To play it safe or to take on more risks?

 

It's easy to set goals and make plans.

Come to think of it, anyone and everyone can do it!

Say, say only who cannot?

But when it comes to doing reviews and being honest with oneself, then not everyone and anyone can or willing to do it....

I like Real People Real Stories (stolen with pride from CW).

Below I'll link 2 interesting perspectives from 2 bloggers in our community:

1) Buying A Modest Home Has Been A Poor Wealth Building Advice For the Past 10 years 

2) 6 Lessons Learnt After Losing 551k In 10 Years Of Investing & Options Trading 

How?

It's back to the Earn More or Save More paths to take right?

It would great if someone is willing to share their CPF voluntary contribution review versus if they had passively dollar-cost-averaged the extra funds into STI or S&P 500 ETFs over the past 10 years.

Or compare CPF versus dividend investing?

One thing is clear even without doing any reviews.

In bull markets, Earn More will beat Save More hands down. That's provided if you know when to take profits!

In bear markets, Earn More practitioners would have wished they never invested in the first place... 

So what if inflation is eating into your purchasing power long term since interest rates are negative in real terms?

The more you invest the more you lose hurts a lot more!!!

Then again, knowing Earn More is a necessary evil to beat inflation long term (you think why CPFIS was introduced if Save More was enough) is meaningless if you have the self-awareness that you are risk averse.

That's why is always back to KNOW YOURSELF.

Self-awareness is hard. We often own self lie to own self.

Harmony is when we are at peace with who we are and our chosen vehicles.

Jobs anyone and everyone can do, that's why they pay the salary they do.

Careers that few can do - like fighter pilot or surgeon - that's why they can command that kind of compensation.

We all know this intuitively. 

Then pretend it does not apply to the realm of Earn More....

Official Wealth; Speculative Wealth （正财偏财）

 

Trust our 5,000 years of Chinese wisdom to make a distinction between the two!

When you pray to your god/gods, set your financial goals, or dream about having bountiful wealth - which one are you focusing more on?

If you pray/set goals for career success, have a financially stable job, or always continuously upgrading yourself with multiple degrees/diplomas, that will probably be "Official Wealth" you after.

If you rely on 4D/Toto, play shares, hope your cryptos will shoot to the moon (again), not difficult to see you are banging on "Speculative Wealth" to change your life!

 

Look around your siblings, your neighbours, your colleagues, your classmates, your peers.

And especially your own circumstances.

Which one are they "luckier" with? Speculative Wealth or Official Wealth?

Now compare this knowledge with their chosen financial independence path - be it Earn More or Save More.

Are their financial goals and chosen vehicles still in harmony?

How about yourself?

Take the Stairs? Really?

 

OK, maybe with the exception of cryptos...  

But you must know which floor to get OUT of the elevator!

The idea that with a small sum of $10K, we can be a millionaire in 4-5 years is very cool!

Then again, I can also take the Toto elevator too!

I mean just $1 Quick Pick gives me a chance to be a millionaire as well!

Although it has eluded me for the past 30 years... (not working out too well for me)

Normally, when we have dementia, most family members and relatives will shy away from taking care of you fulltime.

But if you are rich, alone, and have no dependents, all of sudden you find relatives "fighting" to be your legal guardian!?

I think some Singaporeans are taking a page out of that Mainland Chinese tour guide who discovered financial freedom just by calling someone, "Mommy!"

My sibling has just got his Lasting Power of Attorney done. I'm one of his donees.

OK, I better get my legal matters done up too; when I'm still lucid.

I don't want to be used as an elevator.

You never know when I'll capitulate and be totally besotted to a 18 year old when I'm in my 80s!!!

The Reason You Get Up In The Morning

 

Regular readers of my previous post - What Then? Be A Prostitute? - have correctly guessed I'm poking parrots who just vomit out mindless catchphrases without much internalisation or deeper thought themselves.


Let's take ikigai.

What comes to mind immediately?

The diagram below?

Hands up anyone who have heard only of the this word "ikigai" or seen the diagram above, but have not read any actual literature on ikigai?

That didn't stop anyone from "pretending" to know everything there is about ikigai, does it?

Want to bet if you talk to a Japanese, or to be more precise, an Okinawan, they wouldn't express ikigai like the diagram above? 

The diagram above is  definitely something a Westerner would come up with! Everything with clear boundaries - with a name for each box you happen to belong to. A is for apple... B is for boy...

As for those of us who have not forgotten our Oriental roots and culture, you would know right away that's not how we Asians think! Philosophically speaking - we are very holistic and fuzzy, fuzzy; often clear as mud!

Its like trying to describe the taste of mango to someone who has never eaten one.

That's why I prefer to describe ikigai as, "The reason we get up in the morning." 

Of the many descriptions of ikigai, I like this one the best!

Why?

Remember those days when we were young we can't wait for tomorrow to arrive? It could be Christmas, a school excursion, going on a date, a sporting event?

As we enter the workforce, ever had those days when we were eager to show up at work every morning? Or during the weekends, we can't wait for Monday to come sooner?

But when we drag waking up in the mornings, or suffer from Monday blues, we know something is not right in our lives...

Some numb themselves with alcohol or drugs. 

Extreme cases, some decide to not to wake up ever...

On a side note, please seek medical help or talk to a person that matters if you find yourself avoiding waking up in the mornings persistently. 

In case you didn't know, although ikigai as a concept has existed as part of Japan's culture, it was Meiko Kamiya who popularised ikigai to the general public in modern day Japan through her book, "On the meaning of life (ikigai)" in 1966. 

Surprisingly, her book was never translated to English!?

Want to see the Japanese version of ikigai in picture?

  

Hey! I'm going off tangent again! 

Some readers may exclaim in frustration...

Some are probably still waiting for the reasons why I'm poking both contradictory catchphrases below:

1.  Follow your passion!

2.  Follow your passion is the worst career advice!

Well, it's your life.

Who better to judge whether your life has meaning, or are you happy?

Plus whether the pursuit of more money would fill the holes-in-your-heart... 

And you don't mind being a prostitute at all just as long the money is right!

Or is you life so shallow that you are easily manipulated influenced by some mere catchphrases uttered or written by people whom you don't know well at all?

  

Bring Forward Or Delay The Inevitable?

 

For those of us snake oils who have planned or participated in sales promotions or marketing campaigns, have you ever experienced this inconvenient truth?

I mean we celebrate when the marketing campaign has been a success! Get our extra commissions, bonuses; plus accolades and recognition from top management.  

But then sales for the next few months dropped quite a bit lower than previous years...

It quickly dawned on us that we have merely brought forward the sales from future months.

In fact, the company would have made more money had we not done the sales promotion in the first place...

What do we do?

Of course next quarter or next year, we will still propose doing the same thing all over again!

That's the difference between hired guns/sellswords from business owners.

Especially when we noticed the business owner is "passive" or not very hands on. Wink.

Got to feel for big daddy. 

During early days of Wuhan virus pandemic, got "recognised" worldwide for our zero Wuhan virus strategy.

Compared to the alarming number of deaths and infections around the world, we really stood out. 

Even got "luxury" to start planning how to "profit" from this pandemic like in past crises. If we open up before everyone else...

Then discovered we are merely delaying the inevitable...

While other countries have peaked, their deaths and infections numbers coming down...

We are now playing "catch up"...

This is not a smart alec "behind horse cannon" poke. On hindsight, everyone is genius!

This post is for those who like to parrot.

"If you fail to plan, you plan to fail."

What Is Your Dream?

 

That's the difference between goal setters and people with dreams.

The irony?

People who monkey see, monkey do and come up with goals, bucket lists, annual resolutions, etc; are still dreaming...

You just come up with new goals to mask your inactions all this while...

People with dreams you can see in their eyes. 

They jump out of bed every day as they have a reason for getting up!

Despite setbacks and obstacles, they never waver... (That's tough!)

Why dreams (in corporate world they're called Visions) come first?

If you have no idea what you want to do with your life, what's the point of setting goals?

Wait you ended up climbing all the way up to the top of the ladder and find to your dismay, your ladder was leaning against the wrong wall all this time!!!

You think why so many have mid-life crisis in their 40s?

When the stark reality of, "Is this it?" hits you!

Find Shoes That Fit

 

When it comes to investing, FIRE, or just plain vanilla dreaming about getting rich, most just think of the rewards, end goal stuffs, or destination.

For me, the journey is more important. 

But then again, its no fun to embark on the journey when your ladder is leaning against the wrong wall from the very start...

The process is excruciating painful, and when you got what you wanted, you now discover this is not what you thought you wanted all along.... 

Let's be honest. Most goals you've set in life are not through deep introspection, its more about monkey see, monkey do.

Or to be what you think others expect you to be.

Don't believe?

Try spotting how many times people ask others how much they need to be financially independent? 

How much to retire on?

Buy shoes ask others what shoe size they wear?

Do you do that in real life?

No right?

Your own feet who better to know whether comfortable or not but you?

The irony when it comes to financial independence is that most people don't quite fully grasped the part about independence.

I find it hard to believe just because you hit your money goals, you suddenly become "independent" overnight...

Again, you can verify it quite easily by looking around your friends, neighbours, or relatives.

Some have very modest means, but super independent in thinking and actions!

Some maybe millionaires, but people say left, they go left; people say right they go right.

What has this got to do with getting rich or FIRE?

You decide.

(See? I not telling you what to think!)

Chasing Rainbows

 

I don't know about you, but I always prefer reading stories about chasing rainbows. (In case you forgot, Lao Lee endorses it!)

I'm not an entrepreneur by any stretch of the imagination, but my ancestors were landowners...

So I guess there's some cultural DNA in me that makes me see things from a landowner perspective ever since I was in school. 

Which maybe explains why I was quite blase about leaving school at 16, when I can go on to pre-U to do my A' levels. 

I mean school is meant to produce shepherds and sheep for landowners. 

A bit like the Army. Officers are shepherds, while the fighting men are the sheep (or cannon fodder).

Schools don't produce landowners. 

Its the other way. Landowners setup schools to... (Shh,,,)

You know what's better than being a crypto wannebe millionaire? 

Or seeking FIRE for that matter?

Secretlab founder buys $51 million Penthouse and Good Class Bungalow

I was definitely not a good student

Have you ever driven pass our ITE schools where they displayed, in big banners. their successful graduates who became business owners?

Cool right?

Everyone is different. 

Its different strokes for different folks.

Not trolling anyone. 

But I'm just not turned on by stories about how we can gain an extra 1-2% if we bank with this bank; spend at least X amount with that credit card; gain some extra miles here and there; save 0.X% switching to that discount broker; or try to squeeze some extra blood from the CPF stone... 

I mean I do enjoy making dogs perform tricks and jumping through hoops in my former life as a snake oil, but ask me to do so myself?

No thanks. I pass.

Meow,

We are no. 1?

Of course you knew!

Our nation-building media won't let this opportunity slip...

Go read and see what they want you to remember and focus on. Wink.



I prefer to read what others think of us. Especially from the one who "lost" to us:



The US slipped to third place in a ranking of most competitive economies 





OK, comparing the two, what's your spontaneous own take?

I'll put mine in the comments.

A Catalyst or Shit Happens?

Over the weekend, one of the promoter updated me something interesting about his workaholic well-to-do sister.

His sister has decided to call it quits in her mid 40s.

Huh?

She's a vice-president of a global bank, had a failed relationship in her twenties, and had since focused only on her career. 

No boyfriends, no relationships. Worked from 8am to 10 pm, 6 days a week that kind...

Since she don't do small-white-face toy boys, she had earned and saved quite a bit. She owned 2 condos - one for staying, one rented out.


My spontaneous thought was it can't be she "suddenly" decided to embrace FIRE or woke up discovering she had plenty enough that kind of philosophical epiphany

I was right.

Saw the news this morning that global bank is planning 10,000 job cuts to slash costs.

Ah!

That was the catalyst.


Imagine if after many repeated attempts she can't get back the role she's used to, and decided to retire early instead, she can easlly come into our community as an "instant" FIRE?

Mid 40s not "old" right? 

She's "financially free" in that she can live off her rental income.

Technically she's not fired or retrenched. She "fired" her company.


How?

No goals, no plans to achieve FIRE...

Yet she's an instant FIRE!!!???


I wonder how would those who had FIRE goals like X amount by Y years feel?











 

Missed the low volatility of 2017?

That's the year for passive "investors" and yield hogs.

When STI moves from lower left corner to upper right corner.

Easy.

Yup, you've earned the right to tell your mom, "Look! No brains needed!"



Of course that didn't last.

2018 and this year 2019 has a lot more see-saw rollercoaster ups and downs...



The fisherman and me met up with a young doctor for kopi recently.

STI is less than -10% off its recent highs, yet we heard some are already nursing more than -20% losses on individual counters.

Mind you, not penny stocks hor. They are so called "blue chips" and dividend plays. Connected to big daddy, so cannot "fail" ones! 

I agree. But prices can definitely turn south...  

I just hope they didn't call themselves "value" investors. I mean if you bought at 5 year high prices or near cycle top, calling yourself "growth" would be more appropriate...

Still wrong. Still lose money. But with less awkward silence...



And its not any easier with trading too.

There are quite a few traders - both full time and part time - that used to visit this watering hole

Some have already call it quits. 



So much for dreams and goals.

Investing is hard.

Trading is hard.

Change, regime change, and dreams...

Its quite fascinating looking at the Brexit process currently undergoing in UK right now.

Especially when I contrast it against how Singapore got kicked out of the Malaysian Federation in 1965.

I guess we were lucky we had strong leadership in 65 or what?

It brings to mind what I've gleaned from history - strong leadership is always about one - the Queen Bee or Alpha Male.

Weak leaders always got a council, a committee, a tribe, a horde... to hide behind. 


UK joined the then EEC in 1973. Now it wants out... Maybe? 

Its like getting a divorce 40 years into your marriage. Well, it lasted longer than the quickie shotgun wedding like ours! 



Time can be quite the tempest after lulling us into complacency through long periods of calm and predictability.

Long established political parties that had ruled forever and ever can suddenly find themselves in the wilderness of being in the Opposition. Think LDP in Japan, KMT in Taiwan, and now UMNO in Malaysia. 

Of course the next big one to watch is the CPC in China. I wonder whether it will happen in my lifetime?

Now that would be an interesting macro trade if I still around! (Singapore would definitely be 10 million with the influx of super rich immigrants! Property still boleh?)



Looking back more than 30 years when I started my jouney into the adult world at 16, comparing to the goals and dreams (or lack of) I had then, it quite amazing none of them were remotely close??? LOL!

My life definitely is not one of those who started out with goals and plans, and everything turned out as exactly as they've planned!!! They'll probably make good central planners?

No. Mine was more like a leaf in the wind. 

I defintely did not expect to be bald! (But I look cool OK?)

Then again, some say luck is preparation meeting opportunity....

I've no control over opportunity; I can do preparation though. Wink.







Wah lau, what talking you?

I catch no ball!

Well, I don't patronise you by explaining everything in cartoon like the brochures pasted next to our HDB lifts. 

You see what you want to see. Your take out may also depend on your own life experiences - whether you are starting your journey, reaching your mid-life crisis, or strolling down the mountain.

It can be harder for those who go toilet must jio others to go along...

Just saying, in case you didn't catch what I meant by leadership of one. Wink.

LOL!






  

What happened to your Bucket List?

Everything is about cycles and fashion right?

Once upon a time, it was "fashionable" to have a Bucket List. Just like the FIRE goals many parrots are now mimicking...

Others have you don't have, cannot!



For those old enough to remember Bucket Lists and used to have one, well, what happened?

Forgotten about them right?

They are there somewhere collecting dusts...

And to think once upon a time, the items on your Bucket List were so "meaningful" to you that you must cross them out before you die! 



Would you believe your own self next time you feel like having a goal or a plan?









Oh! Want to bet 10 years from now anyone would mention about FIRE goals? 

Knowing when to move on...

Squaring the Circle

In most cultures and spiritualities, the single-minded pursuit and obsession with money is considered crass.

It does not matter whether we are in the Earn More or Save More camps - we know in our hearts we are merely telling little lies to ourselves...

We admonish others for coveting material possessions, yet isn't it the same when we covet income producing assets and financial wealth?

Is it not just 50 steps laughing at 100 steps? The pot calling the kettle black?

Although I'm agnostic, I'm quite influenced by Oriental philosophies like Zen and Taoism.

Which does not make things easy with concepts like "letting go", "non action", "non attachment", and what not...

How do you embark on your journey towards financial freedom with anchor weights like these?

No wonder some gravitate towards the prosperity gospel... 

I've resolved my cognitive dissonance by focusing on what I can control and influence - the mastery of my chosen craft - be it for career or trading.

This way, money is just a by-product; a way of keeping score. 

For eg, in Trading, I've only goals (mostly grey and murky qualitative ones at that) for my entries and exits; there're no monetary goals like X $ amounts in Y years. 

I'll take what the Markets are willing to give me. (As if I had a choice!)

The benefit of blogging is getting to know the various snakes and dragons in our community.

Some are a lot of "hot air" (like me); while some are so low-keyed you'll miss these dragons if you only pay attention to the blinding neon lights and booming loud speakers of snake oils.

Its quite refreshing to to discover someone on the Abrahamic path has a similar outlook as mine - even though we are on different paths...

The Parable of the Rich Fool

Chasing Other People's Dreams

In This Corner Of The World - Can I Take Setbacks?

Yesterday, I went to Yishun GV to watch this anime movie:

After the movie, my mind dirfted to 2 incidents.

Imagine if we had achieved everything we wanted in life.

We have our own small business - could be a restaurant, cafe, or hostel.

A warm and loving family with children and living with our aged parents; 3 generations under one roof.

Family house fully paid for. No business debts.

Except we work and live in Fukushima...

If I am the only survivor - lost everyone that mattered to me - would I be able to pick myself up and start over?

Imagine now I live in Singapore. Financially free; no need to work.

I bring my wife and children to Phuket for holiday.

Tsunami struck.

Only I managed to make it back to Singapore...

I still have all my financial networth undamaged; unlike the me in Fukushima.

Would I be less distraught?

Yes, being devastated in my own "castle" with no money concerns is not the same as being devastated in a make-shift shelter and penniless...

Yet...

Am I wealthy?

My siblings and I get along. Parents still "healthy". I am in reasonable "good" health; although the latest health check revealed I'm a diabetic risk if I don't control my weight (rich man's curse)...

You bet I'm wealthy!

Wait. I double-check. 

Yup. No money goals. 

So why do I get up in the morning?

Space Fillers and Fun Distractions

Doing trading full-time can get really boring especially for my style of trading.

If there's no wind, there's pretty much nothing I can do. So to pass time, I do play some intraday punts from time to time.

There was a period I hit a lucky patch where it was quite lucrative!

I had to consciously be mindful and tell myself not to be distracted by these small winnings.

Keep the focus on the main prize.



I had a Shanghai colleague who got promoted from company driver to IT admin.

You'll be surprised many of the receptionists at our China and Thailand offices were university graduates! They pay their dues for 1 - 2 years and when opportunity knocks, they'll be transferred to a job more in line with their qualifications.

This Shanghai colleague unfortunately got distracted with his gaming hobby... He was using company time and resources to maintain his network of Diablo gaming members - he was the Clan leader. 

My Romanian boss fired him. 



For more mature readers, during our younger days, we have done this to others or let others do this to us.

You know, while waiting for the right one to come along, we have a space filler for the time being...

Its all fun and games (although not something we want to boast about) provided we don't marry the space filler for the wrong reasons! Like out of guilt, sense of responsibility, shotgun accident, etc.



When we are clueless to what we want to do in life, a good space filler and distraction would be to jump on the financial freedom bandwagon like everyone else.

At least it gives cover or illusion that we have a goal in life!

But when questioned what you want to do after you have achieved your financial freedom, you realise you haven't seriously thought about it. You'll decide when you get there. 

And that's why people move the goal posts. To buy more time to figure things out... If they ever do.



When you see retirees playing jackpot mindlessly at those "members clubs" or at our "integrated resorts", understand that they need to find "fun distractions" to fill up the day.

The day can be excruciating long if you have nothing to do all day...

And that's not something you want to put yourself through when you've achieved financial freedom!

Go Find A Purpose!

Zuckerberg to Harvard students: Eureka moment is a lie, go find a purpose


I know what you are thinking. You are right. 

Newton's third law of motion: For every action, there is an equal and opposite reaction.

That's why I always like to hear the opposite view:

Survivorship bias

Want to have a bit of fun this weekend?

Look at those people who wear "goals" on their lips all the time. Take a good look at them.

In case you forget, goals usually have numbers in them, without them, goals would not be "SMART", would it?

Now try to come up with people who espouse vision, mission, dream, purpose, ikigai, and what not...

Yes, its all written in words that are fuzzy and super broad that can mean anything!

Can you spot a pattern?

Don't force it.

You'll spot it when you spot it. 

And not a moment too soon!

Why Goals Are Not Enough

Read this article here:

Why You Need To Create Visions (Not Just Goals)

Just yesterday, one promoter was teasing another "otaku" promoter and interrogating what the "otaku's" 5 year goals were... In another words, where this "otaku" promoter sees himself in 5 years' time...

You know, the classic question you get during job interviews or annual performance reviews.

Its basically a "veiled" attempt to put down the "otaku" promoter after discovering he was a polytechnic diploma holder.

People can be "unintentionally" cruel.

This after knowing the "otaku" promoter wanted to be a pilot in his 20s...Rejected. Wanted to sign on in the Navy as IT specialist... Rejected.

The promoter asking the question is in his early 30s. Before joining this sales line, he was a shift manager at McDonalds in Malaysia. 

I see it as a case of 50 steps laughing at 100 steps.

The "otaku" promoter understandably - after many career setbacks - replied he has no goals. He lived one day at a time. (I always see him smiling and joking on the selling floor; while his tormenter is always under self-imposed stress)

I knew the "if you fail to plan; you plan to fail" bayonet twisting will come soon. So I just casually chimed in that I have no goals too!

This shut-up the promoter doing the "bullying".

He knew my "pecking order" at this selling floor. Many things he can't do; I can do.

Sales is very realistic. Those who can sell; talk louder.

This promoter is struggling at the bottom of the 4th division himself...

Notice a similar pattern in our community?

Those who struggle are the loudest parrots of conventional wisdom that everyone already knew.