Review of 2014 and replacement of car

Due to family needs, the priority to record 2014 has moved notches down.

Reviewing 2014 at the beginning of  2015, using the strategy of investing little by little and staying in the market has helped and worked.  So we shall not reinvent the wheel.  (Do note that this works for me and may not work for others).

In late 2014, we also replaced our Hyundai Accent after it has been used for 10 years and needs to be scrapped due to it's legislated age.  The Hyundai Accent has served us well for 10 years and covered 270,000 km with minimum fuss and breakdown.  In fact, apart from wear and tear items like brakes, tires, batteries, Engine oil, spark plugs, oil and air filters etc.  Most of the items are still working when we scrap it.  It did start to 'burn' a little bit of engine oil but that can be managed with regular oil top which is a fraction to a engine top overhaul.

Few things we learned while looking for another used car as the COE prices is still at a high prices of $60-70Ks:

1. Know the market of the used car like:
• The buying price of used car  dealers will offer (usually very low, sometimes at scrap value)
• The selling price the used car dealer will typically give.
• For us, 8-9 year old cars seems offer best value in terms of depreciation as well as acceptable loss.   
2. Look for direct car sellers so that both party wins.
• Some time dealers can come in as direct sellers.
3. Inspect/Check the car - if not comfortable, ask a friend or mechanic or use AAS used car service.
• as for maintenance records.
4. Pay cash as much as possible.
5. DIY with car insurance as well as the ownership transfer at LTA.  
• Forms can be downloaded from One motoring website.
6. Upon getting the car, at least change the engine oil, air filter (if need) and monitor/replace some of the other fluids.

Blessed day!

2014

It's been some time that I been updating this blog.

Looking back at 2013, my portfolio is still doing well generating some passive income (at least better than bank rates).

Hence my strategy for 2014 will:

- invest regularly on monthly basis as much as possible
- selectively participate in rights issue
- continue building war chest and use opportunities to add (i.e. recent CNY correction)

Also like to share this article that I read recently from The Wealth Journey.  http://seekingalpha.com/article/2009931-why-im-a-passive-investor-and-you-should-be-too?

A little preview

The More Important Game of Life

While the evidence is overwhelming that passive investing is the winning investment strategy, it's also the winning strategy in the far more important game of life. Here's why.

As a passive investor, when I come home from my busy day, I get to sit down with a glass of wine and ask my wife about her day and how my kids and grandchildren are doing. Because I didn't spend my time trying to beat the market, I also got to coach my youngest daughter's softball, soccer and basketball teams. I also read 50 to 70 books each year, do community service, play tennis, and focus on the other really important things in my life.

Investors following an active management strategy spend much of their precious leisure time watching the latest business news, studying the latest charts, reading financial trade publications, and so on. Even if they are among the few who are successful at the active management game of generating alpha (performance above risk-adjusted benchmarks), the "price" of success may have been that they lost the far more important game of life.

The question for you to consider is what are the important things in your life? Is it trying to generate extra returns through active management strategies that require you to "invest" large amounts of your time? Or are the important things in your life time spent with your loved ones, on your faith, your education, your dreams, a worthy cause, teaching or mentoring others? If you don't already know the answer, perhaps this story will help you find it.

Blessed day!

Suze Orman recommends 8 months of emergency expense

There is the question of emergency fund in Dave Ramsey and Suze Orman.

This video by  Suze Orman is useful to explain what is emergency expense is derived.

Blessed day!

Listen and read

If you want to start to learn about financial values, you can listen to a recorded message by a local blogger AK71.

link here

For further information, you can read his blog http://singaporeanstocksinvestor.blogspot.sg/.

Blessed day!

To Keep or to replace the car

There is now some changes in the car buying scheme that now one required some deposit before purchasing.  In my personal opinion, this is good as it is to emphasis on financial prudence especially in an asset that is depreciating.

This will, in due time lead to a lower COE price and that in a way lowers the used car prices.  In any case, unless the COE is at a low rate, it will be used car.

So, the pending question whether/when to keep the car or replace the car.

ChristianPF has a article on it.  Link here.    

One of the take away from the above article for me is that in any case, if the major repair is to make the car run safely, it's better to repair or scrap it altogether.  

Our korean workhorse has just covered 240,000 km.  It needs some repairs, one potential major but not affecting the safety aspect.  Hence we would have a longer time to find a good replacement.

Blessed day! 

New Links

Hi all,
Added a couple of new links.  One is 'The Finance' which collates recently posted blogs on Personal Finance.  The other is 'A Singaporean Stock Investor' which I been reading on a regular basis and in some ways similar investing strategy.

Note that this is not a recommendation, we are on our own still responsible for our actions.

Blessed day !

2012 to 2013

Year end again and time to review as well as plan for next year. 2012 has been interesting with the strategy to:

- invest regularly on monthly basis as much ad possible
- selectively participate in rights issue.

The above strategy has worked well for this year and this strategy will be used next year as well.

Blessed New Year!