Financial Planning DIY 投资理财点滴

Advises from Advisors?

noreply@blogger.com (LAI SENG CHOY) — Wed, 23 Nov 2022 07:07:00 +0000

At all time, I am a strong advocator of doing financial planning by own self. Reason being no one knows me better than myself. Of course, by doing so, I have to spend lots of time and resources to equip myself with the ability of doing self-financial planning. Learning is one thing, keep updating myself is another important step to enhance this ability.

I know, many of you may claim that you don’t have time to learn. Why do all these hassles while you could opt for experts to manage your money? Yes, they claim themselves licensed financial planner. But how do you know what they are thinking of. If they are truly an expert in their field and care about you, why they bother to earn your commission by selling you their expert advice. Do think about it.

In this article, I would like to share my personal experience on dealing with these experts.

Two year ago, in the year of 2020, the local savings interest rate kept dropping a year after my retirement. Even though it did not affect me much in long term but getting an average interest return of less that 2% p.a. from more than 4% p.a. in short term did bother me. In another words, my passive return was slashed by more than 50% a year. I therefore seek for an expert to help me to diversify savings so that it could at least maintaining at 4% p.a. That expert advised me to invest in unit trust while she could reduce the initial charge from 5% to 1% and help me to monitor it. She selected a few funds for me and I went in. Sad to say that those funds she selected for me did not perform well. After making a 12% loss within a year, she asked me to top up since the market is low but I rejected. It turned out my decision was correct; those funds gave me a total paper loss of 22% in subsequent 6 months. When it recovered slightly to a loss of 15%, I cut the loss and went out. The market did not perform well since then. Lucky me. She apologized to me but I didn’t even bother to look at her. I don’t trust her anymore. This is a very typical example that I didn’t do the selection by myself and left it to the experts. I have to accept this consequence.

Another story is about deceased income tax declaration for my mother. My mom passed on August, 2021. I was very sad but I know very well that the income received on her assets must be handled carefully before they are transferred to respective beneficiaries. While waiting for Administrator Order hearing which I had applied it in August, 2021, I asked an expert about the declaration of a deceased income tax. She advised me to do it after I got my Administrator Order. During the tax season in 2022, I asked again as I worry there will be a penalty if I did not declare timely. She said again to wait for my Administrator Order. After I requested her to double confirm with her financial planning company about the process, they replied that they only handover it to their tax agent for their client and have no idea how they handle it. For my case which I will do it by my own, they only ask me to check with my tax agent which I don’t have one. I was shocked about the reply from a financial planning company. I finally received my Administrator Order a year after. When I checked with Inland Revenue Board, the replied that I’ll have to pay the penalty over the applicable tax payable after my mom passed. Luckily there was no tax payable for my mom’s income after she passed and, therefore, the penalty is zero. So, can I trust these experts?

There is no doubt that there are good advisors around, if you and me are lucky to meet one. So, instead of listening to their advises blindly, do your homework.

Beginning of 3rd Year of My Retirement

noreply@blogger.com (LAI SENG CHOY) — Thu, 11 Feb 2021 00:00:00 +0000

Today, February 11, 2021, is marked as the beginning of 3rd year of my retirement. Since I retired at the age of 47 in 2019, I have never regretted the decision I make.

I recall that some of my friends told me that I would definitely get bored in 3 months based on their unfavorable experience (They wasted their time and sat there doing nothing. Pity them) but it did not happen to me. Even until today, some of my friends are still asking me what I do daily during retirement.

As a matter of fact, it took me some times to adjust myself to get use to my retirement life. At the beginning, I realize that I lost my corporate identity. I was a Senior Manager in an Japanese company based in Malaysia. I was also a head of 5 departments with more than 35 subordinates. The job did give me opportunity to grow in corporate world with tremendous exposure in various aspects of business world. I learned how to handle people in and out, how to see problems in widen angles, how to get around with the top management and many more. Some of you might wonder, since this was the case, why I still decided to have early retirement. Well, simply put, this is not the life I wanted. I like my job but I dislike to get around with people, see people, think people and react accordingly. I felt like I wasn't myself but an actor. I had to absorb all the favorable and unfavorable consequences as my superior won't care and my subordinates couldn't effectively assist me on the problem I faced. Huge work pressure had affected my health and temper. To me, no matter how much I earn, I just couldn't buy my health if I lost them. Since I was financially ready as I started my financial plan in more than 25 years ago, without any hesitation, I tendered my resignation the 3rd time on January 1, 2019. I still can recall the sweetness of being released. Finally, I am the owner of myself. But loss of corporate identity means that I no longer need to wake up early and rush to work which make me uncomfortable in the initial 6 months when I saw the other rushing to work in the morning while I took my time for morning jog. I felt shame when my neighbor saw me taking care of my plants at 10am in the morning. I hate people asking where do I work. I finally get rid of these feeling and proud of who I am 6 months later.

I spend tonnes of time on reading in the initial 1.5 years of my retirement and now I am focusing on learning computer programming by writing some programs which I have been thinking of. It needs commitment and time to learn. As it is my pure interest, I don't feel any pressure on learning it. I also learn Japanese language just for my own interest. I have been watching Japanese dramas in order to improve my listening skill but still a long way to go as they are just talking too fast (LOL).

I plant flowers and vegetables myself. Fertilizing, cutting, clearing weeds, watching up insects are also keeping me busy. Helping my wife to cook and do housework and get around with my kids (chatting, discussing, advising etc) are also part of my daily life. I really don't have time to get bored.

I continue to do my own stock investment but less active due to unstable Malaysian stock market. Due to outbreak of COVID-19 and MCOs, poor economy has make BNM to reduce interest rate in order to stimulate the market. Low interest regime is a killer to retirees like me. I used to enjoy at least 4% p.a. on fixed deposit but now only about 1.5%. I don't satisfy with this. I, therefore, look for financial advisor to see whether there is any medium to low risk investment options. I come to know a financial advisor who is introduced by a good friend of mine. She shares with me her track records on investing in unit trusts which I hate the most previously. However, her track records really impresses me. Furthermore, she is willing to reduce the initial charge to 1% from 5%. Therefore, I give it a try from January 2021 and the result is promising. So, I continue to top up my investment on unit trust which I also have opportunity on exposing investment opportunity in overseas market such as China.

Two years of my retirement has passed. My financial performance is lots better than my plan, mainly contributed by relatively lower expenses with higher investment return. What I am going to do next is to act according to my plan and review my action should overall investment environment change, just like I start my unit trust investment again that able to give me impressive return with low charge and expert monitoring. I also would like to realize my wish to travel soon after the pandemic is under control. I was stuck in my house in 2020 due to COVID-19 and I do hope it could this could be over the soonest.

Here, I wish everyone stay safe and stay healthy. May your financial dream comes true soon. I also wish all Chinese readers Happy Lunar New Year.

Are You Financially OK?

noreply@blogger.com (LAI SENG CHOY) — Sun, 05 Apr 2020 02:56:00 +0000

Malaysian Government implements Movement Control Order (MCO) for 28 days since 18-March-2020. Non-essential businesses are not allowed operation and all people are requested to stay at home in order to curb COVID-19.

On the other hand, many are facing financial problem without any income for a month. To most of them, they even have difficulties on paying living expenses. Why is that so? Simply because they don't have emergency buffer.

First step of financial planning is to make sure we have accumulated at least 3 months worth of essential living expenses to meet any unexpected emergency need. This fund should not be touched at all unless it is REALLY EMERGENCY. For those who have no income due to MCO should be able to sustain for subsequent 3 months should such buffer is ready. However, it is rather sad to realize that this is not the case to most of them.

Many of them might have reason that they have nothing left by the end of each month, how could they accumulate such fund. Well, it depends on how you plan your financial. Yes, all of us have fix essential living expenses so how. However, it is also a matter how you plan your finance. As a rule of thumb, when we receive our pay check every month, we must first to save at least 10% of it in to emergency buffer until a worth of 3-month essential expenses is accumulated. We only consider investment of 10% savings after emergency buffer is fulfilled. Even initially you might not able to start with 10% of your pay check, you should set it as a final target with initial starting of, say, 3% and gradually increase to 10%. By doing so, you are at least starting your financial plan even though it starts slow.

Should part your emergency buffer is used up for emergency reason, it is very important that you should reimburse it back as soon as your situation has become normal. Emergency buffer is serve as an umbrella during the rainy day. So, give no excuse to yourself. Start to accumulate you emergency buffer now.

Has Outbreak of COVID-19 Affected Your Life?

noreply@blogger.com (LAI SENG CHOY) — Sun, 29 Mar 2020 02:51:00 +0000

It is rather sad to see the outbreak of COVID-19 around the world. Malaysian Government has imposed Movement Control Order (MCO) to curb the spread of COVID-19. Initially, the implementation of MCO was between 18/Mar/2020 and 31/Mar/2020. Within this 2-week period, we are advised to stay at home except purchase of daily necessities. Even so, purchasers are advise to keep their purchase period short and return home as soon as possible. Only shops that are selling daily necessities are allowed to operate while the others must be closed during MCO period. Malaysian Government later announces extension of MCO to 14/April/2020. First few days of MCO, many feel bored at home. I become puzzle how could this happens. Aren't these people having their hobbies? Since they have more time for themselves now, isn't it true that it is a good time to do what you like?

To me, MCO have almost no impact to me except I can't go out to shop our necessities with my wife anymore as Malaysian Government only allow one person from each family to go out for purchasing necessities few days after implementation of MCO. Therefore, I have been staying my house without going any place for the past 10 days. What I have been doing? Well, almost same as before with some adjustment.

Every morning, instead of going for jogging with is forbidden by MCO, I have 30-minute body exercise at home instead. There are tremendous videos available in Youtube for this. I have selected those with intense exercise in order to keep myself in shape. My wife selects hers as well.

After exercise, I take my breakfast after shower. Next, I take care of my plants after reading newspaper. I surf internet for information searching and, occasionally, watch online videos with my daughter before I help my wife for lunch preparation.

I eithter read books or teach my daughter her school syllabus after lunch before watching my favorite movie and daily TV news. My whole afternoon has been occupied.

At night, after dinner, watch one episode of my favorite drama. Later, I read again before going to bed.

Furthermore, due to outbreak of COVID-19, financial market has been tumbled. Many stocks are showing their great value for investment. However, I am yet to get into stock market yet. The reason is very simple: The market might continue to tumble until COVID-19 finally over. The question is no one knows when it will be. It will be dangerous to "catch a falling knife". What I do is continue to search for quality stock and only start get in when the market is recovering from its bottom.

In short, my day has been filled up by my favorite activities. Do I feel bored? No. I have get used to this lifestyle. I have been doing so for the past one year after my retirement. I feel easy without pressure on my life.

I hope this could be a reference to you. Let us wish that the outbreak could be over very soon so that we could have our normal life back. For the time being, do watch up your personal hygiene; wash your hand with soap regularly; stay at home; if really need to go out, do wear face mask, avoid getting around with a big crowd and keep at least 1 meter distance with the others.

Last, but not least, do take care.

Thank you! My Fellow Readers

noreply@blogger.com (LAI SENG CHOY) — Sat, 21 Mar 2020 02:59:00 +0000

Few days ago, I received a postcard from one of my readers, KM (initial of my reader), who shared with me about how he had benefited after reading my "Freedom".

Taking this opportunity, I would like to express my thanks to KM for your praise. KM particularly emphasized on how important on knowing "Personal Inflation Rate". Yes, indeed. Without proper inflation rate on financial needs calculation, your financial plan might not realistic.

Another thing you need to do is to act, monitor and adjust your plan according to your latest financial condition. Life is full of changes. It is just impossible to follow a plan blindly without monitoring and adjustment.

KM is also wishing to retire early. Well, to achieve this, you have to follow and review your plan persistently. You have to overcome all financial obstacles you face on your journey. Don't give out easily. By doing so, I am very sure that you will attain early retirement very soon.

Keep it up, KM and all my fellow readers.

A Sure Way Towards Financial Freedom

noreply@blogger.com (LAI SENG CHOY) — Wed, 12 Feb 2020 02:19:00 +0000

Extracted from Sin Chew Jit Poh Fortune Investment Weekly dd 10th Feb 2020 Page 22

This Chinese article is sharing how an 30-year-old American accumulates $1 million at the age of 26. His secret is very simple: Live Frugally. He is a Youtuber cum real estate investor. He claims that he is not a big spender and saves 99% of his income. For example, he doesn't go to expensive cafe for coffee but buying coffee beans and make it at home; he doesn't go for branded outfit but go for cheaper alternatives; he compares prices when shopping etc.

Yes, indeed. By doing so, I able to retire early. I am also not a big spender and is having frugal lifestyle. I focus on fulfilling daily needs by searching for most valuable alternatives; I don't go for branded products but durable and worthy alternatives; instead of changing my 17-years-old car to a new one, I send it for regular maintenance and inspection to ensure it is at its tip-top condition etc.

By having low essential living expenses, you do not require high net worth before your retirement. The rule of thumb is keep your expenses low, keep your inflation rate low, make sure your backup is able to generate sufficient income to sustain your frugal lifestyle. This is it.

Hope all of you could get out from the rat race ASAP.

One Year Anniversary of My Early Retirement is Coming Soon

noreply@blogger.com (LAI SENG CHOY) — Tue, 14 Jan 2020 07:16:00 +0000

By mid-February 2020, I will celebrate my first anniversary of my early retirement. My friends keep asking me questions like:

How do I feel for the past one year?
Do I feel bored?
How do I spend my ample time?

I believe my friends are expecting my negative answers so that they feel better on having full time job, even though they hate to do so as, the fact is, most of them are still having a long way towards their financial freedom. They are seeking for consolation if I tell them my early retirement is not so exciting. However, they are wrong, very wrong. I can't find any better way to make me happy than early retirement. However, they still look at me with doubt.

Well, I would like to share with everyone about what I have been doing for the past one year on my early retirement. First, I become the owner myself as I am no longer selling my time for money. My financial backup is working according to my plan and is generating more than I need. So, beside using what I have budgeted, I add on the remaining into my original fund to generate more income for me.

Now, I have ample time to do what I like. In March and May 2019, I self drove to Kuala Lumpur, Ipoh, Gopeng, Kampar and Klang for vacation with my wife and kids. In November 2019, I brought my family to Taiwan for 12 days. It was impossible for me to do so when I was an full-time employee. First, as a Head of Department, it was impossible for me to leave my work position for more than 3 days or else I had to face endless meeting and spent lots of time to settle those pending issues (things that need my approval to go). Now, I have no such worry anymore and I no longer have the uneasy feeling after holiday / before going back to work. No work related pressure is really fantastic. In 2020, I am planning to go more places, both local and overseas while I am still able to.

I also have been spending lots of time on reading. I have read more than 30 books in 2019. Some of them are new while most of them are old books which I reread them at ease. I gain more insight view after rereading those old books. I feel enriched.

Further, I play around with my flowers and plants. Observing them in order to understand how to make them growing better. I harvest my grown vegetables and peas. I fertilize my flowering plants to make them bloom. Spend time to clean weeds and leaves. Life could not be so easy before.

I also get around with my wife, just the two of us, whenever we want to as we are not tight up by those stupid full time job. We feel easy and happy when getting around less crowded places while others are busy with their jobs.

In short, I don't feel bored as my free time is filled by meaningful activities. You guys should also develop your hobbies before your retirement or, otherwise, you will be bored.

Do You have to Quit when You are Financially Free?

noreply@blogger.com (LAI SENG CHOY) — Mon, 21 Oct 2019 08:31:00 +0000

Last week, I read an article which shares a 32-year-old young retiree goes back to work two years after his retirement. He says the reasons for him to return to work are:

Lack of people interaction during retirement which make him felt bored
No more happiness from work achievement
He was under great pressure on money when losing stable income even though he was financially free

There is no right or wrong answer on this. Here, I would like to share my thought.

To me, this 32-year-old young retiree did not plan his retirement life well. I am not talking in term of monetary term but how to get around with his retirement life. People tend to think easy and would like to enjoy life if he/she could retire early. The key is how to "ENJOY". To "ENJOY" doesn't mean sit there and do nothing as you'll feel bored two days later, I guarantee.

That is the reason why you have plan how to "ENJOY" your retirement as well but not on only monetary term. You should realize what you would like to do the most. What hobbies do you have? What activities do you like? When you have time, how would you allocate your time on your hobbies and activities?

Take myself as an example. I am financial free at the age of 40. Yes, I could have quit my full-time job if I want to but I did not. Why? Well, there were a few reasons. The top of the list was that I was not sure how to utilize my ample free time. I kept searching and exploring what I would like to do when I retired early. It took me more than 4 years to gradually sketch out my retirement life. But I did not quit soon after but to test whether it was really the life I want. How? I ran an experiment of retirement life during long festive holidays such as Chinese New Year. The feeling was great but I was still not ready. In the subsequent 3 years, I kept studying how to have enriched my retirement life. Meanwhile, I saw some of my friends were either caught in serious sickness or passed away. These had make me to think seriously how to live happily and do what I like to do before it was too late.

As a matter of fact, even though I was mentally ready for retirement, I did not quit just like that. Reason being I liked my full time job. I had been working with the company for more than 20 years. However, I rather reluctant to quit as a result of losing of working harmony. This happened due to retirement of first generation management while second generation management did not carry the value as the first generation. Furthermore, the new management just simply added on works to those who willing to work but without any remuneration. I raised my requests but they just acted blur. That was the reason why I first tendered my resignation when I was 43. They admitted their mistake and promised to treat me fairly. Actually they did not until I tendered my resignation second time when I was 46. They make blank promise again and, finally, I tendered again at the age of 47. High work pressure without any reasonable compensation had make me felt that this company is not worth for me to contribute. Furthermore, to me, my health is more important than the salary. On the other hand, should the company was still the same as before, I believe I'll be still working by now since I feel happy on working.

Do you have to quit when you are financially ready? The answer is very subjective. My advise is don't quit if you like and enjoy your job. I quit because my situation is on the other way round. While enjoying your full time job, do start to plan your retirement life as soon as possible since, one day, you will be sure retired and you just can't leave yourself do nothing at all time by then. Do plan ahead.

逾半国人储蓄难撑3个月 About half of Malaysians' Savings Can't Last for 3 Months

noreply@blogger.com (LAI SENG CHOY) — Tue, 15 Oct 2019 01:20:00 +0000

新洲日报2019年10月5日财经版第3页

看到这篇报导，感到些许无奈。原来马来西亚人的储蓄是那么的少。到底问题出在哪儿？

二十几年前，刚大学毕业的我刚开始工作时，薪金也是惨不忍睹。当时的我只是一味的量入而出，不浪费辛苦赚来的钱。有规划的消费，从来没当过月光族。就因为这样，那时的我因工作的关系虽居住在外地，每个月还能储蓄超过七成的收入。虽然低薪但至少还有储蓄。在那同时，我也努力学习投资。在投资领域里我也跌到过。但我从错误中学习让我创建自己的投资模式。之后收入虽然增加，也因为结婚，生子，买屋，买车等等负担下，我还能存下至少四成的收入。控制花费，储蓄，投资与积极的财务管理让我在30岁时达到无债务，40岁时完成财务自主，47岁正式提早退休。因此，我还是真的不是很理解为何当下那么多的马来西亚人的储蓄撑不过三个月。

我认为国人应该留意自个儿的消费模式。当我在外走走时，我不会随意消费。但我观察到那些奶茶店却挤满了年轻人。他们面不改色的花超过马币10块钱来买一杯奶茶。我的眼镜几乎要掉了下来。我可以在普通咖啡店里用不到马币1.60喝到的奶茶，为何那些年轻人要多花超过10倍的数额购买？为何时下的人们愿意花千元换手机而不储蓄？说到底，不就是要跟潮流，要最新最好的，只为了一时的过瘾。其实我们只要在消费时三思，情况肯定会好转，想成为月光族都很难。就从今天开始，好好研究消费模式吧！

This Chinese article is sharing some information about 43% Malaysian's savings can't last for more than 3 months. I was shocked when I saw this report. It turns out that the savings of Malaysians are so small. What is the problem?

Twenty over years ago, when I was a fresh graduate, my salary was terrible. However, I did not waste my hard earned money. Careful consumption planning had make me saved more than 70% of my monthly income. Although my salary was low, I was still able to some some. Meanwhile, I also learned to invest. I failed in investment as well but I learned from my mistakes. This has make me to create my own investment model. Years after, even though my income increases, burden on marriage, childbirth, buying a house, buying a car, etc. increase, I still able to save at least 40% of my income. Continuous spending control, savings, investment and active financial management have allowed me to reach debt-free at the age of 30, financial free at the age of 40, and early retirement at the age of 47. Therefore, I still don't really understand why there are so many Malaysians don't even three-month savings.

I believe people should pay attention on their own consumption patterns. When I walk outside, I don't simply spend. But I observe that the tea shop was crowded with young people. They queue to buy a cup of tea that cost more than RM10 while I can have the same at RM 1.60 in a regular coffee shop. Why do those young people spend more than 10 times more for a cup of tea? Why people willing to spend thousands of dollars to change their mobile phones? In short, it is just to follow the trend for the moment of fun. In fact, as long as we think twice before we consume, the situation will definitely be improved. Start today and study the consumption model!

Life of Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Mon, 07 Oct 2019 03:29:00 +0000

During chatting, I ask my wife what I have changed after my early retirement. She says I have become friendlier, more smile on face and spend more time with the family. My kids tell me that I have become more patient. My observation to myself is that I walk at slower pace to make myself easy. No work pressure has make me to show my real heart on greeting with my neighbors and friends when meeting each other. I strongly believe that relaxing mindset and feeling happy are keys to remain healthy.

It is true and rather sad to say that I have less friends after my early retirement. Those so-called good friends at work are no longer with me after I quit. Fortunately, I still have my family. My friends wonder how I spend my ample time. I say I just do whatever I like to do such as reading, playing around with my plants, watching favorite dramas & movies, assemble GUNDAM models, traveling locally & overseas and many more. My friends say that they can't stand for this kind of "BORING" life. To them, spend time on hobbies for the whole day is just too dull. Obviously, in short, their life is rather testeless since they don't have any faith on what they like to do (some of them don't even know what they like to do) while keep complaining about their full time job.

I have been retiring for almost eight months and have no intention to go back to work as I have been enjoying my retirement life. In a normal day, I wake up at 6am. I water my lovely plants and go out for morning exercise at 6.30am. I do muscle stretching after 5 km running. Fresh air and sweat make me feel great. I return home at 8am, do some house cleaning before making shower and having breakfast. For the rest of the day, I do research, write blog, watch dramas/movies, read, play around with my lovely plants, build models, cook for my family, shop with my wife and the list goes on. I also spend time to plan my next trip when I have free time.

You might think that all of the above need money. I keep spending my reserve and wonder how I am going to survive in the rest of my retirement life. My key success factor is that my frugal lifestyle has allowed me to accumulate sufficient resources to sustain my lifestyle during my retirement. Being frugal means spend on life essentials and think twice before use my resources on wants. Spend on wants need to be carefully planned and budgeted. To me, a life without wants is just too boring.

Another factor is that I quit when I have sufficient resources for retirement. Sufficient resources are not only on my financial backup but also the ability of my backup to generate income. To me, keep working for more money carries no value for life. Continue working allows me to have more financial resources. However, without spending them, these resources are totally meaningless. Based on my observation, most working adults who have been working and saving hard for life end up spend their savings in the hospital. This is because hard work has deteriorate their health. Some of them might regret that they have loss their chance on enjoying their life because of illness.

Therefore, quit the job you hate when you have sufficient financial resources if you can and do other things you like before it is too late.

After Thought After Reading "Quit Like a Millionaire"

noreply@blogger.com (LAI SENG CHOY) — Fri, 06 Sep 2019 02:20:00 +0000

In early August 2019, when I was browsing a book catalogue of a local famous bookstore, I came across an introduction of the book which as shown over the left hand side. Even though I have achieved early retirement for more than half a year ago, the introduction of the book in the catalogue still make me to buy this book.

The book author is from China and currently staying in Canada. Her poor family background has caught my attention on how she able to survive in high cost city in Canada. She hated her unpleasant full time job and wanted to quit as soon as she can. She, together with her husband, able to retire at the age of 31 with a net worth of $1 million. The author explained all these at the beginning of the book. In this review, I would like to pick up some points to share and discuss.

First, it is interesting to know that the book author doesn't advise fresh graduates to seek for job according to their passion (yet). In order to accumulate retirement fund sooner, the book author suggests that we must understanding whether the future job is able to give us positive return with reference to tuition fees we have paid. The author provides a formula and suggests fresh graduates to go for jobs with the highest POT (Pay-Over-Tuition). I strongly suggest you to play around with the formula. I did and the result caught me in surprise that how I was seriously underpaid at the initial stage of my employment which has resulted delay in my early retirement for years. Even so, with the knowledge of financial planning, I am still at a better position as compare with my peers who are still work hard for living.

Second, same as what I have been advocating, the book author also suggests to take care of your finance by yourself instead of letting the so-called experts to do so. Reason is simple. Those experts carry no responsibility on your loss while they are sure get paid no matter what the investment outcome will be. The book author is also advising to avoid high cost managed funds but index fund such as passive ETF due to cost concern. Lower the cost, higher the return. Unlike in the US, here in Malaysia, Bursa Malaysia does have a few ETFs listed but are not actively traded. Less active ETFs trading means you might not able to buy and sell freely as you wish. To me, this is an handicap. That's why I am still opting for investing in individual blue chips with solid financial background along with handsome dividend payout. The trick is to buy them when they are cheap. In a longer term, I earn both capital and dividend gain.

Third, the author subsequently share 4 Percent Rule to generate how much do we require to retire. This rule is assuming that a retiree starting with a bucket of cash and withdraw 4 percent from his/her portfolio every year and leaving the rest invested and 95 percent of retirees able to end up with balance of money by the end of his/her retirement. In other words, if "4 percent of your portfolio matches your living expenses, you have 95 percent chance of making it thirty years without running out of money" (page 163). In short, all you need to do is to use your yearly essential expenses over initial total fund available during the year. Should your result is less than 0.04 or 4 percent, you are 95 percent sure you will not run out of money for the next 30 years. Well, mine one currently is about 3 percent. It is a lot lower than 4 percent. So I am not so worry about available fund and continue to enjoy my retirement life. One point to note is that my own initial fund used has excluded provisions which are yet to be utilized. Yes, these amount are in my account and yet to be used. In order to know how my tough is my fund's ability to meet retirement requirement, I have excluded these provisions from my initial fund. Despite of doing so, the result is at 3 percent which means I have a peace of mind during my retirement as I have sufficient cash to fund it.

Now, even you meet 4 Percent Rule, you still face a 5 percent chance over the risk of out of cash. The book author suggests Yield Shield and Cash Cushion. In short, it is a matter of having buffer cash. Based on her experience, the worst market downturn in 1920s took 5 years to recover. By using her formula, you should know how much you need to have this cash buffer. The book author invests heavily in ETF which might not perform well during market downturn and she uses Yield Shield and Cash Cushion to avoid her to be out of cash for living. To me, no matter what, emergency buffer is required no matter what situation we are having. Keep your emergency buffer liquid is the key.

Forth, another interesting suggestion by the book author is that she able to get paid to travel. What she has been doing is to travel to developing countries with relative low living expenses than where she is staying (Canada). She realizes that, by doing so, the traveling expenses could be lower than the instance of without traveling. Well, to me, this could be true. However, I am staying in a developing country, where could I travel then???

Last, but not least, the author advises that we do not need life insurance anymore should we attain early retirement. It is true but she did not explain that how about in case of illness which may eat out our savings. Therefore, you could kick your life insurance out when you are able to retire early but not critical illness insurance.

As a matter of fact, the key success factor for the book author to be able to retire at the age of 31 is her frugal mindset and lifestyle. Low living expenses has resulted in relative lower retirement fund requirement. Live with your needs with less wants is the key. This is what I have been strongly suggesting.

Above are just a few points I pick up to share. The book is easy to follow and gives fresh suggestions and ideas, unlike those standard and boring finance books. Happy reading.

到底为什么？ What is happening?

noreply@blogger.com (LAI SENG CHOY) — Tue, 20 Aug 2019 03:44:00 +0000

载自新洲日报投资致富2019年8月19日第24页

看到这标题体，你有什么感想？你是否也面对同样的窘境，甚至有过之而无不及？

就一般而言，我们必须拥有至少三个月的生活费的值作为紧急基金。重点来了。何谓生活费？这必须包括衣食住行的基本需求但不包含不必要的花费。如果能累计到六个月的生活费的值那会更好。但以此文章而言，看来半个月的需要都拿不出来。为什么呢？这只有从你的日常消费来找出个所以然。除非你有记帐的习惯，要不是不可能完成的。

从日常帐目中，寻找那些没必要的消费。小心研究是否可以避免或减少。我的建议是那些适当有意义的消费（如旅游，親子，家庭聚餐等等）可以加以控制。若因为省钱而完全没适当的娱乐，人生也没什么意义了。

再来就是债务重整。在债务方面，你必须务实。尤其必须避免无意义的债务（如信用卡）。在来就是如何尽快解决大债务如房贷。唯一能做的就是能够存多少，尽可能将房贷尽早缴清。我个人就是用这方法将房贷在五年内缴清。在这五年里，我的确过得很清寒。但对我而言，辛苦也不过这五年。而且当时我还年轻，也没家庭负担（还没成家立室）。所以，我建议那些还没结婚成家的年轻人，就让你的年轻吃点苦，以后的日子也会好过些。我就因为在31岁时已将房贷供清，下来我便可以专注在财务累计上，才能成就我今日的财务自由，才能做回我自己。也就是说，时间绝对是你财务成功的朋友。越早开始，成功地几率就越大。

我身边有许多朋友到了我这年龄，都羡慕我能这么早得到自由。我反问他们当我在年轻时为房贷缩衣简食时，他们在干什么？他们说在享受花费带来的快乐。这就是因。现快乐，辛苦就随之而来。中国人有一句话说得好：先苦后甜。我对这句话深信不疑。

现在就别再没方向了，快点设定你的财务目标，划定你的财务路线图，脚踏实地去执行吧！

This Chinese article is talking about an average American can't even take out RM1,680 (US$400) immediately if required. What do you think about this? Are you facing the same dilemma, or even worse?

In general, we must have a minimum of three months of living expenses as an emergency fund. What is the cost of living? This must include the basic needs of food, clothing, housing and transportation but exclude unnecessary expenses. It would be better if you could accumulate the value of living expenses for six months. But in this article, it seems like average American can't even take out half a month's needs. Why? This is only can be found out from your daily consumption. You could only complete this by having the habit of tracking your expenses.

From the daily expenses records, look for those are not necessary items. Carefully study whether they can be avoided or reduced or not. My advice is that appropriate and meaningful consumption (such as travel, family gathering etc.) can be controlled. If there is no proper entertainment for the sack of savings, life will become meaningless.

Then there is debt restructuring. In terms of debt, you must be pragmatic. In particular, it is necessary to avoid meaningless debts (such as credit cards). It is important to reduce huge debts such as mortgages as soon as possible. The only thing that can be done is fully utilize how much you saved and pay as much as possible for the mortgage as soon as possible. I personally use this method to payoff my mortgage within five years. During this five years period, I lived frugally. But for me, I only suffered in that five years. Further, I was young and I didn't have a family burden (I was yet to get married). Therefore, I suggest young people who have not yet married to work hard for your better future. I have already cleared my mortgage at the age of 31. Therefore, I can focus on the financial accumulation. This is how I achieve my financial freedom today and be my own. In other words, time is definitely a friend of your financial success. The sooner you start, the greater your chances of success.

Many of my friends with similar age are envying me able to be free so early. I asked them what they were doing when I was a young and focusing on clearing my mortgage. They say that they enjoyed the joy of spending. So, this is the cause. There is a Chinese proverb that says work hard now and enjoy later. I am fully convinced on this.

So set your financial goals, draw your financial roadmap, and implement it at no time!

Half a Year after Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Thu, 15 Aug 2019 02:48:00 +0000

For the past one month, I have been busying on sending my father for medical follow up. We had spent lots of time on getting information on his illness and the doctor suggested for an operation after 1.5 months of medication and following up.

The medical cost is huge while my father doesn't have any H&S insurance coverage. We have to pay the whole sum by ourselves. Another issue is that the said operation is an major operation. His old age has make us worry about whether he could manage it or not. In order to have a clearer picture, we decide to seek for 2nd opinion. Therefore, I sent him to another hospital to seek for advise from another specialist doctor.

After investigating his condition, the doctor also suggested an operation. Beside this, the doctor detected more problems which were not found by the previous doctor. The doctor suggested for an immediate operation as the condition was quite severe. The doctor could not understand the reason about the previous doctor action on not having immediate operation but only medication while only suggested for an operation after 1.5 months. Well, we couldn't comment on this as we are not doctors. We feel fortune since we decide to seek for 2nd opinion.

The operation commence two days later and my father had discharged six days after. Of course, the road of recovery is still long as series subsequent medical follow-up is required.

From this incident, I realize the following:

Always have your H&S insurance ready. You don't have any idea when you will need it. The medical cost nowadays is just too huge and not everyone could afford it. Get your H&S insurance when you are healthy. Your premium will be a lot cheaper. If not, you might not even able to get one if your health condition is getting worse.
Always seek for 2nd expert advise for major issues. Have a cross reference on their comments to help you to make a better decision.
Since I have retired early, I have more time to help my parents for their medical follow up. I even look at it in another angle, on the other hand, I have more time to get around with them before it is too late.

Critical Success Factor #1 on Achieving Financial Freedom: Control Your Expenses

noreply@blogger.com (LAI SENG CHOY) — Thu, 18 Jul 2019 02:05:00 +0000

There are two critical success factors to attain early retirement:

Control your expenses
No debt

Today, I will like to talk more about factor #1.

The expenses I talk about here is your daily essential expenses. How to define essential expenses? Put it in a simple form, it includes spending on those items to keep you alive. You need a roof to rest but not a three storey banglo; you need basic clothes to keep you warm but not necessary a branded one; you need a transport to move you around but you do not need an BMW to do this task; you need foods to keep you out from starve but you do not need fancy foods.

First, live within your mean. Second, stretch your dollar to maximum to fulfill your essential needs as much as you can. By doing so, no matter how much you could save, invest it for your future.

One important act is to record down all your earnings and spending in one place. Work out your budget and keep track your actual outcome against it. Study the difference and how to make your action plan better.

The bottom line, if you could keep your essential living expenses low, your requirement to attain financial freedom will also be lower which you have less pressure to achieving it. In my book, "FREEDOM", I share how I do my own budget, record and tracking. Feel free to let me know if you need any clarification.

Five Months after Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Thu, 11 Jul 2019 03:22:00 +0000

Time flies. I have early retired for five months.

For the past one month, I was busy on taking care of my parents. Old age has been deteriorating their health. My father admitted hospital and managed to be discharged two days later. These incident has enhanced my belief on maintaining good health. I have been maintaining a good lifestyle by:

Having a good rest for at least 7 hours a day
Having regular morning exercise (5km jogging plus muscle stretching after exercise) for at least an hour a day
Trying hard to maintain good mood and relaxing mind. I am an easy panicking person. I have to keep reminding myself to do so. It has been getting easier since I quit my full-time job
Doing what I like to do - gardening, reading, watching favorite movies & dramas, chit-chating with family members, learning new languages and skills ....
Traveling around while I am still able to before it is too late

By doing all of the above does not means that I'll be able to keep illnesses away but I am doing my best to avoiding them and minimize the chance of meeting them. Preventing illnesses is more effective than curing them. Further, maintaining good health will create less hassle to my family members.

Last night, before I went to bed, I received a message from my friend that one of my good friends had just passed away. He was only 39. To me, he was very young, looked healthy and worked hard on his own business. May be busy lifestyle has affected his health while he had no idea about it. Yesterday, he fainted when having lunch and passed away at night. Reason of death is under investigation. I was shocked and sad. This further tell me that life is short and unpredictable. Everyone of us has to prepare for this before we regret. Most importantly, we have to get our WILL and after life arrangement ready to ensure our love ones are well taken care of.

On financial side, my passive income are promising while my expenses are well controlled against the plan. There is no financial burden or worry to me.

Few days ago, I cleared one of my REIT holdings. The reason of disposing is that I observe that one of its major corporate share holders keeps disposing its holding to the public. The occupancy ratio of this REIT has been decreasing year on year but it pays handsome dividend. I had hold this REIT for more than 8 years but disposing action by a major share holder catches my attention. Since I unable to obtain relevant information, I decided to clear my position. The reason is simple: if it is a good potential REIT, why its substantial shareholder want to dispose their holding? For this holding, I have collected back my investment cost years ago and received dividend without any concern on market movement should its fundamental is still intact. But substantial shareholder's selling has make me doubt about this. I have decided to clear my position and stay at the sideline to observe.

So far, I am yet to have any intention to enter the workforce again. I really enjoy for being a free man. But it is true that I have difficulties on getting friends for a cup of coffee as most of them are still working for life. Well, I have to get use to this at least for the next 12 years or so.

Four Months after Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Tue, 11 Jun 2019 02:40:00 +0000

Today to be marked as full four months after my early retirement. I just completed my financial review recently and glad to see that my income is higher than while my expenses is lower than my plan. This means I am in a better position even without active income.

As a matter of fact, when I did my plan, I purposely lowered down my income with relatively lower rate of return on investment while I assume I spend everything I plan. Since I have been following my plan thoroughly with frugal lifestyle, I am not surprised with better financial performance against my plan.

Now, there are two external factors that I have totally no control them. First, Malaysian stock market is not performing well.

FBMKLCI ended with 1691 points in 2018
It reached a high of 1655 points on Feb 21, 2019 and
It trended downwards to 1598 points on May 24, 2019
It ended at 1651 points on May 31, 2019
It is now standing at 1655 points as of June 10, 2019

What can we see here? Generally speaking, it has dropped 40 points in the first 5 months of 2019 or 2.4%. It had a roller coaster ride with a general downtrend. To me, it is not a good time to invest. Therefore, I stay at the sideline to observe invest opportunities. As for my current holding, as they are all at zero investment now (high yield has effectively offset my investment cost years ago) and continue generate impressive dividend income for me, I have no intention to clear my position as well.

The second external factor that has changed was risk free interest income has become lower since the announcement of reduction of Overnight Policy Rate (OPR) by 25 basis point by Central Bank of Malaysia on May 7, 2019. To retirees, this has been translated into lower saving deposit return. So far, this does not affect me as I have considered relative lower rate of return during my plan while current bank rate for fixed deposit is still higher than my plan. I need to continue to search for higher possible rate from time to time. Should the rate of return to be lower than my plan, I still have sufficient buffer to offset this impact, according to my plan.

In short, I have considered sufficient cushion of offset any potential uncontrollable risks before I decide for go for early retirement. Risk consideration is a must when doing a plan. Too optimistic might make you have no room to move.

OK, now we move on to something with more fun. For the past four months, I have been filling up my time with:

Reading - This has occupied most of my time. I have been rereading some of my previous collections, mostly novels. During the rereading, I see something I omitted previously. May be because I am not in a rush to finish them. Meanwhile, I don't read financial books anymore but to observe financial update from the newspaper. While reading, I also plan to resell some of my financial books collection with discount.
Watch dramas & movies - I might spend about 2 hours a day the most for this when I want to. Sometime I break my watching into a few session when I feel tire. It is totally up to me while I totally had no time for this when I was an employee.
Take care of plants and have time to learn how to make them looks better. I am yet to see a good result but still working on it.
Play guitar and ukulele. I play and sing along when I want to. I spend about 15 to 30 minutes a day for this.
Sing - I get a membership at a karaoke so that I could sing along with my family when I want to with discount.
Traveling - I drove to Kuala Lumpur in March. In May, I just completed my more than 1,400km drive to visit Teluk Intan, Sitiawan, Ipoh, Gopeng, Kampar and Klang.

There are more activities to come. Life is short, I want to play hard.

晚年经济独立 Being Financial Independent during the Golden Age

noreply@blogger.com (LAI SENG CHOY) — Sat, 08 Jun 2019 03:02:00 +0000

新洲日报大霹雳 2019年5月18日第15页

老实说，我从来都不相信养儿防老。因此，我的信念是不要给孩子们增添烦恼，我们俩老自个儿照顾好自己就好了。我们的规划是供养孩子们到经济独立或至多25岁。至此之后，在钱财方面，我们不会烦他们，也希望他们也别烦我们。

也许大家会觉得我好像不尽人情。其实，只要我们俩老不因为金钱而麻烦他们，好让他们能更好的管理好自个儿的家庭已是给他们最好的礼物了。若到了自立的年龄还指望俩老供养，是不是太过分了？我们俩老还要享受下来的日子。若他们有孝心，应该不要因金钱过来烦我们俩老。所谓谈钱伤感情。只要他们日子过得好，也就是给我们最好的报答了。

要做到晚年经济独立，年轻时的规划是绝对不能少的。我的规划是从我25岁时开始的。我是边规划边学习。重点是要有一个精确的最终目标。下来要做的就是画出路线图前往目的地。此图就是所谓的计划书。画出图后，还必须实践，不要只是纸上谈兵。跟着路线图走的时候需不时检讨路线是否实际并适时调整以确保在指定的时间内到达终点。这就是整套的财务规划。说难不难，说容易也不见得。最难得地方在于自律。许多人就败在这里。当你不能自律的跟随方案进行的话，还谈什么成果。下来就是不愿意学习。财务管理和投资都需要学习。学习过程中难免会有错误。这时以其灰心，不如自我检讨，从错误中学习才是前往成功的不二法门。

那你们开始了你们晚年经济独立计划了吗？

This Chinese article is talking about being financial independent during the golden age. For some parents, they believe that their kids will take care of them when they are old. As a matter of fact, their kids will face other life difficulties as well.

To me, I never expect my children will take care of us. My belief is that we, as parents, will provide them financial support until the age of 25 at most. By then, we will not ask for financial support from them as we hope that they could put more effort on settling down their family. If they success, this will be the biggest gift to us.

To be financial independent during the golden age, you have to start your financial plan as early as possible. I started mine at the age of 25. I learned and practiced at the same time. The first time you need to have is where you want to go and by when. Subsequently, you have to draw a roadmap to get to your destination. Your map will be useless without action. You also have review your progress against your roadmap and make necessary adjustment to ensure you will arrive your destination within the stipulated time. This is the whole financial planning about.

It is actually not that difficult. However, people fail mainly due to lack of self discipline. If you can't even follow your roadmap, don't even talk about success. Also, if you unwilling to learn, you will also not get what you want. The whole process is talking about mistakes and learning form mistakes. By doing so, you will be able to fine tune your route to make sure you reach your destination.

Have you started your financial plan for your old age?

3 Months after Early Retiremeent

noreply@blogger.com (LAI SENG CHOY) — Mon, 13 May 2019 04:03:00 +0000

Some of my friends told me that I would be bored three months after retirement and soon I would look for a job again. Now, 3 months has passed, I don't even have any feeling on going back to be an full-time employee again. This is simply because I very much enjoy my time being filled up with various activities such as having daily morning exercise, having my each meals slowly, taking care of my plants, slow reading, learning Japanese and Hakka, watching my favorite dramas, tutoring on my kids school subjects, helping my wife on house work and cooking, shopping around with my wife during weekdays...(the list goes on). What surprise me is that I only realize that I have so many activities when I am writing this.

Recently, I have dig out my long lost-touched guitar. After replacing the broken first and second strings, I started to play with it a week ago. Since I could only play simple guitar music, I would like to learn more on guitar playing skill at the lowest possible cost.

My wife even suggests me to learn ukulele as well since my son has one which has been kept in his cupboard for years. Why not? To me, ukulele is another small scaled guitar with 4 strings on it. However, it is really too small which, sometime, I have problem to put my left fingers on it while playing. However, I would like to take this challenge since I have time to learn and practice. Most importantly, I am interested in it.

After days of playing, my left hand fingers are aching. I know this is normal as I have not played guitar for more than 30 years. I am sure that I will get use to it sooner or later.

In short, after deducting 8 sweet dream hours, 16 hours a day is insufficient for me to do what I like. I am so busy that I really don't have time for a full-time job :)

Without work pressure, I started to think about whether I still need medication on controlling my blood pressure. I know long term medication is not favorable to my liver and kidney. Worst still, by simply pulling down blood pressure blindly without knowing the cause might result in organs malfunction due to insufficient blood supply to sustain my lifestyle. Therefore, I start to wonder whether I could control it myself or not. I know I am an easy panicking person. Anxiety is the main root cause on unfavorable blood pressure. My blood pressure especially abnormal when I was at work (under great pressure) and clinic (panicking). Since a month ago, I start to closely monitor my blood pressure without medication. The result is encouraging. So far, my blood pressure reading without medication is about the same as the period I had medication. I shall continue to closely monitor it. To maintain a reasonable blood pressure, I must ensure that I maintain my current BMI, which is 22. To keep this, I must exercise regularly which I have been doing it for 6 days a week, at least an hour a day. I also dining at home most of the time to minimize the chance of taking too much unhealthy outside food. Most importantly, I must try to relax myself which I am working on it.

To escalate family value, I am also planning to travel along the west coast of peninsular Malaysia with my kids and wife. This will be my another self drive family trip. As this is a free and easy trip for us the get along, we have total control on our time and place to go. I am looking forward on this family trip.

Life is short, play hard. :)

Health or Wealth, Which One Would You Choose?

noreply@blogger.com (LAI SENG CHOY) — Sun, 05 May 2019 04:12:00 +0000

Money is important. Without money, we can't even meet our basic needs nowadays. That is why we all work for money in order to survive. We work so hard that we fully utilize almost every awake minute to earn. So hard until we have no idea that we have gradually deteriorated our health. Here comes a question, is it worthy to forego health for wealth?

Health and wealth are not necessary positively correlated. Say if you are doing a highly pressurized job. You are well paid and you have your life commitment to fulfill. You work day and night and are so busy until you don't have time to relax yourself. Sooner or later, your body starts to give you signals with the hope that you could slow down. Due to job and life commitment, you have decided to ignore those minor signals and continue your hard work. Your body, soon after, increase its protest strength in order to have your attention. These symptoms has affected your job performance and you have no choice but to seek for medical advice. Unfortunately, most of the medical doctors do not seek for the root cause of these symptoms but use medicine to remove these symptoms. This is terrible. Symptoms removal does not mean your body is cured. Without any symptom, you continue your life style as usual until one day your body collapse. By then, you might be wealthy. But, losing health has make you unable to enjoy your wealth. You might be regret by then but it will be just too late.

To me, health is invaluable. No matter how wealthy I am, I just can't buy my health if it is gone. Therefore, before it is too late, I have to do something. I have to strike a balance between my job and health. Personally, my blood pressure had been increasing for years but I opted to ignore it until it was too high and I was shocked. I went to my family doctor and, without detail investigation of root cause, they gave me medicine to control my blood pressure. As a matter of fact, the root cause of my hypertension was the result of high pressurized work. Anxiety and panic lifestyle had result my mind always at high tension stage, even during holiday with my family. I had been trying to divert my attention in order to try to relax myself but failed.

Since I have attained financial freedom, I decided to quit my job in order to enjoy my life while I am still able to before it is too late. Without work pressure, my blood pressure is stabilizing without medication. So, now, I get a peace of mind while having lots of time doing what I like.

My advice to you is to take care your health as much as you can. Strike a balance between work and health. When body gives you any symptom, pay a good attention on it and seek for the root cause and the way to cure it totally but not only on surface by removing away those symptoms. Symptom removal is just a way to cheat yourself. You are responsible to your body. Your health is so important so that you could minimize the risk for you and your family. Bear in mind that as long as you remain healthy, you still have chance to earn what you need but it will be difficult if it is on the other way round.

Maintain your health now. Control you diet; exercise at least 3 time a week, each time 30 minutes; control your negative thoughts and try to release it as much as you can. Accumulating negative thoughts will affect you moods and feeling which, in turn, will affect your body function sooner or later. By doing this doesn't mean that you will be immune from any sickness but, at least, you have done your best to minimize the chance of occurrence.

2 Months after Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Thu, 11 Apr 2019 06:01:00 +0000

It has been 2 months after starting of my early retirement. There are some significant changes over my life which I would like to share in this post.

First, my life focus has been gradually diverted from boring & pressurized daily full-time job to life enjoyment. When I was still an full-time employee, most of my day time had been occupied by my then employer. Of course, this is a must according employment contract. Each and everyday then, after a-day work, I was so exhausted. I didn't have any mood to enjoy the rest of my day as my mind was still filled up by work related issues. I still had to consider solutions of those issues even though I was already so tired. I couldn't sleep well due to anxiety. This was really torturing and my health had been affected.

After early retiring for two month, what are the changes to me?

I have been able to sleep well since then as I have no worry about job burden and responsibilities. It is really a great release.
I also have mood for going out with my wife for groceries or window shopping at hypermarket or shopping center. I really enjoy the time being together. Be frank, no matter how good I was and how high the position I had then, nobody care about me after I left the company. I am nobody but myself. Don't even think about my so-called good friends in previous company will keep it touch with me. Forget about them. I have to live by my own. Now, my "best friends" are my wife and kids. Sooner or later, my kids will leave us after growing up and there will be only my wife and myself then. This is the fact and we are preparing to accept this soon coming empty nest.
I start to buy clothes for myself which I very seldom did it in the past twenty over years. For the past, I could buy a shirt and wear it for subsequent ten over years as long as it was wearable. I had no concern so much how I was looked. Now, when I look back, I feel rather ashamed for wearing old worn-out shirts when going out. I have totally no idea how did to tolerate this. As I have more time after early retire, I have been visiting shopping center during week day when there are less crowd and my wife and I able to try out all sort of shirts that we prefer with pleasure without pressure. This feeling is really wonderful.
When I am not traveling, I take care of my plants and flowers each and every morning. I fertilize them and see them grow. The satisfaction is very difficult to be described in words. When I am not around, I ask my neighbor to water my plants. Yes, I have time to maintain good relationship with my neighbor via greeting and chit-chatting.
During family holidays, I do not need to check and reply any work related emails or pick-up business calls. I fully immerse myself in family trip fully without any work distraction.
I spend more time to chit-chat with my wife and kids. I understand their thinking more with this easy conversation before and after dinner. We enjoy the time being together.
I still wake up early, not for work but exercise for an hour. When I jog, I able to enjoy the sightseeing around and greet with other exercisers. Some of them have become my good friends. Together with healthy diet, my health condition is getting better and better.

In short, up-to-now, I feel happy and younger with this healthy lifestyle. The feeling of without work pressure is really great. I truly enjoy it.

Things to Look into Before You Quit Your Full Time Job to Become A Free Man

noreply@blogger.com (LAI SENG CHOY) — Mon, 01 Apr 2019 00:00:00 +0000

It took me years to finalize my decision to quit from my full time job. You might think that I should not have any worry as long as I am financially ready. As a matter of fact, there are also others areas I need to look into before I am ready. Here I would like to share my experience about things to look into before I make such decision.

1. After quitting my job, I own my time. So, how shall I utilize my time? Well, this is a very personal question. To me, quitting job doesn't mean I have more time in front of TV and do nothing but to create more personal values. In other words, I'll rather spend more time to do what I like to do, such as get around with my family, gardening, reading, writing blog, road drive, building Gundam models, teaching Stock Investment, study a new language and many more. Yes, I'll make my life meaningful that creates happiness and enjoyment. In return, I'll be busier, happier and healthier.

2. As I don't work anymore, I'll not have business card to show who I am. I have no designation as I don't work with anyone anymore. In case of doing any application or having greeting with the others, how should I express myself then? I've been thinking about this as I might feel embarrass if I express myself as an "Unemployed" or "Retired". I don't think "Unemployed" or "Retired" are suitable description anyway. When googling the work "Unemployed", it explains that this term is applied to a person who is "WITHOUT A PAID JOB BUT AVAILABLE TO WORK". As for me, my scenario is that I quit the paid job and just don't want to look for any other paid job anymore as I don't need to. Instead of saying I am an "Unemployed", it will be better I describe myself as a "Freelancer". It is applicable as I am free to do activity I like as mentioned earlier. What I am doing are purely according my interests but for the interest of the others and definitely not for income. I am the owner of myself.

3. I have been working, saving and investing for years to attain financial freedom. Now, this day has finally come. Adjusting my daily living fund could be tricky. I have to do my long term budget in order to decide how much I should allocate my funds for short, medium and long term. These budget figures are not just plugged from the air but based on years of income & expenses recording. From there, I'll have a clear idea how much do I need for each essential category and respective personal inflation rate. In this case, my budget will be more realistic and justifiable. Since I don't have active income and I don't have to risk my fund for higher return, I put these funds into short, medium and long term fixed deposits accordingly in order to get stable return within my calculation. I'll have a peace of mind instead of sleepless night. You may wonder whether FD return is sufficient to offset my personal inflation. Well, FD is only one out of many investment vehicles. I have spread my investment in high, medium and low risk categories with different ratio. Since I don't have active income now, I will increase the ratio in low risk category while the overall return of the portfolio is still able to offset my personal inflation rate. This could only be done if you keep recording your income and each and every detail actual expenses.

4. My parents and friends might think that I am so "stupid" to quit a high-pay job. To them, money is everything. This is what they are thinking but not me. I have my own reasons to make this decision. I have no doubt about my belief. I am not easily shaken by the others since they are not at my position. Only I know what I want and only I could decide what is the best to me. What the others are thinking and saying has nothing to do with me. My decision is to make me happy and I have no concern about what the others are thinking.

5. I have other things that are more valuable than money, especially on my health. No matter how much I am willing to pay, I just can't buy my health if it has gone. Nowadays, modern lifestyle, busy work schedule & work pressure along with lack of exercise are diminishing our health day by day. If I continue to do so without proper handling, my health will go away sooner or later. By then, no matter how rich I am, doctor will be my best companion and I just loss my chance to enjoy my life and this wonderful world. Regret by then will be just too late. Do what I like to do when I can before it is too late.

6. It is true that I have no active income and my savings is reducing for being a Free Man. I can't see active incoming fund anymore after I quit my full time job. It is also true that my available fund is reducing everyday. I have to plan my existing fund carefully so that the money is flowing (incoming and outgoing) according to my plan. Basically, I am maintaining my current living standard even without active income. I do live frugally. But being frugal doesn't mean that my life is dull. I have what is necessary. I still subscribe optic fiber for fast internet access and internet entertainment while my family has no problem on simultaneous internet access. I still own home theater system so that I could enjoy musics or movies I like whenever I want to. I still keep and maintain two cars for ease of travelling and safe driving. The list goes on ... In short, being frugal is not being stingy but just own what I need at reasonable cost in order to have an enjoyable life after quitting paid job.

7. Pressure is still around even I am a Free Man. As can be seen from all of the above-mentioned, I have to make sure I work according to my plan. It is important to have workable plan to guide me. Without a plan will be just like a kite with a broken string which it will fall down when the wind is weak. To us, our life will be miserable if we spend deliberately without active income and proper control. We still have to control our spending and life according to the plan or else we have to look for paid job again (to work for others, not ourselves) in order to survive. The choice is yours. Of course, to me, this pressure is really a peanut as compared with work pressure which you have suffered and no one appreciate when you have settled the problem while being accused if you failed. At the end of the day, you are paid with poor body condition due to unpleasant pressure.

Above are just my sharing. It doesn't mean that you should quit if you have done this. Quitting or not is your personal decision and you are accountable to it. Plan carefully before you put your quit. Hope you will have your Free Man lifestyle soon. Cheers.

Myth of Your Personal Net Worth

noreply@blogger.com (LAI SENG CHOY) — Fri, 15 Mar 2019 04:39:00 +0000

Do you know how much do you worth? Your net worth is the same as a company's balance sheet. It is as simple as the difference between Total Asset you own and Total Liability you owe. A positive figure means you own more than what you owe or vice versa.

Now, the tricky part is: Do you analyze what you own? Assets consist of Liquid Assets (such as cash, bank accounts, checking accounts, stock investment and others that are easily be converted into cash) and Non-liquid Assets (such as Real Estates, Businesses as well as others that are unable to be converted easily into cash). You may be worth multi-million as you are holding relatively large portion on Non-liquid Assets at current market value. Provided these Non-liquid Assets are generating cash flow or else you might face difficulties if you need huge amount of cash in short period of time.

It is indeed true that a person's net worth could be inflated very fast should the person is holding a few good Non-liquid Assets such as houses, shop lots, condos or apartment due to revaluation of these properties according to current market price against purchase price. Provided there are willing buyers on these properties, the figures are only on paper. The person can't liquidate them easily as time is required to look for buyers as well as carry out buy & sell proceedings. Therefore, say a multi-millionaire with substantial Non-liquid Assets and limited Liquid Assets, he/she might still have tough time to meet living requirement for long term without active income. Therefore, creation of passive income is crucial here should you want to get out from the rat race.

The passive income from Liquid & Non-Liquid Assets could be as follow:

	Liquid	Non-Liquid
Passive Income	Dividend (net after all taxes)	Positive Rental Income (net after all expenses)

That is not all. Another thing you need to do is to divide what you have received against your capital invested in order to get the yield. You have to compare this yield against risk-free investment vehicle such as fixed deposit rate. Due to higher investment risk involves, this yield should be higher than fixed deposit rate. Take an example, say fixed deposit rate is 4% p.a., the yield should be at least 5% p.a. or higher in order to offset the risk you face.

Say everything is going well, next you have to evaluate whether your passive income is sufficient to support your lifestyle requirement. If not, you could only work harder to save more money to work for you or lower down your lifestyle. The decision is yours.

Now, do you get the picture? A high income earner or high net worth individual is not necessary to have sufficient passive income for comfortable retirement. The key is how much cash flow could his/her assets generate for him/her.

My Friends' Response on My Early Retirement

noreply@blogger.com (LAI SENG CHOY) — Fri, 01 Mar 2019 00:00:00 +0000

I was in very low profile on I resignation. My friends who know understand that I have my own way on financial management. Normally, everyone can see that I am different from the others on handling monetary issues. Because of this, my friends sometimes like to get my consultation on financial questions. However, if they unwilling to reveal more information about their financial status, I could only share general advice. Because I share my personal experience which are somewhat different from what they generally precept, they normally deny my advise. I recognize that there are three types of learners during my sharing:

The first type - humbly learner: they tend to digest what I've told and sort out where they don't understand. In many cases, such learners will ask more and even ask how to proceed;
The second type - unintentional learner: they tend to give many reasons and excuses on why my method does not work for them. Of course, I just share general experience as I don't know his/her financial situation;
The third type - self-righteous person: they tend to be a bit ironic to say I am wrong

I, of course, enjoy with the first type learners. This is because I also like to communicate with different people to exchange ideas. I am also happy to learn what they have seen and heard and share with each other. In many cases, everyone will be benefited. When I encounter such learners, I am also willing to become a learner as well. When this type of learners know that I am going to retire early, they were so extremely envious of me. I become their mentor. It is rather pity to realize that there are very few of such learners.

The second type is the one I most often encounter. My observation is that such learners are very good at retreating. They will say a lot of grandiose reasons or excuses that my approach won't work for them. Usually I hear excuses such as not having time to study investment, no money to invest, not enough money, and so on. These are all excuses for shirking. They just don't want to sit down and study the problem and find ways to solve the problem. It is no wonder that this type of learner will not see their future. When such learners learn that I am retiring early, they say that I am stupid on letting go stable high salary. For this type of person, life is based on money. Unfortunately, to me, their lives are meaningless.

The third type is mostly self-confident and knowledgeable learners. This kind of person will pin point me on my sharing, like an expert. In short, what they said must be right, and I must be wrong. Because of self-righteousness, there have very few friends. Everyone is escaping from them. If I really good for nothing, why I have attain financial freedom but they still have to work.

Anyway, finance is very personal. Only by understanding your strengths and weaknesses so that you could work out effective plan to achieve your financial freedom.

Keep it up.

我认识的朋友们对我提早退休的反应（非常有意思）

noreply@blogger.com (LAI SENG CHOY) — Fri, 01 Mar 2019 00:00:00 +0000

我在辞职时是非常低调的处理。认识我的朋友们都晓得我在财务管理有一套自己的方式。在平时，大伙儿都能看出我在钱财处理上和他们的不同。也因为这样，朋友们也不时想我请教财务上的问题。若他们不给于我更多他们的财务状况的话，我至多只可以分享一些表面上的管理建议。因为我分享的是我个人的经验，有些与他们一般所知的有些不同，他们会问我为何不“如此如此，这般这般”。我也乐意分享为何我不“如此如此，这般这般”。我发现在分享后，不同人会有不同的反应。基本上，我可以把他们分类成三大学习者：

第一类--虚心学习者：这类学习者在得到资讯后会在那儿思考或再理清不明白的地方。很多情况下，这类学习者会问得更仔细，甚至询问如何进行。孺子可教也；
第二类--无心受教者：这类学习者会说出许多理由和借口为何我的方法对他们而言行不通。那当然，我只是分享表面上的知识。我又不晓得你的财务状况，怎能对症下药呢？
第三类--自以为是者：他们便会略带讽刺的说风凉话或一笑置之

和第一类学习者交流当然是最愉快的。这是因为我也喜欢和不同的人交流以交换心得。我也乐意思考学习他们的所见所闻。很多情况下，大家都获益匪浅。遇到这类学习者，我也乐意变成学习者来互相学习。当这类学习者得知我提早退休时是对我极为羡慕。他们甚至以我为学习榜样。可惜的是这类学习者极少。所谓酒逢知己千杯少。我会非常珍惜这类的“稀有品种”。

第二类是我最常遇到的。我的观察是这类学习者非常善于打退堂鼓。他们会说出许多富丽堂皇的理由或借口说我的方法对他们而言行不通。通常我听到的借口如没时间学习投资、没钱进行投资、钱不够用等等。这些都是推搪的借口。他们就是不愿意好好坐下来研究问题所在并想方设法把问题解决。这也难怪这类型的学习者会看不到他们的未来。只是糊里糊涂的过日子。当这类学习者得知我提早退休时会说我很笨，放弃稳定的高薪而“吃老本”。对这类型的人而言，生命以钱为要点。可惜呀，他们的人生是毫无意义的。再多的善意提醒也无济于事。算了吧！

第三类大多是自认知识丰富，应该是我听他的，而非他听我的。这类人会对我的分享指指点点，好像专家似的。总之他们所说的一定是对的，我的一定是错的。也就因为自以为是，这类人的朋友极少。人人避而远之。如果我真的如这类人所说的一无是处，那为什么我已财务自主而他们还得工作呢？

无论如何，财务是非常个人的。所谓知自知彼，百战不怠。只有在了解自己的强与弱，才能虚心学习以扬己之长，补己之短。好高骛远、不切实际、自以为是只是用来隐蔽自己的无能。共勉之。

Two Weeks After Early Retirement - Commence of Enjoying My Fruits of Delay Gratificatiion

noreply@blogger.com (LAI SENG CHOY) — Sat, 23 Feb 2019 04:21:00 +0000

It has been two weeks since I stepped down from full-time job. In this post, I would like to share about the changes to me since then.

First, my sleep quality is extremely good as I have no worry about job burden and pressure as a then Senior Manager. Unlike old days, I feel very calm and relax each second of the day. My friends are also observing that I keep smiling along the way since my early retirement. The implication of this means that I am on the way on getting better health. In particular, I blood pressure has been very well maintained due to less tension. I do hope that I could have more black hair in the near future.

Second, I have ample personal time for hobbies. Each and every day, I spend about 1.5 to 2 hours to take care of my plants. I feel extremely excited when I see my plants blossom. I keep studying on how to grow them better and share my result with my friends.

Third, I have more time for reading. No rushing but just take my time to read. To me, reading is a source of life essence. I am not only learning but also to workout on how to make my life better. It is true that the cost of reading is high nowadays. Therefore, I start to go to library, look for secondhand books with discount or buy new books during bookstore sales.

Forth, I also spend time on watching movies and dramas. Even though I am not addicted to these but I am willing to spend some time for good movies and dramas which I couldn't have any during the old days.

Fifth, I like to sing even though I am not a good singer. I go for Karaoke with my wife as the charges will be a lot cheaper during weekdays which I absolutely couldn't do it when I was in full-time job.

Last, but not least, I am planning to travel around. I have friends start calling me to travel during non-school holiday period as the fare for flight and accommodation will be a lot cheaper. As long as it is still within my budget, I have no hesitation to go around when I am still capable to while I also happy to get around with my friends.

Life is short and it is time for me to "PLAY HARD". My term of PLAY HARD means to enjoy my life but not bury myself into full-time job that gives me tremendous pressure. I am now enjoying my fruits of delay gratification.