(Calvin Tan) Wealth Secret : Work for money in youth & let money works for you during retirement.

calvintaneng

Publish date: Sat, 23 Sep 2017, 12:54 PM

Dear Friends & Fellow Investors,

We should first work to accumulate money when we are young. Then we must channel our monies into investments & let monies work for you later.

Because of high inflation Cash in the Bank cannot cover purchasing power in the future. Those who depend on fixed income on retirement are at a disadvantage. As the years creep up they slowly sink into poverty. If someone retires at age 55 with a pension of Rm800 a month in year 2,000 - by today he is only 72 years old & Rm800 today is only worth Rm400 to Rm500 in real purchasing power.

Why is it so?

Cement was Rm10 to Rm12 a 50 kg bag

Now cement is Rm18 to Rm20 a bag

Up from 33% to 100%

Workers wages was Rm60 a day. Now Rm100. Up 66%

Houses in KL, Penang & Johor have gone up in price by 100% to 200%.

So how to retire on fixed pension of Rm800 a month today compared to year 2000?

That's why we must accumulate wealth by working for cash & then let CASH WORK FOR US LATER.

Cash in FD is a no no even if you have Savings. Bank FD at 3.5% has a P/E of 28.5 which is expensive as an investment.

3.5% cannot even cover GST of 6% now.

This is what a wise Investor said about Money:

Money with 4% yield is dead money.

2. Money with 5% to 8% yield is safe money (For Malaysia it should be at least 6% & above to be safe)

3. Money with 9% to 12% yield is healthy money.

4. Money with above 12% yield is Wealthy money.

Is it possible to achieve 12% and above yield? Yes, it is possible if you invest carefully.

Regards,

Calvin

Note: People think the Stock market is a place to make 100%, 200% or more?

Calvin thinks that is not possible longer term as market goes through boom and bust cycles.

The best performance were people like Peter Lynch of Magellan Fund at 39% for 9 years and Warren Buffet at 20% to 25% for many decades.

So anything between 15% to 30% should be considered very good. Anything above 30% is a bonus. This is for longer term investment as opposed to rampant speculation in the KLSE. Great Sifu like Dr. Neah Soon Kean of Dynaquest think a 10% performance should be ok for times like these.

Coming up Next:

BJ CORP & MUI BHD - The Twin Pillars of Great Latent Value Stocks of KLSE

Discussions

2 people like this. Showing 14 of 14 comments

Alex Foo

thx calvin. always glad to see you share stuff =)

2017-09-23 13:11

Alex Foo

much to learn

2017-09-23 13:11

VenFx

Good summary on how our hard earn money depreciated ...
Anything above 12% wealthy monies.
Anything below 6% no gain no lost in Bolehland .

2017-09-23 13:24

shortinvestor77

good food for thought.

2017-09-23 22:56

newbie92

Si fu calvin, how about bjtoto?
TQ.

2017-09-23 23:01

calvintaneng

Post removed.Why?

2017-09-23 23:17

calvintaneng

Should read as

TSVT very Smart

2017-09-23 23:17

gohku

Uncle Calvin,

Your comment is very correct, i have been working very hard for a few years and had been saving up regularly,in order to build up my capital.

I had started stock investment, for a few years but my must result had been very erratic. Only after i had read intelligent investors, i did manage to improve my investment skill and this had contributed to a higher investment return.

But this year is my greatest lucky break and a big fat bonus for me, because i manage to follow stockraider, picking Hengyuan at rm 2.00 in the beginning of this year and this investment had yielded me 300% within 9 months.

I can say this gain is my greatest return and i believe this will not be repeated for a long time.

I have to lower my return target to 10% to 15% pa to avoid over expectation and taking high risk.I think the current target return is fairly possible.

My uncle use to tell me that, when you are young you must work very hard to make a good living & must grew your nest egg through savings, which i think his advice is very true.

When we grew older the nest egg will grow bigger, then we can depend on our savings and investment to grow our wealth.

For young people wealth are mainly build up from employment income savings, but with good investment skill, we can accelerate our wealth accumulation faster.

2017-09-23 23:52

calvintaneng

Yes Gohku,

Calvin is very happy for you. Sifu Stockraider once worked under The Great Ben Graham of Malaysia - Dr Neoh Soon Kean. So he is safe to follow.

May you do very well in your investments.
Good night.

2017-09-24 01:12

calvintaneng

Good morning on the LORD's Day

Time to visit www.chick.com

2017-09-24 11:17

Sales

Calvintaneng you did asks to buy L&G right! How is it now?

2017-09-25 11:18

calvintaneng

Sales

Calvin is still holding 50,000 shares of L&G at 21.5 sen.

If price weakens i look forward to add more.

For now due to corp exercise i buy more bj corp and also due to divorce settlement unlocking assets sale for Mui Group i am adding more Mui Bhd shares.

2017-09-25 11:36

lizi

calvin, you seems the only one in i3 who investment philosophy mostly influenced by asset play. maybe you can write an article why you like asset play so much, how to use asset play strategy in right way, etc.. if you haven't wrote before. good for us to learn.

2017-09-26 22:01

calvintaneng

Post removed.Why?

2017-09-26 22:06

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