Eyes On Retirement

Be greedy in times of fear. That's the investment mantra I live by. Recently there's been a huge spat on trade wars and the Hong Kong riots, which took a toll on the stock markets.  This was a great opportunity to load up on my existing positions as their prices have come down to more favorable levels. There no reason to explore other stocks unless a super attractive opportunity arises, like hongkongland. That counter was hit extremely hard by the riots, since they derive 50% of their revenues from HK.  Other than such events where opportunities present itself, I prefer to average up or down into my existing positions... No need to perform the due diligence again, unless fundamentals have changed. I'm enjoying the opportunities that the markets are presenting in the past few months.  Simply keep calm and aim to collect more dividends by increasing your stake when frivolous sentiment changes. Market entry is a psychological battle against yourself. Another post on this ...

The recent trade wars have caused the markets to be extremely volatile, one week down 5%, the next week back up 5% and we can see sector rotations playing out on the STI.  Currently am at 60/40 invested vs cash and am selling some of my small caps positions that don't have alot of price buffer, in order to rotate them into stronger blue chips like DBS, Capitaland (now Asia's largest property company after the merger with Ascendas). REIT prices have gone through the roof and investors seek safer havens in this turbulent times, which prices out any entry point. Best to wait for dips in the local banks, especially if the price to book ratio is close to crisis levels. Anyway my investment horizon is 20 years, so I'll be buying at every half integer level. The saying "Sell in May and go away" really doesn't apply for me. It's more like "Buy in May. Dips are you friends". It's funny, every year I notice that DBS offers 15% trading commission re...

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Location:  Connected right to the KL Sentral main station, with easy access to the KLIA. There's a NU Sentral mall on the other side of the station. Room:   It's modern and tastefully decorated like most Le Meridiens. The bed is really comfortable and offers great back support.  I really like the chair near the window as it's like a reading corner that overlooks the mountains and expressway.  The room gives me a sense of tranquility, which is great after a long work day. Breakfast: The spread is massive!  The food is comparable to the Athenee Bangkok standards but the spread is much much wider.  I can eat here all morning, and then hit gym/pool all afternoon. Gym:  This gym is massive!  Have you seen 2 sets of everything in a hotel gym before?...

I group my friends into 3 categories. Family: Those who are dearest to your heart.  They will always come first. True friends:  Those who you can always count on, no matter the distance or the time spent apart.  They will always be there for you, to lend a listening ear, to share your feelings, to guide you through life.  They may have different interests and lifestyles, but you share an unbreakable bond. Lifestyle friends: People whom you hang out with for certain type of activities, and discussions and banter will be limited to those activities.  Conversations will probably center around your common activities.  Lifestyles change, hence this group of friends will also change. When you're dead, people won't remember you.  Celebrate people's presence when they're alive.  Appreciate them and spend time with them.  There's no point in throwing a bigass funeral to commemorate a life. It's over anyway.  You should had made your ...

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t.  It’ll make future bookings much easier. Location:  In downtown Makati opposite Greenbelt 4 Shopping Area and Glorietta mall.  Great for food and shopping options. Easy access to Museum cafe! Room:   Renovated in 2014. Decently sized rooms, although the carpets are beginning to smell and my room had a musky smell.  Bed is soft yet supportive of my back, so I sleep decently well here. Gym: The treadmills and ellipticals overlook the Greenbelt shopping area  There are so many weight machines here, upper and lower and core.  Free weights as well.  Huge open space to do yoga, circuits, etc.  The perfect gym. Breakfast:  The spread is wide, but I don't fancy what they offer.  It's either too sweet or too salty.  So I only eat their omelette and bread, with fresh juice....

I recently increased my term and critical illness coverage by another $1M and $300k respectively. I checked around with many providers and ended up with Manulife as it's what I need, without all the bells and whistles. AIA offered total coverage for recurrent illnesses, but I figure if I get the same cancer twice, I'd probably be dead by then. So there's no need to pay a premium for that type of policy. Sometimes plain vanilla is the best. I also considered disability insurance where they pay you an amount on a monthly basis. While this sounds like a great idea, the insurers will make it difficult for you to claim this, with strange delay clauses and exclusions. It's much cleaner to receive a large lump sum payment and manage it from there. Why these figures for critical illness? I based it on annual family expenses. Most insurance agents will tell you like 5-10x of your salary, just to get you to buy a bigger policy. An agent that looks out for you will tel...

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Location: Although located in Kuningan, getting to the office is relatively quick by car. Door to door transport time is shorter. It's a better option than the shangrila. Offices surround the hotel so don't expect to go anywhere once you return. Room: Corner room. New and modern with a huge bathroom. The bed is heavenly. Westin never fails. Gym: The treadmills and ellipticals overlook the sky (pollution rather). What I really like about Westin gym's is that they have the TRX system and sufficient weight machines. Small space for free weights. Breakfast: The place is so big that I got lost trying to find various counters. The spread is wide, with lots of fried food options (not ideal for breakfast) and the usual omellete and bread station. If you pick carefully, there are healt...

I recently maxed out the SAF Aviva group term insurance on both term life plan for $1M and accident plans for $600k, which costs me $47.42 and $77.37 per month respectively. This is on top of my existing  whole life plans . I did this to ensure adequate insurance coverage in times of need. The only downside of this is that Aviva pays out a maximum of $20M per event, and it's prorated accordingly, so don't bet your house on this and have some other backup. Term covers up to age 65-70 (your income generating years), and whole life covers your whole life (including your retirement years). In general whole life plans are alot more expensive per $ of coverage, compared to term plans, so you have to utilize both to get adequate coverage at a reasonable cost. In Singapore where voluntary death isn't an option, it could really bankrupt a family. Some say to purchase a $1M term plan that covers you up to age 99. That means you can't live past 99, but such plans are...

Your CPF account consists of 3 accounts: Ordinary Account (OA), Special Account (SA), and your Medisave Account (MA). The OA is primarily used for providing housing, while SA is used for retirement. MA is used to pay for healthcare. The interest rate on your OA is 2.5%, while the interest rates on SA and MA are 4%. There is an extra 1% interest upon reaching the first $60,000, combined across all three (with at least $20,000 in your OA). In order to optimize your CPF account, the key is to move the lower interest OA money into your SA, to take advantage of the compounding effect of that extra 1% per year. Once you begin working, transfer your OA account into your SA account only a monthly basis, as CPF interest is calculated monthly.   This is an irreversible process, but it forms 1 part of your retirement portfolio.  There's no need to inject extra cash into CPF. Once you hit the SA maximum of $171k (based on 2018 figures) the funds will automatically be channel...

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Location:  Right at the Asok BTS, across from Terminal 21 and the Westin.  I think traffic in this area is too jammed, and will likely avoid in the future. Room:   The bed is very comfortable, but the decor is quite old school.  The room feels like parts of it has been modernized, but parts of it are still the same as when the hotel was built.  The whole scheme doesn't gel. The bathroom is also dated and in need of upgrade.  Who uses small tiles like this in bathrooms nowadays?  This is so 1990s. Gym:  It has a couple ellipticals and a couple treadmills.  Not much selection of weight machines and the space is rather crammed.  The decor is seriously old school 1990s, but I think all Sheratons are like this. Breakfast:  The selectio...

I topped up the full $7k into my SA today, before the end of Jan. CPF calculates interest on a monthly basis, so anytime before Jan 31 is fine. Haven't any other use for the money, so I'd park it here for 4% at the beginning of the year to maximize the interests. Do remember to do yours!

Effective Jan 1, 2019 the Basic Healthcare Sum (BHS) has increased from S$54,500 to S$57,200. Funds in the Medisave Account (MA) and Special Account (SA) earns 4% p.a, while funds in the Ordinary Account (OA) earns 2.5% p.a. Assuming you have hit the $54,500 limit in 2018, we can take the opportunity to top up $2700 to our Medisave Account by this month using cash to leverage on the following benefits: Tax deductions if you use cash to top up your MA. Note the $7000 annual cap on CPF deductions, so the SA top up in FY2019 will be $4300. When your MA has been maxed out, your monthly CPF contribution from your salary and employer will flow over to your SA. This account also earns you an interest of 5% p.a. Once your SA has met the met the Full Retirement Sum (FRS), the funds will flow over to your Ordinary Account, which earns you a 3.5% interest rate p.a. In summary, whenever the government increases the Basic Healthcare Sum, quickly max out your MA i...

Last month, I decided to top up my CPF Special Account since that account gives me 4% yield risk free. My calculations show that I can reduce my tax bill by $7k x 15% = $1050, without even taking into account future 4% yield benefits i'm to receive. It's definitely worth the top up from an ROI point of view, since it's tough to guarantee this kind of return in today's market. There is a maximum cap for cash top-up relief per Year of Assessment (YA) which is $14,000 (Self $7,000 and family members $7,000), but at least max it out for yourself if you have the spare cash. This way you can quickly hit the CPF SA ceiling sooner, maximizing the 4% risk free yield early on. Will do it again for FY2019.

I've never really believed in the whole new year resolutions concepts, and I'd rather view it as a time to set plans for the year. So here are my top 5 plans for the year. 1. Actively manage my family's retirement plans and portfolios. 2. Learn something from YouTube and apply it in real life. 3. Remain off alcohol for 365 days in 2019. I've been alcohol free since June 1 2018. 4. Dote on Mrs EOR more, because she's the most valuable person to me. 5. Spend more time with my parents. Happy new year everyone!

It was Mrs EOR's birthday a few days ago and we went out for dinner, something that we rarely do nowadays. We decided on Italian as it was awhile since we last had this cuisine. Venue : Al Forno @ 400 East coast road We read reviews on this place and ordered their diavola pizza and lobster pasta. Boy were they terrible! The pizza was overly runny with red sauce and tasted extremely bland (I'm already quite sensitive to salty food). The pasta sauce was just so so, something I could likely whip up at home. The lobster wasn't even peeled and cracked and it felt like we're eating at jumbo seafood. The only saving grace was that the pasta was done a perfect aldente. The decor is like what you see in Italy and I get that their trying to keep to their roots, but it makes the place extremely loud. It's like going to a club minus the music - definitely quieter to sit outside. Would I return : No. I'd visit only Etna @ Duxton. No more experimenting with Italian r...

You are not under the watchful eyes of the public.   Famous people are being followed by paparazzi, get interviewed on TV, have their entire lives scrutinized and even made into reality shows.  Imagine you walk into a hawker center in your slippers and PJs, and people start pointing commenting and maybe some even take photos of you.  Unless the work you do is truly meaningful - i.e. Jane Goodall, and you're not a public servant (work in the government), pictures of you with fans are meaningless and fleeting. When you're dead, people will only remember the day you died, or not at all. Assuming someone famous passed away.  My typical reaction for 30sec would be "oh my, oh no, lets google it to find out more." And then I'd forget it and move on with life.  Is it worth it to live a life in constant public scrutiny, just for these 30 sec when you die?  Unless you're someone really famous like Ghandi, or Donald Trump, nobody will really care because you...

There are 3 major expensive vices in Singapore.  Alcohol, Smoking, Gambling.  I do not smoke nor gamble and I stopped alcohol intake since June 1 2018 and have never felt better!  I have the same amount of energy the next day on less hours of sleep, I exercise more, and most importantly my cholesterol has dropped from 220 to 200. A glass of wine or hard liquor costs about $17-20 in Singapore due to the alcohol tax, and I used to hang out for drinks every weekend.  So on average I diverted about $400-500 in monthly alcohol expenses to another category. For me, the positives in being alcohol free outweigh the negatives.  I don't care what all the medical research says about a glass of wine a day being good for health - I don't sleep well after I drink and sleep is of utmost priority.  You never know if the publisher/doctors behind the article are secretly funded by alcohol companies.  Listen to your body, that's the best health advice.

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. The Sheraton Hanoi is extremely old, so I decided on the Pan Pacific. Location: Overlooking a lake, the location is quite alright, although not downtown. The downtown hotels are old. Room: Abit dated, but still alright. There are many strange corners in the room, and it's weird to walk in. It doesn't really flow. Perhaps it's because I was given the room adjacent to the suite. Gym: It's split into 2 areas, weights and cardio. They have all the equipment you need and alot of treadmills and bikes. The pool is also a good 25m lap pool. Breakfast: The selection is decent with an omelette station and the usual western fare. This place is flooded with Korean, Chinese, Taiwanese tourists, so you have to jostle with them for food. Go late if you aren't in a rush. Overall, ...

"When I'm old and my memory fails me, this post serves as a reminder on what to do." Every child born as a Singapore citizen is given a Child Development Account (CDA), with the government having the intent of cushioning expenses related to raising a child.  The CDA funds can be used for certain items like paying for childcare and kindergartens, child related medical expenses, medisave approved integrated shield plans.  I use this account for a different purpose, to build my daughters wealth. The only thing that interested me was the Government's Dollar for Dollar match, up to $6k for the 1st and 2nd child. Baby bonus gave us $3k, I topped up $3k , government matched $3k, and the account began with $9k opening balance.  Since I can't withdraw these funds for cash, I'll treat this as a CPF account and optimize every dollar. The CPF website has a nice illustration on what happens with the account through time: https://www.areyouready.sg/YourInfoHub/Pag...

As I travel quite often for work, I’m going to keep a record of all the hotels I’ve stayed in, to serve as a reminder of what works and what doesn’t. It’ll make future bookings much easier. Unfortunately there was no SPG/Marriott hotel in Halong Bay area, so i ended up with Novotel. Location: Along the western side of Halong, right across some ongoing construction. Room: Decor is dark wooden, taking a spin on modern Chinese. Wood flooring and a huge king size bed that's abit hard and uncomfortable. I like the decor though. Gym: This has got to be the saddest hotel gym i've ever seen. I decided to run outside instead. Breakfast: The selection is so limited, and it's not even that good. Nice decor though. Would I return? Definitely not to this 4 star hotel. Thankfully I was only here for 1 night. Although the place is filled with Korean tourists, you can eat some basic Korean breakfast here, but that's not my preference.