My Thoughts on Retirement

Retirement was a word that crept into my dictionary when I was around Secondary School. It was during that time that I heard that certain teachers were retiring. It was also during that time when I started to ask myself what I wanted to do with my life and when I intended to retire. It seemed like retirement was the norm and I was aghast to find out that retirement as a concept probably was seeded only recently.

In fact, I would like to think that most of the people who lived before our time never did retire. They simply took on a slower pace of life but continued to remain actively involved in running their own businesses be it food stalls, shops, etc, etc. I think our ancestors would give us an incredulous look when they find out that people actually get to enjoy retirement right now.

For me, I have many thoughts on retirement. Earlier thoughts revolved around saving enough money so that I could retire when I was 60 and then travel around the world. However, lately, my thinking about retirement has taken a 180 degree turn. I now feel that I never want to retire. If possible, I will like to be able to work for the rest of my life. However, I am uncertain which employer would be willing to hire me after I am 65 or 70.

So a lot of thoughts nowadays revolve around how I can possibly find a path for myself after that age where I will still be able to contribute back to society. Of course, I am assuming that I will still be alive then. Who knows, I might be 6 feet under by then =)

What jobs can one do after 65? How can I continue to work even after I am 65? What knowledge, skills and expertise must I build up from now till I am 65 so that I will still be relevant to society then?

Double Dip Fears

I guess we have been hearing this for the longest time but it seems that fears of a double dip recession is still there. Just recently, President Obama announced plans to pump in another $50b into the economy through infrastructure works, hoping to ease unemployment rates and boost recovery.

Interest rates have also fallen sharply and it seems that the double dip fears are indeed real.

On the other hand, the economy has been supported by increased corporate spending and strong profit growth and healthy cash flows indicate a certain legitimacy to the overall recovery. Nevertheless, it seems that US GDP forecasts will continue to slide in the near term.

At the same time, it is worrying that policymakers in the EU are already focusing on austerity measures to cut budget deficits. Historical evidence has often shown that increased state spending has a correlation in helping economies emerge from recession. Joseph Stiglitz has warned that such austerity measures could have systemic consequences for Europe and the rest of the world.

Beware of this Insurance Agent

There are many insurance agents that we ought to be afraid of. After all, the typical insurance agent has a glib tongue that can probably out talk most of us. But the worst kind of insurance agent isn't the talkative one. It is the one who masquerades as a financial planner and yet is always trying to get client's to cancel their old policies to buy a new policy from them.

This is an especially common situation in Singapore where insurance agents change companies the way they change shoes. Because of buyout clauses, failure to hit sales quota, or some other kind of reason, insurance agents often change from one company to another over the years. This is nothing common and we should not blame them. After all, who really sticks with one company for more than 5 years in today's job market? Where people are encouraged to gain as much job experience in as wide a variety of roles possible, it is not surprising that people change companies.

But what happens when an insurance agent changes to another insurance company is probably the worst thing that can happen to his clients. It might be better if the insurance agent had left the industry altogether. For the insurance agent who changes company will soon try to convince his existing clients to switch over their policies to his new company. It is not a new trick. It is an old trick that has happened time and time again.

True. There are instances when an apple to apple comparison is done, the consumer can clearly see the benefits of a certain policy over another policy. However, the worst kind of comparison is the kind that tries to compare an apple to an egg. With this kind of insurance agent, one must beware.

This insurance agent will take a whole life policy and compare it with an ILP. And from there he will show you all the benefits the ILP has over your whole life policy.

If you have an ILP, he will take a term insurance and compare it to your ILP!!

If you have a term insurance, he will take an ILP or Whole life policy and show you the benefits of it over your term insurance!!!!!

With this kind of apple to egg comparison, it is impossible to refuse the "benefits" that are proposed by the agent.

Rule of thumb: Always do an apple to apple comparison. When you try to compare an apple to egg, it is impossible.

Don't say you have not been warned.

Gross Monthly Salary Poll Results

I conducted a poll on this site to find out the gross monthly salary of readers.

56% earn less than $5000 per month.
30% earn between $5000 and $10,000 per month.
13% earn more than $10,000 per month.

Interesting results. It shows me that some of my readers are earning $10,000 per month but they still find my site interesting/relevant enough even though I earn less than them.

Perhaps I should get them to share how they managed to earn such a high monthly income and what jobs or industries they are in.

City of Possibilities

I fell in love with the song Empire State of Mind by Alicia Keys and Jay Z. The song speaks about New York City - "concrete jungles where dreams are made of, there's nothing you can't do"

Living in Singapore, I can only sigh at dismay that none of our song writers have written a wonderful song about our country that is as passionate as Empire State of Mind.

After all, Singapore is indeed the City of Possibilities. In recent polls, Singapore is one of the top destinations for people who are thinking of migrating. It is also one of the most liveable cities in the world. The recent congestion on our trains and the skyrocketing population of over 5 million people is also testament to the fact that Singapore is a city where dreams can also come true. It is indeed useful to be reminded that the reason why there is an influx of foreigners to our country is because people WANT to come to our country. This ought to make us proud.

Mercer's Quality of Living Survey:

Singapore is ranked 28th. No other asian country ranked above it.

221 cities were evaluated based on 39 factors including economic, education, transportation, etc.

Cities ranked above Singapore in the region include Sydney (ranked 9th) and Melbourne (ranked 18th)

It is not surprising then that the National Day Rally recently focused quite a lot on the crowding situation that is taking place in Singapore and how the Government is taking action to combat it. Being an attractive city to live in, Singaporeans have to embrace foreigners. The key here is integration and not assimilation. With integration, we recognise that certain groups will remain distinct from us but in a certain sense, we will have to find common ground that will bind us all together.

It is never easy and it remains a challenge. But this is what Singapore has to contend with. I think the measures that the Government has taken is sufficient to see us through in the long run.

Life and Its Funny Turns

Life takes funny turns now and then. Ten years ago, I would never have imagined that I will be where I am today, doing the work I am doing and living the life that I am living. It is funny how far separated dreams or wishes are separated from reality.

Don't get me wrong, I am not saying that life isn't good now. It is superbly great. I just did not imagine all the twists and turns it brought me through.

Reading my old journal entries, I am amazed at my lack of maturity and also my naiveness and sense of idealism.

I am older and hopefully wiser.

Dividends and Passive Income (Aug 2010)

Received some dividends from my holdings in certain real estate investment trusts (REITs).

The following 2 REITs paid out distributions for the month of Aug 2010:

1. Ascott REIT ($423.60)
2. Suntec REIT ($25.28)

Total passive income and dividends for Aug 2010 = $448.88

It seems that dividends are still the main source of passive income for me as I do not have any money generating businesses or stuff to provide me with more passive income.