Chinese New Year Thoughts

So Chinese New Year is here again.

I have been doing the usual visiting of relatives, giving out of hongbaos (close to $1000 already) and of course...lots of eating.

However, I kind of sense that every CNY is the same. We get together, catch up, eat and then leave. It has become more of a routine thing per se compared to genuine interest in each other's lives.

Even the giving of the red packet becomes more of a tradition than anything else.

Universal Studios Singapore

Singapore is becoming a more exciting place with the partial opening of the Universal Studios soon!

It will be opened from 5 pm to 9 pm from 14 Feb 2010 to 21 Feb 2010 for the public to take a sneak peek at what is inside.

Sale of the tickets (costing $10) will begin on 12 Feb. There will be no sale of same day tickets available at the front gate (don't ask me why).

From what I know, when it is officially opened, weekday passes would cost $66 while weekend pass will costs $72. So the current $10 admission fee is a STEAL if you ask me.

There will be roller coaster rides, movie themed attractions and lots more! So fun. No need to go overseas to sit rollercoaster anymore =)

There are height restrictions for certain of the rides though. If you are above 125cm, you will be able to enjoy most of the rides.

Valentine's Day Ideas That Worked for Me

Valentine's Day this year unfortunately (or fortunately) coincides with Chinese New Year.



As I am married, I no longer celebrate this special occasion. (Yes, the death of romance in marriage)



But I used to recall the days when I would be wondering what to get my girlfriend for V-Day.



I found that this simple formula always works for me. I am not very good at gifts actually. But what I did was so simple and so easy. Nothing fanciful needed. So here is a step by step formula for the perfect Valentine's Day.



Step #1 - Order Flowers



Just order that bouquet of flowers. Yes, it is expensive but it is the bare minimum. I used to get my flowers either from City Hall or Jurong Point. You need to make sure you order beforehand though I am pretty sure that they have enough supplies to entertain walk-in customers. Bring a large paper bag if you are embarrassed to be seen with a large bouquet of flowers.



Step #2 - Write a Well Thought Out Card



This is KEY. Don't just buy a card and write silly stuff like "Happy V Day, I love you". Instead, think about what you would really like to say to her. Thank her for all the things she has done for you in the past year. Recall your favorite memories with her. The card should be like a letter if possible. It should include huge paragraphs that she can read and re-read again. It needs to be well-thought out and not just a few sentences. Think of it as writing a 500 word essay on why you want to spend the rest of your life with her. Remember that the grader is your girlfriend. I really cannot emphasize how important a well written card or letter is. In fact, I would think that it is more important than the flowers. But you still need to have the flowers.



Step #3 - The Gift



If your girlfriend or wife has been easy on you, she might have hinted to you what she already wanted for V-day. But if you simply have no idea, go for this: Perfume. I always buy perfume because it is the easiest to chose and it is classy. Of course it will cost you around $70 to $100 but it will be money well spent. You will be the one taking in the scent afterall =)



Step #4 - The Meal



Her favorite eating place or somewhere with good ambience. Simple as that.



Conclusion



Just follow the 4 steps and you should do just fine. If anything goes wrong, don't blame me. I am just offering some suggestions. It is what I used to do for my girlfriend (who is now my wife). So it worked for me at least.

Automatic Millionaire By David Bach

I was at the library the other day and was browsing through the Automatic Millionaire by David Bach. Here is the one key lesson that I learnt from reading his book.

Forget about The Budget

David Bach started out as a financial planner and he tells the story of how this average-looking couple in their fifties walked into his office one day. To his amazement, he discovered that they had actually close to $2 million in networth and were ready for retirement even though they were just in their early fifties. What the rest of the book talks about is how normal people can be like the couple and become millionaires - AUTOMATICALLY.

The thing is to forget about budgeting as it does not work. Rather, the principle is to pay yourself first. And the BEST way to pay yourself first is to automate the process such that a certain percentage of your income goes into some savings or investment instrument automatically. You can then spend the rest of your money without worries.

I find this a much more useful approach compared to budgeting. Afterall, I am very lousy at budgeting and simply cannot keep to my budgets. It is better to just pay yourself first and spend the rest of your money without having to worry about a budget. It is just framing the problem in another way if you ask me.

The method does not make you a millionaire overnight but it should make you a millionaire one day as long as you keep setting aside a sum of money every month. (Ideally, I think the amount should be around $300 to $500 per month based on 10% returns). If the returns are not doing well, I think you should adjust the figure accordingly.

Apple Tree Story

This brings me to the apple tree story which I have heard some other people talking about. We should all aim to have multiple sources of income such that we do not over rely on only our earned income. The way to do that is to grow more apple trees. Each apple tree is a money generating tree such that once you have enough apple trees, you can safely retire.

Apple trees can be bonds, REITs, dividend paying stocks, rental property, options and even trading income or businesses.

Combine PAY YOURSELF FIRST and the APPLE TREE.

If one combines both approaches and automate your savings while investing your savings into apple trees and re-investing whatever income you get from the apple trees, I think you will not have a problem retiring when you reach the retirement age in Singapore. This is just my 2 cents thought. Feel free to expand and share your strategies.

Chinese New Year Greetings

A Most Happy Chinese New Year in advance to all readers!

It seemed like just yesterday that I was wishing everyone a prosperous Chinese New Year and it seems like the new year is upon us again.

Chinese New Year is always a time of visiting, good food and good company for me. It is more of a family tradition than a CHINESE tradition per se. I am quite certain that each family celebrates Chinese New Year very differently. Can't wait to eat all the bak kwa and stuff.

This event is also special because it is also the time when Resorts World Sentosa will be opening the first casino in Singapore. After so many years of planning and building, it seems like the first casino will finally open its doors on CNY.

Zodiac Cycles

Here is a list of the various zodiac cycles to mark out on your calendars:

•Tiger : February 14, 2010 - February 02, 2011
•Rabbit : February 03, 2011 - January 22, 2012
•Dragon : January 23, 2012 - February 09, 2013
•Snake : February 10, 2013 - January 30, 2014
•Horse : January 31, 2014 - February 18, 2015
•Sheep : February 19, 2015 - February 07, 2016
•Monkey : February 08, 2016 - January 27, 2017
•Rooster : January 28, 2017 - February 18, 2018
•Dog : February 19, 2018 - February 04, 2019
•Pig : February 05, 2019 - January 24, 2020
•Rat : January 25, 2020 - February 11, 2021
•Ox : February 12, 2021 - January 31, 2022

Peer Pressure To Stay Back Late in Office

I read with interest Mr Tan Kin Lian's blog post about Singaporean workers facing pressure from peers to stay back late in office even when they have no work to do.

I must admit that this peer pressure to stay late is indeed VERY TRUE in Singapore. One feels obligated to stay back late especially when other colleagues seem to be rushing for some important work that was needed yesterday.

In my previous job, I remember the countless hours I have stayed back late because colleagues stayed back late. In fact, I am not too sure whether they were even doing work. Maybe they stayed back late BECAUSE I was staying back late because I thought they were staying late.....You get the drift...

So it is just peer pressure to stay back late. It seriously affects productivity and does not make sense.

After some time, I reasoned that I did not have to rush my work during the day as I would most probably have to stay back late after all. So I simply took my own sweet time to do my work.

This peer pressure thing is indeed TOXIC. We should all have the guts to look at the clock strike at 5 or 6pm and shout out loud: "OKAY FOLKS, I AM GOING HOME!"

(The repurcussion is perhaps tons of work piled up on your desk the next morning for you as your boss will think you are SUPER FREE)

I think this is crazy and one possible solution is to establish Overtime Pay (OT Pay). In this way, bosses will want employees to go back home on time so that it does not result in additional costs to the company.

The same should be implemented for the civil service whereby a variable component is added to their pay structure and they are paid additional amounts based on the OT work that they have done.

This is only right and fair. If there is really SO MUCH work to be done under such tight deadlines, then it is only right that more people are employed to share the burden.

Making employees reach home at 7 plus to 10 plus everyday is simply unacceptable.

I wonder whether people out there are still facing this kind of peer pressure?

Is ILP a time bomb?

So I read Lorna Tan's article on investment linked plans (ILPs). (This was posted on another blogger's blog)

Then I saw this adword advertisement by Wilfred Ling that reads: "Is ILP a Time Bomb."

I guess the argument goes as this:

As one ages, the insurance charges creeps up slowly in an ILP. Up to a certain age, the insurance charges might be much more than the premiums one is putting in.

YES IT IS A TIME BOMB!!

If you do not know what you are doing with an ILP, I guess it is a timebomb. Afterall, MAS has recently announced that it wants a stricter environment to guide the sales of ILPs to commoners. Insurance agents would have to make sure that clients who buy ILPs have the necessary education levels or experience in investing before they can buy ILPs. Great move if you ask me. (But isn't the reason why ILPs were created being that people have no idea how to invest their own money...that is why they chose to buy the ILP in the first place!)

An ILP is a time bomb and you much watch the timer very closely. Make sure that you know what are the annual charges for insurance ESPECIALLY once you cross certain ages like 40, 50 or 60. If there is a need, decrease your insurance coverage. Afterall, your insurance coverage requirements should drop as your children become financially independent and leave home.

Some people might not hit the time bomb as they might have already drawn out all their money for retirement purposes or decrease their coverage correspondingly.

No, it's not a time bomb =)

This is me saying it cooly with a swagger. I always feel that if you know what you are getting into, it is not a time bomb.

Afterall, most investments are bombs on timer mode. It can be your stocks, REITs or landbanking.

You need to watch that bomb closely and make sure you release it before the bomb explodes in your lap. As someone said: "Watch your basket closely..."

A stock listed in the stock exchange might be de-listed after the directors run away (think China Print and Dye listed on the Singapore Stock Exchange). REITs might also go bust anytime if they are not able to borrow money.

The fact is this:"Every investment bears a certain risk, even putting your money in a bank involves certain risk"

So What is The Alternative?

So if ILPs are really time bombs, what other alternatives do people have to protect themselves?
What are the alternatives?

I have listed down a few alternatives:

1. Term insurance
2. Endowment plans
3. Whole Life plans

Well, all these instruments are also time bombs if you look at them closely. So the best thing for one to do is to watch your bomb very closely.

Maybe that's why we used to play the pass the parcel game at birthday parties last time.