Black, white or grey?

I enjoy reading but the kind of stuff I read is mostly related to money and investments these days. Gone are the days when I would read a book of fiction every week.

A friend told me I have no life because I don't read the "Life" section of The Straits Times. Droll.

Anyway, just now, I read a story in Yahoo which evoked within me a mixed feeling of condemnation and sadness for the guilty party. Many times, things are not black or white although I would prefer for them to be so as it would make life easier.

This story has nothing to do with money and investments:

A 32-year-old female Singaporean teacher was sentenced to a year in jail on Monday for having sex with a 15-year-old boy in her school, local media reported.

The teacher, who was married with two children, started a relationship with the student last year after she started counselling him, the Straits Times daily reported on its website.

The teacher-student-monument in Rostock, Germany.

I think it is more common to read about male teachers in such cases or am I being sexist here?

After reading the story, my initial reaction was that the female teacher deserves the punishment. Pure and simple. Then, although I still think she should be punished, I feel a bit sad for her.

Under Singapore law, an adult found guilty of engaging sexual intercourse with anyone under the age of 16 -- even if it's consensual -- faces up to 10 years' imprisonment, a fine or both.

The boy is one year away from being legal. Could they not have been really in love?

Of course, there are other issues involved here such as how the teacher abused a position of power and trust. So, if the boy had been a JC student, the teacher could still have been dismissed by MOE but she would have been spared a jail sentence?

Once people are married, they are no longer fully their own person. They are only half a person. Whatever they do, they should think of the other half. If they have children, the responsibility becomes heavier as the children could be psychologically scarred for life through parents' thoughtless behaviour. So, I feel sad for her family too.

Then, I thought perhaps the boy's family could have thought about the teacher's situation and how they could have dealt with the issue differently. People do wrong sometimes. Perhaps, a private meeting with the teacher and a warning that she should stay away from their son would suffice?

Psychiatrists found "no predatory paedophilic tendencies" in the teacher. So, she is not a threat to the young in society at large. Of course, this fact only came to light because the case went to Court.

In a different time and age, could this have had a different outcome?

Read full story: here.

A blast from the past: Singapore blue chips or S-REITs?

I have been blogging for close to three years and looking back, I was a rather prolific blogger. Over the weekend, I read some of my older blog posts and found one which I have almost totally forgotten about.

Those were the days when S-REITs were largely unloved and shunned. Written in the first year of my blog's creation, to anyone who would listen, it was an effort to show that S-REITs could be great investments too.

Readers from my blog's early days might or might not remember this blog post but, I believe, all readers could benefit from the blog post as a reminder for us not to be bigots. It is a reminder to myself as well as I find that I have an increasing propensity to become mired in mental mud as I grow older. Feel the same way?

Then, you might want to read an ASSI forgotten classic:
Building and preserving our wealth: Singapore blue chips or S-REITs?

Three point turn!

This weekend, I am going to leave you with a very short blog post. Nothing original but sometimes, we need a few reminders, don't we?

Man is created in the image and likeness of God but there is nothing Godly about Man.

So, here are the three points which could turn our lives (for the better):

1.  We only need so much money in life. The rest is for showing off.

2.  Keep our needs simple and our wants few. We will have less money problems that way.

3.  Know what and who matter to us. Don't waste time and money on others.

True or not?





I hope we are all truly happier individuals over time. Have a good weekend, everybody.

"Every man is rich or poor according to the proportion between his desires and his enjoyments." (Samuel Johnson)

AIMS AMP Capital Industrial REIT: 2Q 2013.

A DPU of 2.5c has been announced. The REIT goes XD on 2 Nov 2012 and the income distribution is payable on 20 Dec 2012.

Gearing is comfortable at 31.5%. This leaves ample debt headroom for further yield accretive initiatives.

The REIT now has a new source of funding via a $500m Medium Term Note Program. It issued a $100m 4 years 4.9% fixed rate notes due in August 2016. Being an unsecured facility, the cost of debt is dearer but if we should continue to see positive rental reversions, this is still acceptable.

Indeed, the REIT manager has not disappointed as they have been successful in renewing leases with higher weighted average rental with positive rental reversion of some 17.3%. They have also reduced concentration risk as the proportion of leases expiring by 2013 have reduced from 35.7% one year ago to 9.9%. Of course, it remains to be seen if they could secure positive rental reversions by renewing the 9.9% now remaining. Negotiations are in progress.

The management should also continue to work towards 100% occupancy although, at 99.2%, it is already above average for industrial properties in Singapore.

Average security deposit of 7.2 months per property provides a peace of mind.

In the papers, it is reported that distributable income reduced some 5.4% but on a quarter to quarter basis, the reduction is much lesser at 0.6%. So, I wouldn't be too worried.

Although gross property income improved some 3% quarter on quarter, NPI reduced 1.4% due to an increase of 13.9% in property operating expenses. This includes repair and maintenance of some properties which should be a one off expense. Having said this, the management should continue to be prudent in managing expenses.

See presentation slides: here.
See financial statement: here.

Related post:
AIMS AMP Capital Industrial REIT: 1Q FY2013.

First REIT: 3Q 2012.

As the contribution from the divestment of its Adam Road property has run out, First REIT's DPU sees a reduction of 12.5%, quarter on quarter, from 1.92 to 1.68c.

Year on year, however, DPU has improved from 1.58c to 1.68c.

I would say that First REIT has produced sterling results yet again.

Income distribution is payable on 29 November 2012.

See financial statement: here.

Related post:
First REIT: 2Q 2012.

LMIR: More acquisitions and lesser DPU again.

The latest acquisitions of Pejaten Village and Binjai Supermall will further reduce DPU.

Of so many REITs I am vested in, LMIR is one which has constantly disappointed in more ways than one.

The management has listed the advantages of acquiring these malls and they sound like a rehash from their equally distasteful purchase of 4 malls recently:

1. Acquisitions are at a discount to NAV.
2. Enhance earnings of the Trust.
3. Properties are of good quality.
4. Increase economies of scale in operation and marketing.
5. Minimise concentration risk.

The price tag for the purchase of the two malls: $126.5m
NPI of the two malls: $7.0m
NPI yield: 5.53%

Just like its recent purchase of 4 malls, these acquisitions are not NPI yield accretive. NPI yield of the REIT's portfolio is being gradually diluted with these overpriced purchases.

It does not matter that purchases are at a discount to valuation. They are still too expensive if ordinary unit holders are getting less income even as the REIT's asset base grows! If there is nothing worth buying, don't buy anything. Doesn't sound too difficult or does it?

The primary beneficiary here is the REIT's manager as they will be paid an Acquisition Fee equal to 1% of the purchase price which works out to be about $1.3m!

I think Ms. Viven Sitiabudi should consider retiring as CEO.

Read announcement: here.

Related post:
LMIR: More benefits from acquiring 4 malls?

Dynasty REIT: At what price would I bite?

Recently, I received quite a few emails regarding Dynasty REIT.

With full page ads taken out in the newspapers, few could have missed the promise of an approximate 7% distribution yield. It seems that the REIT is generating quite a bit of interest in the current low interest rate environment.

I have not subscribed to any IPOs in many years, believing that they are on terms which are more in favour of the issuers. Of course, there are cases in which IPOs have done quite well because Mr. Market's sentiment towards them was favourable.

So, for people interested in IPOs, they should develop the ability to read Mr. Market's mind! Personally, I already have great difficulty reading Mr. Market's mind with the help of charts. Without any trading history (i.e. no charts), it is a tall order indeed for me to read Mr. Market's mind towards IPOs.

For example, some people were saying that the unit price of Religare Health Trust would probably do very well because the public tranche was 13.5x over subscribed. On the first day of trading, it tanked 10%. It is still trading below its IPO price today.

What about Dynasty REIT? Could its unit price tank 10% on the first day of trading too? Who knows? I have said before that as an investor for income, I am more concerned with the distribution yield and that any capital gain is a bonus. Of course, we want to avoid any loss of capital at the same time. How do we do this? Buy when things are inexpensive. So, is Dynasty REIT's IPO price inexpensive?

Shanghai International Capital Plaza:
29 floors office and retail building plus a basement.
Committed occupancy rate: 86.8%

The promised distribution yield of about 7% per annum is largely achieved through a waiver of entitlement to income distributions by sponsor units. Now, the sponsor is not being altruistic or generous. It has to do this in order to make the IPO attractive. Without the sponsor waiver, the distribution yield would approximate 4% only. A big difference.

Of course, there are many assumptions that could be made for a possibly higher income distribution over time which could make up for the loss of the sponsor waiver by December 2017. However, we would be counting the chickens before they are hatched and in this case, we are not even sure we have the eggs for counting.

This IPO is heavily engineered and, in my opinion, at 85c to 91c a unit, it is not a good value proposition. I could be interested in initiating a long position if its unit price were to be closer to 55c a unit.

You might also be interested in these blog posts:
1. Religare Health Trust: 8.5 to 9% yield.
2. Perennial China Retail Trust: A weak debut?

Sabana REIT: 3Q 2012 DPU 2.34c.

Sabana REIT reported a robust set of numbers, declaring a DPU of 2.34c. The counter will go XD on 24 Oct and income distribution is payable on 28 Nov.

Total assets under management: $1.1 bn

Occupancy rate: 99.9%

Average all-in financing cost: 4.3%

Weighted average tenor of debt: 3.5 years.

Interest cover ratio: 5.5x

NAV/unit: $1.03

Sabana REIT's higher income from a slew of acquisitions comes with financing cost increasing significantly as well. Gearing is now higher at 38.3%. However, this does not disturb me much as the net result is still positive for unit holders.

In my opinion, the weakness of Sabana REIT remains a high concentration of leases expiring in 2013.  At 47.4%, it has not changed from 3 months ago. My hope is for positive rental reversions which should lead to a higher DPU. I look forward to any growth in income without any significant increase in costs to the REIT.

At the closing price of $1.13 in the last session, the annualised distribution yield is 8.28%. In an environment of very low interest rates, this is still very attractive and a further compression of yield to 7.5% does not seem improbable. That would see unit price at about $1.25.

See presentation slides: here.

Related post:
Sabana REIT: 2Q 2012 DPU 2.27c

CapitaMalls Asia: Broke resistance.

I got into CapitaMalls Asia way too early. However, taking a cue from the weekly chart, continual buying means my current long position is in the black. Of course, I have collected some dividends in the meantime as well.

Of course, what I have done is by no means brilliant. Far from it. The brilliant thing to do is to buy only when share price has troughed and looks to be turning up. Another lesson for me.

Technically, CapitaMalls Asia's share price broke resistance at $1.70 and it remains to be seen if this could be resistance turned support. With all the MAs rising, it could indeed be the case although a dip to test the rising 50d MA for support would not be too far fetched. The 50d MA is currently at $1.66.

The rising OBV suggests continual accumulation by smart money in the last 12 months. If this reading is correct, we could see share price climbing a wall of worries in the next few months.

Related post:
CapitaMalls Asia: To buy on possible weakness.

Value for money holiday in Hong Kong.

The year end holidays are just round the corner. Wondering where to bring the family for a vacation this year? Why not Hong Kong? The flight does not take too long and Hong Kong has good food and attractions aplenty.

You might want to bring the kids to Hong Kong Disneyland as well to see Snowy Christmas Town.

 

Find out more at: Christmas Town.

Get a special 4D 3N Hong Kong package to make it a value for money holiday at the same time.

Check out the special offer by following the banner here:



Wanna see photos of my trip to Hong Kong last year? See them: here.

Saizen REIT: A retest of resistance at 18c?

On two occasions in the past, I did not partially divest my investment in Saizen REIT as its unit price touched a high of 18c. It was due to a belief that it remained undervalued even at that price. Yesterday, Saizen REIT's unit price broke resistance at 16.8c while it touched a high of 17.7c before closing at 17.4c today. Could we see 18c again soon?

The lower highs on the MACD and the declining OBV are rather ominous. Forming negative divergences with the ever rising unit price, any chart watcher would not be wrong to wonder if a correction could take place soon. In such an instance, immediate support is at the former resistance of 16.8c and if that fails to hold, the next support is at 16.4c.

So, would I sell if a retest of 18c should take place? I could do a partial divestment.

Related post:
Saizen REIT: 2H FY2010.

Sound Global: Accumulate on weakness.

Despite rather positive reports, the share price of Sound Global has been in retreat. Mr Market agrees with my earlier musings in July and August on whether it was a good time to sell, it seems.

Mr. Wen Yibo has been accumulating shares of Sound Global in the last one month and currently holds 56.2% of the shares. He probably knows something that we don't but even if we do not know what he knows, what information is publicly available shows that the fundamentals of Sound Global are sound and that the business is growing.

Technically, Sound Global's share price is experiencing weakness since forming a double top two months ago. The top was at 62c and the neckline at 55c. This suggests a downside target of 48c.

If we draw a trendline connecting the highs since early August, we see a resistance line that approximates the position of the declining 20d MA. Failing to stay above the immediate support at 51c and failing to break out of the down trend could indeed see share price moving to 48c.

What then? I would buy more.

Related post:
Sound Global: Retest of resistance likely.

China Minzhong: Opportunity in slowing momentum.

A big part of my portfolio is invested for income while the remainder is invested for capital gains. In both instances, once I stop adding to my long positions, the main thing to do is to wait. Wait to collect regular income in the first instance and wait to lock in gains in the second.

I will have more income distributions from S-REITs in November and December. Possibly, there will be dividends to be collected from some stocks as well. I am not too sure as I have not noted the precise dates for some time now.

I also invested in a few stocks, believing that they could deliver some nice capital gains. One such stock is China Minzhong and the last time I blogged about it was about a month ago, declaring that its stock price was emerging from a downtrend. Since then, its stock price has moved to touch a high of 85c.

OBV shows continuing accumulation while the RSI shows the formation of higher lows. There is some support. However, the lower high on the MACD which formed as a higher high formed in stock price, together with the reducing volume as price pushed higher, suggest a weaker positive momentum.

A rising wedge also seems to have formed and this suggests that the stock price could see a retreat in the near term. However, wedges are not terribly reliable patterns and the bearish signal we see here could be negated if volume should simply expand with an upward movement in stock price.

In the event that the rising wedge should deliver, we could expect a correction to see the share price retreat to 68.5c thereabouts. Before that, we could see some support at 75c. The immediate support is at 80c.

The weekly chart is somewhat more encouraging as the MACD has just moved into positive territory. Unlike the daily chart, there is no negative divergence observed here. The longer term picture suggests that any pull back in price is an opportunity to accumulate. The 100w MA, approximately at $1.10 now, could put an eventual cap to any upward movement in stock price in case it should happen.

Related post:
China Minzhong: Emerging from a down trend.

Wilmar: A rebound or something more?

Wilmar is up 3.9% at $3.18 as players await further details from the Malaysian government on a CPO export-tax cut. "It's one of the better companies in terms of having feet in both Indonesia and Malaysia and (being) able to trade around any opportunities from that" on the potential tax change, an analyst says.

He adds, the slightly improved soybean supply-side numbers from the U.S. were also positive for the stock as soybean availability is key for Wilmar. He notes the stock is starting from an overly depressed position and a number of players are "relooking" it after its selloff.

Dow Jones & Co, Inc, Friday, 12 October 2012.

I don't like to sell as share prices form new lows. It just doesn't make sense to me. If I want to reduce exposure in downtrends, I would wait for rebounds as prices test resistance. After all, prices go down a river of hope.

I do not know if Wilmar's share price would continue to strengthen or how much it would rise if it should happen, of course. I just have to do what I plan to do if it happens.

I like to potter around a bit with charts and using the Fibo fan, the chart shows that price broke resistance in the last session but mostly retreated to close just slightly above resistance. A continuing rise in share price next week looks rather iffy. If it should happen, next target is $3.28

Of course, we can also say the the confluence of the 20d and 50d MAs at $3.20 is a formidable barrier. This could be the case but in a situation where price is no longer trending, MAs are weaker tools. I would turn to momentum oscillators in such instances for clues.

For anyone who thinks that Wilmar's share price is experiencing a blip in positive movement and that it is on its way lower, I won't be too sure. Look at the MACD which is a price momentum oscillator. It just formed another higher low. It shows that negative momentum is continuing to weaken.

The ADX shows that there is no trend per se and if there is any, it is a weak one.

What I can say for sure is that Wilmar's share price is going through a long drawn basing process. When is it ending? It will end when it ends.

Related post:
Wilmar: Is the tide turning as buying pressure returns?

Tea with AK71: Maison Ikkoku.

Recently, a friend whom I have known for more than 20 years asked me out to have tea. We met at Maison Ikkoku which is owned by a friend of his.

I am not much of a food blogger but here are photos of what I had for tea that day:



Yummylicious ice lemon tea!

Melts instantly in your mouth tiramisu!



This was a total surprise. Kong Bah Pao!



It was so good! You simply have to try this.


I didn't bring my IXUS out with me and these photos were taken with my trusty Samsung mobile phone. Can do lah.

In case you would like to visit Maison Ikkoku (and you really should),

Address:
20 Kandahar Street, Singapore 198885.

Tel:
6294 0078

I am doing this blog post without any monetary reward. I do this because I want to share with you a wonderful discovery I made: a beautiful cafe with good food and drinks. I think you will enjoy the place as much as I did.

Oh, did I mention the interior decoration? I promise you that it would be an eye opener. I am not putting up any photo of the cafe's interior here (really because I didn't take any). You will have to visit Maison Ikkoku to take it all in. ;)

Bon appetit!

LMIR: More benefits from acquiring 4 malls?

Since its rights issue last year in December, expectation was for LMIR to acquire more shopping malls to improve its DPU which has been rather disappointing, being much lower, post rights issue, than initially expected. With my investment in LMIR some 200% bigger than it was, pre rights issue, I am naturally concerned with its underperformance.

Finally, an announcement to acquire 4 malls at a discount to their respective valuations. The 4 malls are:

1. Palembang Square for S$ 74.8m
(19.9% discount to valuation)

2. Palembang Square Extension for S$ 29.8m
(4.5% discount to valuation)

3. Tamini Square for S$ 30.1m
(23.4% discount to valuation)

4. Kramat Jadi Indah Plaza for S$70.8m
(2.2% discount to valuation)

The acquisitions will be funded fully by debt. Weighted average interest rate: 5.079% per annum. See note at the end of this blog post.

One question now on unit holders' minds is probably how much more are we going to get in DPU, post acquisitions. After all, we are investing for income.

1Q 2012, we received a DPU of 0.69c.
2Q 2012, we received a DPU of 0.79c.

Both distributions were lower than the estimation of 0.815c per quarter, post rights. They were definitely lower than the DPU of approximately 1c per quarter, pre rights.

So, will DPU improve after these latest acquisitions?

Net Property Income (NPI) yields for the 4 properties are: 4.41%, 1.00%, 8.637% and 7.2%. Collectively, the NPI yield of these 4 acquisitions is less than 6.00%.

If I remember correctly, LMIR's portfolio's NPI yield is about 7.5%.  So, these acquisitions are not NPI yield accretive. They are, in fact, regressive.

However, the management of LMIR is going to get a performance fee because in terms of absolute NPI, there will be additional NPI after the acquisitions. Fee? Some 613,158 new units in LMIR will be issued for this purpose. This fee is payable even though the pro forma numbers show that the distributable income will suffer a decline, post acquisitions.

Of the 4 malls being acquired, 2 malls have occupancy rates of under 90%. If the management is able to boost occupancy to above 90% over time, it could make a marginal improvement to the pro forma numbers. It wouldn't be anything to shout about.

It should, therefore, come as no surprise that in the five benefits of the acquisitions listed by the management, none refers to any improvement in income distribution which, probably, matters most to ordinary unit holders like me investing for income.

See announcement: here.

Note: The Manager proposes to finance the Acquisitions from the proceeds raised from the issuance of the S$200,000,000 4.88% Notes due 2015 and S$50,000,000 5.875% Notes due 2017.

Win $1,000 cash with Marigold HL Milk!

Do you drink Marigold HL Milk?

Take part in a contest and stand a chance to win $1,000 cash.

Prizes: 5x  S$1,000 each.

Closing date: 8 November 2012.

Find out more: Marigold HL Milk.

Tea with AK71: Vandals and selfish cyclists.

A few days ago, I was taking an evening walk after dinner and took these photos at an underpass:

Cyclists, get off your bicycles.

Vandals trying to be smart.

Shortly after, a motorised bicyle and three regular bicyles went by me. None of the cyclists got off their bikes as they went through the underpass. These people were being selfish and irresponsible.

The relevant authorities should do more than just put up signs (which are vandalised anyway).

Taken in one of the many public parks in Singapore on a pedestrian walkway. How many cyclists heed the advice?

This world would be a much better place if people all behave more responsibly and show more consideration for others. Is it too much to ask for? I wonder.

Related posts:
1. A moving bathtub and fridge.
2. McDonald's shows us how.

Win Eu Yan Sang goodie packs!

In 2002, Eu Yan Sang's first clinic at South Bridge Road opened.

Today, Eu Yan Sang has 21 clinics conveniently located island wide to offer a comprehensive range of Traditional Chinese Medicine (TCM) therapies for your health and well-being.

In conjunction with 10 years of providing quality TCM healthcare, Eu Yan Sang is running a series of activities.

Find out how they have modernized TCM and you stand to win goodie packs at: Eu Yan Sang is 10!

Seven of my money habits.

This blog post is mainly inspired by a conversation with my mother on some of my habits. 

Recalling a popular book titled "Seven habits of highly effective people", I came up with "Seven money habits of AK's". ;p





Habit No. 1:
I never order canned or bottled drinks when dining out. 

Fresh food needs on site preparation but I can walk to a nearby supermarket to buy the same canned or bottled drink for a much lower price. 

Some might say it is convenient that we buy drinks from the eateries but the premium paid for this convenience is way too high. 

A can of Jia Jia herbal tea costs $0.60 in NTUC Fairprice but could cost $1.50 at a kopitiam! 

A can of Coke could cost $0.55 in NTUC Fairprice but could cost $4.00 (before taxes) in a restaurant!






Habit No. 2:
I always check my bills.

Huh? Can we really save money this way? 

You bet. 

I have lost count of the number of times I have been overcharged by pharmacies, supermarkets and restaurants. 

Very often, the larger bills are the ones we have to be more careful with as overcharging even a few dollars could be hard to spot. 

It is because of this habit that I have avoided being overcharged for many years now. 

Oh, check the receipt just outside the shop, not after getting home!






Habit No. 3
I always compare products on offer between shops.

For the same product, two shops which are side by side could have very different prices. 

Guardian and Watsons are very often found in close proximity to one another. 

Many times, I saved quite a bit of money comparing their prices before deciding who to buy from.






Habit No. 4
I never take for granted that buying more is definitely buying cheaper.

Many times, I stopped friends and family from buying bulk packed products as they actually cost more than buying loose! Huh? 

Of course, they cost more since we are buying more, you might say. 

No, no, that is not what I mean. 

I mean we should check to see how much is the per unit price in bulk packed offers. 

Don't assume that bulk packed products are always cheaper.






Habit No. 5
I always try to get discounts off my bills.

I always get a discount off my bills at Kopitiam and Food Junction. 

Yes, go get the discount cards if you have not done so. 

If I should be in an unfamiliar establishment, I would ask the service staff if they had discount agreements with credit card companies.

Habit No. 6
I never pay in cash.

Well, unless that is the only mode of payment acceptable. 

Often, I see people before me in a queue choosing to pay in cash. 

Some transactions were rather high in value too. 

Imagine the number of reward points they could have accumulated if they had used a credit card, if they had one, or the amount of cash they could have received in rebates!





Habit No. 7
I bring my own food to work.

I always bring some food prepared at home to work and I save quite a bit of money this way. 

Anyway, I enjoy oatmeal regularly and I don't think they sell oatmeal in the coffee shops or food courts.

If we work to increase our income and reduce our expenses, our financial health will improve over time. 






As the saying goes, it is easier to spend money than to make money.

So, if we just put in a little effort, we could be saving some money as we spend money. 

Sounds good, doesn't it?

When I was in primary school, the POSB bank squirrel came to us and taught us how by saving just a little every time, we could have a meaningful sum of money stashed away over time. :)

Related posts:
1. Save money with low prices and free shipping globally.
2. Money management: Needs and wants.
3. Queue for $1 parking fee redemption.
4. A common piece of advice on saving.
5. Inflation hits fried bee hoon.

Tea with AK71: Parting with an old friend.

Would you consider 15 years a relatively long time to be in a relationship? Personally, I think it is. It is longer than the duration of many marriages I know of.

After 15 years, I am finally parting ways with an old friend which has been showing visible signs of ageing. Beginning to fall apart, it still stayed by me, faithfully serving me while I reluctantly looked for a replacement in the past couple of months.

I must admit that it is really hard to find a fitting replacement as the candidates were either too big, too small, too complicated, too sexy, too fake, too simple or just didn't feel right. Finally, I found one that is just about right.

What am I talking about? My wallet, of course.

My old wallet was from Heritage, a company in West Germany. Yes, it was bought during a time when Germany was divided into East and West. I think it cost me a bit more than S$100.00 back then. I bought it when I got my very first pay cheque.



Visible signs of wear and tear as the stitching in the fold unravels.

The replacement wallet is apparently quite branded or so I was told by friends. Braun Buffel is a company in Germany (not West Germany) and this wallet costs me $109.00, after a discount. 

15 years on, it is still roughly the same price to get a good quality German leather wallet. No inflation! A miracle!

Even though it is very similar to my old wallet in design, I feel that my old wallet is still better. I guess I just need time to get used to the new one.

Related post:
Some of my stuff (Part 2)

Millionaire or not, plan for retirement.

Being a millionaire today is different from being a millionaire 30 or even 20 years ago. This is simply because a million dollars is worth less now due to inflation in the cost of goods and services. These days, even a HDB flat could cost a million dollars!




I cannot remember the person's name but in the latest issue of The Sunday Times an interviewee (a millionaire) says that he does not want to think of retiring when asked for his retirement plan. Why? People who have plans for retirement, he says, will not be as driven or gung-ho.

Conventional wisdom says that we start planning for retirement as soon as possible. Even a very good fisherman should plan for the day when he can no longer do any fishing.

Today, I received a newsletter with a few interesting facts:

1. Singaporean males live an average of 79 years and women live an average of 84 years. Living longer means we need more money.

2. Due primarily to inflation, current savings will be worth less in future. 30 years later, something that costs $3 today could cost as much as $13.70 with inflation at 5.2% per year.

3. Although 91% of Singaporeans find CPF a reliable tool for retirement planning, according to a retirement study in 2011, each year, fewer members meet CPF's Minimum Sum requirement.

4. Escalating medical costs are a big concern.

The newsletter is a sales tool for an insurance company but these four points which I have extracted are pertinent to us all. If we have not started planning for our old age, we should if we could.

Apart from working to make money and being financially prudent, we invest and grow our wealth, creating streams of passive income along the way. Our investment returns, year after year, should be higher than the inflation rate. This is only part of the equation, however.

I am a strong believer in having adequate insurance coverage for medical costs which are bound to be incurred as we age. Our financial health could take a severe hit if we do not have medical insurance as money meant for living expenses could be depleted by medical bills.

Many might have heard the sardonic remark that being sick is worse than being dead. This could indeed be the case especially if one did not have sufficient insurance coverage of the right kind.

Planning for retirement is definitely more than just having enough passive income to replace our earned income. 

Being able to retire is much more than working because we want to and not because we have to.

Knowing how to make money and building wealth is the first step. Knowing how to protect our wealth is the necessary second. 

Protecting our wealth will cost us some money but not protecting our wealth could cost us even more.

In case you are wondering, I am not an insurance agent and this is not an advertorial. If this blog post has alerted some who have yet to plan for retirement to put on their thinking caps, it would have achieved its purpose.

Related posts:
1. Young working Singaporeans, you are OK.
2. To protect our wealth, we have to take risk.
3. Roads to wealth creation in the stock market.
4. Wage slaves should be fearful.
5. CPF is a cornestone in retirement.

Save money with low prices!

I started buying stuff like books and health supplements online only recently. The convenience and savings, especially with a strong Singapore Dollar, help to make online shopping a growing phenomenon here.










You know those mega sales at the Singapore Expo by John Little or Harvey Norman? This reminds me of a mega sale except that we don't have to be in a crowded and noisy location, rummaging through baskets of bargains with everyone else and, then, joining a super long queue to make payment!

Happy shopping in the comfort of your own home!

Made and still making money from S-REITs.

In an environment of very low interest rates, S-REITs are logical beneficiaries and in more ways than one. Regular readers would have heard this many times already. Readers who are new to my blog might want to read some of my older blog posts on S-REITs and why they are expected to continue performing well.

When we invest in S-REITs, it is with a primary aim of receiving regular and meaningful income. I have also said that any capital gains would be a bonus.

The outperformance of S-REITs' unit prices has led some holders to wonder if they should divest. Well, as market wisdom goes, taking profit is never wrong. However, I would ask that these holders consider if they have better places to park their money. Remember, money will go to where it is treated best.

In economics, we learn about supply and demand and how prices are affected by the relationship between the two. S-REITs are seeing their unit prices rising strongly because more investors are now putting their money in S-REITs.

In the last two years, I have had readers from Malaysia, Hong Kong, Europe and the USA writing to me. The early movers into S-REITs are sitting on some very nice capital gains and receiving regular distributions with yields as high as 10+% in some cases. What's more? Their investments have seen forex gains as the Singapore Dollar continues to strengthen against their home currencies!

I kid you not when I tell you that these readers are all very much richer than I am and have made much more money by being in S-REITs although they came in somewhat later. I am happy with how well things have turned out for their investments in S-REITs.

When Pat (a cboxer in Bully the Bear) told me that I have a pool of funds, I told him I know well that what I have is merely a puddle. Having self-knowledge and knowing what I have achieved is humble, I am not fixated by how much I have versus how much others have. Of course, I am only human and it used to bother me when I was younger.

Instead, just like starting a business, we should have a model for wealth creation. Being fixated with how much wealth we have versus how much others have does nothing to grow our wealth.

For someone who is investing in the stock market for income, first, have a clear goal and that, to me, should be to create meaningful passive income streams which will fully replace our earned income. Pick out likely candidates and do the due diligence to decide on the ones which are likely to help us achieve our goals.

Next, have discipline. Stay the course. Yes, stick to the plan. If circumstances have not changed, why deviate from a good plan? However, what if they did change? Then, ask why was our plan a good plan. If the reasons for the plan being good no longer exist, it is time for a change, isn't it?

Maybank Kim Eng, 28 Sep 12: Year-to-date, we have seen many pension, insurance and income funds switching into REITs to pursue higher returns for the sheer fact that the yield-curve is almost flat.  This is further aggravated by the almost "zero-bound yields" which meant that yields have no more room to fall, erasing any prospects of fixed income capital gains for investors. In the quest for returns, many such funds had to turn to slightly riskier asset classes such as REITs for stable recurring distributions.  We believe that with the latest round of QE3 Infinity, ECB’s unlimited bond-purchase program and BoJ’s yen-asset-purchase program, coupled with the low interest rate environment and a yield-spread of 440 bps over the 10-year government bond with low earnings risk, would warrant further yield compression of 56-73bps, translating to 11%-14% upside for the S-REITs sector. Link: here.

Now, is investing in S-REITs still a good plan?

Related posts:
1. Investing in REITs: A flawed strategy?
2. Staying positive on S-REITs.
3. Mr. Market is always right.

Ad for charity: Help disadvantaged kids with MILK.
It costs us nothing. Just follow this link:
LIKE Marigold's facebook and help a child.

Tea with AK71: Ipoh Hor Fun (Holland Village).

Some time ago, I blogged about a higher purpose in having passive income in our lives which, to me, is to be able to spend more quality time with family as we spend less time at work. Of course, being able to spend money more freely is a nice feeling too.

Since moving back to stay with my family, I have been spending more time with my family, especially my mother. We would go and exercise in the gym and attend yoga classes together. We talk a lot more too, which can be good and bad (and this is the honest truth).

Today, we were supposed to go to the gym but I asked if she would like to skip gym and go for Ipoh Hor Fun in Holland Village instead. Since both of us are naturally lazy, I didn't have to do any persuading for her to agree to it.

Ipoh Hor Fun with vegetable, fried wanton and char siew. $4.50.

Ipoh Hor Fun with vegetable, fried wanton and char siew in curry. $4.50.

Dumpling soup. $5.00.

Inexpensive. :)

Burp.

Related post:
Passive income: A higher purpose.

Marco Polo Marine: Accumulation mode.

On 19 June, I blogged about Marco Polo Marine's persistent insider buying activity. I initiated a long position and I have been updating that blog post in the comments section. The latest update happened yesterday.

Today, I added to my long position as its share price retraced to 34c a share.

Technically, we see the Bollinger Bands narrowing on the weekly chart. Expecting a big move in share price in the coming weeks. With the MACD forming higher lows on the weekly chart, momentum is improving as sentiments towards the company turned positive. The OBV bears this out as it shows accumulation taking place over the longer term.

Immediate support is at 33.5c while immediate resistance is at 35.5c a share.

Some might wonder why I look at the weekly chart here instead of the daily chart. I do this because I am interested in holding on to my investment in Marco Polo Marine for a longer period of time and the weekly chart shows me the longer term probabilities.

I would buy more on further weakness in its share price, everything remaining constant.

Related post:
Marco Polo Marine: Persistent insider buying.

Tea with AK71: Home made sandwich!

My last blog post on what I had for lunch was a cause of concern for some readers. I have to say that I don't eat instant noodles all the time and I apologise if I have given anyone the wrong impression. I am happy to note, however, that so many readers of ASSI are into healthy eating.

So, what am I having today for lunch? A home made sandwich.

Ingredients:
1. Wholemeal bread
2. Tuna flakes
3. Lettuce
4. Cheese

Yummy!

This is probably the least expensive and yummiest wholemeal bread I have come across. Available at all Cold Storage and Shop N Save supermarkets. It is their house brand.

NTUC Fairprice's house brand wholemeal bread is cheaper, if I remember correctly, but it is a bit dry and not as tasty. Of course, taste is a very personal thing.

Related post:
Breakfast and lunch for 96c.

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Readers who are interested in learning Korean could find this special offer interesting.

Find out how you could enjoy Introductory Korean I course at $39.90 instead of $180.

Follow this link to: Hankuk Centre.

Help disadvantaged kids with MILK.

I remember how when I was in primary school, we were made to drink a packet of milk a week by the school. My favourite was the green color one: banana flavour! I was very fortunate. There are those who are less so.

Marigold HL Milk believes that milk shouldn't be a luxury but a necessity for every child to grow into a healthy adult. The underprivileged shouldn't be undernourished.

Marigold HL MILK has committed to donating 10,000 packs of milk to MILK (Mainly I Love Kids) Fund which reaches out to disadvantaged children and youth in Singapore and overseas.

You can help! How?

Simply LIKE Marigold's facebook and Marigold will donate an additional pack of milk for every LIKE received!

Follow this link:
LIKE Marigold's facebook and help a child.

Thank you!

About MILK (Mainly I Love Kids) Fund:
Registered in June 2004, MILK reaches out to disadvantaged children and youth, both in Singapore and overseas, in the hope of developing them into contributing members of society. These children and youth come from troubled or low-income families and impoverished communities, and are often caught in a downward cycle that their circumstances destine them to. MILK supports them in their education, care and guidance, vocational and livelihood development, or other special needs so as to help them break out of the disadvantaged circumstances they were born into.