Just be a better saver and forget investing for some.

• 
  
  

  Reader: I am currently 28 years old earning annual income of around 240K. Not sure whether doing SA contribution of 7K per annum and SRS 15.3K per annum is a wise move for my current age? Main purpose is to get income tax relief as much as possible since I am in high bracket tax payer and this contribution might be able to save quite a lot on income tax
• 

  
  

  Assi AK: As long as you are paying a lot in income tax, it makes sense to do MS Top Up to SA and to contribute to SRS. You don't really need to invest. Just be a good saver.
  

• 
  
  

  Reader: But it is a long long way to go before i can see the money again for CPF at 55 yo and SRS at 62 yo. what if i die before that? Lol
• 

  
  

  Assi AK: The money goes to your loved ones. ;)
• 
  
  

  
  
  

  Reader: i dont get to enjoy the hard earned money then
• 

  
  

  Assi AK: You cannot have your cake and eat it too. You have to question what is more important to you.
• Reader: I plan to have financial freedom like u by investing for income
• 

  
  

  Assi AK:  Everyone is different. Dun be like me. ;p
• 
  
• 
  
  
• Reader:  I can save around 150K a year after deducting all the expenses including income tax. Slowly buying solid dividend stocks to hopefully get sizeable passive income like u
  
• 

  
  

  Assi AK: Sounds like a good plan.
  

• 
  
  

  Reader: I seriously think your strategy is good that's why i follow
• 

  
  

  Assi AK: If this is more important to you than getting income tax relief, well, you have your answer. :)
• Reader: I am super conservative and not risk taker as well
  
• 

  
  

  Assi AK: If you are investing, you are taking risk.
• Reader: Haha true
  
• 

  
  

  Assi AK: The only risk free way to building wealth is the CPF. ;)
• Reader: CPF top up is risk free but not sure worth the wait and lock up of cash
  
• 

  
  

  Assi AK: Well, you know my answer to that. You have to decide for yourself if you believe me. ;p

Related posts:
1. Want to create another stream of income?
2. Should a young person contribute to CPF or SRS account?
3. Should I top up CPF-SA, CPF-MA or SRS account?

Invested in a cash rich company with no future?

Reader says...

I attended an AGM recently. It was a China company. Basically, no one from the management attend. 

No Chairman, no CEO, no executive director. 

The only person there to conduct the meeting is a newly appointed independent director (2016). 

We were there to review financial period 2015, hence the director replied to most of the questions was that he was not with the company. 





The company secretary (representative from a secretarial services)  and auditor was present. Oops, by the way, the auditor has flagged in the annual report on going concern.

Can the meeting be held without anyone from the management to answer shareholders' queries? I tried to check the requirement online, but I can't find regarding who must attend. ACRA requirement only mentioned minimum number of members.

The accounts of the company raised a lot of questions on the flow of underlying cash. The company was cash rich (and still is till today). 





However, over the past 1-2 years, 85% debts has no chance to recover. The company even subsidized their partners (distributors) when they wind up the business. The reason provided by the auditor is to "maintain relationship".  

I wonder why a company would still want to keep relationship if the business partners did not even pay up in the first place. Besides that, the company "invested" 3 times of their 2014 profits in a strategic program. 

The AR stated paid 36 million to an academic professor for consulting work.

I checked with the independent director regarding several huge unjustified spending. 

He said that day to day operation is not covered within the scope of corporate governance.

I have sent an email and also called SGX personally. It seemed that everyone is pushing away. 


SGX asked me to contact share registrar, and shares registrar asked me to contact company secretary. 





I feel that SGX has done a bad job letting companies (mostly China companies) to public list in Singapore without due diligence. It does not speak of a first world standard. I wonder if shareholders of fraudulent companies can sue SGX for negligence. 

Imagine, how many retirees has invested their life saving to these mostly China companies.

Maybe I should check with MAS. A bad company, with no integrity listed in Singapore is no different from con man. 

MAS should set up stricter rules to protect the investment community.

Do you have any advise or info regarding above subject? 

Although I am vested in the company, and I know my action will lead to company suspension, but I would prefer to blow this up so that SGX can do a better job, exercise due diligence tracking companies in future. 

Of course, certain companies should not be listed in the first place. My only concern is that the other shareholders may be affected by my action.

Looking forward to your reply.

AK says...

There are so many red flags here and I think you know it too.

If we have invested in a company that is doing badly due to factors which are not within the control of the management but there is a chance of recovery, we can hope. 


If we have invested in a company that is doing badly due to a dishonest or incompetent management, then, I think there is no hope.





When I feel that there is no hope, I take whatever is left on the table and move on.

Best wishes,
AK

Related post:
Where did I go wrong?