How do I fare, and what should I do?

[Hermit]

Originally Posted by twentysix

Before I begin I'll like to disclaim that I am not here to brag (but if I do sound braggy I'm probably just a little proud of myself) and all info entered here are genuine.

I am 26 single and am currently receiving income (stable now) of e-Commerce businesses of $23K/month. I had about $250K cash which I recently invested in a brick-and-motar business generating $10K profits per month (little you might think but the cash turned into assets). I work only about 1 hour/day overseeing operations as I have 3 staffs working for me.

I live with my family in a 4-rm HDB and drives a normal car. I had been full-time employed for the past 7 years, last drawing $45K/annum in IT (without Degree) which I have quit.

I co-own the HDB, but let's just ignore the HDB and my miserable $30K CPF-OA. I do not have much debts. My current net worth should be about $300K excluding the HDB and CPF.

With stable income of about $30K/month with little work to do, I am at a loss. I am too free everyday and I don't feel like I have much goals now that I have met mine and am contented. I am not very keen in nice cars but I do want to get a landed property (in the next property slum), but then I declare too little for a bank to loan me the money. I yearn to own a yacht but I am not THERE yet.

I have thoughts of getting a job overseas (e.g. US, Taiwan) to get a life experience with working overseas, doing something I like without minding the salary, but being a 26-year-old Asian without a Degree probably isn't an attractive choice to employers.

Successful ones, please share with me how you would carry on with my life from here if you were me.


PS: I'm doing my part-time direct Masters course already, in case you wonder why do I not spend the time and money to obtain one.

Hello Twentysix (maybe now you are TwentySeven eh?)

1. First you need to get married and settle down. The Chinese saying 成家立業 is not without wisdom. Marriage and have a good spouse adds strength and maturity for your future endeavours.

2. Your HDB flat. I assume you co-own it with a parent. Sell that away and buy a private property. Many Singaporeans have tried out all sorts of businesses and made millions. But when they are interviewed about their best investments, many will say it is the properties they bought long ago. So you have to start on that ladder. It is a no-brainer.

3. Your E-commerce business. Are you spending a lot of time on it? If it is the main thing you do with your expertise or background, then you should think how to go that. Expand the client base or put in some money to get better returns. This is your cash cow. Build the brand and make sure your competitors cannot catch up so quickly.

4. Your brick-and-mortal business. I hope it is not a franchise. Because there is only so far you can go with a franchise. If not, then you got to be more involved to build the brand. But since you say your employees run it and you don't even go there much, I guess brand-building is not your goal. So it is a franchise?

5. Don't waste your time doing a degree. You are already learning about business as you are going along. But what you lack is the physically socialising with business people, be they customers or suppliers. So your circle is very small. The solution to this is to enhance your E-commerce business such that it has a brick-and-mortar dimension. You go think about that one.

I hope my thoughts help a little.

I am impressed with your e-Commerce businesses of 23k / month and manage to continue working with $45k/anum in IT.

I am almost in the same situation as you but I do not earn as much as you are at the moment.
I am 23, having an e-Commerce business of 5-6k / month and working with $14k/anum in IT(just 4hours a day.) I am taking my IT degree at moment. This has been going on for 2years since I ORDed.

The reason I am still not giving up my job (the one with $14k/anum) is because it helps in my resume( it is a banking IT job) if i choose to stop the ecommerce business and go into the working force when i graduate.

Currently, I am considering to give up either my job or the ecommerce business as it is too tiring to do all 3. ( work, business, studies).

Personally, I wish to continue with the biz, but I am unable to make any growth since half a year ago. It will be great if you could provide me with some advices as you are the only few people who has similar experience as me.

Originally Posted by Unregistered

I am impressed with your e-Commerce businesses of 23k / month and manage to continue working with $45k/anum in IT.

I am almost in the same situation as you but I do not earn as much as you are at the moment.
I am 23, having an e-Commerce business of 5-6k / month and working with $14k/anum in IT(just 4hours a day.) I am taking my IT degree at moment. This has been going on for 2years since I ORDed.

The reason I am still not giving up my job (the one with $14k/anum) is because it helps in my resume( it is a banking IT job) if i choose to stop the ecommerce business and go into the working force when i graduate.

Currently, I am considering to give up either my job or the ecommerce business as it is too tiring to do all 3. ( work, business, studies).

Personally, I wish to continue with the biz, but I am unable to make any growth since half a year ago. It will be great if you could provide me with some advices as you are the only few people who has similar experience as me.

What ecommerce business do you engage in, may I know?

Originally Posted by Unregistered

What ecommerce business do you engage in, may I know?

Sorry, I cant let you know cause too many copycats will show up once they know there is a market for this.

Let's begin by assuming this scenario is real/truthful. [Even if not so real, a good discussion point.]

1) Can't tell you what NOT to do. But you can consider these as starters.
a) Do not gamble. []
b) Do not bet. [Horse racing etc]
c) Girls & cars. [You know what I mean. High 'maintenance']
d) Being Punter in the Stock market DIY style. [Cheaper to 'pay for profesional lesons from SGX courses', learning to read the financial statements, financial indicators, etc.]


2) Without degree and solid track record.
a) Suggest you 'try'/pretend to buy a Condo based on S$1M. [Fill in the necessary forms and provide your basic documents. In-principal approval from bank. Reality will set in when the bank(s) informed you that HDB is NOT a useful collateral. Also, try another bank and try to impress them with your e-biz financial statements. Likely they will ask/check if your biz is registered: Paid-up capital, Authorised capital. Sole sole proprietorship? In short, very 'weak' to convince the banks. Try and let us know.]


3) "Easy come, easy go".
a) e-commerce [B-2-B, B-2-C, C-2-C] generally has low barrier of entry.
b) Suggestion: Make hay while the shine shines. [If you can quickly accumulate the "seed" money for the next few business ventures, go for it. War chest?]
c) Recommendation: Buy and pay in full 'insurance' endowment instruments. [$100K type.]
d) Plan to be your own enemy. Try to 'cannibalise' your own biz. Set-up another entity that can do that. You will rather be your own 'competitor' then someone else. [In the process, you may be able to find weaknesses in your present biz model.]


4) What to do with the present 'free time'?
a) Consider spending more time with your family. [Parents, siblings, etc. Travelling & learning.]
b) Volunteering. CDAC, your old school, old CCA (NPCC, NCC, Scout, etc), SME associations etc, grassroots, Social work? [Do a been there, done that listing.]
c) Sabbatical: Try going for a 6mths/12mths sabbatical. [See/test if you biz can still THRIVE without your presence. Be very careful!]
d) Complete your degree oversess. [1 to 2 years.]

Originally Posted by twentysix

Before I begin I'll like to disclaim that I am not here to brag (but if I do sound braggy I'm probably just a little proud of myself) and all info entered here are genuine.

I am 26 single and am currently receiving income (stable now) of e-Commerce businesses of $23K/month. I had about $250K cash which I recently invested in a brick-and-motar business generating $10K profits per month (little you might think but the cash turned into assets). I work only about 1 hour/day overseeing operations as I have 3 staffs working for me.

I live with my family in a 4-rm HDB and drives a normal car. I had been full-time employed for the past 7 years, last drawing $45K/annum in IT (without Degree) which I have quit.

I co-own the HDB, but let's just ignore the HDB and my miserable $30K CPF-OA. I do not have much debts. My current net worth should be about $300K excluding the HDB and CPF.

With stable income of about $30K/month with little work to do, I am at a loss. I am too free everyday and I don't feel like I have much goals now that I have met mine and am contented. I am not very keen in nice cars but I do want to get a landed property (in the next property slum), but then I declare too little for a bank to loan me the money. I yearn to own a yacht but I am not THERE yet.

I have thoughts of getting a job overseas (e.g. US, Taiwan) to get a life experience with working overseas, doing something I like without minding the salary, but being a 26-year-old Asian without a Degree probably isn't an attractive choice to employers.

Successful ones, please share with me how you would carry on with my life from here if you were me.


PS: I'm doing my part-time direct Masters course already, in case you wonder why do I not spend the time and money to obtain one.

My advice is a little different from the above poster.

With your high income from a low-effort (operationally) business, try to accumulate $2m cash in 5 years, and you will be much better off than 90% of the armchair critics here who have to literally slogged for that miserable $10k monthly income.

With lots of cash, things become easier. You can easily qualify for private banking (you're not UHNWI, but still a HNWI nonetheless; try approaching the smaller less-atas consumer banks), and you can get reasonable loans. Then buy 2-3 condos and rent out, and you'll become a "traditional" investor with truly "traditional" passive income. To "diversity", buy and hold some of the high-yielding blue chips like Starhub and you're all set.

How many condos can be purchased with S$2M? [Random examples below.]
- The Nautical: Dual-Key ($1.4- $1.5m) x1 & The Hillier (~$600K) x1. [Total: 2]
- The Hillier: 1 bedroom (~$600K) x3. [Total: 3]
- Cyan: (~$2M) x1 [Total: 1]

Out goes the private banker. [Pvt banker wants 'investable' funds to be put into deployment. Not investED funds into housing loan.]

Potential passive income: Yes. [Probably in the range of barely $10K monthly, nett off Property tax, Income tax, monthly charges, agent commission fees.]

Capital gain: Wait long long. [Your guess as good as mine.]

10K *12 = $120K invested annually into "high" yielding stocks? [Assume 10%].
Outcome: From the Dividend payout perspective, we are looking at $12K positive cashflow from the entire year.

Not sure if this chap [thread starter] is keen to:
=> From $2M (Beginning) => $120K (Annual Rental) => $12K (End point: Yearly 'touchable'/deployable funds).

Originally Posted by Unregistered

My advice is a little different from the above poster.

With your high income from a low-effort (operationally) business, try to accumulate $2m cash in 5 years, and you will be much better off than 90% of the armchair critics here who have to literally slogged for that miserable $10k monthly income.

With lots of cash, things become easier. You can easily qualify for private banking (you're not UHNWI, but still a HNWI nonetheless; try approaching the smaller less-atas consumer banks), and you can get reasonable loans. Then buy 2-3 condos and rent out, and you'll become a "traditional" investor with truly "traditional" passive income. To "diversity", buy and hold some of the high-yielding blue chips like Starhub and you're all set.

Originally Posted by Unregistered

How many condos can be purchased with S$2M? [Random examples below.]
- The Nautical: Dual-Key ($1.4- $1.5m) x1 & The Hillier (~$600K) x1. [Total: 2]
- The Hillier: 1 bedroom (~$600K) x3. [Total: 3]
- Cyan: (~$2M) x1 [Total: 1]

Out goes the private banker. [Pvt banker wants 'investable' funds to be put into deployment. Not investED funds into housing loan.]

Potential passive income: Yes. [Probably in the range of barely $10K monthly, nett off Property tax, Income tax, monthly charges, agent commission fees.]

Capital gain: Wait long long. [Your guess as good as mine.]

10K *12 = $120K invested annually into "high" yielding stocks? [Assume 10%].
Outcome: From the Dividend payout perspective, we are looking at $12K positive cashflow from the entire year.

Not sure if this chap [thread starter] is keen to:
=> From $2M (Beginning) => $120K (Annual Rental) => $12K (End point: Yearly 'touchable'/deployable funds).

You are a weird guy. Are you trying to say that $2m is not enough? How many millions will be enough? How many do you have?

Originally Posted by Unregistered

You are a weird guy. Are you trying to say that $2m is not enough? How many millions will be enough? How many do you have?

What he is saying is $2 million though good money, is not enough to do the things that above poster recommend to do & I agree.

For starters to qualify for private banking, the lowest threshold I found so far is US$5m in investible assets, most are US$10m, so no way $2m can get you private banking. And the key thing is investible assets, taking up housing loan does not qualify.

There is no way to do all 3 things - get 2-3 condo, diversify into stocks, qualify for private banking all at once in a meaningful way with just $2m. Of course you can say buy cheapo condos and a few stocks here & there, but I dun think that's what he's saying.

An quite honestly, gearing up significantly for 3 condos is a bad idea, once the property market tanks, game over liao.

Yeap. Spot-on.

Without much consideration, might as well invest S$2M into the high dividend yield (10%) stock and get S$200K yearly. Why bother with property rental or other financial instruments?

Reason: 'Liquidity' & 'volatility'
-Cash: Most liquid
-Property: Not considered 'liquid'. [Fire sale price perhaps. Led to instant financial loss.]
-Stock/shares: Significant exposure to 'volatility'. [Can bear to stomach the ups & downs?]

'Flash in the pan' or persistent $26K monthly???
Reality check: Try getting a bank loan for his first house. The bank will drill down and all will be exposed.

Note: Owe $10K to the bank for your credit-line, you can be made bankrupt. *serious stuff*

Originally Posted by Unregistered

What he is saying is $2 million though good money, is not enough to do the things that above poster recommend to do & I agree.

For starters to qualify for private banking, the lowest threshold I found so far is US$5m in investible assets, most are US$10m, so no way $2m can get you private banking. And the key thing is investible assets, taking up housing loan does not qualify.

There is no way to do all 3 things - get 2-3 condo, diversify into stocks, qualify for private banking all at once in a meaningful way with just $2m. Of course you can say buy cheapo condos and a few stocks here & there, but I dun think that's what he's saying.

An quite honestly, gearing up significantly for 3 condos is a bad idea, once the property market tanks, game over liao.