Author: Create Wealth Through Long-Term Investing and Short-Term Trading

Building Resilient Net Worth Or Resilient Investment Portfolio

As wealth builder preparing for FI, FIRE, FIRe or full retirement; do you prefer to build up your wealth based on : ( 1) resilient net worth providing cash flow over future market and economic cycles or (2) large resilient investment portfolio providing dividend income over future market and economic cycles. Both methods should also aim to avoid sequence-of-returns risk to build sustainable retirement income for life! Uncle8888 observes that most investment bloggers are on method (2) camp. Right? Which method has better chance to avoid sequence-of-returns risk? (1) or...

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Skin In The Game???

To have “skin in the game” is to have incurred risk (monetary or otherwise) by being involved in achieving a goal. In the phrase, “skin” is a synecdoche for the person involved, and “game” is the metaphor for actions on the field of play under discussion. How much skin you have in the Game? When you failed; what is the degree of  skin burn you will suffer? It is 3rd degree or more skin burn when you failed that is skin in the Game! Sometime Uncle8888 will ask questions and the replies from some investment bloggers or retail investors:...

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#3 – It is easier to succeed as an investor than a trader

Read? 7 Money Secrets from ex-editor of The Business Times, Mano Sabnani It is possible to succeed as an investor or trader, but I believe it is much better to be an investor. This has always been a contentious point – investing vs trading. Investing is usually defined as having a long-term horizon while using fundamental analysis as a core investing approach. Trading on the other hand often refers to short-term, higher frequency of entries and exits from the markets. Traders rely mainly on technical analysis or chart reading to make their decisions. Having been on both sides of the...

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Still Making Good Gross Profits Even For Buying Resale 4 Rm HDB Flat More Than 15 years Ago.

During HIP; Uncle8888 has to hang around and sometime sitting at downstairs bench and chatting with his neighbors whose units also undergoing HIP. One neighbor said Uncle8888 is lucky to make lots money if he sell his 4 rm HDB flat as he bought it cheaply at $55K. This neighbour bought it at resale price at $365K more than 15 years. A search at PropertyGuru showed up one completed similar 4 rm HDB flat at $428K in the same location. Hmm .. this neighbour still make gross profit of 17% over cost and enjoying free rental for more than...

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Your CPF is like a Schizophrenic Prostitute. Do You Know How To Have Great Sex With This Schizophrenic Prostitute ???

Read? Your CPF is like a Schizophrenic Prostitute. c) To resolve this prostitute’s schizophrenia, transfer CPF-OA to CPF-SA instead. A quick way of resolving this schizophrenia is to transfer your CPF-OA to your CPF-SA. This is telling the prostitute that she is not expecting to do any housework so long as she services you well. In return, you end up with the best possible risk-less service possible in the Singapore economy at 4%. The best time to perform the transfer is when you are young. You have more years to enjoy the 4% compounding. After all, the best times of...

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Something Behind Our Luck Factor And Chance In Randomness Environment Where We Have No Control

Uncle8888 may have learnt something over the past two years roaming across the island of Singapore. What is that something behind our luck factor and chance in the world of randomness where we have no control over the events happening? This may be also true in long-term investing where we have no control and cannot foresee the FUTURE decades ahead of us! Uncle8888 bother to pick up coin even it is 5 cents. That is 5% yield on $1 investment capital and FOC! Hmm .. okay. Just stop, blend down and pick up. In 2019 When Uncle8888 has realized...

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How I Accumulate $1M In CPF OA! (3)

Read? How I Accumulate $1M In CPF OA! (2) Uncle8888 became CPF OA Millionaire without a single cent of voluntary cash top up to his CPF OA during his full-time job as employee from Aug 1977 to Sep 2016  i.e. 39 years of mandatory CPF OA contributions. This is how he achieved $1M in CPF OA! 50% from mandatory CPF OA contributions as full-time job as employee for 39 years and cumulative CPF OA interests from 1977 to 2004 and the other 50% coming from (a) 20% from cumulative  CPF OA interests from 2005 to 2018 and (b) 30% from CPFIS Net Refund i.e....

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Have We truly Understand How Inflation Affects Us And Our Retirement Planning? (2)

Read? Have We truly Understand How Inflation Affects Us And Our Retirement Planning? So far based on Uncle8888’s past 17 years (2002 to 2018) actual data points; he is not too concerned on inflationary impact on future household expenses as he still has some fat to trim during those difficult years. He is actually spending 8% below the projected multi-years inflationary rate at 2.5% over 17 years since 2002. Probably, inflation will impact more on those who are already spending at their lowest possible living costs so there is not much fat to trim during hard times. How to beat...

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Current Net Worth After 39 Years Of Earned Income After Tax As Full-time Employee And 19 Years As Retail Investor

Read? Speaking And Sharing With Track Records!!! (2) 39 years of earned income after tax as full-time employee 1. 1985 to 2016 is actual earned income after tax taken from IRAS Income Tax notice of assessment 2. Aug 1977 to Dec 1984 is estimated earned income after tax by working backward based on 1985 number. AND Jan 2000 to Dec 2018, 19 years as retail investor across market cycles. Can we FI, FIRE or FIRe based on our investment gains rather from savings from earned income? How many investment bloggers manage to do it mainly from investment gains? Do you happen...

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Cash Flow : Rental Income From One Investment Property vs. Dividend Income From Portfolio Of Stock? (Refresh)

Real people. Real ex-colleagues. Real retail investors! Not views from commercial vested “Gurus” Read? Cash Flow : Rental Income From One Investment Property vs. Dividend Income From Portfolio Of Stock? Stocks or properties? It depends on your flow capacity of ALL your buckets or taps. Is your rental income one of the few taps or the main tap providing cash flow during...

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Are You Sure We Can Learn From Warren Buffet On His Investing Strategies And Method???

At the age of 26, Buffett had already accumulated a “retirement fund” of around $174,000 ($1.54 million in 2018 dollars) having been earning and investing money since he was a young lad, particularly during his years working for Ben Graham’s hedge fund in NYC. He bought his home in Omaha for $31,000 cash and his living expenses were modest. It was at this point he decided to strike out on his own and launch his investment business. He did not need to tap into this retirement fund to launch his investment partnerships, viewing that capital as the key enabler of him running his...

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Save more than 60%. No need to invest??? (4)

Read? Save more than 60%. No need to invest??? (3) Uncle8888 met this single ex-colleague who is Minimalist No 1 with his no passport status. With no passport and that will mean he will have no costly overseas vacation expenses. He said he will be reaching retirement (at 62) in few year time; but he hopes that he will be able to work longer to accumulate more CPF and cash saving unlike Uncle8888 who has passive income and can retire early. He said he can’t! His retirement assets will be CPF, cash and if necessary rent out spare rooms. Currently; he valued...

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Don’t Laugh At Ants When They Looked Far Ahead Of Their Time (2)

Read? Don’t Laugh At Ants When They Looked Far Ahead Of Their Time Crash got sound! – SMOL Don’t ever try it when you don’t have means to do it. Crash got sound can be bloody painful experience. Worth try it out??? As Ant, Uncle8888 has always planned ahead; and cash ready for 2019/2020 so that he doesn’t have to bother over how stock market will perform over the next two years. His financial Dash Board for clear visibility of his net worth, cash flow and respective yield of asset class. If he is not satisfied with status quo; he can then...

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Long Term Investing Over Market Cycles Is Damn Hard!!!

You can see for yourself and then draw your conclusion. Total losses (realized and unrealized) over past 19 years are bigger than his investing capital since 2000 i.e. there is no capital injection over past 19 years! This investing capital is the bulk of his saving coming from 22 years of earned income from 1977 to 1999. Investing is all about Game of capital, winning and losing!...

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