Desmond Ng

Remember when we were young, we used to be given names like “Ah Boy”, “Ah Girl” etc… after which we were given nicknames in our school days or army days?

Do you still remember what you were called?

Just a week ago, I attended a talk where the speaker, an insurance agent, said he was called “Professional Begger” by a relative of hers. It may mean nothing to you or may even sound funny, but it hurts. But she was really quick-witted and gave one of the best response that I ever heard, “That is a very interesting term to call us, but that is kind of true. We have to beg people like you so your lovely wife and son over there can have a better future and not suffer should anything happen to you. I am begging on behalf of your wife and son. That is what my job is… isn’t it noble? I beg for other people and not myself. Let me check if I got your number, because I am going to come beg you soon, for the sake of your family.”

How good can that answer be?!

Singapore is not an easy place to be doing insurance & investments because of the relatively higher skeptism ratio.  Do you know that in other countries, financial advisors are looked upon very professionally? In Singapore, it is either “Read my Palm” or “Slam my door at your face”. Funniest thing is people know they have to get it someday, but ignores the importance until something happens.

So be nicer to the professional beggers next time! Unless they are really just doing product pushing, then do what you like~

“Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services.”

Inflation affects your purchasing power and your long-term financial goals. If you underestimate the amount that you need to set aside to save or invest in order to achieve your desired standard of living upon retirement.

For eg.

In 20 years, $10,000 would be reduced to $6,676 at 2% inflation rate - 33% Loss

In 20 years, $10,000 would be reduced to $3,585 at 5% inflation rate - 64% Loss

Hence, we need to start countering Inflation now!

Here are the 8 ways…

1. Cut Down spending, live within your means

LV, Gucci, Prada, Coach etc… time to tone down a bit of these luxurious expenses.

2. Try to save 20% of your pay or more

This is especially useful for people that just started their careers as you have less liabilities. This disciplined savings will help you in building your long term investments.

3. Do not be overly conservative

Invest your money instead of leaving all of it in saving deposits or fixed deposits.

4. Don’t rely solely on guaranteed products

Bonds and guaranteed products will only provide a marginal protection against inflation over the long term.

5. Save regularly via an investment platform

The earlier you start, the quicker it will grow to in the later years. Start saving regularly into an investment savings plan. This will help your savings to work harder for you and prevent timing of the market.

6. Take on sensible level of investment risk

Include defensive and growth assets in your portfolio depending on your financial goals & time horizon.

7. Understand the power of compounding

Apply the rule of 72. To work out how long it will take for your investment to double in value, divide 72 by the percentage return. With a return of 9% would mean you need 8 years to double your money.

8. Limit exposure to depreciating assets

Assets like Car that depreciates in value should be limited.

*taken with reference from TheSundayTimes 

THE 60 Percent Solution (continued from previous post)

This budgeting plan was created by a person called Richard Jenkins after realizing that his household finances worked best when his family’s so-called “committed expenses” were kept to a manageable level. After some experimentation, he decided that level was 60% or less of his gross pay.

Committed expenses include:

1. Basic Food, Clothing, Transportation

2. All Household expenses

3. Insurance premiums

4. All taxes, income tax, road tax etc.

5. Charitably contributions

6. All Bills, including phone bills, tv bills, electricity bills

Remaing 40% should be divided so that 10 percent go to each of the following:

1. Retirement Savings

2. Emergency fund Savings

3. Short term savings for irregular expenses like Vacations, New Gadgets, Gifts, Mahjong

4. “Fun Money” to be spent any way you want.

The very important or initial stage of financial planning is actually being in control.

Many people fail in this stage as they tend to overspend or basically have no idea where their money disappeared to.

There is two kinds of budgeting system that has been used and proven to be effective. It is the 60% solution & the 50/30/20 plan.

Which one is more suitable for you?

If you:

• Typically get through the month without running out of cash
• Only occasionally get surprised by a big bill
• Usually don’t carry credit card debt
• Feel like you’re doing okay financially but would like to do better

… then you should adopt the 60% solution!

However, if you:

• Live paycheck to paycheck
• Often run out of money before you run out of month
• Constantly get surprised by big bills
• Have credit card or other high-rate debt
• Have no idea where your money goes

… then you need the 50/30/20 plan!

Basically, what this plans can give you are a systematic allocation of your income so that you are aware of your spendings, efficiently using them, ready for tight situations and lastly let you be in control of your money.

It will take quite awhile to write out the plans, so I will write about each plan in my next 2 posts. Stay tuned for it!

Saying Happy Birthday to myself today! Sounds Sad doesn’t it?

But it’s not that sad if you realize that I have to go back for NS on my birthday for a FULL DAY…

I was just wondering have my birthdays been:

2003 - SARS case and everyone was quarantined during that 2 week.

2005 - Army On Course

2006 - Army in Thailand

But I do have extremely memorable ones like my 21st Birthday of course!

And this year, I really want to thank Soo Chin & Ivan for making my day~ they gave me such lovely and thoughtful presents. One of my closest friends ever since I knew them.

They gave me 3 weapons to excel in my career:

1) Mont Blanc perfume to attract more people and my clients

2) A bottle of Honey to keep my voice sweet and pleasing to the ear

3) Breath Freshener so that I do not have to worry about what I ate for lunch when I meet my clients.

I had such a GREAT LAUGH from what they wrote in the card.

Thank you again for being such wonderful friends. It is my blessing to know you guys, and I hope I have made you guys live better too! May everyone’s wish come true!

Many people spend their money without control.

Most of them think:

“Why start saving now? I’m still young.”

“Life is short. I should enjoy while I can.”

“It’s not I don’t want to save… but I’m not earning enough”

It is true. I mean your reasons are valid. But is there really nothing that can be done about it?

Why start saving now? I can share this with you because many people have asked me this before. This is also the reason why I’m working so hard now. The reason is simple: Compounded Savings. Think about it, if you were to get married 10 years from now, is it easier to start saving 10 years before or 5 years before? An in case you are not aware of compounding interest… the $10k you earn you earn earlier can grow to a very substantial amount if you invest it correctly… compared to someone that invest $20k 8 years later, may still not have a higher value then you.

It is true that life is sudden. You never know what can happen the next day. I always tell my clients to live life to their fullest but not to the extent of overspending. Setting aside money for rainy days is a responsibility, your responsibility. What if nothing happens to you and you spent everything when your child needs an education and you can’t provide for him/her? What if something happens and you do not have the money to pay away your liabilities, causing an extra burden to your loved ones?

Are you earning enough? If you aren’t, it is very simple. Find another source of income.  Or relook into your cash flow… what are the things that you can save on? Are there areas where you can cut down on expenses? Things that aren’t such a NEED but a WANT? For example, smoking less, buying lesser branded goods etc.

You may think that $100 per month is nothing. $1200/year is insignificant.

Think again. Compounded over 10 years, you will be amaze what it can become 30 years down the road. Every little bit counts. Rome was not built in a day either. Better late then never…

This is the most interesting thing ever.

Have you ever wondered whether you use more of your left brain or right brain?

Click here to find out!

To thank all of you clients for being so wonderful and loyal, our organisation has invested a total of $50,000 in a Client Appreciation Carnival to reward you!

There will be buffet lunch & dinner with unlimited candy floss and popcorn provided. On top of that, there are games and talks hosted all day round.

Entertainment for your children?

Of course we have! There are cup-cake making sessions and badge designing etc programmes just for your children! To add to that, there will be organisers and clowns around to take care of your children!

It is a place where you can have fun and relax at the same time!

If you are not my client, but interested to find out more/meet me/finding a place to go out with your family, you can still register for the event through me. WHILE SEATS LAST!

*did i forgot to mention about the free spa vouchers and lucky spin that we have too?*

Visit here for the exact details!

I am sure everyone is familiar with the term MDRT aka Million Dollar Round Table.

MDRT is actually a recognition of insurance salespeople and financial advisers who are hard-working and did well. The requirements increases every year and after qualifying for 10 years, you will be given the Lifetime membership to MDRT.

For example, the requirement was a commission earning of S$75,700 in 2006. *There is quite a misconception that MDRT means achieving a million dollar, which is not true, the “Million” is just a term”

This year it is around USD$81,8000.

Court of the Table is the level 2 of this prestigious awards. In 2008, the requirement is USD$245,000

Top of the Table is the HIGHEST recognition. In 2008, the requirement is USD$490,800.

You must be thinking:  “WOW!” Both CoT and ToT is quite an income to get!

Initially, I also felt quite amazed by the income. Most people are happy with a $10k/mth income and getting $30-50k/mth would be delightful.

Of course, in exception of CEOs and Business Owners etc.

However, my friend showed me a website that seriously made my jaws dropped.

That is s.eriously.com

These people are Internet Marketers. They work from home, in their casual wear, flexible timing and they earn $300k/mth. After all the speeches by MDRT, CoT, ToT touching stories, there are normal people out there that are earning their annual income Monthly.

I have a number of friends that have already started Internet Marketing and after a series of hardwork, they are achieving quite a comfortable income! Calvin Woon, who started 2-3 years ago, drew a 5-figure paycheck last month! Ivan Ong, who started only for a year, is also drawing a 4-digit income now…

This passive income generator which hardly requires any start up capital is great for many retirees and young entrepreneurs. Online Businesses are now getting more popular and the internet allows penetrating a global market!

If you think that earning an income online is a myth, think again…