Financially free AK should be ashamed of himself!

Recently, I met up with three friends for dinner and over after dinner drinks, I recounted a story.

An ex-school mate of mine upon finding out that I was largely unemployed said that I should be ashamed of myself. 

This was even after I told him that I was not being a burden to society by being jobless and that I was financially free.




"That doesn't mean you shouldn't be ashamed of yourself. 

"You are still young and can still contribute to society. 

"You have wasted a good education which was actually partially paid for by the country."

Wow!!! 

That was something, wasn't it? 

Some serious stuff there to think about.




One of my three friends I told the story to promptly said:

"He is just jealous lah! What's there to be ashamed of? 

"Don't have to work and still have money coming in. 

"Just spend money. Spending money is also contributing to society."




Er, he forgot something. 

Earlier in the same evening, he said:

"Wah, AK. Actually, it is very hard to make money from you."

Yes, AK doesn't spend much money and is very careful when it comes to spending money. 

AK is not like David Gan. (See related post number 1.)

A new past time for me.

So, I guess, 

AK doesn't contribute to society much that way.

Cham. 

Like that, how?




Related posts:
1. To be richer, do not indulge...
2. AK on early retirement.
3. Work because you want to...

Achieving financial freedom by making some lemonade (or chocolate oatmeal).

You know what they say about how we should make lemonade if life should throw us some lemons? 

Yes, things do not always go the way we want them to. That is life.

You know the saying that it does not rain but it pours? 

Yes, bad things could happen one after another in a short span of time. That is life.

Unless we are some highly enlightened priest or monk, for examples, being a mere mortal, it is hard for us not to be affected in a negative way. 

I know.

I could probably write a sequel to "A series of unfortunate events" based on what happened to me in the last few months.

When a friend found out, she said that my full time job is now a patient because I have been visiting hospitals (yes, in the plural).

It can get quite depressing especially if we know what hospital food is like. Yes, yucky!

The important thing is to try and stay positive. Yes, I know it is easier said than done but, still, we have to find happiness where we can.

So, when they served me a breakfast of tasteless oatmeal, half boiled egg and Milo, what did I do?

Alone, the Milo drink was too sweet. Alone, the oatmeal was too bland. Hmmmm...

What if I were to mix them together? Voila:

Haha. I had chocolate oatmeal which wasn't so bad.

Working towards financial freedom, those of us who have some advantages in life might already find it tough and those of us who have none will definitely find it even tougher. 

Yes, life might deal us a bad hand of cards but that is life. The important thing is to stay positive when given some rather unhappy circumstances and try to find that silver lining.

Things don't always go our way. That is life.

If we want a better life, we will have to find a way.

Related posts:
1. Filial son working towards financial security.
2. Life was difficult and I wondered...

1Q 2016 income from non-REITs.

This blog post almost did not get written. Thanks to this reader, it did:

"Hi AK,

"I read your blog on you first quarter income this year from reits. I am very inspired. I have been waiting for your blog on your first quarter income from non-reits. Please inspire me again. Many thanks!!"

Well, actually, I did receive a couple of emails before this asking me about what I did in the non-REITs space in 1Q 2016 but I really didn't do much. So, no blog post.

However, inspiring? Hmmm...

If blogging about my 1Q 2016 income from non-REITs will inspire more to think about investing for income to become more secure financially, OK.

Like I said, I didn't do much in 1Q 2016 in the non-REITs space.

Looking at my records, I bought DBS shares, DBS shares and more DBS shares as its share price plunged. The last time I bought any was at $13.45 a share in late February 2016.

In 1Q 2016, I received income from:

1. APTT
2. Tai Sin
3. Croesus Retail Trust

Fuji Grand Natalie inHatsukaichi City, Hiroshima Prefecture, Japan.

Total income received from non-REITs in 1Q: 

S$ 12,181.34

That works out to be about S$ 4,060.45 a month.

Of the 3 stocks, Croesus Retail Trust is my largest investment. It has also been rather busy 

See: 
Private Placement of 70,000,000 new units at 75c a unit. (March 2016)

See: 
Issuance of $60,000,000 5% fixed rate notes due 2020. (April 2016)

See: 
Completion of Acquisition of Fuji Grand Natalie. (April 2016)

As long as the management is able to make good use of the funds raised to improve DPU, I am happy. 

Most of the money raised in the private placement has gone to the acquisition of Fuji Grand Natalie (a freehold property that enjoys 100% occupancy) which was purchased at a 6% discount to valuation.

7 reasons to acquire Fuji Grand Natalie:

See: Presentation slides.

Seems to me that all is well, for now.

Investing for income is about investing in undervalued or fairly valued assets which are able to provide visible and meaningful income generation which should ideally be sustainable.

If AK can do it, so can you!

Related posts:
1. 2015 full year income from non-REITs.
2. 1Q 2016 income from S-REITs.

Is AK a rags to riches story?

AK has lost quite a bit of weight. 

Many people are amazed.

However, friends who know me well are less amazed. 

Others call it discipline but my close friends call it an obsession.

Yes, AK can be quite extreme and can be obsessed with stuff he believes in.





When I first started life as a working adult, I remember giving myself $300 in pocket money each month. 

The rest of my salary, I saved and invested. 

When a friend found out, he said that I was living in abject poverty. 

I met this friend a few days ago when I was window shopping which is a nice way of saying KLKK (i.e. "idling" in SAF lingo). 

He was waiting for his wife who was doing some real shopping. 

He offered to buy me a drink and, so, we sat down for a drink and chatted.






He wasn't amazed by how much weight I lost because the last time he saw me was probably almost 20 years ago. 

Instead, he said I did not change much and still looked the same except for the white hair. 

Shhh... Don't pitcha lobang, ok?

Anyway, guess what did he ask me next?

"Are you still living on $300 a month?"

I was taken aback. 

I didn't expect him to remember. 

It must have left a pretty deep impression on him.

Instead of giving him a direct answer, I told him how sales people at credit card road shows now bo hiew (i.e. ignore) me because I tell them I am unemployed.

"Aiyoh. How come? You OK or not?"

To his credit, he did not make some excuse to cut short our chat. 





Well, I am sure you know how some people might be afraid of unemployed friends? 

You are not afraid? I am. Haha.

So, I gave him a 20 minutes (ok, maybe 30 minutes) summary of my life in the last 20 years. 

At the end of it, he was wide eyed and almost speechless.

"Wow..."

His wife rang him shortly after and he had to go, promising to catch up again soon.

He didn't say anything about me living in abject poverty this time.

Was I ever living in abject poverty? 

I had these for lunch recently.

Financial hardship during my teens, yes, but abject poverty? 

Honestly, no.

However, it might have looked that way to many people, I agree.

Regular readers know the narrative. 

For examples, I rarely bought new clothes and I packed lunch to work. 

Alamak, this guy must be an orang miskin (i.e. poor man) lah.





It wasn't something I thought about at the time but I suppose I rather looked like I was living in abject poverty but wasn't than to look prosperous when I wasn't.

It is important to know and to remind ourselves that it is not how much money we make that defines whether we have money but how much money we save.

So, is AK's story one of rags to riches? 

There will be different opinions but I don't think so.





I think AK's story is simply about a regular guy who wants to have the option to work if he wants to and not because he has to.

Related posts:
1. A common piece of advice on saving.
2. Becoming a millionaire next door.
3. Another personal story of frugality.

A happy marriage is worth waiting for.

Something I have blogged about from time to time is how people who plan to get married and have children should be financially prepared first. 

Have a strong financial foundation and we would have less money problems in future.


I can understand why those who have children on the way must get married in a hurry. Oops.

Bad AK! Bad AK!

Otherwise, why should anyone be in a hurry to get married and have children? Hmmm.








I have blogged about how some people borrow money in order to have a wedding or to renovate their matrimonial homes. 

I have also blogged about how people ran out of money and had to borrow money from friends to pay the monthly installments on their matrimonial homes.


"I was told of a person in his early 30s who is married and has two children.

"He is regularly borrowing money from his family and friends.

"In fact, he would borrow from friends to pay the installments on the mortgage of his 5 room HDB flat as well.

"Amount? S$800 a month."

From: Not enough money to be married.





It is quite mind boggling and I wonder why some people just become stupid when they fall in love. 

Can being in love generate income to pay for everything? Hmm...

Of course, one thing that so many in Singapore complain about is how they cannot hope to ever retire because they don't have enough money. 

For some, if they are honest with themselves, they might not have enough money because they got married (and had children) too early in life.






Wealth needs a base and this base takes time to grow. 

If we spend all our money as soon as we make them, a base can never form and our wealth will never grow.

"... the sooner we realise the benefit of delaying gratification and the sooner we start investing for a more secure future, the better."


From: Delaying gratification and getting stuff for free. 

So, if we have a choice, it isn't so terrible a thing to push back marriage plans by a few years or is it?





"I transferred much of my CPF-OA money into my CPF-SA in the first 4 years of my working life. 

"Then, I let the magic of compounding do the rest. 


"This is something that anyone, especially those in their 20s, should seriously consider doing.

"It might mean putting off marriage plans by four years for some but it would be worth it."

From: How to upsize $100K to $225K in 20 years? 

Regular readers know that I do not believe in being overly pessimistic or optimistic. 

I believe in being pragmatic. 





In a world like ours, financial security must be of paramount importance. 

The pragmatic me tells me that this is a hard truth.

Certain decisions in life have very long term or, indeed, life long consequences. 

They are not to be taken lightly or we might not ever see the light of day.

"A Happy Marriage is Worth Waiting for."
Taken during one of my visits to the National Museum.

A happy marriage is worth waiting for.

Not I say one hor.

Our government say one hor.

Yes, I know.

Bad AK! Bad AK!






Related posts:
1. What is our attitude towards having children?
2. Financially prepared to be married?
3. How to have children and retire comfortably?

1Q 2016 income from S-REITs.

This is the first time I am blogging about income received from S-REITs in the first quarter of the year. So, what did I do in the S-REITs space in 1Q 2016?

Honestly? Nothing.

The last time I did anything was in December 2015 when I added to my position in Soilbuild REIT at 73c a unit which I thought was a fair price to pay.

In 1Q 2016, I received income from the following S-REITs:

1. AIMS AMP Capital Ind. REIT
2. First REIT
3. Saizen REIT
4. K-REIT
5. Suntec REIT
6. FCOT
7. Cambridge Ind. Trust
8. Cache Logistics Trust
9. Sabana REIT
10. IREIT
11. LMIR
12. Soilbuild REIT

Total received in 1Q 2016: 

S$ 379,630.94

This is really due to a bumper payout from Saizen REIT which will not be repeated.

Am I pleased that my patience has been rewarded or am I sad that I will no longer be receiving a regular income from a portfolio of freehold residential properties in Japan? 

Well, a bit of both, really. 

Yes, I have mixed feelings.

Now, what am I going to do with the money that came in? 

Start a few fixed deposits. I know that a 9 months fixed deposit at CIMB will pay 1.8% per annum and a 12 months fixed deposit in BOC will pay 1.9% per annum. UOB is offering 1.7% per annum for a 13 months fixed deposit. Yes, I know.

To fellow shareholders of Saizen REIT who are wondering what to do with the money, although it is important to have a war chest ready, remember to reduce the cost of holding cash while waiting for the next investment opportunity to come along.

Congratulations and good luck!

Related posts:
1. 2015 full year income from S-REITs.
2. A lesson on the right prices and luck.

Tea with FunShine: Crystal Ball Predictions.

Diary of an Investor
Funshine's Crystal Ball Predictions

I lost count of how many hours have I invested into reading or watching articles on the subprime crises or more commonly referred to the Bear followed by the the Leman Brothers collapse or 07/08 financial crisis.

If I was to estimate at least 20 to 30 hours watching the video version of such movies related to it or documentaries. Lost count of how many articles I read relating to it.

I just watched the movie, the Big Shot. And is reflecting on the current market conditions. One of my friends bought bonds last year and lost some money. Sounds familiar.

My portfolio due to my experience and believes has always consisted of:
20% Cash/FD/Bonds
20% Precious Metal/Oil
60% Stocks of which:
35% Dividend Stocks
20% Growth Stocks
05% Trading Stocks

I have stuck with this portfolio mix since 2012 July.

I started investing in Oct 2011, the returns has fluctuate per year from positive 17% to negative 15%. Average out to around 5-7% returns per year only. 7% is considered an average investor. So in a way, I am merely average. However, if I remove Precious Metal/Oil from the mix, the returns is a lot more juicy since I start buying Gold from 1700 to 1500 to 1450 to 1320 to 1250 and most recently trading it.

My financial period is from July to June. Think I will stick on to the current portfolio allocation till end June 2016.

On 1st July 2016, I should be changing the portfolio allocation which I have not done so since 2011 to:
25% Cash
05% FD, 3 months rolling
20% Precious Metal/Oil
30% Dividend Stocks
15% Growth Stocks
05% Trading

Looking at the crystal balls this is my market predictions, of cos I am no different from the weather man.

My next five years forecast, FY16/17 to FY20/21:

2016 to 2018:
STI should bounce back to 3200-3400.
If it hit 3600 sell 30% of all stocks.
If it hit 3800 sell 50% of all remaining stocks and rotate the money to rolling 3 months FD.

2016 Sept to Early 2018:
Market will be very volatile
Cash is King and Key
Stick to the portfolio mix and react appropriately.

Mid 2018:
Time to consider buying a property

End 2018 to Mid 2019:
Acquisition of a property

2019 to 2021:
Market should recover.
Back to buying dividend generating stock

FY16/17:
25% Cash
05% FD, 3 months rolling
20% Precious Metal/Oil
30% Dividend Stocks
15% Growth Stocks
05% Trading

FY17/18 to 18/19:
20% Cash
12% Precious Metal/Oil
08% Property(Hold Cash if no Opp)
60% Stocks of which:
40% Dividend Stocks
15% Growth Stocks
05% Trading Stocks

FY19/20 to 20/21:
20% Cash
10% Precious Metal/Oil
10% Property
60% Stocks of which:
45% Dividend Stocks
10% Growth Stocks
05% Trading Stocks

My savings and emergency fund does not form my portfolio. My SRS is considered as the portfolio under cash but CPF is not included.

SRS and CPF(SA) are considered as war chests.
SRS is open when STI ETF give a 4% yield.
CPF(SA) is open when STI ETF give a 5% yield.

I am turning 36 in July. May draw out some savings to give myself a present, either to upgrade myself or buy into a friend's company.

Once April ends, my 6 months break from work will end. Meanwhile, I am going to apply for a subject in Master of Gerontology which will starts in July. I am also taking M5, M9 and M9A in April if I choose to switch from Social Service to Financial Advisor.

Market will be very bad. Not wise to be a Financial Advisor during this climate. Study first, think later. End April will have time to think about it as I will be in reservist.

Meanwhile, glad to have visited Facebook, Google and Apple in Silicon Valley. Glad to have seen the economy of Canada too as part of my cash holding may be in Canadian dollar if it is still so low.

On my flight back to Singapore from San Fransisco one week holiday after being in Canada, Toronto and Edmonton for nearly two months.

Can't wait to eat a good bowl of BCM, Mee Pok dry with lots of lard.

Diary of an Investor
Funshine's Crystal Ball Predictions
---------------------------------------------

AK's comment:

"It is important for all of us to have a plan, our own plan, so that we know what to do in different scenarios and not freeze into inaction when action is required. It has to be our own plan, one that we are comfortable and familiar with, one that allows us to sleep well at night."

Related posts:
1. Have a plan, your own plan.

2. Revisiting AK's plan with Charlie Munger.

Climb stairs and learn to be better investors?

Although somewhat tardy, I still reply to emails, messages and comments from readers even as I blog less frequently in recent months. So, since I blog less often, what have I been up to?

I have been paying more attention to my diet and I have also been spending more time on other hobbies such as gardening. Something else I have been doing is to engage in more physical exercise.

Almost daily, I would be doing some form of physical exercise, taking a break only once or twice a week. One physical exercise I have engaged in since the start of the Chinese New Year is stair climbing.

Why stair climbing?

I was looking for a cardio vascular exercise that would better strengthen muscles, burn more calories and which has lower impact on the knees compared to jogging. Stair climbing is all of these.

Stair climbing has another advantage. It saves time.

Most of us live in high rise buildings in Singapore. So, we have easy access to stairs. We don't have to spend time travelling to a gym to work out. 

Oh, yes, we save on paying for a gym membership too. Sorry, I couldn't resist saying this.

Today, I am inspired to blog about stair climbing because of an email I received from a reader and one of the sentences towards the end was:

"I will work to be as successful as you are although I feel that it would be an impossible task..."

I decided to tell him a story about stair climbing.

When I first started to climb stairs on the first day of Chinese New Year, I climbed 54 floors and almost died. OK, I exaggerate but it really did feel like I was on the brink of death. It took me a rather long time to complete and I took a step at a time.

After a few days, I took two steps per stride which is more effective in strengthening the muscles because it creates a bigger mechanical disadvantage, making the exercise more demanding. I was able to climb 54 floors taking two steps per stride before long.

I gradually pushed myself to complete 90 floors, taking 1 step at a time for the last 36 floors. Then, I pushed myself to take two steps per stride for all 90 floors. It was obvious that I was growing physically stronger.

However, just like how share prices don't move up in a straight line, there were days when I just felt less energetic. On those days, I would cut myself some slack and climb only 54 floors. On some days, I would feel more energetic and climb 108 floors. 

Today, I felt really good and climbed 126 floors, taking 2 steps per stride. This is the first time I have ever climbed 126 floors since I started stair climbing.

What is the message here? 

When the conditions are right, we should do more. When the conditions are not in our favour, we should do less.

If I did not push myself to climb 126 floors today although I felt good, I would not grow stronger. However, in a bid to grow stronger, if I tried to push myself to do more when I really should be doing less, I could end up hurting myself.

Regular readers would know that this is not just a blog post about physical exercise. There is a message for investors embedded somewhere.

All of us have different circumstances and we have to be pragmatic. External conditions are also ever changing. 

Sometimes, we should invest more. Sometimes, we should invest less. The important thing is to stay the course. Don't stray and don't stop.

What we should stop doing is comparing and want to be as successful as someone else. What we should do is to ensure that we are better off financially, year after year. 

It is about being as successful as our circumstances and external conditions would allow and this is definitely not an impossible task.

Be a successful investor but you don't have to be as successful as AK or anyone else.

Other blog posts on what AK has been up to:
1. Investing or gardening, be ready for war.
2. Being fallible in dieting and investing.
3. Who make the best investors for income?

How to make a cucumber fish cake burger? Is Vitasoy Less Sugar really healthier than the regular version and Yeo's?

If I can avoid leaving the comfort of home, I will. So, if I can do a bit of cooking at home and avoid crowds at food centres, why not?

However, I am not a chef extraordinaire. I also don't want to have to do a lot of cleaning up after cooking. So, it is only light weight cooking for me but I try to be imaginative.

Recently, I made a couple of fish cake burgers!

What do they look like?

Tadah! Yummy? You bet!

So, how did I make these?

Get some fish cakes and cucumber. Cheap, cheap.

800 watts and 2 minutes in the microwave oven does the job.

Use a sharp knife and dissect the fish cake.

Stuffed with cucumber, dusted with turmeric and black pepper.

Easy, right? It satisfies my craving for hawker food but in a healthier way. Cheap too at less than a dollar.

Going, going, gone!

Recently, I stop consuming soya bean but I used to drink lots of soya bean milk.

I would usually buy Yeo's because it is less expensive but I would occasionally indulge in Vitasoy too when they had special offers.

The "healthier" less sugar pack has more saturated fat and sodium.

Yeo's has the highest sugar level!

So, which version of soya bean milk would you choose to consume?

Well, there is quite a bit of discussion as to whether soya bean is even good for us. I believe we might only have a problem if we take too much of it which was what I was doing. Now, I am avoiding it.

"Soy contain protease inhibitors which interfere with the digestion of protein. Also, in order to prevent germination, phytates tie up minerals like calcium, zinc, and iron. Both protease inhibitors and phytates are reduced by the traditional, time-consuming fermentation processes developed in the orient, but not by modern quick methods.

"Lectins are proteins found in beans, grains, and other foods. They bite into carbohydrates, particularly sugars, often causing immune system reactions and blood clotting. Soybean lectins react with the carbohydrate component of cell membranes, causing cell injuries and deaths. As this damage accumulates, it adversely affects the gastrointestinal, immune, and other systems."

(Taken from: American Nutrition Association.)

On that note, I hope you enjoyed reading this blog post as much as I did writing it.

Bon appetit!

Related post:
Food bill grew but weight shrank.
Update on my progress:
I have lost 9 kgs to date and 4 inches around my waist.

Tea with TheMinimalist: How I Made 300%+ Returns (US$1,930) On One Trade In Less Than 24 Hours (Part 1).

After a long break, here is another guest blog by a regular reader, TheMinimalist:

How I Made 300%+ Returns (US$1,930) On One Trade In Less Than 24 Hours (Part 1)

 

I was scrolling through Facebook on Sunday morning when I saw AK sharing an article I wrote in 2014 (http://singaporeanstocksinvestor.blogspot.sg/2014/09/tea-with-theminimalist-financial.html). Curiously, one of the readers remarked on how I am doing now.

 

To the reader (Raymond Ng), rest assured I am doing fine. Due to some personal life issues (Nope, it’s not infidelity. This writer is actually still single ^^), I decided to take some time off to work on myself.

 

Ah…but let’s cut to the chase shall we. How in the world did I make 300%+ ROI in less than one day?

 

I know what you are thinking. “Bullshit. Impossible. Must be using AK’s platform to sell his super discounted *$8,888* trading course.” 

 

Nah. I have far better things to do in life. Really. Don’t believe me? By the way, here’s a screenshot of my trade:

 

 

Here’s what the above screenshot means. I opened a trade on ULTA on 10^th March, 3:16am for $640 and closed my trade on 11^th March, 2:07am for $2,570 for a total profit of $1,930 (302% ROI).

 

You must be asking “Why am I so nice to share ah. The Minimalist must have some hidden agenda.” And yeah, I certainly do. Before I bare my soul to you, let me ask you this “How much $$$ are you making on your investment portfolio? +7%? +20%? +100%? Oh my god, it’s negative! Oops!” The second question is “Are you taking responsibility for your investment results?” Refer: http://singaporeanstocksinvestor.blogspot.sg/2016/02/reader-is-disappointed-and-ak-tries-to.html?showComment=1456064964691#c1110078454901096323

 

You see. We win, we (think we) are geniuses. We lose, must be AK’s fault. No wonder AK is blogging less these days. Tsk tsk!

 

I look at my investment results. I am not happy. What did I do? I decided to pick up a skill set (options trading) to boost my investment returns. And I am reaping the benefits today. J

 

My message is this “Be responsible. Stop blaming others for your failures. Stop envying others’ successes. Analyse why you failed. Then change. Success is just a few steps away.”

 

If I were intending to sell you my super discounted *$8,888* trading course, I would have stopped here. If I want to be an ego-manic and brag about my trading results, I would simply post it on Facebook and feel exponentially good about myself with each like. Sad huh. We both know plenty of people in our lives that do this.

 

But you know I am not like that. I am a nice guy. J

 

Before I start talking to myself and share with you my trading “secrets”, I have to be upfront and tell you that such a result is atypical. This means that the opportunity to generate >100% ROI in less than one day comes by once in a blue moon. Like once every two months if you are lucky.

 

In addition, such a trade is extremely risky. It means that instead of making 300% returns, I could have easily suffered a 100% loss.

 

The trade that I made is based on a trading strategy called “Earnings Play” and there are four parameters that I use to shortlist and identify such stocks.    

 

The detailing of my trading strategy will be revealed in Part 2 of this article. J

 

P.S Ah, disappointed? Tell you what, if this article can garner more than 88 likes on Facebook, I’ll be more than happy to pen out my trading strategy in Part 2 of this article and share it in like 8 days time? Come on, at least you are not paying $8,888!