The value of Dennis seminars is infinite

[Dennis Ng]

No worries, in our Secrets to Making Money In Property Seminar, we only educate you, we do NOT try to sell/market you properties whether in Singapore or overseas (U.S., Philippines, Malaysia etc) like what is done at MOST Property Seminars out there.

Here are Comments on another 3 day Property Seminar in hardwarezone:

http://forums.hardwarezone.com.sg/money ... 546-2.html

WONDER WHY wrote:

you bet, I am one of the participants. she d not teach at all. she jus a co-ordinator who invite 1 lawyer assistant, 1 clerk who help you open a co., 2 propety "guru". she also introduce USA property, you ppl buy 10 untis she get 1 free. manila property, commercial property etc. she do not teach you anything, there is always disclaimer clause.

pls pple, if you are also the participants, your money is yr responsibility, don invest until you find outmore n ask more qns.

She normally will say she buy how many units, but don show us the contract, who knows? you know, 200pplexpay 3000 for 3 days, she made 600,000 in 3 days. now you know wat is use other pple money to make more.....

her partner is Jerome, malaysian who is almost bankrupt n now clear all debts, how? you must hv guts! to be millionaire use other ppl money as many times as you can. PPl is so easy to put in 60% for a property, yet they still minor shareholder, they cannot ask qns, or involved, or withdraw, Wendy will handle everything. d u investor ask qns, read the contract before invest?

the problem here is the ppl are all way out to get passive income,to make capital gain. they forgot to ask qns n find out more first. they are so trusting in her. watever she do, they follow. by the way,there are more ppl organising such courses. one immitate the other.

she got this entrpneur award.Wonder wat basis is use to give the entpreneur award. I was also eager to learn the technique of property investment ,pay 3k, but d not gain any relevant knowledge n technique. I am very angry but do not know how to get back this money?? most i spoke to are not happy too,but they don want to take action, as they find it troublesome. so wendy know the trend n chances of such thinking. one even cute, still want to cont'nue follow her, not wake up yet, though she know she is already stpd....already invested with her recommendation.

tell yr friend n relative wat is happening here, or they too w swallow their ignorance (lost investment) in silence n don dare to tell anyone. of course, u will make profit in 1st round, slowly then u wake up, not immediate....it took 5 to 8 yrs to find out the truth. who is millionaire? u or her/her partner?

[Dennis Ng]

came across this comment by a seminar graduate in the internet:

Hi,
I attended a few seminars and including this one .

Here is my OWN personnal feedback :-
(A comment on good or bad is only to be made, if oneself has expereinced and encountered it, before making the comment).

I have the rights to comment because I have attended many seminars outside and able to do a compare.

There are people who only teach based on books, there are also
people who willing to share and deliver the knowledge based on their learning and own experience.

I feel that the knowledge and information which Dennis is sharing is sincere.

I am sure , government organisation will not want to invite a con-man
for services or speak, if they are really on.

We as outsiders, when pple decide to charge a rate, which WE ourselves feel do not worth the money, WE start to make unconstructive comments.

Some seminar which I have attended, compare with the one Dennis taught is different. Different is one things.
Are these details true fact, or false, or is it something to PLEASE US.

Next, how many millionaire(s) there are willing to share the knowledge?
I am sure, if you and me have the skill and $$$, are you or including me, willing to share?

Thirdly, Yes there are books outside there in the market teaching and guilding people about Person Finance ? Well You and me, can choose to buy a cheap book, and learn?

So, basically You prefer to be on your own buying books, or spend a few days from someone who have the expereince, guiding you along.

It's up to anyone our there.

I recall in one of the Dennis teaching session :-
What is the difference from Rich and Poor?
What is the difference from a successful person and an average person ?
What is the difference between money and wealth ?

Just these 3 questions , it covers a big big wisdom which we average Singapore shuold know. And it is worlth more than a $4000 in money ?

therefore, once again , I would like to mention again, if we were to use a value of $2500 to $4000 to measure the use knowledge which
our school never teach us, basically is not practically?

Something to thing about :-
1. Does your school teach you how to manage your person finance.
2. Does your school teach you how to invest maturely with the right
knowledge ?

[Dennis Ng]

thanks rayng for sharing this wonderful article.

yes, I really agree with what Mr Koon Yew Yoon says.

If you read through the article, you would also realise that I emphasize the importance of some of the things he mentioned, which were also KEY THINGS I teach in my 2-day Secrets to Making Money in Stocks Seminar. (You can take out your seminar notes to verify what I said).

Synopsis of my 2-day Secrets to Making Money in Stocks Seminar is here:
http://www.masteryourfinance.com/web/in ... &Itemid=35

Mr Koon said:

The basic fundamentals for share selection are P/E ratio, NTA, Revenue, cash flow

When to Sell

When to sell? Do not worry about the daily share price fluctuation if you have a target price. Quite often the share you hold can move up rapidly and continues to go up. You must remember that no share can go up indefinitely for whatever reason. Sell when you are not willing to buy at the price or the reason to buy is no longer valid. Remember you must sell so that you can have funds to buy back during correction. If the fundamentals have not changed, the share price will go up again.

These are the key traits to being a super investor that I picked up.

Trait 1: Be a contrarian investor, that is, the ability to buy stocks while others are panicking and sell stocks while others are euphoric.

Trait 3: The willingness to learn from past mistakes

Trait 4: An inherent sense of risk based on common sense

Trait 5: Confidence: Great investors must have confidence in their own convictions and stick with them, even when facing criticism.

Trait 6: Clear thinking. When considering a share, you must try to understand the nature of the company’s business and its inherent difficulties so that you can evaluate your risk exposure.[/color]

Trait 7: And finally the most important, and rarest, trait of all is the ability to live through volatility without changing your investment thought process.

Cheers!

Dennis Ng

Sharing an article by Mr.Koon Yew Yoon who is a prominent civil society leader and one of the founders of IJM Corp.
RayNg


How to beat the market and become a super investor
Written by Koon Yew Yin

Risks in doing business:

It is important to stress that all businesses involve risk; hence the selection of shares is also a risky business. This is not the same order of risk as may be involved in going to the casino or betting on the four digits which in 90-99 % or even more of the cases, results in the patron losing his money, if not his pants.

Picking winning stocks means that we pick the companies that can meet the constant challenges of competition, supply and demand, change of fashion and style design, obsolete stocks write off, etc. There are also unforeseen factors such as variation in interest rates, import and export restriction, foreign exchange variation, change in Government regulations, etc. Inclement weather such as flooding affects production as we have seen in Bangkok so that even the most well run of companies such as Toyata and Honda cannot escape it.


Best form of investment

In my view, stocks are the best form of investment. They are tax free, have no management problem, and you can reduce or liquidate all your holdings at any time. There is a classical saying in the market - “You can buy the winning horse after the race”. This means that you can still buy a good share after the company has announced its profit. This does not mean that stocks are entirely risk-free


Fundamentals of Stock Selection

The basic fundamentals for share selection are P/E ratio, NTA, Revenue, cash flow etc. How important are these factors?

The most important criterion is profit growth prospect. Never buy any share if the company cannot make increasing profits. You must buy shares that Fund managers are interested. They are the movers and shakers. Do not buy too much of illiquid shares because it is cheap. It is cheap for some reasons which may keep it at basement prices.

The main reasons why share prices go up include the following:

a. Exceptionally good profit growth prospect

b. Fund managers must be interested, liquidity, publicity etc.

c. Dividends are an important catalyst for moving share prices up

d. Unexpected good news of profit, bonus issues etc. will push up share prices.


When to Sell

When to sell? Do not worry about the daily share price fluctuation if you have a target price. Quite often the share you hold can move up rapidly and continues to go up. You must remember that no share can go up indefinitely for whatever reason. Sell when you are not willing to buy at the price or the reason to buy is no longer valid. Remember you must sell so that you can have funds to buy back during correction. If the fundamentals have not changed, the share price will go up again.


What to Buy

After having seen so many unexpected surprises in the stock market, I consider the safest shares to invest are undervalued oil palm shares. The reasons are:-

a. The production cost for CPO is about Rm 1,300 per ton and the average selling price has been more than double the production cost in the last 10 years or more. The average CPO price for 2011 is more than Rm 3,000 per ton. Which business can offer such big profit margins?

b. The demand and profit are sustainable due to population increase. Moreover, both China and India who are our buyers have been improving their economy. The financial problem in Eurozone and US has little or no effect on our palm oil market.

c. A palm tree will start fruiting after 3 years. It will continue to bear more fruits until it is about 16 years old after that age it will begin to bear less fruits. Only after about 22 years a palm tree needs replanting.

d. The land always appreciates in value.

e. There is good profit growth prospect and sustainable profit

I am obliged to tell you that plantation shares form the major part of my investment portfolio. If you decide to buy, I am not responsible for your profit or your loss.


How to become a super investor?

I started serious investing in public listed shares when I retired from executive work at 50 years old. I was not an accountant nor have I a MBA degree. I was just a civil engineer and I hardly knew how to read a balance sheet at that time.

I started by reading to understand the basic fundamental principles of share selection as practiced by Warren Buffet, Peter Lynch and other great investment gurus. These are the key traits to being a super investor that I picked up.

Trait 1: Be a contrarian investor, that is, the ability to buy stocks while others are panicking and sell stocks while others are euphoric. In 1983 when China declared that they wanted to take back Hong Kong, the people were selling as if there was no tomorrow because the Communists were coming. The Hang Seng Index plunged to about 700. Currently it is around 18,500.

In such a situation at that time, would you buy Hong Kong shares? I did.

Trait 2: Obsession in playing the game and wanting to win. Winning investors don’t just enjoy investing; they live it. They wake up in the morning and the first thing they think about, while they are still half asleep, is a stock they have been researching. They are thinking about selling, or what the greatest risk to their portfolio is and how they are going to neutralize that risk.

They are obsessed in enhancing the value of their holdings. I am that way.

Trait 3: The willingness to learn from past mistakes. Most people would much rather just move on and ignore the dumb things they’ve done in the past. I believe the term for this is repression.” But if you ignore mistakes without fully analyzing them, you will undoubtedly make a similar mistake later in your career.

Trait 4: An inherent sense of risk based on common sense. Most people believe analysts’ reports which are often ‘a buy’ recommendation. It is very seldom they recommend ‘a sell’ because they would lose the business from the company he has recommended ‘a sell’. You must always take any analyst report with a pinch of salt.

I believe the greatest risk control is common sense which is not so common sometimes.

Trait 5: Confidence: Great investors must have confidence in their own convictions and stick with them, even when facing criticism. Buffett never got into the dot-com mania though he was being criticized publicly for ignoring technology stocks. He stuck to his guns when everyone else was abandoning the value investing ship. He was proven right when the dot com bubble bust.

Trait 6: Clear thinking. When considering a share, you must try to understand the nature of the company’s business and its inherent difficulties so that you can evaluate your risk exposure. There are a lot of people who have genius IQs who cannot think clearly, though they can figure out bond or option pricing in their heads.

Trait 7: And finally the most important, and rarest, trait of all is the ability to live through volatility without changing your investment thought process. This is almost impossible for most people to do. When the market makes a severe correction, most people dare not buy more shares to average down or to put any money into stocks at all when the market is plunging. They would begin to doubt their own judgement.

Wishing you a season of happy and profitable investing!

[Dennis Ng]

yes, now you hear it from another person, Andrew Hallam, author of book "Millionaire Teacher: The Nine Rules Of Wealth That You Should Have Learnt In School" - that it is possible for a person earning a middle class income to become a Millionaire by 40s or younger.

Well, I can speak with 100% confidence that I know this can be done. Why? Becos I've done it. My household income was average S$6,000 from 1993 to year 2008, or in 15 years, total income my household earned was about S$1.08 million. Yet, I managed to reach One Million Dollars (yes, excluding the Value of my House) by year 2008...how did I do it?

I only save 20% of my income but the difference between me and most people is that I know how to Invest and Grow my money, that's how I reached one million dollars by age 39. Now I'm 42, and reached 3 million dollars. I'm sharing this with you NOT to try to boast to you, but share with the Intention and Hope that this can Inspire and Encourage many people to start to learn how to plan and manage your money properly, and most importantly, learn how to Invest to grow your savings.

The good news is if you're willing to learn, I'm teaching. You can read my books and the best way and most comprehensive way to learn from me is to attend the 3 seminars I conduct:"How to Save and Accumulate One Million Dollars" , "Secrets to Making Money in Stocks" and "Secrets to Making Money in Property". - these 3 seminars is the MOST holistic and Complete Financial Education that you can receive in Singapore.

P.S. I agree with most of what he said in the interview except the part about avoiding debt. Guess he didn't learn about the difference between Good Debt and Bad Debt, and he also does NOT know how to use Good Debt (safely and mitigate risks of debt) to become Richer, which I teach in my seminars.

I also don't agree with the "standard recipe" he share 60% stocks, 40% bonds investment portfolio. In fact, I have ZERO invested into Bonds, I Invest into UK Endowment instead, which has Capital Guarantee, (as safe or even safer than some government bonds) and annual returns 4% to 8%, higher than most safe bonds currently. Several of my multi-millionaire sifus also do NOT invest in bonds unless when interest rates are high and start to fall which means bond prices can go up and make capital gains, not just the miserable interest (yield). So he's still teaching pretty much of what is normally taught in most Existing Personal Finance books.

Cheers!

Dennis Ng

The Straits Times
Mar 25, 2012
me & my money
Teacher preaches rules of wealth
Canadian educator caught investment bug early in life and wants to share secrets

By Joyce Teo

When Canadian high school teacher Andrew Hallam was in college, he worked at a bus depot during the summer, and met a 47-year-old mechanic who was a millionaire.

The latter suggested to the young man that he should choose a job that he loved doing, rather than choose a job simply because it paid well. And that he could earn a middle-class income and still become a millionaire by his 40s or earlier if he learnt about investing his money.

That meeting piqued Mr Hallam's interest in investing, which has become his lifelong passion.

He even considered getting into money management in his early 20s. 'But it occurred to me that I would benefit at the expense of my clients. Did I want to do the best for my client or myself?' he asked himself. In the end, Mr Hallam, now 41, chose teaching.

He came to Singapore eight years ago to take up an English teaching position at the Singapore American School but has switched to teaching personal finance this year.

He recently published a book Millionaire Teacher: The Nine Rules Of Wealth That You Should Have Learnt In School.

Having read about 400 finance books since he was 19, Mr Hallam says: 'There are all these academically irrefutable premises but the financial service industry doesn't want you to know them. I want to help people out there.'

He is married to Pele, also a teacher at the Singapore American school. They have no children.

Q: Are you a spender or saver?

I'm a saver. People on middle-class salaries can amass wealth, but I don't believe they can do it if they are big spenders, especially while they're young.

My wife and I save roughly 70 per cent of our annual income. We invest all that we save, and we spend the rest. I'm not as thrifty as I used to be. I spend most on food (mostly organic fruit and vegetables), travelling and massages. We both enjoy a massage at least once a week.

In order to grow wealthy, I think there's a rule of thumb that applies nicely: Never borrow money to buy a depreciating asset. A car is a depreciating asset. But over time, a house is an appreciating asset. Many people try to look wealthy before they truly have money.

Plenty of people borrow money to buy fancy cars and live an extravagant lifestyle, but most of those people are living well on borrowed time.

Q: How much do you charge to your credit cards every month?

I don't know what percentage of our spending we charge to our credit cards. But I do know that I've never paid a penny in interest to a credit card company. Credit card companies hate guys like me!

Q: What financial planning have you done for yourself?

I determined my financial planning by asking myself how much money I would need if I wanted to retire in a given year.

I figured out what kind of portfolio I would need to allow for that kind of income, and I made an estimated adjustment to cover the rising costs of living. It's all about cash flow.

Studies have shown that if you have a diversified investment portfolio of, say, $100,000, its real worth is $4,000 a year. In other words, you can sell 4 per cent of your portfolio each year and have a strong likelihood that you'll never run out of money.

This 4 per cent rule is a fairly standard one.

I knew that if I could live off 4 per cent of my portfolio, I would be financially free. That doesn't mean that I would quit work and lie around all day. But it did mean that I could choose to work or not work, in any given year. This can certainly reduce the blood pressure.

I diversify my money across international stocks and Canadian bonds and I rebalance my assets. I have 60 per cent in stocks and 40 per cent in bonds as I want my bond allocation to equal my age.

Most college endowment funds and pension funds do the same with the rebalancing of asset classes but it's not easy for most people to do - psychologically.

I own just three low-cost index funds - a total US stock market index, a global stock market index and a Canadian bond market index.

I have medical insurance, but no other insurance. I think the best insurance of all is to have no debts, and enough money saved to live off it.

Q: What advice would you give to investors?

Two things significantly reduce many people's portfolio returns:

• They often chase 'what has done well lately'. This is one of the worst pursuits an investor can take part in.

Studies show that if a particular unit trust has, for example, returned an average of 10 per cent a year for the past 20 years, the average investor in that fund, for that duration, would have made only 7 per cent a year.

Investors would have added more money when the fund was 'doing well' and they would have added less money or even sold some of their investment when it underperformed. In essence, they would pay a much higher than average price for the units of the fund.

Such behaviour, over the long term, can be the difference between amassing a $500,000 account and a $1 million account. But this behaviour is very common.

• Most people also pay investment fees that are too high. I pay roughly 0.09 per cent each year for my exchange traded funds. But most people in Singapore pay roughly 15 times that amount if they invest in actively managed unit trusts.

Most people still get drawn to a fund because of its strong historical returns, ignoring the academic evidence suggesting that portfolios of low-cost funds, over a lifetime, have much higher statistical odds of outperforming funds with higher expenses.

Q: Moneywise, what were your growing-up years like?

I grew up in Kamloops, British Columbia, Canada. My dad was a mechanic and I was one of four kids. If we wanted something material, after the age of 12, we had to earn the money to pay for it ourselves. My parents bought me underwear and socks until I turned 15. I was really on my own, although I was still under their roof. My parents didn't have a lot of money, but it has worked out well for me.

The Chinese suggest that wealth doesn't last three generations. The generation that works hard and succeeds wants to make life easier for their kids. So they buy things for them and essentially weaken them.

Children of the affluent grow up with expensive expectations. They're typically the same people who borrow money to buy depreciating assets. And this results in the beginning of the end.

I know that if my parents did the metaphorical heavy lifting for me when I was young (by giving me money or buying me things), I would not have developed the financial muscles I have today.

Q: How did you get interested in investing?

I started to invest when I was 19 years old, after meeting the millionaire mechanic, so I've given myself plenty of time to apply Einstein's Eighth Wonder of the World: compound interest.

Twenty years ago, I started investing a minimum of $100 a month and I increased that every year.

I also read finance books, of which two of the best are The Four Pillars Of Investing by William Bernstein and Common Sense On Mutual Funds by John C. Bogle.

Q: What property do you own?

I don't own any property. I like the thought of buying property when it 'isn't performing well'. For this reason, I wouldn't buy property in Singapore today.

I bought an acre of oceanfront land on Vancouver Island in Canada, during a mini recession in 2002. Property prices hadn't moved much in a decade, so I bought it.

Then when people started piling into property, prices soared and I sold it for three times what I paid, in 2007. It cost just $147,000. I sold it for $484,000.

Q: What's the most extravagant thing you have bought?

I bought a 1974 Mercedes-Benz for $3,000 in Canada and then spent another $7,000 restoring it. The car was cheap by Singaporean car standards, but it was my most extravagant purchase to date.

Q: What's your retirement plan?

I believe that I'm financially independent now. My portfolio is worth roughly $85,000 a year (based on the 4 per cent rule).

But I have no plans to retire. I love teaching at the American School. You know that you've found the perfect vocation when your job doesn't feel like work. My job is so much fun.

Q: Home is now...

A rented four-bedroom apartment at Dairy Farm Estate.

Q: I drive...

My wife's 2003 Mazda 3.

joyceteo@sph.com.sg

---------------------------------

WORST AND BEST BETS

Q: What is your worst investment to date?

I bought into a Ponzi scheme in 2003. Of course, I didn't know that it was a Ponzi.

My friend told me about Insta-Cash Loans, which paid 54 per cent interest a year. The high interest rate scared me - think of how crazy the investment must be, but what's crazier was I eventually changed my mind.

My friend was collecting his interest every year and travelling all over the world, so after five years, I went to meet the company's head.

I still thought it was a scam but after hearing my friend had collected interest payments of more than $100,000, I invested $7,000. I received interest payments for a while but the party ended in 2006, when the firm went bankrupt.

In the end, I lost money as I had to pay 25 per cent tax on my gains.

Q: And your best?

My best investment to date is my investment in the ideology behind dispassionate rebalancing.

In 2001, 2003, 2009 and twice last year, I rebalanced my portfolio and netted hundreds of thousands of dollars in profit over the past decade as a result.

When the stock markets crashed after 9/11 and when George Bush went to war with Iraq in 2003 (and the markets crashed), the stock portion of my 30 per cent bonds and 70 per cent stocks portfolio all of a sudden dropped to 50 per cent because the market dropped.

So I sold some of my bonds and bought more stock index.

[Dennis Ng]

There was a boy born as the 6th child of a family, and the family was poor and 8 of them live in a 1-bedroom HDB rental flat. His parents were poor and when their youngest child was born, they dreamed that if one day they can even have $10,000, it'll be like a dream come true for them...and they went on to name their youngest child 加万.

This guy shared this family secret with public in his Public seminars and was even scolded by a family member (when he attended his talk)..."Why do you have to tell the public about something which is nothing to be proud about and sharing a family secret?

This guy is me.

I told this family member that I'm telling the story to the public becos I want them to know that regardless of your family background, you can learn to master your finance and reach Financial Freedom by age 39 or even earlier. I hope this real life story can inspire and encourage more people to learn how to master their finances.

And that's why I set up www.MasterYourFinance.com , a Financial Education website which has lots of FREE information/knowledge in Discussion Forum where public can access 80% of the content FREE. Forum membership is only for Paid Seminar Graduates though, who can even ask questions on a daily basis after graduating from my seminars.

[Dennis Ng]

Hi all,

chief financial officer at Tokio Marine Life Insurance Singapore, when interviewed, said that his worst investment was in a Unit Trust. He also ever worked in AIA for 4 years and said he has NOT had a best investment yet. It appears that he has not done well in investments and does not really know how to invest, (not uncommon even for CFO, who are strong in Accounting but not in Wealth Accumulation). And he has this fetish for fast car, and has changed 5 cars in 10 years, (average 2 years change a NEW car), which is probably one reason why he is NOT richer than he currently is.

Cheers!

Dennis Ng

The Straits Times
Apr 1, 2012
Compulsive saver's real weakness: Cars
Debt-averse CFO is into fifth car in 10 years but prefers dipping into savings rather than taking up big loans

By Joyce Teo

Actuary Woon Dar Vei shuns the stock market and prefers to see the numbers in his bank accounts grow.

The 37-year-old compulsive saver began saving in earnest when he started work in 1997 with AIA Singapore.

Now the chief financial officer at Tokio Marine Life Insurance Singapore, he recalled: 'When I collected my first pay cheque, I didn't spend all my money. Every month, I would ensure I had some money left. Savers save just in case they need the money.'

It was a habit instilled in him since young, when his parents would save all his hongbao money for him.

He is debt-averse like his parents and would rather dip into his savings than take up a big loan for a major purchase like a car.

Mr Woon, a Malaysian, has a Bachelor of Economics in actuarial studies from Macquarie University, Sydney and a Master of Business Administration (MBA) from University of Chicago Booth School of Business.

The Singapore permanent resident is married to Ms Diana Chang, 31, who runs the corporate development and marketing departments of childcare chain NTUC First Campus. They have no children.

Q: Are you a spender or saver?

I am definitely a saver. In a typical month, I save more than half my income.

In the past few years, I've saved at least $10,000 a month. But there are times when I would indulge myself and spend on, for example, electronic gadgets and cars.

I manage and plan my finances carefully - I have bank accounts for specific purposes. I used to have a detailed system of filing and tracking my expenses but I have not kept this up due to my busy work schedule.

My expenses would spike during festive seasons and whenever my wife and I go on a big holiday, which is at least once a year.

And over the years, I've spent the most on my cars and many 'one-off' gadgets such as phones and laptops. But I've mostly not spent more than what I earn. Living within your means is very important. It's about being mature and responsible.

Q: How much do you charge to your credit cards every month?

On average, excluding work-related expenses, I charge about $2,000 to $3,000 to my credit cards.

Q: What financial planning have you done for yourself?

Since I work for a life insurance company, investment-linked policies were a natural choice. Since 2004, I've put in a total of $1,200 a month in my two investment-linked plans, which invest in balanced funds.

I view these as my retirement funds.

I have insurance coverage of about $1 million. I believe in the rule of thumb of having life protection that is five to 10 times annual earnings, so I am probably only halfway there.

I hate the idea of owing too much money. So right now, I am conserving cash to buy our next property as I want to set aside a substantial sum for the down payment.

We are looking for a bigger freehold home that may cost us about $2 million to $3 million. We will then rent out our current place in City Square Residences, next to Farrer Park MRT station, for passive income.

I have saved more than $500,000.

Q: Moneywise, what were your growing-up years like?

I grew up in a small middle-class family in Ipoh. Now retired, my father was a school principal and my mother was a teacher and school administrator. I also have an older sister who is now based in Kuala Lumpur

I grew up with a large extended family and most of them believed that spending beyond one's means was somewhat irresponsible. Saving for a rainy day was a very much valued virtue.

My parents invested the little they had carefully and started an education fund for my sister and me before we were born. I was given very little pocket money when I was in school and my mother would insist that I save the bursary I got from doing well in school.

She would also deposit my hongbao money in my bank account, something which I wasn't too pleased with then.

Q: How did you get interested in investing?

In 2004, I wanted a savings vehicle where I could park my money without thinking much about it.

So I put some money into a balanced fund through an investment-linked policy. It's not a pure growth fund so it's more stable.

When I was young, my mother would take me to the stockbroking firms she and her friends frequented. But it had the opposite effect of making me uninterested in stock investing. I felt it was like gambling.

Q: What property do you own?

A three-bedroom unit at City Square Residences. My wife and I bought it for $710,000 in 2006 and its value has more than doubled by now.

There is just $100,000 left on the loan. When the lock-in period is over, I'll redeem it.

Q: What's the most extravagant thing you have bought?

I am now into my fifth car in 10 years. It is a Porsche Cayman S, which cost more than $200,000.

It is a pre-owned car in very good condition, which has a lower depreciation value, thereby giving more value for my money, even though I recognise that it is still extravagant. I took a one-year $100,000 loan and have just paid it off, so I am planning to change my car.

Cars are my real weakness.

Q: What's your retirement plan?

I hope to be financially independent and retire from my career at 50, although I do not plan to retire from work altogether. I hope to continue working for a good cause.

Looking at what I am likely to build up by then, I should have sufficient to retire on. I think we will need at least $5,000 a month.

Q: Home is now...

The 1,216 sq ft City Square Residences apartment.

Q: I drive...

The red Porsche.

joyceteo@sph.com.sg

--------------------------------------------------

WORST AND BEST BETS

Q: What is your worst investment to date?

I suppose this would be my investment in unit trusts.

I invested about $15,000 in two unit trusts some years back. One was a regional fund combining bonds and stocks while the other was a Singapore equity fund.

The trusts were not performing well, so I decided to sell them off after about three years.

I made a profit of about 1 per cent to 2 per cent, after paying the fees. I could have just put the money in a savings account.

Q: What is your best investment to date?

None so far.

[Dennis Ng]

Hi Dennis & Grace501

Yes, think I asked a stupid question or rather a lazy way out.

Many thanks

Hi racoon12,
strike a balance.

As you can see, I'm willing and have been trying my best to answer all questions asked by all seminar graduates, 7 days a week, 365 days a year, without fail.

I am willing to do my part and am doing my part, but seminar graduates must do their part to learn as well, instead of used to being "spoon fed." Our education system seem to bring out a generation of students who are used to be spoon fed, who grow up thinking the world has a Model Answer to every question.

The fact is there are many possible answers to each question, especially if it is about investing in general and NOT a specific term or jargon.

And one can only really learn if one tries to attempt to provide one's own answers and then the teacher will then share his/her perspective/view which is just one of the many possible answers, and NOT a model answer.

Knowledge is only potential power. Knowledge only becomes Power if it is applied.

A teacher that just gives answers to Student, is this good? How does the student learn? In the end, it's just the teacher has lots of knowledge and the student will be forever dependent on him/her. Is this person really want to teach?

A Real Teacher teaches his/her Thinking Process, he teaches Methods and Strategies, and then guide students to apply what they learned to arrive at their own answers. The student need to do the "homework" and answer the questions themselves, that's how they learn, that's how they improve. While the teacher will then chip in his/her comments if any.

I really want to teach. But do seminar graduates really want to learn, or do they only want Instant Answers?

Think about it.

[Battleship]

Hi Dennis,

I strongly believe in your belief, especially those words highlighted in blue. Thanks for the teachings so far and I really appreciate it. I have gained and grow a lot for the past one year since I last attended your seminar back in Feb 11. I love this forum!

Your humble Student.

Hi Dennis & Grace501

Yes, think I asked a stupid question or rather a lazy way out.

Many thanks

Hi racoon12,
strike a balance.

As you can see, I'm willing and have been trying my best to answer all questions asked by all seminar graduates, 7 days a week, 365 days a year, without fail.

I am willing to do my part and am doing my part, but seminar graduates must do their part to learn as well, instead of used to being "spoon fed." Our education system seem to bring out a generation of students who are used to be spoon fed, who grow up thinking the world has a Model Answer to every question.

The fact is there are many possible answers to each question, especially if it is about investing in general and NOT a specific term or jargon.

And one can only really learn if one tries to attempt to provide one's own answers and then the teacher will then share his/her perspective/view which is just one of the many possible answers, and NOT a model answer.

Knowledge is only potential power. Knowledge only becomes Power if it is applied.

A teacher that just gives answers to Student, is this good? How does the student learn? In the end, it's just the teacher has lots of knowledge and the student will be forever dependent on him/her. Is this person really want to teach?

A Real Teacher teaches his/her Thinking Process, he teaches Methods and Strategies, and then guide students to apply what they learned to arrive at their own answers. The student need to do the "homework" and answer the questions themselves, that's how they learn, that's how they improve. While the teacher will then chip in his/her comments if any.

I really want to teach. But do seminar graduates really want to learn, or do they only want Instant Answers?

Think about it.

[Dennis Ng]

Hi Battleship,

I'm a student as well. I see myself as a fellow learner, and I have to say with 100% Guarantee that the best way to learn is to share, and the more we share, the more we learn, the more we learn, the more we can share, it is a Virtuous Cycle. Those who do it will agree 100% with what I said.

The more I learn, the more I find out there's more to learn...but what I realise is that while knowledge can be very time sensitive, Values and Principles are Timeless and helpful in guiding us in answering new questions we encounter in our daily life. eg. to go ahead if Upside is at least double downside.

So if anyone withhold from sharing in this forum, the person who loses the most is not me, is not this forum, but himself/herself, though they might not realise it yet.

Cheers!

Dennis Ng

Hi Dennis,

I strongly believe in your belief, especially those words highlighted in blue. Thanks for the teachings so far and I really appreciate it. I have gained and grow a lot for the past one year since I last attended your seminar back in Feb 11. I love this forum!

Your humble Student.

Hi Dennis & Grace501

Yes, think I asked a stupid question or rather a lazy way out.

Many thanks

Hi racoon12,
strike a balance.

As you can see, I'm willing and have been trying my best to answer all questions asked by all seminar graduates, 7 days a week, 365 days a year, without fail.

I am willing to do my part and am doing my part, but seminar graduates must do their part to learn as well, instead of used to being "spoon fed." Our education system seem to bring out a generation of students who are used to be spoon fed, who grow up thinking the world has a Model Answer to every question.

The fact is there are many possible answers to each question, especially if it is about investing in general and NOT a specific term or jargon.

And one can only really learn if one tries to attempt to provide one's own answers and then the teacher will then share his/her perspective/view which is just one of the many possible answers, and NOT a model answer.

Knowledge is only potential power. Knowledge only becomes Power if it is applied.

A teacher that just gives answers to Student, is this good? How does the student learn? In the end, it's just the teacher has lots of knowledge and the student will be forever dependent on him/her. Is this person really want to teach?

A Real Teacher teaches his/her Thinking Process, he teaches Methods and Strategies, and then guide students to apply what they learned to arrive at their own answers. The student need to do the "homework" and answer the questions themselves, that's how they learn, that's how they improve. While the teacher will then chip in his/her comments if any.

I really want to teach. But do seminar graduates really want to learn, or do they only want Instant Answers?

Think about it.

[louiskst]

Quote of the day:

"Knowledge is only potential power. Knowledge only becomes Power if it is applied."

Thanks Dennis. Successful people take action! I will apply whatever I learnt from your seminar.

Regards
louiskst

[Dennis Ng]

Quote of the day:

"Knowledge is only potential power. Knowledge only becomes Power if it is applied."

Thanks Dennis. Successful people take action! I will apply whatever I learnt from your seminar.

Regards
louiskst

great!

And successful people do NOT see failures as failures. They see failure as feedback that they need to change/tweet what they do, to get the results they want, that's all.

Everyone can succeed in their own way, each of us is Unique. No one is a failure.

The only person who fail is the person who give up.

Success ultimately belongs to the person who persists, just a matter of time.

To me, my motivation to CANI (continuous and never-ending improvement) is so that I can contribute more to the society...which is the Purpose of our lives. To contribute our utmost to the society...becos we are part of the society, so when we give/contribute to society, ultimately we are giving/contributing to ourselves as well.

So I urge you to continue learning and then share your knowledge/experience with others so that more people can benefit.

[louiskst]

Hi Dennis,

Yes. Do or do not, there is no try. If we want to change our life, then really go for it. If we commit 100% to our goal, I believe the success is just somewhere in the future.

Regards
louiskst

[Dennis Ng]

Hi Dennis,

Yes. Do or do not, there is no try. If we want to change our life, then really go for it. If we commit 100% to our goal, I believe the success is just somewhere in the future.

Regards
louiskst

You made my Sunday a sunny day. Thanks.

[Dennis Ng]

As I said, many people do NOT really fully appreciate what they learned in my seminars. What you learn will put you ahead of 90% of the people out there, including this person that Sunday Times interviewed on 8 April 2012...becos though on the whole he is financially literate, but he does NOT know there is such thing as Good Debt and avoid debt. He paid his property in Cash!

In Singapore, with properties costing S$1 million, it will be very silly to try to save up enough money to pay property in Cash, and by the time you save S$1 million, eg. in 20 to 30 years, probably property prices went up to S$2 million and you will never catch up...

Of course debt is a double-edged sword, it can hurt you and can help you. Thus, the key is to learn how to Plan, Manage and Use Good Debt wisely and to avoid ALL Bad Debts.

Good debt is low interest debt that one can borrow and easily earn a higher returns than the interest paid. You borrow Good Debt to invest, to become Richer. This is a Secret the Rich knows. His father worked 35 years in a bank but still didn't learn the difference between Good Debt and Bad Debt. What a waste.

Bad Debt is any debt on consumption.

The fact that if he learns how to use Good Debt from me, he would probably be much richer than he is currently. And that is Called Opportunity Cost, which he might NOT realise at all.

Cheers!

Dennis Ng

The Straits Times
Apr 8, 2012
me & my money
10-year savings plan pays off
Foord Asset Management owner sails the high seas in a $2m catamaran, living off the dividends from his investments

By Joyce Teo

The owner of Foord Asset Management, Mr Dave Foord, believes in investing for the long term so compound interest can work its magic.

'Everybody can gain financial independence within 25 to 35 years,' he said.

'It's possible to save and make money. The hardest part is the first 10 years to get enough capital.'

With that capital, it will take an increasingly shorter time to double your money thereafter, said Mr Foord.

The problem for most people is discipline, added the Zimbabwe- born British citizen. 'As you earn, you tend to spend more. So, the most important thing to control is your lifestyle.'

Mr Foord, 59, is now living off the dividends from his investments and living the life of his dreams.

Home over the past 12 years has mostly been a boat, which he sailed around the Mediterranean Sea. He sold that 42-foot sailing catamaran last year for $400,000 and has just bought a 62-foot sailing catamaran in New Zealand for $2million.

He will sail it around the Asia-Pacific for the next five years.

His firm, which is based in Cape Town, South Africa, has an office in Guernsey, off the coast of France, and will have an office in Singapore by the end of the year. 'I see Singapore as the Switzerland of Asia and I think growth in Asia will be higher than in the rest of the world.'

His partner of 12 years is Ria Voutsas and he has three children, in their 30s, from a previous marriage.

Q: Are you a spender or saver?

I have always been a saver. I don't have toys or fancy cars and I have the mindset of not spending beyond my means.

I started to save diligently from the age of 27, with the aim of investing the money for a higher return.

And for about seven years, my family would mostly stay at home and eat out only on special occasions. We also did not travel as it was too expensive. Meanwhile, my friends were living it up.

Within a few years, I accepted frugality as normal. After 10 years, it became much easier, as I could still save while my standard of living was catching up with my contemporaries. Then, after 15 years, my standard of living was above my contemporaries' and I was still able to save because I had no debt and was earning compound interest on my investments.

Q: How much do you charge to your credit cards every month?

I do not like credit cards. I have debit cards and a company card though I seldom use them. I like to carry cash.

Q: What financial planning have you done for yourself?

I started my financial planning when I was 27, when I was earning US$1,000 a month as an investment analyst with a life assurance company in South Africa.

That was when I devised this 10-year savings plan, as I believed savings would create capital and capital would free me from working and give me independence.

I calculated that with compound interest, I could end up with US$100,000 in 10 years.

The idea was to save at least 10 per cent of my monthly salary, and then invest the money in the stock market. Then, one day, the income from my savings would be the same as my earnings.

I was inspired by this book The Richest Man In Babylon by George Clason, which says that if you cut back now, you can enjoy later.

It's the initial phase that is difficult. But you need to be disciplined. It's just 10 years at most.

I started saving US$100 a month. As my salary increased, I saved more. In five years, I had $25,000. I was lucky as I caught the bull market and was able to reap higher-than-usual returns from my investments in shares.

Q: What advice would you give to investors?

Saving 10 per cent per annum and earning 10 per cent on your savings, the rule of 72 (a way to determine how long an investment will take to double, given a fixed annual rate of interest) shows that you can double your investment in 7.2 years.

The second time round, it takes half that time to double your money. The next doubling can be achieved in an even shorter time. Eventually, you have enough capital to earn the equivalent of your salary without working.

If you earn a lower return on your savings, you'll have to work a bit longer, but that is okay because the big goal of financial independence will come within a few years.

When you are saving, your biggest enemy is inflation, your second biggest is yourself, and your third is the banks and financial institutions, which want to charge fees and take away your money.

You can invest in funds but not those that charge too much. You can also choose those where the portfolio managers have been beating the benchmark consistently.

Don't go to the banks and pay them upfront fees. Choose low-cost funds instead. If you have the time and inclination, select individual stocks. It's not easy. About 10 to 15 is all you need and they should not be in the same industries.

Q: Moneywise, what were your growing-up years like?

I am an only child and I grew up in Zimbabwe. My father was a bank clerk and my mother was a secretary. They were both the only child in their families.

My father left Britain in 1948, as people there were starving after the war, and headed for South Africa.

On board the ship, he met a farmer returning to Zimbabwe and they became friends. When my father could not get a job in Cape Town, he went to Zimbabwe, where his new friend said he could find work. He did, and worked there for 35 years in the same bank. I went to school there before going to university in South Africa.

My father was pretty frugal and told me not to borrow from banks.

Q: How did you get interested in investing?

At university, I joined a portfolio competition, where I selected shares over a three-month period, and I won.

I thought it was interesting and then I found it to be a challenge I relished because it was about dealing with the future and with uncertainty. That has always been stimulating to me.

Q: What property do you own?

I own just one residential property, in Cape Town, which I bought in 1999 at a market low with cash. I bought it from a developer in trouble at a crazy low price.

Other people who bought it at the same time as me sold as soon as the money doubled. But I didn't. I spent money fixing it and it is now worth 20 times more. It shows you must have the patience to hold.

Q: What's the most extravagant thing you have bought?

Twelve years ago, I bought a bottle of red wine for $1,200 at a restaurant. It was an impulse purchase but I have no regrets. I shared it with a friend who loves red wine.

Q: What's your retirement plan?

I retired 12 years ago. I enjoy managing money and I now do it from wherever I am. I spend 10 hours a day managing my money. It's my hobby. I am a director at Foord Asset Management but I don't have a salary. My time is my own. I can choose to do no hours or 10 hours.

Q: Home is now...

The house in Cape Town, a boat in Asia-Pacific, and Fullerton Bay Hotel in Singapore, depending on the time of the year.

Q: I drive...

A 12-year-old white Audi A8 in Cape Town.

joyceteo@sph.com.sg

[Dennis Ng]

Today on News Radio 93.8 FM "Living Room" I was asked one of the things I learned from multi-millionaires on investing which is different from what is taught in school. I said, in school, we are taught to diversify between Equity and Bonds.

On the other hand, Real Investors have a very dynamic asset allocation, adjusting our Cash level and various investments as part of our strategy in different stages of a market cycle. For instance, in year 2006, 80% of my wealth was invested into stocks. In year 2008, only 10% in stocks and I had 70% Cash.

2 years ago in year 2010, I had 35% invested into stocks and only had 30% in cash while right now I'm holding 62% Cash, only 9% invested into stocks. That's how dynamic our Asset Allocation can be.

I discovered that what is taught in school might not work in the Real World of Investing, while what I learned from multi-milloinaires about investing, really works and I found myself getting richer as I learn from the Rich.