days, most of the scribbles would eventually end up in the bin. So, the current situation is probably a big improvement.

I also cut out articles from newspapers and periodicals, using a highlighter or pen to draw attention to what I think is useful information. Example? See: Art of wealth accumulation.

Oh, if you are wondering if I bought more shares of Yongnam's, yes, I did at 24.5c a piece yesterday. That is at a discount to their NAV/unit of 26c or so.

After divesting most of my initial investment in Yongnam in 2013, yesterday's purchase of the company's stock was my third since end October 2013. If Mr. Market continues to offer a good price, I would probably buy more.

Own the kind of assets Yongnam has at a discount? Own a business that will benefit from the projected doubling of  MRT lines in Singapore by 2030? Sounds good to me.

Whenever I scrambled to invest, often, I lost money. Whenever I scribbled to invest, often, I made money. What is the moral of the story? I wonder.

Related posts:
1. Strategy to grow wealth and augment income.
2. When to BUY, HOLD or SELL?
3. Recommended books for FA and TA.
4. 3 points in stocks investing.
5. 7 steps to passive income from stocks.

Voluntary contributions to CPF.

I am starting the year with moves to improve financial security for me and my dad.

I am making a voluntary contribution to my CPF account again this year. The idea is to max out the annual limit of $30,600 and let the magic of compound interest contribute to my retirement funds. Yes, the government will be helping me in my efforts. Although this will not be tax deductible, it will help to provide me with a peace of mind.






I have also decided to do quarterly voluntary contributions to my dad's Medisave Account from now on. As he has pre-existing medical conditions, he was unable to upgrade his Medishield plan. Thus, his share of medical bills are heftier.

My dad's Medisave Account is also depleted due to the many times my paternal grandmother was hospitalised in recent years. So, helping him to build up his Medisave Account seems like a good idea.

My dad is still working and paying income tax. So, with regular voluntary contributions to his Medisave Account from me, he will pay less income tax too. Yes, it is tax-deductible for the recipient only.

Voluntary contribution form.
Click to enlarge.

His Medisave Account will also be beefed up with some help from a 4% annual interest income. Yes, getting some help from the government again.

My dad's example really shows how important it is to have a good H&S plan in place. So, if you and your parents are relatively healthy and do not have a good H&S plan in place, you really should do something about it.

On that note, HAPPY NEW YEAR!

Related posts:
1. How to get free medical insurance?
2. CPF or SGS?
3. Pay less income tax.
4. Enhanced Incomeshield for my mom.
5. Millionaire or not, plan for retirement.

Visit CPF's website: here.

A strategy to grow wealth and augment income (2013).

I am primarily investing for income and in my last blog post, in what has become a yearly practice, I revealed my full year income from S-REITs as well as how they fit into my investment strategy. They are relevant to income investors but with the spectre of rising interest rates in the years ahead as well as a peaking in the real estate cycle here, it is sensible not to be overly optimistic about S-REITs in general.

So, apart from a large purchase made in Saizen REIT in the middle of 2012, I have devoted most of my resources to stocks. These should be undervalued and are likely to continue growing for years to come. Since I want to have income from my investments, I would also like for these stocks to pay dividends.

Marco Polo Marine's yard in Batam.

Now, with these stocks, the main strategy is to buy and hold. However, I am not averse to trading around my investments. So, I could divest partially or fully if it is a good idea to do so. For 9M 2013, I revealed that I locked in gains of S$188,625.13. Has the number changed?

Well, I mentioned that I partially divested my investment in Sabana REIT last month. This added S$12,860.03 to gains from trading in 2013.

So, total trading gains in 2013 is S$201,485.16.

What about adding to my long positions?

What I hope to do primarily is to identify good companies, initiate long positions in them at fairly good prices and then wait to add to these positions if there should be bad news which send their share prices down. These are companies which I am comfortable to stay invested in for years, knowing that they possess some competitive advantages which differentiate them.

Warren Buffett famously said that we should invest with the thought that the stock market could close the next day and not reopen for five years. What does this mean?

Invest in stocks of companies which we are confident will do better over the next five years. We wouldn't be bothered by any volatility in their stock prices in the meantime unless it is to add to our long positions with greater margins of safety. If we understand this, we will know what stocks to avoid. How? Do an inversion.


With this in mind, in the last three months, I added to my long positions in NeraTel and Yongnam as their share prices declined due to bad news which I believe are neither long term nor recurring in nature. I have received fairly good dividends from these stocks and I also made some money trading these stocks earlier in the year.

I also added to my long position in SPH. I was paid both the special dividend and the year end dividend for this as well.

Marco Polo Marine is still my single largest investment although its share price has not declined significantly enough for me to add to my long position. The much higher dividend per share paid out recently was a bonus.

I also retain long positions in CapitaMalls Asia and Wilmar International. These are strong companies and leaders in their fields. They are likely to do better in future.

So, was anything new added to my portfolio?

I initiated a long position in Croesus Retail Trust and even added to this position by using funds freed from a partial divestment of Sabana REIT.

Wait a minute? Didn't I say that I am wary of rising interest rates and a possible peaking of the real estate cycle? Yes, I did but Croesus Retail Trust owns malls in Japan and the BOJ is bent on keeping interest rates really low. Abenomics demand this. The Trust has a relatively low cost of debt which is locked in for 5 years.

Luz Shinsaibashi.

Japan has also suffered from continual deflation for 20 years. If anything, the real estate cycle should have a greater chance of bottoming than peaking. Anecdotal evidence tells of a recovering real estate market in recent months that is likely to pick up speed in future.

Although my strategy, with a generous dose of luck, has worked well this year, I can only hope that it will continue to work in the new year.

To grow wealth and augment income? Yes, indeed, that is the plan.

Related posts:
1. 2013 full year income from S-REITs.
2. Yongnam: Substantial shareholder increased stake.
3. NeraTel: Added to my long position.
4. Marco Polo Marine: Exciting times ahead.

AIMS AMP Capital Industrial REIT: Optus Centre.

I know I said in my last blog post that the next one will be on my other investments going into 2014 but I received a circular from AIMS AMP Capital Industrial REIT last night and I thought I should blog about this first. Change, the only constant in life.

Optus Centre in New South Wales, Australia, will be the REIT's first property outside Singapore. The proposed acquisition is for a 49% interest in the property.

The purchase will be fully funded by debt and, post acquisition, we will see leverage at 37.4%. This is comfortably under 40% and unless the REIT intends to have further acquisitions, I do not see a need for any fund raising in the near future.

As an investor for income, I am, of course, interested in how the acquisition might affect my income. Looking at the pro forma numbers, I am quite pleased with the whole deal.

The REIT's existing portfolio brings in S$59.75m in NPI annually while the property will bring in S$16.78m in NPI. The NPI yield of the REIT's existing portfolio is 6.2% while the NPI yield of the property to be purchased is 8.1%. I am happy to see that the acquisition is NPI yield accretive.

Sometimes, we see acquisitions which are DPU accretive and DPU yield accretive but are actually not NPI yield accretive. These are less desirable as it means that funds are being used to buy properties which will add to gross income but at a lower rate of return.

My confidence in the management of AIMS AMP Capital Industrial REIT's has strengthened with this acquisition. They have demonstrated their competence in all that they have done so far.

Although AIMS AMP Capital Industrial REIT has proven itself to be a well run REIT, with its NAV at approximately $1.48 per unit, post acquisition, to buy at a 10% discount to valuation would mean buying at $1.33 a unit. Yes, we all love margins of safety, I am sure, especially with the spectre of rising interest rates over the next few years.

At the current price level, I will not be adding to my long position in AIMS AMP Capital Industrial REIT. However, I see no reason to divest either because it has proven to be a good investment and is likely to continue delivering the goods.

As my single largest investment in the S-REITs universe, AIMS AMP Capital Industrial REIT will probably be making a slightly more significant contribution to income generated by my portfolio of S-REITs in 2014.

Related post:
1. Made and still making money.
2. 2013 full year income from S-REITs.

2013 full year income from S-REITs.

On 15 September 2013, when I reported 9M income from my investments in S-REITs, I mentioned that full year 2013 will probably see lower income compared to full year 2012. 

This is mainly because I sold approximately half of my investment in LMIR (Lippo Malls) earlier this year and I have not made any substantial acquisitions in S-REITs since.

Please read:
LMIR: Divested 42.5% at 52.5c.

In fact, I recently divested about a quarter of my position in Sabana REIT as I moved funds into Croesus Retail Trust. Wondering why I did this?

Please read:
Added Croesus Retail Trust and reduced Sabana REIT.

Luz Shinsaibashi.
Taken with my little IXUS from my hotel room using 32x zoom!

For reasons I mentioned in my blog post of 15 September 2013, I will continue to be very cautious in adding to my positions in S-REITs. Definitely, if I feel that they are undervalued, I would buy more. Could this happen? Of course it could. Remember Saizen REIT in the middle of last year when its warrants were set to expire?

Please read:
Saizen REIT: Why did I buy? Would I buy more?

We might also get a hint that a REIT is undervalued if insiders suddenly become active in buying too. This happened with AIMS AMP Capital Industrial REIT earlier this year when its unit price declined enough to offer an approximately 10% discount to NAV.

Please read:
AIMS AMP Capital Industrial REIT: Nibbling with George Wang.

There could be opportunities for relatively compelling buys again in future. If they should present themselves, I hope I am lucky enough to spot them and brave enough to buy some. Until then, my portfolio of S-REITs might not grow.

Although it would be nice to grow my income from S-REITs, it should not be growth at all costs.

An apartment building in Japan.

So, my strategy for S-REITs is to stay largely invested for income while waiting for Mr. Market to make me offers I cannot refuse. This way, my war chest continues to grow and I will have the resources to do business with Mr. Market when he suffers from manic depression which he does from time to time.

So, what is my full year 2013 income from S-REITs?

Total: S$ 118,081.02

This is some 2% lower than the year before and I expect income from my portfolio of S-REITs in 2014 to be at least marginally lower due to the partial divestment in Sabana REIT this quarter.

Related posts:
1. 9M 2013 income from S-REITs and more.
2. 2012 full year income from S-REITs.

ASSI turns four! Merry Christmas!

My plane landed in Singapore at 5am this morning. Still in need of sleep. Yawn.

I took naps and unpacked. Will have to catch up with my emails, readings and blogging. Will also have to get up to speed with work when I return to the office on Boxing Day. Groan.

Today, ASSI also turns 4! Time really does fly!

Here are some photos I took on my vacation:

Luz Shinsaibashi in Osaka by night.



Very early on a Sunday morning!

Weather in Osaka? Brrrr.... but a nice change from Singapore.

OK, a couple of photos to bring in some festive cheer:



In an underground mall in Osaka.

Pretty lights in Kyoto.



In a mall in Kobe.



Merry Christmas!

Related posts:
1. ASSI celebrates 3rd birthday!
2. Croesus Retail Trust.

How to get free medical insurance in Singapore?

It is a good idea to do voluntary contributions (VC) to our CPF-MA. 

Enjoy income tax relief (for the recipient of the VC) and also earn 4% interest per annum.

• 
  

  Reader: I assume excess from MA will flow to SA first. Once SA hits FRS, it flows to OA?
• 
  
  

  Assi AK: Correct. Maxing out the MA is a good idea!

---------------------------------------




---------------------------------------
We will all grow old and fall sick. It is only natural.

Not to be saddled with huge medical bills which we find impossible to pay, I am sure all of us will agree that having a good hospitalisation and surgical (H&S) insurance policy is important.

Of course, a good H&S insurance policy is not going to be cheap but would you believe me if I were to tell you that we could possibly get one for free?

Free? Am I nuts? Well, maybe, but this is how I look at it:

Build up our CPF Medisave Account (CPF-MA), stay healthy and not use the money in our CPF-MA for as long as possible. 

Yes, that is all there is to it. Why?

The CPF-MA attracts a 4% annual interest and if our CPF-MA has enough funds, the interest it pays would be enough to cover the insurance premium annually.

Of course, some might say that the premium to be paid will increase as we age and there could come a time when the interest earned is not enough to pay the premium. This is a valid point and almost bound to happen.




This is why, although some lament that the CPF-MA's ceiling has been raised once again, I am quite happy that it has been raised. This means that I will have more funds in the CPF-MA earning higher interest to offset my H&S plan's insurance premium in future. It is a good thing, in my opinion.

My CPF-MA shows:

Interest earned: $1,654.48

Eldershield: $173.21

DPS: $61.83

Incomeshield: $ 665.00

Total drawn from CPF-MA: $ 900.04

I think I will probably be getting "free" medical insurance for many more years to come.






Top up your CPF-MA or your loved ones' CPF-MA, if you can afford to do so.

The interest earned will go towards getting that "free" medical insurance that so many people I know want to have in Singapore. 

We will get it with some effort and a bit of help from the government.




Update:

Maximum sum for the CPF-MA, which will be raised annually to keep pace with the higher draw on Medisave by the elderly, will go up from $48,500 today to $49,800 next January. (ST, 2015.)


See latest update:
http://singaporeanstocksinvestor.blogspot.sg/2014/06/free-medical-insurance-in-our-old-age.html
"For those under 65, the Basic Healthcare Sum next year will be S$54,500, up from S$52,000 previously, the authorities said."
Source:
CNA, 16 November 2017

Related posts:
1. Eldershield.
2. Enhanced Incomeshield for my mom.
3. How much for H&S insurance?

Photos from AK71's special day.

2016 UPDATE:

Sharing this since I am spending a lot of time watching K-drama now. Haha. I enjoyed this K-drama, by the way. :)

It is December 2016. 
I am 45 years old. 
Gave myself a lunch treat today.

Cost: $27.00
Bad AK! Bad AK!
At least the photo quality is better now. Remember 2013?
---------------
December 2013:

Dinner time!

I don't like crabs but my family like. They happy, I happy. :)

I like this. Sweet and sour fish slices! My niece likes this too. We like the same food. Yah, I am a big kid. ;p

My sister baked this for me. Carrot cake with chocolate fudge! Yummy! I requested for only 1 candle. Easier for asthmatic me to blow out. I want my birthday wish to come true! Yah, I cheated...

The Hobbit celebrated with me:

I took this off a LED TV screen in a mall. My broker offered me free tickets but I told her I have not even watched part 1! Anyway, the screening was in town and I stay in ulu north west Singapore. Too far.
Can see an image of me taking the photo or not?
Is that AK71 on TV? LOL.

What about lunch?

Discount coupon! A real treat!

About $18.00, after discount. A princely sum.

If you are wondering at the photos' quality, I didn't have my IXUS with me yesterday. So, I took these with my Samsung mobile phone. Then, I used my IXUS to take photo of the photos on the phone's screen!

Clever or not?

Yah, I am a dinosaur. Well, it works and I got the photos on my blog, didn't I? LOL.

Happiness. :)

Related posts:
1. A drawing of AK71 by a talented artist.
2. Happiness in 2012.
3. ASSI celebrates 3rd birthday.

Gourmet sandwich by AK71 Deli.

I enjoy a nice gourmet sandwich once in a while but I find them rather pricey. A black pepper ham sandwich from Swiss Bake would easily set me back by $7.00 or more, for example.

Anyway, you guys know by now that I like to prepare and bring my own food to work. So, having a craving for some black pepper ham sandwich last night, I went grocery shopping at NTUC Fairprice.

I got some organic Romaine lettuce, 200gm of black pepper ham, a loaf of wholemeal bread from Gardenia and some low fat cheese. All for less than $10.00 and enough to make 6 sandwiches. Still have some lettuce and cheese leftover.

I had the bread ends. I love bread ends.

Oishi!

Enough to provide breakfast for the whole family. Nice atas sandwiches!

Related posts:
1. Supporting my companies and getting paid!
2. Tea break: Yummy home made bread.
3. Visit NTUC Fairprice and learn about investing in stocks!

Do you own properties in Little India?

A friend who stays in the vicinity of Little India told me that he would try to get home early every weekend because later in the evenings his neighbourhood would transform and it would not feel like Singapore anymore.

People would congregate in groups of more than 5 in the common areas (although technically these would be unlawful gatherings), drink beer, share food, talk loudly, sing, dance and pee on the walls. It is quite scary.

In the mornings, he would witness the aftermath (the sight and the smell) of such night time activities. Awful.

With the disastrous incident that took place last night, I hope that the authorities will really step up policing Little India and break up large gatherings. They should issue summons for the herds that dash across roads with no consideration of safety too. I know this because I drove there before and, trust me, it is very stressful for drivers.

I have avoided driving in Little India for a long time.

Perhaps, officers from the National Environmental Agency should also police the area and apprehend people who litter and pee in public. Whatever happened to CWOs?

For people who own real estate in District 8, such undesirables might affect the value of their investments. For people who stay there, it could be quite stressful. The riot last night would probably cast a pall on the entire area for some time to come.

Little India is a part of Singapore and it should be like Singapore and not some other country.

I am all for having migrants in Singapore, accepting that our population and domestic economy are too small. However, foreigners must respect the rule of law or be dealt with sternly.

Related post:
The first large scale riot in Singapore in 40 years.

The first large scale riot in Singapore in 40 years!

I read this piece of news and thought I had woken up in another country somewhere in South Asia! Imagine the fear that must have been in the hearts of people in Little India when it happened.

I hope those responsible are made to answer for this very soon.

What is the news?

A riot in Little India which involved 400 people was sparked off by a fatal accident involving a 33-year-old Indian national who was knocked down by a private bus! Yes, 400 people!

The aftermath. Cars were overturned and set on fire!

Some 300 police officers were deployed to the site after the trouble broke out. The riot was quelled in under two hours after the first call reporting the incident was received at 9.23pm.

Police Commissioner Ng Joo Hee said rioters threw glass bottles, railings and other projectiles at officers.

Horrible!

Read full story: here.

Socks! Socks! My Kingdom for some socks!

I woke up in the morning to discover that I was out of socks! Really!

It reminded me of an episode in Black Adder:

Prince George on the left and Black Adder on the right.

BLACKADDER: Sir, if I may make so bold, a major crisis has arisen in your affairs.

PRINCE GEORGE: Yes, I know Blackadder. I have been pondering it all morning.

BLACKADDER: You have, sir?

PRINCE GEORGE: Yes. Socks. Run out again. Why is it that no matter how many millions of pairs of socks I buy, I never seem to have any?

BLACKADDER: Sir, with your forgiveness, there is another, even weightier problem.

PRINCE GEORGE: They just disappear. Honestly, you'd think someone was coming in here stealing the damn things and selling them off.

In case you are wondering, Black Adder was selling them off. The Prince was clueless.

Anyway, in my case, the population of socks in my cupboard has been dwindling as they got worn out and thrown away. So, I decided to buy some new socks in the evening.

I went to the nearby shopping mall and walked into Giordano for the first time in, er, 3 or 4 years? Made a beeline for the socks which were going at 4 pairs for $20. Got the shorter ones because they feel a bit more cushy compared to the ones of regular length, if you know what I mean.

8 pairs in all. I think they should last me another 3 or 4 years. Well, I hope so, anyway.


Funny!

AVIVA paid me $10,529.

On 28 October, I wrote a piece on single premium endowment policies and I revealed that I had one such policy with AVIVA maturing in November. 

I wondered how much would I be receiving when the time comes.

I received this advice last night:

Over 8 years, a $10,000.00 premium apparently made $2,175.00. I had previously thought the returns in the first 6 years were $800.00 or less. I was mistaken. My memory is unreliable.

So, the policy made $2,175.00 over 8 years. This means 21.75% spread over 8 years or 2.72% per year. 

Quite miserable even by endowment policies' standards. 

Still, it is better than what the SRS account would have given me in interest payments. Everything is relative, of course.

All said, this is a forced savings plan and, at one time, I thought it would be a good idea to force myself to save. 

This was money in my SRS account anyway and I wasn't doing anything with it.

On hindsight, I should have kept the money in my SRS account untouched and I would have had more ammunition to buy cheap stocks during the GFC.

I now have quite a bit of money idling in my SRS account which I consider as one of my 4 war chests. Not doing anything here is doing something too.

Related post:
How much more will Aviva be paying AK?