My Story

I posted my story at Drizzt's Investment Moats - Stock Market Investing:

http://www.investmentmoats.com/budgeting/saving-and-investing-my-money-singapore-man-of-leisure/

I will blog more about my story in future postings.  To share my joys and highs, and perhaps to exorcize some of my demons and past pains.

I hope it will be therapeutic.  I find I am talking to myself more these days....... (Hey! Don't run away leh!)

I did it my way – Singapore Man of Leisure.

How do you eat an elephant?  One mouthful at a time, silly!

So it goes for sharing the story of how I am able to “retire” (for lack of a better word) at 44 in 12 months’ time.  I will expand and share more on each phase of my journey in future blog postings. 

Below will be the short version (now that’s an understatement!) of my 28 years’ journey.  I am looking very much forward to my next chapter in life – “play”.

And being financially free is merely a tool to make this happen – it’s not the goal or destination for me.  Hope to make this distinction clear as there’s more to life than the pursuit of money.  I prefer the pursuit of happiness as you don’t always need money for it!

Index 100 (入江湖)

I left school at 16 after my GCE O levels in 1983.  I got 5 O level credits with an aggregate score of 20 points.  Yes, scrapped through to the 3 years’ pre-university programme by the skin of my teeth!  Which is not surprising for all my 10 years of academic study, I’ve always been the “just-passed” student.

Well, I did not turn up on the pre-U registration day; instead I went to the HR dept of Metro Singapore to switch from a temporary (while waiting for O level results) to full-time sales assistant position.  I can’t wait to start earning my own keep!  I went from temporary worker’s pay of $12 per day to $450 per month after my 3 months’ probation.  I guess $450 is my index 100 for future earnings capacity/growth?

NS days – Group dynamics and EQ training ground  (战国时代)

Served my duty as male citizen of Singapore for 2 years – lucky I only lance-corporal.  That’s the upside of “lower” education – served 6 months less compared to A level and Diploma holders.  From NS onwards, I quickly realized that most things were stacked against me…… (Serve me right for not studying hard!?  Nah!  No regrets man.)

Dark ages  (五代十国) 

From age 21 to 24, it’s a period of bumming around and quick succession of jobs.  I have no idea what I wanted to do in life!  Lost as lost can be!

Age of Enlightenment  (三国）

From age 25 to 29, Melandas, Eurosa and Montgomery Ward were 3 companies that helped me clarify my search for the industry and career that suited me.  I see the light!  During this period, I survived 2 rounds of downsizing at Montgomery Ward.

Crusades and Reformation  (汉朝)

In Jan 1997 at age 30, I joined IKEA. And for the past 15 years, it’s been loads of fun!  Yes, it’s true what they say – if you like your job, it’s not work!  And if it’s not work, good results follow naturally.   

At 37, I got the opportunity to move to China for my first overseas posting.  It’s also a tale of seizing opportunity in adversity; our Asian regional headquarter was relocated from Singapore to Shanghai during this time.  I was part of the 25% that stayed on and survived…… Lost many good colleagues…….  It was also the year I picked up this book called “Rich Dad, Poor Dad”.  Many self-help books I’ve read; but this one ranks at the top – you just have to strip out the marketing hype and the multi-level marketing nonsense.

Speculation history – What a laugh!

In 1999 when I was 32, and Singapore was recovering from the 97 Asian financial crises, I opened my first shares brokerage account.  All my trades made money!? (There’s really such a thing called beginners luck!)  Then at the market top of 2000, I opened my first shares margin account (what can go wrong?).  Well, talk about bad timing!  I lost it all from 2000 to 2002.  All!  There goes my nest egg that I’ve built from age 16….. Warren Buffett is right.  I was caught swimming naked when the tide receded (blush, blush). 

I will post at a later time why it’s the best thing that happened to me in my financial literacy journey.  Although I would have wished I started shares speculation 10 years earlier when my nest egg was much smaller…… I would have just lost a finger, not an arm……

From 2003 onwards, it was a period of rebuilding my nest egg.  Meanwhile, as part of my financial literacy education, I took 10% of my re-built savings as “learning fees”.  I tried many things (I don’t learn by theory) – futures, CFDs, share borrowing to short stocks, pairs trading.  Have not got to warrants and options yet – for those, I need to know the “Greeks”, which I am weak in….  For me, currencies and commodities futures are already lots of stress and excitement without making things more complicated.  But one day, I believe I will try out options and warrants.  Never say never!

As a result of my small stake, I did not fully participate in the bull rally from 2003 to 2007; but I learned something more important (at least to me) – financial literacy.

Blind cat caught dead mice (a Chinese saying) – pure dumb luck!?

From Sept 2009, it just so happens that my peak earnings and savings capacity were matched with the opportunity that the present financial crises presented.  Although I did not buy at the bottom during March 2009, (no balls!) scaling in from Sept 2009 till today (buy the dips), I’ve managed to lock-in an average portfolio dividend yield of 9% for 2010.  I’ve also bought silver (without leverage) at average USD 16 per ounce.

Through baptism of fire, I’ve found an investment style that suits my personality – growth and income. Yes, I am a John Neff wannebe.

But a swallow does not a summer make.  My memory of 1999 is still fresh.  That’s why I don’t blog about trading.  Wait till I have 10 years of successful investment record then I am comfortable sharing.  I don’t want to mislead others.  Talk about the blind leading the blind…..

Renaissance?  (唐朝)

Sorry to disappoint you all.  It’s not a tale of great investing glories.  It’s merely a story of stumbles and falls.  And lots of dumb luck!  My nest egg is mainly active earned income.

My personal view is that’s it’s TIME, not money - that’s the real asset we have.

That’s why instead of extending my active earnings till 55, I’ve decided to exchange that with 11 years of frontloaded “freedom” from age 44 (when I am free from contractual obligations) to pursue my interests.  If my money runs out; I can always go back to work at 55 (Choy!).

Money lost can be earned back.  But time lost……. 

Ramblings from a Singapore Man of Leisure,

Jared Seah