Monday, 27 September 2021

Money is Money lah!


Sell flower of course say flower fragrant!

I find it quite hilarious that when I find people in our community like to do the Joan of Arc thing, 

"If you believe me, follow me!"

I hope these people don't come to power... When they can really dictate what others can or cannot do!

We have seen this movie in religion and politics before. And its not pretty...

You don't laugh. 

As a left-handed person, I'll be hesitant to join in with the majority to "discriminate" or "demonise" some minority just because they are "different" from us.

You never know when these zealots, once they have run out of "labels" to persecute, will start picking on left-handed people like me!

OK, after going on a big tangent (that's how you express your social, religious, and political views without getting into trouble), let's get back to this funny phenomenon in this money chasing  financial freedom community of ours.

Its optional, but for those who enjoy foreplay, you can take a peek at this ancient post of mine:

Is Snow Water?

Let's take 3 scenarios:

1)  Person A stays in HDB, maxed out all his CPF accounts early, prioritises paying in cash for his housing loan, voluntarily contributes to CPF up the the limit possible, and becomes a CPF multi-millionaire at age 65. Debt free.

2)  Person B stays in HDB, maxed out his CPFIS to invest in equities or equities funds. Never voluntarily contributes to CPF because cash is opportunity fund to invest in equities. At age 65, he is an Equities multi-millionaire. Debt free.

3)  Person C never invests nor is he a prolific saver. He just likes to upgrade his home of abode ever so often; no 2nd rental or investment properties. Took 2 bites of the cherry from HDB 3 room to 5 room. then when day job got better, upgrades to private condo or landed terrace/townhouse. CPF withdrew to max allowed for housing property loans. At age 65, he is a Property multi-millionaire. Debt free.

Multi-millionaire is so vague! 

$2 million is multi-millionaire, $100 million is also multi-millionaire.  

Tip: When someone uses the label "multi-millionaire" instead of saying $2 million, he is doing the snake-oil mind manipulation trick like for "pre-owned", or "high yield". Wink. 

Let's just use $5 million as the multi-millionaire definition for all 3 persons above. 

Tell me, is one person "better" than the other?

Its like arguing till our faces are blue that Green is "better" than Red!? 


But for vested interests, it matter a lot!

If you are in the banking and property sectors, which path would you promote?

If you working for SGX, distributor for equity funds/ETFs, or in the equities brokerage industry, which flower would you say is the most fragrant of them all? 

If you big daddy, and you can't bring yourself to chastise your fanbase,

"Eh! If you idiot don't invest can or not?

Buy that time never write to me for permission...

Make money you genius! 

Lost money now its all my fault!?"

Then again, big daddy can't expressly "discourage" don't invest either... The wealth management industry you attracted here with dangling carrots are watching...

So you do the next best thing. 


I'm tickled pink that our 5,000 years of Chinese wisdom has it covered:

八仙过海各显神通 - 8 immortals cross the Eastern Sea, each in their own way.

I mean, money is money right?

Who cares how we got that $5 million at age 65 just as long its not illegal!!!

P.S.  For youths who want to be FIRE at age 35. one path is definitely out of the question.  

Unless you don't mind saving sex till old age.



  1. It's a little bit like playing a MMORPG - we have our tank builds, DPS builds and healer builds. Each have their purpose, but if we want to beat the final boss, we need to have all three working together. I think big daddy likes that.

    A tank can't deal damage better than a DPS who can't heal better than a healer who can't soak up damage better than a tank. Ahh, don't mind me. I'm just a rojak build that doesn't excel at anything, but I know my limits haha.

    1. Kevin,

      Tell me about it!

      That's from someone who loved the long forgotten Bard (rojak) class in Dungeons and Dragons...

      Nowadays in RPG games, the jack-of-all-trades class is almost non-existent. Perhaps it reflects in real life where people like to group themselves into distinct "tribes".

      I'm with the "investor" faction! We are holier than thou!

      I'm in the "traders" guild! We have big baxxs!

      I'm the "property owning" upper class! Our traditions date back even before biblical times where landowners rule them all! Then and today!

    2. Smol,

      At first glance all 3 may appear the same.

      But there's a big difference in terms of volatility of capital, consistency of cashflows, and liquidity. ;)

      I'm assuming that the 2nd fellow has been around the investing block a few times, and is able to handle a -50% bear market on his 65th birthday. :P

      S'pore has quite a few elderly in terrace or semi-D with low cash but having psychological difficulty to downgrade. They do receive (and many also expect) various handouts from govt, especially if their properties don't quite hit the $21K IRAS annual value threshold.

      The 1st person of coz will be a die-hard status quo govt fan lol.

    3. Spur,

      Of course there's a world of difference BENEATH the surface.

      But on the surface, its like what I've learnt in physics - energy is energy. It just changes from light energy to heat energy, to electrical energy, etc...

      We can argue whether its better to be vegetarian or meat-eater, but we all are getting our energy from the Sun ultimately ;)

      1) If our address is landed or private condo, its already a powerful non-verbal cue - just like if we attended an "attas" elite school. Never mind if we're dirt poor in liquidity...

      While those HDB multi-millionaires with ego and self-esteem holes-in-the-heart issues, are ever so eager to remind acquaintances, "By the way, I'm a multi-millionaire you know?"

      2) At age 65, when snake-oils come with their fear tactics that we all are living longer till age 95... 30 years is a LONG time! Must "invest", or else!

      Who is likelier to fall for scams offering 50% returns annually? Greed anyone?

      If you have never taken the Earn More path and faced wild volatility yourself, how to do Trust but Verify at age 65 against fear attacks and greed temptations?

      3) HDB multi-millionaires, despite their millions, do continue to get big daddy subsidies - utility bills, HDB service and conservancy charges; etc.

      Those HDB multi-millionaire who want to MAX out their "entitlements" should downgrade to HDB 2 rooms for the win!!!

      If you stay private and got into a financial bind, try going to your MP for help... If social media got wind of it, they'll come at you with pitch forks!!!

      Which I prefer?

      I just know in my next life, I'll come back as a beautiful woman and marry rich!

      If husband good and faithful, fairy tale and comfortable life. What to complain?

      If husband naughty and unfaithful, I'll milk him dry in divorce!

      Heads I win; tails I don't lose ;)

    4. Hi SMOL,

      For a $2m multi-millionaire with self-esteem holes-in-the-heart issues and need to remind acquaintances he is multi-millionaire, I have a solution. He can try to limit his friendship network to non-millionaires. All his friends will look up to him. The holes will disappear. Haha.

    5. SMOL,

      I see things differently. Suppose we have 3 $5m net-worth individuals. One fixed-income guy. One equities guy. One property guy. Is one person "better" than the other? Of course.

      The Property multi-millionaire is the best, because he probably paid the most taxes, thanks to the anti-speculative ABSD/BSD property taxes. Thank you for your nation-building. Society and economy benefits from his contribution to nation-building.

      It is healthy for people who don't pay much taxes and receive plenty of subsidies to have a hole in the heart. It is a healthy hole in the heart to keep.

    6. hyom,

      1. There's a sports analogy to what you recommend ;)

      Players who want to improve and grow, will compete with players stronger than them.

      Players who just want to feel good, will only play against weaker opponents.

      2. Nope. Business owners are the best! If Warren Buffett, with his billions, can pay less taxes than his secretary, that's for the win!

      That's why most people missed the whole essence of Rich Dad Poor Dad ;)

      I can't write option 4) Stay in HDB, Business Owner multi-millionaire as there will be an uproar!


      Because rabid fans of the CPF/equities/property paths all believed anyone and everyone can do it!

      If I can do it; so can you!

      But mention entrepreneurship, people will freeze as its too risky!


  2. Quote : Multi-millionaire is so vague! $2 million is multi-millionaire, $100 million is also multi-millionaire.

    Bankers differentiate them into HNW and UHNW. Right?

    Billionaire is classified UUHNW or what?

    1. CW,

      From Investopedia:

      High-Net-Worth (HNW) is someone with > USD$1 million INVESTIBLE networth.

      (Why investible is important? If banks can't milk fees or commissions from your net-worth, they not interested)

      Very-High-Net-Worth (VHNW) is > USD$5 million.

      Ultra-High-Net-Worth (UHNW) is > USD$30 million.

      You know what's funny about "labels"?

      In Singapore, according to Knight Frank's 2021 Global Wealth Report, you "just" need SGD$4 million net worth and you are counted as part of the top 1% in Singapore!?

      (OK, for those who are anal with precision in 2 decimal places its SGD$3.85 million. Happy?)

      Just like retail investors "inventing" their own definition of net-worth, different institutions have their own definition of who is rich or not...



Related Posts Plugin for WordPress, Blogger...