Monday, September 1, 2014

A normal path to retirement for most singaporeans

Is this possible? Food for thought...

Yes..  the steps to achieving financial freedom is this. Is this still applicable in the current economic climate and singapore have transformed into a developed nation.

1) 30yrs old , Get Married and get a New BTO/EC (No reslae, no DBSS!). - Congrats! You have bought a $1 item for $0.70-80cents. Upside min is 20% within 10yrs(Very high probability! if assume inflation at 2% avg). For property , downpayment is 20%, upside of 20% in 10yrs. So your $100k becomes $200k (100% return in 10yrs which is minimall roughly compounded annual rate of 7% pa (excluding your principal paid down).

2) By 5yrs time, most probably, you will save around $100k real cash(most people pay down bto using CPF) from working. Time to look for 2nd property valued at $500k (100k enough to pay 20% downpayment, exclude stamp duty and miscellany).

3) Work another 5yrs, your HDB should be fully paid off (for most couple with degrees. I know coz many of my friends married paid down theirs within 10yrs).

4) So by 40yrs, you should have 1 fully paid HDB you lived in. 1 rental condo you let out which is compounding the money.

5) by 45yrs old, your $500k condo you can also fully paid(assuming your salary stagnant and you pay down at same rate like your $500k HDB BTO).

6) Congrats.. you can retire officially at 45yrs old ...  But this is the most conservative strategy.. most people within that 15yrs span.. might have acquried another 1 or 2 more property depending on their earning power.

Friday, August 29, 2014

Long Term Position in AUD

The author states his view of why to choose AUD over other currencies for the SGD currency holder looking to park his money somewhere.

I've been doing the same since 2009 when the market crashed and recovered, that year I had allocated a portion of my portfolio to AUD currency, bonds and equities and they now make up roughly 30% of my portfolio. 40% is in SGD and the remainder is split between HK and US market.

I like his blog as it is quite relevant to singaporeans. Many times, we have news telling us AUD is overpriced and it's going to go down against the USD. But many times, most of us have the bulk of our money in SGD denominated assets. We should instead be focusing on what SGD USD(i believe our currency weighting is very heavily towards USD) is doing and then USD AUD is doing and then you will have your answer to the SGD AUD pair.

I hope our local banks start dishing out more SGD related analysis instead of echoing what the global banks are talking about(always in terms of USD).

http://tradehaven.net/market/fx/food-for-thought-lets-all-save-in-aud-and-pass-the-worlds-low-rate-problem-to-them/

So when friends ask me what to buy, guess what I say ?
AUD.
Pretty brainless AAA bet even for Singaporeans – instant carry with massively higher yields. There is little reason for the SGD to out perform the AUD now that the RBA has little onshore reason to cut further after reading into RBA Governor Steven’s remarks last week. http://www.bloomberg.com/news/2014-08-20/stevens-says-animal-spirits-needed-to-spur-australian-growth.html

Friday, August 22, 2014

How to clear your work and leave by 5.30pm every day.

This article is excellent imho. 
This was what I was doing when I was an employee in one of the telcos. My senior manager had a weekly monday morning meeting for any major event and updates by the team mates. We also had to submit weekly timetable (planned and actual) to track what we've been doing. The part about putting the tasks into the calendar and booking the time is what I do personally as well. There might be a lot of meetings going on which results in changes but we have to push the task to another date. The end result of all these is probably you will achieve more or less the major tasks you planned for the week. It's very productive for those who like to procrastinate. 
Unfortunately, I have not been planning forward and tracking my time nowadays , but I am still blocking time on my calendar for tasks i need to do. Maybe I should start doing the weekly timetable again.

Sum Up

Cal's five big tips:1. To-do lists are evil. Schedule everything.2. Assume you're going home at 5:30, then plan your day backwards.3. Make a plan for the entire week.4. Do very few things, but be awesome at them.5. Less shallow work, focus on the deep stuff.