Me & My Money Series (Sunday Times)

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The possibility of a sudden change of government is pretty remote. Till today all the opposition parties think they can or want to be the government. Not until they can join together and form one "big" opposition party, i don't think enough of Sinkaporeans are going to vote other wise.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Not very sure what his gold bullion company is doing - but how did he trade gold bullion till he's almost a millionaire? Huh

Also, just curious as to why all the successful and up-and-coming people all have to "reward" themselves with a (brand-new) BMW? Just to show that they have made it at the top? It's something I probably cannot understand.

To top it all off, it seems he is planning to upgrade his residence at a time when housing prices are at an all-time high. Surely his executive masionette (a two-storey apartment) is large enough for his family with three kids? Big Grin

*Please visit the website for the full interview. This is just a snippet.

The Straits Times
www.straitstimes.com
Published on Jul 22, 2012
ME & MY MONEY
Debtor's appetite for risk pays off

Once mired in credit card debt, former policeman turns fortunes around with grit and acumen

By Joyce Teo

Getting his first credit card was the start of a slide into financial disaster that left businessman Simon Goh Chee Kin scratching around trying to rebuild his life.

Mr Goh, 34, who now runs two security companies while also working as a property agent and gold trader, began his descent into his personal fiscal black hole when just 21.

Like many youngsters who suddenly find themselves with a credit card and the promise of all that 'free' money, his spending hit overdrive.

He even applied for four more cards and continued to spend and chalked up debts. Then there was a renovation loan when he got married at 23.

About two years later, Mr Goh, then a policeman, had less than $10 in his wallet and tens of thousand of dollars in debt. No wonder he did not dare appear at his family's reunion dinner.

'I could not face my family and had exhausted the kindness of friends and could not borrow money any more,' he recalls.

'My mum later had to borrow from relatives and friends to help me tide through the tough times.'

But risk is clearly in Mr Goh's blood. He left the police force after 11 years to try his hand at land banking sales as he wanted to 'reach for the sky'.

'Life was difficult. My $2,400 (police) pay was gone the day after I got paid. I wondered how people get to live in condos,' he says.

But the land banking job did not work out so Mr Goh combed the classified ads and landed a security supervisor job at $2,000 a month. He eventually worked his way to a manager's position.

Mr Goh and his wife Sophia Low then sold their HDB flat in Punggol in 2009 - after the five-year minimum occupation period - to clear his $50,000 credit card debt and pay off relatives and friends.

They moved in with her grandmother. They had bought the flat for $196,000 and sold it for $358,000.

Mr Goh left his security job after three years to be a property agent and a gold bullion trader. 'With my limited tertiary education, I would head nowhere unless I could smell opportunities to make it in the business world.'

A diploma holder, he set up Valiant Security Services and Valiant Network around the end of last year.

His wife helps him with his gold bullion trading business. They have two daughters, aged six and eight, and a son, seven months old.

Q: Are you a spender or saver?

I am a spender. Spending will oil the wheels of the economy and bring about greater growth opportunities in all business sectors.

I am a risk-taker and believe that money will beget more money. Where my security business is concerned, I am always willing to spend to build a strong base. I will not cut corners as this will impact the long-term success of my companies and affect their reputation.

To me, an organisation's brand equity is of paramount importance and should not be compromised.

My wife is the saver and controls the purse strings at home. I would also consult with her on major business ventures. She is my Minister of Finance.

Q: How much do you charge to your credit cards every month?

My credit cards were all cancelled except for one. Now, I usually use debit cards and I no longer have any credit card debt.

In a month, I normally chalk up about $3,000.
-------

Q: What property do you own?

My wife and I own a 1,700 sq ft executive maisonette in Teck Whye Lane. We bought it in 2009 for $385,000 and it is now worth $550,000.

Q: What are the extravagant things you have bought?

Last year, I bought myself a brand new BMW 523i series (Highline model) for $240,000 to reward myself. Each time I get into it, I feel a sense of pride, that I have done well after all those years of hard work. This car also inspires me to work harder and do greater things in life.

When my wife gave birth to a son last December, I surprised her with a $11,000 Rolex watch. It is my way of expressing my gratitude and love to her for standing by me all these years.

Q: What's your retirement plan?

I am still young and will continue to work and grow my business.

Q: Home is now...

The executive maisonette. I am in the midst of looking for a suitable home to upgrade.

Q: I drive...

A black BMW 523i series.

joyceteo@sph.com.sg

-------------

BEST AND WORST BETS

Q: What's your worst investment to date?


In 2009, when I ventured into land banking sales, I invested $30,000 in a plot of land in Canada and lost all of it.

My advice is that one should never invest in anything unfamiliar.

I got taken in by the sleek marketing. The firm had remortgaged the land out to banks and then used the money to buy more land. When it ran into financial crisis, it couldn't develop the land.

I also invested $10,000 in getting a degree, only to realise that it was a scam.

When I signed up, the school here sent me a letter with Australia's RMIT University letterhead.

But I found out later that it did not get RMIT to certify the course here.

I have always wanted to upgrade myself as I do not have a degree.

But I also tell myself that to be successful, you don't need a degree. To have a degree means you have to work for people.

So for me, I employ people with degrees to work for me.

Q: And your best investment to date?

I have since made close to a million from trading in gold bullion.

I started by buying 100g for about $7,000 in late 2009. I was a trader and would use my commissions to buy more.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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(22-07-2012, 11:10 AM)Musicwhiz Wrote: Mr Goh and his wife Sophia Low then sold their HDB flat in Punggol in 2009 - after the five-year minimum occupation period - to clear his $50,000 credit card debt and pay off relatives and friends.

They moved in with her grandmother. They had bought the flat for $196,000 and sold it for $358,000.

Feel sorry for him.. Until I read this,

Quote:My wife and I own a 1,700 sq ft executive maisonette in Teck Whye Lane. We bought it in 2009 for $385,000 and it is now worth $550,000.

Looks like 2009 was a very busy year, the above, Land Banking, Gold,..
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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Interesting phenomenon - buying/selling property like this. It simply means you will be forever in debt as you keep "upgrading". The article mentions that he plans to upgrade one more time (presumably to a condo?).

Observe what he says about his gold bullion trading - he uses his commissions to buy more? That would mean he averaged all the way up and is pretty heavy (mind the pun) in gold right now. I would assume a large part of his wealth is now in this gold, which depends a lot on the price and does not yield any cash-flow. Sounds rather risky to me.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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(22-07-2012, 11:29 AM)Musicwhiz Wrote: Interesting phenomenon - buying/selling property like this. It simply means you will be forever in debt as you keep "upgrading". The article mentions that he plans to upgrade one more time (presumably to a condo?).

Observe what he says about his gold bullion trading - he uses his commissions to buy more? That would mean he averaged all the way up and is pretty heavy (mind the pun) in gold right now. I would assume a large part of his wealth is now in this gold, which depends a lot on the price and does not yield any cash-flow. Sounds rather risky to me.

Maybe he rents out his 1700 sqft ec as his cashflow
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I thought the article on the V.Hive founder was much more interesting and inspiring. Though of course it doesn't talk about investing - but then, neither does this gold/security business chap except for 2 blurbs on landbanking and gold.
---
I do not give stock tips. So please do not ask, because you shall not receive.
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land banking - i just wonder was he refering walton land banking? one walton agent told me about a new plot near washington DC now..any buddies here any opinions whether can buy this hot cake?
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I may be wrong, but my understanding is Walton is not a property developer (though it works with them). Had considered buying from Walton some years ago, but during my research including meeting with salesman, studying development plans near the land being sold, as well as reading about the parent company I decided not to invest. My main reasons:
- you have absolutely no control over your investment. Basically you depend on them totally to get the land re-zoned and marketed for you, in their own time;
- the sub-plot you buy from them is an illiquid investment. You'll have to sell it back to them at their offer price if you can't sit out the investment term (which btw is not easily predictable);
- this is an unregulated investment, i.e. low chance of any recourse in event of cock up;
- they were only interested in selling US land, and I'm bearish on the long term outlook of the US dollar.
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Interesting, another case where the interviewee bought a very expensive BMW, but this time for this wife, haha!

*Please refer to the website for the full article.

The Straits Times
www.straitstimes.com
Published on Jul 29, 2012
Me and my money
Wealth without health is skin-deep

Skin care businessman emphasises well-being to enjoy family time

By Joyce Teo

A sideline investment to allow a career change for his wife turned out to be even more transformative for businessman Tan Juinn Wen.

Mr Tan, 53, became a Nu Skin distributor when the skin care and nutritional products firm opened an office here 12 years ago. His aim was to create a business for his stockbroker wife so that she could quit her job and fulfil her wish to be a full-time mother to their two girls, who were 10 and six then.

Mr Tan, who graduated with a bachelor of science in mathematical economics and econometrics from the London School of Economics, was introduced to the brand in 1996 when he was a stockbroker.

'My client was with Nu Skin. I didn't know (it) then but he was my biggest client so I just bought a whole box of products from him for $2,000,' he says.

'But I thought there must be a reason why he, a Harvard graduate, is in it.'

Mr Tan, believing the firm was a global franchise business, quit his job, one he had held for 15 years.

It was quite a big step for someone who grew up poor and knew all too well the importance of money.

Also, he says: 'Having money is obviously important, but having the time and health to enjoy money with your family is even more important.'

Mr Tan admits that there is a lot of confusion and suspicion around the concept of multi-level marketing, which is used by Nu Skin to sell its products.

'Like all business models, it can be abused and used to exploit man's greed. But done ethically, it is an equitable model for hard work - it lowers costs by reducing the layers of distribution to deliver higher quality products at lower price points.'

Not all products lend themselves to direct multi- level marketing, Mr Tan adds. 'Consumers need to exercise discernment and do some research.'

His wife Angelyn Sng, 52, helps him with the business. They have two children - Athena, 21, who is studying at Cambridge, and Alethea, 17.

Q: Are you a spender or saver?

We eat what we hunt, but we share it with our loved ones, putting some aside for the proverbial rainy day.

While we love the good things in life, we only spend what we can afford, based on what we earn.

We invest our money and we spend on food, entertainment and travelling when we spend time with our girls. We have a family tradition of watching movies on Fridays.

The concept of savings in our parents' era of low inflation and high job security was to leave it in the banks. Savings now has to include investing in various asset classes such as property, stocks and businesses that can generate income and yet have a risk profile that is appropriate for our needs and appetite.
---------

Q: What properties do you own?

Apart from the house we are living in, my wife and I own a few freehold properties that we are leasing out.

One of them is a 2,400 sq ft condo in central Singapore, which we bought at the 1996 peak. We were renting it then and the landlord said he had an offer for it so we just bought it.

It was right before the Government's cooling measures came and depressed prices for the next 10 years. Our condo's value fell by half but the prices has more than doubled since 2006. The key in investing is the capacity and nerve to hold the investment for the long term based on fundamentals.

Q: What's the most extravagant thing you have bought?

A BMW Z3 sports car for my wife on her 40th birthday. The smile on her face was priceless. It was an expensive expression of love, one that cost me $240,000.

Q: What's your retirement plan?

I plan to continue with my Nu Skin business and to stay active and healthy so I can enjoy travelling.

Q: Home is now....

A house in central Singapore.

Q: I drive....

A Lexus SUV.

joyceteo@sph.com.sg
--------------

WORST AND BEST BETS

Q: What's your best investment to date?


My best purchase has to be my house. It has a built-up area of 6,500 sq ft, sits on 10,000 sq ft of land and has a pool.

My wife and I had just returned to Singapore from my five-year work stint in London, with a baby. While I was away for work in Hong Kong, my wife put down the

1 per cent deposit for the $3 million property.

That was 15 years ago. We had the house built from scratch. If I were to sell it today, its value would have gone up at least five times.

Q: What is your worst investment to date?

I bought shares in Pan Electric Industries when I was an inexperienced investor in my early 20s, raw and in a hurry to make big money fast. I followed the herd on a rumour.

The company collapsed in 1985 and the stock became worthless overnight. I can't remember the amount I lost but it must have been between $50,000 and $100,000.

It was almost everything I had then. That experience set me off to learn to invest wisely and conservatively.

My advice for investors is to be discerning. Do not over-leverage on financial instruments. Spend within your means, do not put all your eggs in one basket and do your own homework.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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(29-07-2012, 08:25 AM)Musicwhiz Wrote: Interesting, another case where the interviewee bought a very expensive BMW, but this time for this wife, haha!

I was in Germany for biz trip many many years ago. I was in a taxi and struck up a conversation with the driver. BMW is a German car and also the dream car for this taxi driver but, to be used as a taxi cos' it's cheap and good. Nothing wrong with that as we also have Taxis using Mercedes on our roads in Singapore.

On another day, one of my German counterpart was driving a BMW 5 series (fetching me to his office) along the Autobahn (their highway) and travelling at a speed that I wasn't used to (I think I must have been saying my last prayers, rather than enjoying it) and suddenly, he slowed down a bit and moved to the slow lane for another car to overtake him. I was curious and asked him why he needed to do that. He looked somewhat embarrased and explained to me that the BMW (even the 7 series) is actually considered a so-so car in Germany as the maximum speed it can travel at, is limited. They have to give way in the AutoBahn to Audi, SAAB, Volvo,... and of course Porsche, Ferarri.. which can achieve a higher speed..

That was more than 10 years ago. I'm not sure if things had changed ie. BMW may have improved their car ability (since they're also in F1 racing) and I didn't verify what my German counterpart said back then. Nevertheless, that 2 experiences changed my outlook of BMW cars. I stopped looking at BMW cars with awe after that.. Perhaps Audi, SAAB, Volvo,..Tongue

PS. For those who doesn't quite get what I'm trying to say above,... BMW is only considered a so-so car in the land of their origin..Tongue
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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