7 things a reader did after visiting ASSI.

It is always very heart warming to receive thoughtfully written emails from readers and I would like to share another one here.

Hi AK, 

My name is C and I am Pig too (younger batch though).  :P  

I was introduced to your blog 2 months ago by a friend who is a avid stock trader/investor, a month before my birthday, hence I see it as a God-given birthday gift because it really is.  

I initially suspected his intention of pestering me to invest in shares since he has lost quite a sum of money in stock market (due to Ezra).  "Why would he pull me down the muddy water" I thought to myself before, as I have always been frugal and risk-averse (which means I am those kind that sitting on cash).   However I started to appreciate his intention after reading your blog posts and others (Tan Kin Lian and some of your guest bloggers).

 
These are what happened to me after reading your blogs:     

1) I realised that I have double cover for H&S (Aviva My Shield Plus and AIA HealthShield Gold Prestige) from 2 different insurance agents.  Excess payment of $1400.  I am cancelling AIA one. 

2) Liquidated unit trusts which I placed through my insurance agent, paying 5% front-load fee and other charges which I ended up suffering capital loss of $2xx.  Plus $2k loss of CPF-OA 2.5% compounded interests, not to mention the future compounded interests on this interest lost.  *heartache* 

3) Open OCBC 360 account to maximise idle cash while waiting for opportunities 

4) Open CIMB trading account and nibbled on OCBC counter at $8.70.  Thinking of nibbling on FCT and Ascendas REITS. 

5) Contemplating of cashing out Tokio Marine life insurance which I bought 5 years ago and buy term life instead.  $2k annual premium for 25 years for $200k sum assured upon death/TPD/CI seems insufficient.  Guaranteed return is low at 1.5% IRR while non-guaranteed is between 2.5% to 4% upon 67 years old, while the benefits illustration stated 3.75% to 5.25%  *roll eyes*

6) Thinking of transferring some money from CPF-OA to SA and leave the rest for my first property at age 35.  May consider MS top up of $7k to benefit from tax relief.  But CPF website is down, couldn't do bank transfer for the time being.  Duh -__- 

7)  Your blog posts on property investment broke the old beliefs I had.  Used to think that house is an investment even if it is owner-occupied and I used to want a big house.  Now, I feel blessed renting than buying, as the rental cost $600 p.m. is cheaper than the monthly mortgage instalment.  Not sure if property market will revert to 2009-2010 pricing in near future, but it changed my mindset when comes to house-hunting in the near term. 

 
Although you always say that blogging is a hobby and you are just talking to yourself, your knowledge and experience sharing undoubtedly serves a higher purpose- helping those financially-illiterate folks like myself to seriously look into own finances and make full use of the limited cash to achieve financial independence and better, financial freedom.  After-all, aren't we all striving for a better life and money is a mean to get to that?  

I guess it is fated that it is a year of massive change for me - not only that I was introduced your blogs and I diligently reading it, I have just joined a new company few months ago, and there are female colleagues that are also into stock/ppty investment and one of them even threw a question on why I paid so much for my whole life insurance for that sum assured!?!?!?

All these events are like a nudge for me to review my own finances and make good of what was lacking, and then seriously put money to work, to benefit from the beauty of compounding interest and probably the deep correction in stock market, if it ever happen.  

Not to mention that I feel ashamed for making so many mistakes in personal financial management, especially so that I am a Chartered Accountant.  Like my sister said: "Accountant also lost money? that's a mission impossible."  

Anyway, I have come to term that I made silly mistakes and I still could make things right.  I am writing just to let you know that PLEASE keep on blogging, you wouldn't know how many ppls you have helped indirectly along the way.  Thank you, AK!    

Keep in touch, 

~ C

I could talk to myself until the cows come home but we must want to make changes to be better off financially.

To everyone who has taken the first step, soldier on and you will thank yourself in future.

Related posts:
1. Get the most out of ASSI.
2. Beef up and attain financial freedom.
3. Don't thank AK but yourself.
4. UOB ONE or OCBC 360 Account?
5. Free ILP or Term Life Policies?
6. Free medical insurance in our old age?
7. A lot of money in my CPF-SA...
8. Buying an apartment: Considerations.

Questions on Hong Fok and Cordlife.

A recent email exchange:

Good Evening AK! 

I have been following your blog for quite a while now! I would first like to thank you for setting up a blog like that! It has helped me gained much knowledge in the world of investing! We actually have met twice so far! Once in your Talk with AK and once at InvestXCongress (I was the guy who told you I fell asleep for the first half and post lunch half >< )

Anyway! If it is possible, I would like to share some analysis with you and see if it is actually sound (and hopefully learn more from you (:  )

1) Recently, Hong Fok's two charimen have been buying back huge amounts of their shares.. Attached herewith is an excel sheet (3rd page) with the details i tabulated from their website and also some layman analysis (page 1 and 2) that I have done. I intend to buy in as a short term trade but potentially holding on till End Feb as that is about when they release their FY reports.

2) Attached herewith is a Cordlife image. Normally, after a dividend, one would expect the share price to drop however, it seems not to be the case for Cordlife. I intend to have my TP at 1.65.

Sorry that the two questions I have are mainly about short term investments. I am trying to build up some more capital to increase my warchest. (Teacher pay not enough >< )

Hope to hear from you soon!

J

Hi J,

Ah, I think I remember you. :)

1. Hong Fok. I happen to know the family quite well. I wouldn't buy Hong Fok's stock unless I am thinking of possibly having the value unlocked one day through privatisation. It could take forever.

2. Stock prices don't have to fall on XD. It just so happens that they often do. Prices are a function of sentiments in the short run.

If you would like to increase your capital in the stock market in the short run, you might be better off learning Technical Analysis and becoming more of a trader.

I have always been an income investor but I did quite a bit of trading in my earlier years too.

Get the right tools to achieve your goals. :)

Best wishes,
AK

Related posts:
1. Books on Technical Analysis.
2. Don't thank AK, thank yourself in future.