Following AK, Pokemon Go, Saizen REIT DPU 9.87c etc.

I decided quite a while back that I should restrict the amount of time I spend on blogging and its related activities. So, nothing more than 2 hours a day. I think that is a fairly generous amount of time to spend daily on a hobby.

I know people who are spending a lot more time on Pokémon Go now. That is not something I understand but we decide on how we would spend our time and must be comfortable with the consequences. The latter is something people think less about.

I am also spending more time with family, gardening, exercising, shopping, cooking, watching anime and k-drama. So, even in retirement, I am kept busy as there are many things which I am spending more time on.

Blogging is not a job and I hope it won't become a job because I might not enjoy it as much then.

Some might notice that I have more updates on my Facebook wall than in my blog these days. This is because Facebook is very convenient.

I know.

AK is terribly lazy.

Bad AK! Bad AK!

Whenever I do that, I also update the comments section of my blog here. So, for those who do not follow me on Facebook and would like to have more updates, following the comments section of my blog is something to consider.

Here is a recent email exchange with a reader on the subject:

Reader:

Hi AK
Saizen made an anoucement.  I read that we will be paid the residual sum
and Sime Derby
buying shares at about 3 cents.
I do not understand at all.
Like to understand how do you see this development and your plan of action.

Thanks for your help.
 

AK:
I am holding on to my investment to receive the payout. :)

The REIT will issue new shares to new investor and I get to stay on as an old investor.

 

Reader:
Hi AKThank You. Likely we have to pay for new the new shares. What
is the cost and the net gain for old investor.This is the area I am
not clear.Appreciate advise.
Regards

 

AK:
I shared this on my FB wall:

 R:
 "May I ask what is happening to Saizen? I've read the document
released today but still do not understand. wish you would talk to
yourself n explain in simple terms to us! Thanks!"

Assi AK:
 "We will be paid 9.87c a unit and still get to keep our investment in the REIT, it seems.
"The REIT will issue new units priced at 3.484c to new investors to  partially fund purchase of some Australian properties.
"Whether it is a good deal or not is hard to say at this moment but to  get paid and yet retain an investment that could possibly generate
income for me in future sounds good."

Reader:
Thanks AK.i do not go faceboik.Why do not you post it on your regular website.

 

AK:
I actually posted this in the comments section of my blog too.
You can follow the comments section of my blog for updates, if you like. I provide info on how to do this under "Following my blog" in the left side bar.
I don't always have the time or inclination to blog. So, the comments section or my Facebook wall are quick ways for me to do updates. :)

Related post:
Following comments in ASSI.

Why do rich people have more money?

I hardly keep in touch with friends from my school days. Actually, I hardly keep in touch with anyone apart from family and a handful of closer friends. 

I grow more reclusive as I age and, honestly, I rather like it this way.

So, when I received a call from a friend whom I have not heard from for more than 10 years, it was more than a surprise. I was momentarily stunned.

What do you say to someone whom you have not kept in touch with for so long other than the usual "How are you?"

The last time we met, we chatted over a meal and he was doing pretty well. I remember joking that he would be able to retire very soon. To that, he said: 

"I can't retire soon. Rich people need to make more money because they have more things to spend on."

I was somewhat taken aback and asked him why he said that? What did he spend his money on?

He started counting the items using his fingers and I cannot remember all the items but I remember "a big house and two cars" being on the list. 

Then, I also noticed then that he was wearing a luxury watch. His clothing and shoes were also probably from some luxury brands but I wouldn't know, would I?

I also remember that I felt somewhat self conscious then with my outfit (not Boss but Bossini). 

Poor AK was psychologically scarred. 

I wasn't financially as comfortable back then and was trying hard to build my wealth like I was doing most of my life.

What this friend said back then reminded me of what another friend said to me before:

"It is not enough to be rich. You must appear rich."

Now, at the ripe old age of 45 and with what I have achieved, I can confidently tell these friends that they are wrong. They are so wrong.

Oh, you want to know why did my friend call me? 

Oops. I am growing forgetful in my old age?

Well, after some small talk, 

"Er... Could you loan me $50K?"

I was so stunned like vegetable. I kept quiet and he went on to explain.

Apparently, his business is not doing well and he exhausted what savings he had. There is no way for me to know if he was telling the truth or not and this is someone whom I have not been in contact with for more than 10 years.

So, what was my answer?

I offered him $2K, saying that I was not comfortable to lend him any amount larger than that. 

He hung up.

Rich people don't have to make more money because they have more things to spend on. 

Rich people have more money because they spend on less things and spend less on things.

I shan't say anything else but you might want to read the related posts below for my thoughts on "being rich" and "lending money".


Related posts:
1. If we are not rich, don't act rich.
2. Lending money? Ask questions.

15% to 20% yield per year but only for some.

Hi AK,

Been a regular reader of your blog. Simply inspiring to me.

I merely have one question to seek your advice. I have approximately $30,000 of current liabilities (namely credit lines and long term debts) or what some would call unhealthy debt. 

I also have approximately $13,000 of assets in stock holdings. If it was you, would you liquidate your 6% to 7% yield assets to pay for debts that cost 15%-20%?

From an economical reason, it makes sense to ensure that you forked out as little money as possible to pay the cost of debts. 

However, spiritually, I was wondering if I ought to keep my yield generating assets in order to "force" myself to work harder to upkeep the debt and buy more assets.

For now, my job does pay me enough to meet my debt cost and investment capital. 

Would you do the mathematically smart thing and pay down the debts asap or build up the asset at the same time?

Hi J,

Compared to a 6 or 7% yield, if you were to pay off your debt, it is equivalent to generating 15% or 20% in extra money per month. This is money in the pocket.

"Once you get into debt, it's hell to get out. Don't let credit card debt carry over. You can't get ahead paying 18 percent." 
- Charlie Munger

What about being forced to work harder and all that? 

Be pragmatic. There is more certainty in money saved now than money to be earned in future.

Gambatte! :)

Best wishes,
AK

Related post:
An unbeatable level of certainty in wealth building.