Watching Millionaire Inside

1. Don't retire unless you have something to occupy your whole day. You will shorten your life. You may find something to occupy you short term, but longer term, all the days will become the same and you won't look forward to weekends. The wife will get fedup with a seemingly lazy husband. I don't think you have enough money yet to explore the world with her in First Class, staying at luxury hotels. Even if you do, the kids tie you to home. The kids' university expenses could also be quite high if they go abroad.

Suggest you look at doing something in the same industry, but at a smaller or local firm e.g., a local bank. That way, you can use the expertise you have built up, but not have to travel as much and get home as late. Local firms do not have late night conference calls etc. You will be surprised that while you get less pay, it may not be much less, for hugely less stress. Working with locals also alleviates the frustration of the constantly changing foreign talent at the top of foreign banks. One tip: Don't be too honest and let the new firm know why you are changing jobs otherwise nobody will hire you. Ask when people knock off for the day. It is nice to get home at 6pm every day beating the traffic and playing with the kids.

2. Unlike Whizzard, at least you admit you are in a mid-life crisis. Just do what most people do. Buy a Porsche and get a girlfriend . Judging from your investments, you are the real conservative stodgy reliable but extremely boring kind. Get some excitement into your life, but be careful you don't get into too much trouble Have fun!

3. If you are a finance product guy, switch to a purer management role. That makes you versatile in being able to get different jobs without tying you to a specific skill. At 40, people are looking for managers, while super smart traders, analysts and salesmen are starting to burn out.

Hope this helps.

[whizzard]

Originally Posted by Unregistered

Unlike Whizzard, at least you admit you are in a mid-life crisis. Just do what most people do. Buy a Porsche and get a girlfriend

Hahaahahaha ....... How did I get dragged into this?

Contrary to any so called mid-life crisis, I am having a ball right now! I still get "high" each time I land a new mandate. I enjoy strolling around Raffles Place during lunch cos' it's never a dull moment over there. Just a few days ago I saw some yummy bunnies distributing some pamphlets there. But, I was waylaid by a gorgeous property agent trying to sell me a condo and we ended up having a great conversation on property investments and the rental market. Gorgeous and knowledgeable, now that's a lethal combination.

Yes, don't retire. If you are feeling burnt out, quickly take a short holiday to recharge. I didn't retire, I was retrenched at the onset of the GFC. As luck would have it, I was fortunate to be able to get a new job within a few months and I am back in the game again, Woots! Those few months without a job was depressing. One moment you are a managing director of so and so bank with a secretary to manage your work life, corporate goals to deliver and a team of people to manage and help you deliver. Next moment, you are a nobody!

All your friends are busy with their work life, there's only so much news, magazines, books and golf you can play .... I turned to a new game on how to drive my wife and children crazy! The lunches with friends grew less and less regular and you find yourself feeling less and less in touch with the goings on of the corporate world. No fun at all!

Back to the corporate world, I had to struggle to establish myself in the new place. After delivering some low hanging fruits, it was tough going, well at least for the first 9 months. Fortunately, at the end of the year, I managed to exceed the target set for me. Now, life is much easier. I get to decide whether I want to travel as often or less frequently. During the first 6 months of this year, I chalked up 20 round trips! Then I spent the entire month of July in Singapore and feeling recharged again, will travel again weekly starting next week until the end of the month. Don't retire. Life will feel less exciting.

The money factor is another thing. Yes, your passive income may be adequate for you to get on with life. But, you'll feel very reluctant to indulge or splurge. Well, at least I felt that during my couple of months in the wilderness. With a regular income and bonuses, I am having the time of my life. Before my retrenchment, I was always in wealth accumulation mode. Now, I just splurge away my regular income and bonus, knowing that my passive income is doing the wealth accumulation for me. It's a great lifestyle knowing how to spend instead of just accumulating away.

Midlife crisis is an individual thing I feel. If you life is well occupied and hectic, there's just no time to develop a midlife crisis. An idle mind is the devil's workshop and if you are busy, it's pretty hard to find time to explore the meaning of life. You are just living from hour to hour, managing your work life, your family life and your bunch of friends.

Keep busy and if you do feel tired, take a break but don't retire. Well, that's my opinion anyway.

And yes, I did buy a Porsche but it's a 4-door Panamera. Hardly a midlife crisis car, wouldn't you say?

Hi Whizzard, Im he earlier Porsche guy. I quite like the Panamera. Tried both the S and the Turbo. It handles remarkably well. Much better than the Cayenne, although I like the new Cayenne interior better than the Panamera. Do you find certain carparks a challenge in the Panamera because of size? Am thinking of the Panamera to replace my Audi A8, which is seldom driven by me but I prefer Porsche's sports cars rather than the saloon. A small issue is just 2 seats in the b ack.

[whizzard]

Originally Posted by Unregistered

Hi Whizzard, Im he earlier Porsche guy. I quite like the Panamera. Tried both the S and the Turbo. It handles remarkably well. Much better than the Cayenne, although I like the new Cayenne interior better than the Panamera. Do you find certain carparks a challenge in the Panamera because of size? Am thinking of the Panamera to replace my Audi A8, which is seldom driven by me but I prefer Porsche's sports cars rather than the saloon. A small issue is just 2 seats in the b ack.

We are OTing here so I'll keep it short ....

The Panamera is wider but shorter than the A8 and 7 series, so it is challenging to park. The Shaw House carpark at Orchard Rd is definitely a no-go, that's for sure!

The Panamera is a grand tourer whilst the A8 is a limo hence, it depends on what you want I guess.

Thanks guys for quick reply. Yes, Whizzard I saw the bunnies at Raffles Place.

Some comments to the earlier email.

1. My life is quite simple actually. I don't really need to travel Business Class on holidays and Top Class hotels, I have done enough of that in my business trips. I enjoy doing holidays and experiencing the trip rather than how I get there or where I stay, I like driving holidays for that reason. I came from a humble family background and did not go for my first holiday until I was 18, so I don't crave for the luxurious holidays, just comfortable ones for me will do. But it is a fair point, that currently my passive income of $6K per month is not sufficient enough to lead a carefree life.

I can easily live a comfortable life on a passive income of $10K/month including providing for family and kid's education, I am not there yet but 45 years is when I plan to get to a passive income of $15K/month. I am only 38 years, so got a couple of years to try to achieve the goal.

2. Yes, you could say that I am somewhat of a boring guy, relatively predictable. My investments have been conservative as I do not have time to keep trading in and out, I have also lost a fair share of money in the small caps which i think are just not worth the effort unless you have time and guts.

Yes, I thought of buying a 2nd hand sports car. But not sure if it will really add much excitement after a while, I currently drive a Audi Q5. When i first got it, sure it gave me a lot of pleasure driving it after a while it just becomes a vehicle. Just like when I got 1-2 nice watches for myself, after a while they just become a watch to tell time. I don't think necessarily buying expensive things is the answer to a mid life crisis for everyone. Girlfriend is further out for me, for me handle wife enough already.

3. I am currently in a semi-management role managing a team of 4-5 people, I guess the next move is into senior management to manage a larger platform.

But I think the key takeaway I hear is that don’t retire, keep active even if it is for less money and something easier.

Guess my new plan by 45 years now would be:

1. Reach SGD5mil in liquid asssets,
2. Generate $15K/month passive income
3. Find a new job
4. Pay off debt on investment property
5. Maybe, just maybe buy a new car (had always been eyeing the Maserati grand turismo or quattroporte)

John

[whizzard]

[QUOTE=UnregisteredGuess my new plan by 45 years now would be:

1. Reach SGD5mil in liquid asssets,
2. Generate $15K/month passive income
3. Find a new job
4. Pay off debt on investment property
5. Maybe, just maybe buy a new car (had always been eyeing the Maserati grand turismo or quattroporte)

John[/QUOTE]

Well, when you reach your goal of accumulating S$5 mil in liquid assets, generating $15k per month should be a cinch as its only 3.6% returns. Put it into any portfolio comprising high dividend paying blue chip or REIT and you would exceed that. Even property rentals at current prices would yield you 3.5% returns in a low rental yield market like Singapore.

Aim for 10% pa returns. That way, even if you fall short, you have a big buffer. For me, my objective is a minimum of 5% pa returns whilst my aim is to try hitting 10% pa.

Thanks Whizzard for the advice. As said, previously I am relatively conservative guy, my target is to asset allocate as goes.

1. Real estate (investment property fully paid) - S$1.5m generating 3% annual yield
2. Stocks/preference shares - S$2.5m generating 5% annual yield
3. Cash - S$1mil generating 1% yield; my idea is to always keep around 20-25% cash. This cash will be deployed whenever there are investment opportunities but the idea is to built up cash buffer at any point in time. My philosophy is never to be fully invested, if you do you will never have the liquidity to take advantage of any market abnormalies.

Therefore with $5mil, I assume a blended return 3.6% on entire portfolio and therefore S$15K/month. I think it is reasonable given the cash drag.

You guys are so fortunate to have gotten into a high-paying career track right from the beginning, to the extent of even toying with the idea of retiring in your 40's!

It took me almost 15 years to accumulate my first million before I switched lines and started earning some serious money. Health permitting, I would like to work for as long as possible.

I think one doesn't really appreciate money if one hasn't been deprived of it before.

John,

Sounds like you need more than watches and cars to lift your life. However, you seem to be making some progress. Here are some further suggestions. Work out and lose some weight. Make those hidden muscles bulge. Get rid of that uncle haircut. Gel up some spiky hair and have some mild red highlights. With the new body, switch to tight shirts in shiny white cloth, Hugo Boss outfits. Fancy Prada shoes. Walk with a swagger.

At 38 and doing well, you can afford to take some risk. Clearly you will get to your financial targets if you continue the current job/lifestyle, but looks like you hate it. When you find your new job, see if you can take a 3-6 month break before starting then take an adventure vacation. Climb up the Nepal peaks. Trek down the Grand Canyon. Jump out of an airplane (or at least bungee jump) Learn to dive at the Great Barrier Reef. Rent and drive exotic cars (Lambos, Astons etc) in the UK. When you get back, you'll be ready to conquer the next peak and exceed your monetary forecasts.

Forget the Maseratis or Whizzard's Panamera. Get a 2 door sports car, like a 911, Audi R8 or Nissan GTR. When chicks see Maserati or Panamera, they think Uncle. When you wait at the light with a 911, R8 or GTR (more affordable), all the loose chicks give you that look. You feel like 24 again. The car goes with the swagger, tight shirts and fancy hair. Your Audi Q5 is a fast and nice family car so its no wonder you got bored after a few weeks. It's much more difficult to get bored of a supercar with its punishing ride, fantastic cornering and screaming engine. In fact, its the polar opposite of your Q5.

Don't pay off the debt on that investment property. That's what an Uncle would do and that's not what you want to be. With DBS willing to lend you at 1.5%, surely even conservative you can beat that. In fact, borrow more. A little leverage will allow you to reach your financial goals much faster.

Thanks for the advice...

1. I don't really hate my job, but I don't think it is time for a change at some point to seek new challenges.

2. Yes, taking a sabatical to recharge is a good idea

3. Having a car to attract chicks is not my thing. But having a nice car is something to be considered, btw Maserati Grantrismo is a 2 door car and defintely not for uncles.

4. Paying off an investment property is definitely a trade off. It really depends whether you want to buy for yield or capital gains. I know most people who argue that buying an investment property is for capital gains as the yields are too low and you would do better investing in REITS for yield. Do agree with the concept somewhat, I took a 35 year loan to minimise the upfront equity that I have to cough out. Paying down debt early would mean that I have less equity to buy another 2-3 properties. I have not really decide yet, if the market turns south after 2-3 years, I will probably load up on more properties, but if I do not have better to invest I will pay down debt especially if the interest rates rise.

JOhn