The Coming Crash (no later than 1H2012)?

[arthur]

I remember a very motivating Sec 2 geography teacher once told us "less good" students: "Smart students spend 10 minutes reading can understand, good students spend 1 hour. But if you need 8 hours, so be it! Don't focus on what's fair or not fair. Focus on whether you WILLING to spend the time you need to understand. Smart students who not willing or not interested to spend the 10 minutes will also fail..."

Best quote of the week I have heard.

There is a Chinese saying "Diligence will cover up what lack of intelligence could not."

[yeokiwi]

I remember a very motivating Sec 2 geography teacher once told us "less good" students: "Smart students spend 10 minutes reading can understand, good students spend 1 hour. But if you need 8 hours, so be it! Don't focus on what's fair or not fair. Focus on whether you WILLING to spend the time you need to understand. Smart students who not willing or not interested to spend the 10 minutes will also fail..."

Best quote of the week I have heard.
There is a Chinese saying "Diligence will cover up what lack of intelligence could not."

勤能补拙。

Although I do agree with it, sometimes it is better understand our own personal competencies and choose the right career and job.
From someone that told me this....
There were students with good results that applied to digital media design studies. However, their competencies do not cover the ability to draw, design and conceptualize their thoughts on drawing board. Even though they maybe very hardworking and had good science and math results, they were unable to cope with the studies.
These students would probably do very well in science and engineering fields but due to some influences, they had chosen a course that exposed their own shortcomings.

Not a very wise thing to do.

[kazukirai]

Oh, I am actually working on a blog post on this right now. Interesting that you asked haha.

Really looking forward to your post! I have your blog on my Google Reader list so definitely won't miss it.

Temperament-san,
Did you factor how your lifestyle (and hence expenses) might change when having that ballpark figure of whether cashflow from IGA can cover your expenses?

Jared-san,
Yes! I was thinking along the same lines when I asked the question because I'm sure we've all heard of people who are rich but unhappy and if one can be rich and unhappy at the same time, then those who aspire to be rich must ask themselves if they would be happy. If they are happy now, then they must also ask themselves if becoming rich makes them happier. Otherwise, why go there right? (Ok, I'm assuming that everyone's common goal is to be happy(-ier))

Thanks all for sharing too. Not that this is an end to the topic. Still welcoming more views. After all, I'm sure we have buddies from all walks and stages of life with stories to share.

sidenote: I think we've hijacked Happy-san's thread and this portion has kind of gone off-topic. Should we move it the discussion to another thread?

[Temperament]

If a couple has sufficient IGA to last until last day, does it follow that their only child will also not need to work for income, since the child will inherit the IGA ?

This can only work when IGA beats inflation yoy.

for the the 30 yrs old couple, now till +40yrs old,

for the 0 yr old child, now till +70 yrs old?
NPV i think kicks in..

Yes, every parents if they can leave behind a legacy that their child/children do not have to work for a living, worry for them that whether they will behave like normal people who have to work for a living. Another words whether they still want to "work for a living" just like everyone else.

When working class like us use our IGA to generate income for our daily living expenses when we stop working, it means we carry on managing our investments until we are too old and senile. Of course the minimum aim is to protect if unable to grow the IGA. And at least to keep up with inflation if not able to beat it.
If of course you do not want to leave a legacy behind, then your plan, calculation, and lifestyle is different. But beware and be warn you may run out of money before you run out of life.
But i like to say it again, your plan is one thing, the actual outcome maybe better or worse.

Anyway, if you can live until 90+(like my mother who has dementia), do you know how much money is needed to support her living expenses?

Nevertheless, i try to practise the Chinese saying : "Knowing enough is always happy".
( 知 足 者 常 乐，). To me means if i know i can afford a BMW, i am still quite happy with a Toyota Vios.
So when you feel you have enough you will be fulfilled and rich.
And everyone of us has a different feel of enough. You have to find what's your "enough" . Or you will never feel fulfilled and rich no matter how much money you have.

---

Oh, I am actually working on a blog post on this right now. Interesting that you asked haha.

Really looking forward to your post! I have your blog on my Google Reader list so definitely won't miss it.

Temperament-san,
Did you factor how your lifestyle (and hence expenses) might change when having that ballpark figure of whether cashflow from IGA can cover your expenses?

Jared-san,
Yes! I was thinking along the same lines when I asked the question because I'm sure we've all heard of people who are rich but unhappy and if one can be rich and unhappy at the same time, then those who aspire to be rich must ask themselves if they would be happy. If they are happy now, then they must also ask themselves if becoming rich makes them happier. Otherwise, why go there right? (Ok, I'm assuming that everyone's common goal is to be happy(-ier))

Thanks all for sharing too. Not that this is an end to the topic. Still welcoming more views. After all, I'm sure we have buddies from all walks and stages of life with stories to share.

sidenote: I think we've hijacked Happy-san's thread and this portion has kind of gone off-topic. Should we move it the discussion to another thread?

Hi,
The classic retire lifestyle is usually like this:

Age 60 - 65 or even 70, usually still able and healthy to travel for leisure. May spend a bit more money than during working life.

Age 70-75, life slow down, may spend more money for medical expenses than travel. Hopefully not more than during working life.

Age 75 - if still living, medical expenses and personal care usually will be bulk of spending. Again, usually may spend more than during working life.
This is where if you have life insurance you will lightened the burden of your children when/if you have nothing much left.

So we must manage our IGA till we become too old or dementia. Of course, we hope we do not have to reach the dementia stage and hand over the legacy.

[brattzz]

more life left than $.... lolz! we are SUPPOSED to be HAPPY with this!!

[Jared Seah]

Mental note to self!

If sweet young things throw themselves at me when I am 65 and beyond, its not because I am hot like Sean Connery (don't you wish you can look like him in your 60s? I do!), its more because they interested in my IGA!

But... what if it's true love during my sunset years? Dementia talking...

[WolfT]

My father has a lot of IGA but he say he will donate everything to charity...unless i can prove to him that i am worthy to inherit his IGA.

[Temperament]

My father has a lot of IGA but he say he will donate everything to charity...unless i can prove to him that i am worthy to inherit his IGA.

Hi,
Yes something like that. i tell my only son, he has to show me he can manage money(Actually his life) before we will pass the legacy to him. If he can not or not interested we will let a Trust Company manages our IGA. And i impress on him how expensive the annual Trustee Fees will be - no matter whether IGA manages by Trustee makes money or not.

Of course he is receiving some guidance and "watching" us from young how we manage money. And we "purposely" let him have more money than necessary now he is about 23 years(still studying). He understands the concept of IGA. In fact on his twenty first birthday we presented him some IGA in the form of 2SGX and 2SPH. Also helped him to buy 2 SPH at the price of $2.50(lucky 10 years historical low price).

He seems to be the "very independent minded" and won't go with the crowd type. i think his temperament is suitable for investment.
At present he is more interested in playing "warcraft" more than anything else, though he shows he manages his money well.

Australia:
We even "purposely" give him a supplementary card, telling him to use it for emergency only. And more than ample Australian dollars, when he was travelling alone to visit his Australian games buddies; Who have been trying for years, inviting him to visit them and stay in their homes. When he did visit them for a week, he passed with flying colours how he handled his expenditures, though we remind him to treat his buddies whenever "necessary". He did reasonably.

We expected him to spend more money, being the first time travelling alone and handling quite a "substantial amount of cash. And to make the matter worse back-up by his first supplementary credit card. But we advise him never ever to flaunt his cash or credit card. Actually we have been telling him never to flaunt wealth if he possess some like what Chinese say : "Don't expose your $$$wealth$$$ to the eyes". ( 财 不 露 眼，). If you do, it will attract unnecessary troubles for yourself. i think he did very well in not flaunting when visiting his Australian games buddies. We are quite pleased with how he handled his money in Australia even until today.
And he still use his supplementary card well.
Cheers!

[Jared Seah]

Hello Temperament!

I wonder how many parents will "support" their children like you do? What an inspiration!

Have a super weekend!

[WolfT]

Hi temperament
For my case, able to save and manage money is not enough. I need to be able to create.
I must have 1mil cash by 35 of age.