One of the four in the sharing session is not new investor; he and his spouse have been investing. His wife worked as researcher so the couple decided that it is quite obvious that wife will take up the task of researching on stocks and companies. After reading Uncle8888's several postings on Retirement Planning on his company's Chat Zone; he suspected that Uncle8888 could be an experienced old investor who has made it in his investment to be able to retire @ 60. His Goal is to retire early too.
Some time in life; luck factor does a part. Uncle8888 was queuing to buy his kopi-o kosong at staff canteen. He came and queued behind and then said "Good Morning, XXXX".
Hmmm .. Uncle8888 was surprised by this greeting as he doesn't really know this colleague well from another Division and very seldom interacts with him on any work related matters too.
One thing Uncle8888 has just learned besides "No Free Lunch".
There is such "No Free Wide and Smiling Greeting from a lesser known".
The real motive behind this Greeting is he has some investment questions to ask.
Like any other retail investors who loves passive income like S-REITs; in the sharing session he asked about S-REITs and income strategy. When he discussed on the right questions; he managed to realize what he didn't know the difference between the investing thesis behind growth dividend stocks and income stocks may have actually slow down his investing journey to reach his investing goals to retire earlier than the official Singapore retirement age.
To some retail investors; it is an old cow who has been giving them lots of Milk for so many years. Okay. They may be sad to see it getting sick or may be dying soon; but the experience and feeling is totally different from some investment bloggers or on-lookers looking at it as young Calf waiting for its Milk and/or Meat.
GIC’s mandate is to achieve good long-term returns. The primary metric for evaluating GIC’s investment performance is the rolling 20-year real rate of return. The goal is expressed in real terms because GIC must, at a minimum, beat global inflation and preserve the international purchasing power of the reserves placed under its management.
Over the 20-year period that ended 31 March 2016, the GIC Portfolio generated an annualised real1 return of 4.0% (Figure 1) above global inflation. In nominal USD2 terms, the portfolio generated an annualised return of 5.7% over the 20 years that ended 31 March 2016. This means that US$100 invested with GIC in 1996 would have grown to US$303 today.
CW8888 One-Man Gang vs. GIC Army of Investment Experts
One Chart that tells the whole story behind a lifetime of earned income after tax as salaried employee for more than 39 years and supplemented by more than 16 years as retail investor in short-term trading and long-term investing in local SGX only.
See the real thing and truth behind wealth building as retail investor; it may not be what we are expecting when we first started investing with lots of self-confidence - COMPOUNDED GROWTH year after year over market cycles of Bulls and Bears.
Why don't you cut losses? What is the reason? To recover back some capital to re-invest. Hmmm .... What if we have plenty of capital in the War Chest, we still need to cut losses to raise more cash to follow the Street's advice? Dumb or Smart? What you think?
Back to Hiap Joo's Banana cake shop again last Friday; this time he went early to grab those fast selling out and limited buns. You can get banana cakes most of time as they keep topping up stocks but not for buns. How come? Lower margins for buns. Otah and Tau Sar buns are solid. Bought some and ate them while they were still hot at the opposite coffeeshop's with your kopi, kopi and Teh. :-) Quote : "Saw one nearby eating outlet, Triple K selling Pepper Root & Oxtail soup. Next time at JB Central will try this one." We went to Triple K for Pepper Root & Oxtail soup but was told that the soup was still cooking and expected to be ready in one hour time for lunch. Sianz! Got to come again next time.
As retail investors; we are on our own and remember there is no Holy Grail method that will fit into us. Yes, we can search for ideas and references but still there is no Holy Gail method. Stop believing! You think Value Investing sure made money? You must quickly go and learn har.
When market crashes; value investing made simple. Get it?
Is this market timing and time in the market to get into Value Investing?
How different from value investing that are normally advocated in the printed and cyber world?
When market crashes; we get the right "Value" stocks and spend enough time to get the value from them. Not Value Investing? Then what?
When we get our market timing wrong on our positions and then we spend the rest of our time in the market feeling the pain, losses and frustration and then start or re-start to believe in Value Investing may be the way to go.
The Real Person. The Real Market Timing and Time in the Market. The Real Outcome. The Joy and The Pain in the Ass! See for yourself closely and see whether you get it?
The Real Person with conversation with real person on his retirement adequacy.
He is 63. Currently, he is re-employed by his company on yearly basis and he is still thinking of retiring sooner; but he doesn't trust Mr. Stock Market to invest for income as retirement cash flow. So how?
He is thinking hard and harder!
He bought landed property in the early days and down graded two years ago to fully paid condo. He made net profit of $1.2M cash to prepare for his retirement.
We often read that investing for income is not difficult; but on case by case basis; the real person with lots of money and the FEAR of losing large sum of money is also real has made investing so much harder. Right?
We use this method to invest on Kep Corp. In fact, this method was successfully used by Jessie Livermore.
In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!
It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.
And their experience invariably matched mine -- that is, they made no real money out of it.
I found it one of the hardest things to learn.But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”
Men who can both be right and sit tight are uncommon. It is more commonly known as Timing the Market and Time in Market method.
The Real Person. The Real Method. The Real Outcome.
U.S. stocks closed higher Wednesday, with the Dow ending at a record high for the seventh day in a row as better-than-expected earnings boosted optimism on Wall Street.
The Dow Jones industrial average extended gains for nine consecutive days for the first time since 2013, with Microsoft contributing most to the upside. The S&P 500 closed at a new record level, led by technology which had its best day in 16 years.
The Nasdaq composite had its highest close of the year, helped by a 2 percent gain in biotech.
Although many retirees (66%) reported that they were living the lifestyle that they wanted in retirement, a little more than half (57%) looked back on the years before retirement and wish they had done more to prepare, according to a study by Fidelity Investments.
There’s a lesson here for people who have not yet retired but are thinking about it.
“Workers approaching retirement often look to their peers who have already gone through the process for valuable lessons learned,” said Steve Deschenes, executive vice President of Fidelity Institutional Retirement Services Company, in a news release.
“Those living in retirement now can provide valuable insight to people getting ready to make that transition, from knowledge of the basic fundamentals such as the key elements of a successful income plan, to identifying resources that can help with critical decisions that need to be made.”
“This can have a dramatic impact on the quality of life today’s pre-retirees will experience when they retire.”
Uncle8888 is an Ant who follows China's Ancient Wise Man's words ...
"The general who wins the battle makes many calculations in his temple before the battle is fought."
Sun Tzu said:
Those who understand these fundamentals will win.
Those who don't will be defeated.
Preparing for retirement is like preparing for a long battle so he has made many calculations again and over again assuming different scenarios.
So far, after many years of reading books and articles on retirement planning; he has found that this model has very good chance of meeting his retirement goals and doesn't depend too much on the Mood of Mr. Market. He has transformed the Myth Of Passive Income into Reality with his Three Taps Solution.
The execution of this Plan will kick off on 1 Oct 2016!
U.S. stocks closed at all-time highs Monday as Bank of America's quarterly results helped investor confidence going into earnings season.
The Dow Jones industrial average ended about 15 points higher, with Goldman Sachs and Home Depot contributing the most gains. The blue-chips index extended its winning streak to seven days, with a fifth straight day of record closes. The S&P 500 also ended up about a quarter of a percent at a record high, led by information technology and consumer discretionary sectors.
With Uncle8888's fixed monthly salary; it is simple to compute his lifetime of earned income after tax from Aug 1977 to 15 Sep 2016; it is over 38 years of using his Human Asset to generate cash flow comparing to over 16 years of using his Financial Assets to build up another source of wealth and cash flow for the rest of his life.
One consolation prize after spending more than 16 years in SGX, our local stock market; he realized and quite confident on his current investing strategy and war chest; he should be able to survive for the next 5 to 10 years in the stock market unless he becomes dementia before 65 to 70.
Wealth Accumulation Rate P.A. From
Human Asset vs. Financial Assets:
Over 38 years: 68% as of 15 Sep 2016
Over 16 years: 32% as of 15 Jul 2016
The most important thing that he realized that it is better to avoid large losses than trying to win big by taking higher bet. Recovering from large losses is painful and may take a very long time just to breakeven.
Do anyone think that Uncle8888 is a crazy man who is going survive for his next 1 to 2 decades based on a Myth?
It is up to us to build up our own model of Sustainable Retirement Income For Life to make it as passive as possible and doesn't turn this activity into another form of part-time job working on a full time work-week.
US stocks pushed to new records Thursday, lifted by JPMorgan Chase's strong earnings and hopes for more stimulus from central banks.
The Dow Jones Industrial Average gained 0.7 percent at 18,506.41, its third straight all-time high.
The broad-market S&P 500 extended its record streak to a fourth day, advancing 0.5 percent to 2,163.75. The tech-rich Nasdaq rose 0.6 percent to 5,034.06.
Equity markets shrugged off the Bank of England's decision to hold interest rates and stimulus unchanged in its first meeting after Britain voted to leave the European Union. The bank though signalled it could come at its August meeting.
When you have spend enough time reading, reading and reading many finance and investment blog postings over the years; but forget about those blog posts that have commercial interests in selling you courses.
Do you realise that Mr Market will always have his way to show us the right way to build our wealth from the stock market is through investing in companies growing their business revenues, cash flow and profits either through expanding, enhancing or innovating their products and services offering to their global consumers and producers?
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.