In Defending 1000 Billion Market Capital

Read back the old post, What Is 1000 Billion Meant To Me, in early October on the 30 component stocks of FTSE Bursa Malaysia KLCI or FBM KLCI index in short, readers should be knowing the issue of defending the market capitalization in the last day of year 2014!

At 1740 level, FBM KLCI index is now having just about 1 Billion Ringgit below the 1000 Billion benchmark - 999 Billion Ringgit (the emergency number!).

Remember at 1800 level, we had 1050 Billion Ringgit value of the market capitalization in the 30 component stocks, we (our country) now poorer by 50 Billion ringgit after FBM KLCI drop 60 points to 1740. 

Just imagine how much poorer we (again, our country) are when the FBM KLCI index drops another 60 points? We will be 100 Billion Ringgit poorer based on a basic observation on the above paragraph. 

Therefore, just pray hard that our 30 component stocks do well in their respective businesses and wish that our 1000 Billion benchmark double in coming years! 

Bursa Malaysia Derivatives - 4

Institutional brokerage firm like KAF-Refco brought me in to work at the cpo futures trading desk as the company's floor trader from a typical Chinese physical cum futures brokerage firm called Convest; I was joining KAF-Refco ambitiously in believing they had a complete mathematical system that would probably have made them wildly rich. As I can recall, a well known palm oil analyst cum broker, G.M. Teoh, was also in the trading team, handling millions of ringgits worth of contracts for clients.

Thought they were serious and smarter than everyone else in the market by bringing more professional in full technical advantages on hand signals, the madness had actually turned the cpo futures trading pit into a "madhouse" until there were some floor traders in the forties dared not do trades! Whenever they went near to the pit, they felt they were risking their lives!!! They were so worried to make errors to fill a contract of cpo futures, be it the price or contract month! A kind of phobia in trading and preferably stayed in their own booths. 

Any way, the hoo-ha from KAF-Refco lasted less than one and a half years, I joined the last batch of the new "Locals" in KLCE open out-cry cpo futures trading. Many of whom enrolled were former trading clerks and trading floor employees knew well the risk and reward in trading cpo futures and wished to make their own first gold pots from such a risky trade that easily made or lose thousands in a day for a small trader.

Knowing trading cpo futures was so intoxicating, many never thought of learning how to survive and always forgot the simple theory in trading success like "cut loss fast, let profit run", including me!   

Bursa Malaysia Derivatives - 3

Technology has made a deep impact on futures trading, open out-cry trading on crude palm oil futures trading generated an average much below 2000 contracts a day when I was still a runner in the cpo futures trading pit in KLCE but electronic trading can help generating more than 2000 contracts in just a few seconds in cpo futures trading presently.

I still remember the chaos day that open out-cry cpo futures trading volume hit 5000 contracts when I was a trader in a newly set up futures company called KAF-Refco, we did 3000 contracts that day! Since the trading copy, as mentioned in previous post, had its limitation by not exceeding 20 contracts per copy (under the KLCE rules), just imagine how many copies would have been raised for the 5000 contracts traded that day! We floor traders had to sort out all the trading copies for more than 3 hours after the cpo futures market was closed at 6pm! 

30,000 open positions was basically at the high end in open out-cry trading but electronic trading has the open positions hit 280,000 before coming down to about 180,000 when this post is written.

As we all know that Locals in cpo futures trading are the speculators but also the market makers. In open out-cry trading, they were the pits traders jumping up and down "insanely" in outsiders' eyes who stood at the 5th floor Gallery watching down the big trading floor on all kinds of hand signals and body gestures in a very noisy environment in DayaBumi Complex.

Today, there is no more such a marketplace. Locals sit in cosy rooms finger press on their keyboards to do trades... no longer jumping up and down with hand signals!

Bursa Malaysia Derivatives - 2

The "Locals" or the so called licensed speculators were given seats by the "ex" Bursa Malaysia Derivatives through the purchasing of trading permits or "memberships" at RM10,000 or RM30,000 in the 1990s when the BMD was mainly from the two separated entities, KLCE and KLOFFE. I was a Local in CPO Futures trading and did pay the RM10,000 to start trading with the trading permit after being interviewed and approved by the Board from KLCE.

Just for a record, the KLCE was last located in DayaBumi Complex near Dataran Merdeka before the open-outcry trading system was ended in December 2001. Here is the sample contract form issued by all floor traders in the cpo futures trading pit. It showed the Alpha code of Seller and Buyer while stating all the contract month in the International code format, price and size with time stamped to confirm the trade was done at the particular time. As shown below, the month codes and trading copies with time stamped on 27 Dec 2001:

	MONTH	1	2	3	4	5	6	7	8	9	10	11	12
	CODE	F	G	H	J	K	M	N	Q	U	V	X	Z

KLCE trading contract copies

The yellow copy was the seller's copy and seller must do time stamping once a trade was traded and issued a carbonized trading form that contained total five copies. First original white copy for KLCE, two duplicated yellow copies (for seller's clearing broker and seller) and two duplicated red copies (buyer's clearing broker and buyer).

The "Locals" did enjoy low transaction cost and even zero transaction cost on scratch trades which meant  when they buy and sell price at same price in different transaction in same trading day, they paid zero fee. These scratch trades did save a lot of trading cost especially for locals who active in spread trading while helped increasing the liquidity of the cpo futures market.

A Day In Melbourne - Page 5

Walking around the QVM, the first impression of the market would definitely be Her cleanliness, well organized and well maintained wholesale to retail market as compared to our traditional "wet" and "messy" market in Malaysia.

The most obvious look is they are too "special" and "weird" for Asian country man like me seeing something that never appear in our wholesale to retail market...for example:

Dianne's Delights "home-made dips & pestos"

Hmm...home made dips and pestos? Heard about this? Tomato stuffed olives, home made marinated semi dried tomatoes, buffalo mozzarella fantastic with basil pesto? Those are only a few types that offered by the shop. There are many more different but unique shops in the QVM and also the A Shed A to the  "Z" Shed (not really until "Z" ), trust me, one day visit will never enough! QVM is open 5 days a week only and not Monday to Friday ya!

Take a look at the self-guided tour brochure if you happen to make a visit there, click HERE to read the heritage trail in e-copy pdf format... Site 9 - The Ghost!!! Or, just go to the QVM main website if you wish to know more details.

Dairy Produce, Therry st, QVM.

Bursa Malaysia Derivatives - 1

Bursa Malaysia Derivatives has become one of the international market place on futures trading benchmark in our global economic system especially on the crude palm oil commodity futures trading which was lunched in early 1980s. By doing a Google search on KLCE, MME, COMMEX, KLOFFE, MDEX and BMD, it is believed that readers will be able to find the history and the "evolution" of Bursa Malaysia Derivatives.

However, the Exchange itself and the speculators who help run them remain largely misunderstood, general thinking, they served no useful function other than a gambling pool being specially set up for those tyranny big boys!

In my first thought, this was actually considered to be a meeting place for gamblers - professional gamblers !!! It was especially true when I first stepped in the pit where the open-outcry crude palm oil futures trading floor located in the Dayabumi Complex near Merdeka Square, Kuala Lumpur in mid 1990s.  

The Exchange had since been transformed into a sophisticated electronic trading market place (year 2000) and partially owned by one of the world largest and busiest Exchanges. You may call it a licensed casino, but the Exchange itself is the real free and "regulated" market place where speculators serve a very important function helping the Exchange to be a well-known "licensed casino", making sure every buyer and seller is part of a pair like socks we wear that creates volumes.

With all the sounds, friends and chaotic trading activities I had missed in KLCE in 1990s, I wish there is a time machine that bring me and you back to learn the "hand signals" to make a trade like other speculators did - they were the "Locals". 

They are the speculators with a mindset of high risk high return, make fortunes or end up broke! 

Books And Ideas - 1

"...the book is an extension of the eye..." - Marshall McLuhan.

Going through the kind of business of taking risks, mostly with money, on crude palm oil futures trading in Kuala Lumpur Commodity Exchange (now Bursa Malaysia Derivatives) in the end of 1990s, I did see with my own eye some of my seniors were so successful in trading the commodity futures but there were also traders who failed and bankrupt.

After the commodity futures was migrated to electronic trading, all traders had since been doing in a quiet and "peaceful" environment, and some (including me) felt loss and missed the loud and noisy shouting open-outcry trading pits. This had prompted me to write my first book - Trading Crude Palm Oil Futures at Bursa Malaysia Derivatives - since there were plenty of time in a single room playing solitaire game in my personal computer while monitoring the futures market.

The book was published with ideas of leaving some good memory in printed copy that what open-outcry traders like me did in the hoo-ha super busy trading day when the 1997 Asian Financial crisis hit the commodity futures market (just do a google search on the 1997 Asian Financial crisis and you may know more than I do!). The book had the basic ideas in technical trading that I learned from my senior who was one of the biggest traders in crude palm oil futures trading in early 1990s.

Inside the book, there are three basic technical trend indicators that can be easily constructed using Microsoft Excel or any spreadsheet software in simple formulas (I was actually taught by my "ex-girl friend"!). Remember, "success must have a trading plan" - traders' wisdom.

At page 40 of the book, that is the trading plan that did help me to succeed in trading crude palm oil futures after acquiring the skill of how to use the three technical trend indicators. The table and the technical trend indicators has been part of my trading life that I still have them until today.

In trading success, I still like to advice novice traders: read 100 times a book is better than read 100 books.  

A Day In Melbourne - Page 4

After purchasing the prepaid card and reload a sufficient amount for the internet access on the android phone that we brought along, we started the first hot spot of tourist attractions in Melbourne - Queen Victoria Market or QVM (see the website by clicking HERE).

Arriving there near the Easter Day and also school holiday gave us an opportunity to visit a mobile farm where kids were free to have fun and get close with real farm animals and they did get their faces painted too in matching those "barnyard" animals!

Mobile Farm @ QVM

Taking from the Google Map, it will be very easy to understand free & easy budget holiday now a day is really free & easy! Take a look at the 800-meter walking distance from Tune Hotel Melbourne to QVM using the Google Map guides as shown below:

Tune Hotel to QVM

QVM is a historically well-maintained livestock and wholesale to retail fruits and vegetable market, established in 1878 as shown in the website. There are many brochures in its main website about events for easy reference and also self-guided history tour. Explore yourself on the website to find more details if needed.

Tune Hotel To QVM in arrow and triangle

A Day In Melbourne - Page 3

On the left of the photo is the main entrance of Tune Hotel Melbourne; what behind the reception desk in the lobby is the selling point that catch my eye - the black and white art design on the wall - a complete artistic unit and remarkable! They even have the skillful art invention printed in the little folder that keeps electronic key cards and appears in the hotel rooms.

There is a car workshop and traffic light just in front of the Tune Hotel, you may not be able to see the hotel and a tram station if you follow Google Map Street View (based on the time when this post is written). The 3D photo map as shown below is the City of Melbourne map that was taken during the first visit to Melbourne Visitor Centre. I did a horizontal arrow mark near the bottom of photo map to show the location of Tune Hotel Melbourne. Click on the photo map to get a bigger view.

In short distance, there is a phone shop and convenient stall opposite the hotel near the tram stop selling prepaid cards and reload services for our smartphone use especially the internet access for Google Map and email.   

Malaysia Malaysian Better Future

Do you wish to have a better future? Be it for yourself or your next generation, make full use of latest technology can really play your part as a real Malaysia Malaysian or even a better Global Citizen. For example, spreading and sharing more positive write-ups in social media to over come extremism can help the internet world to pressure the relevant authorities and policy makers to work toward a better future while helping more and more internet users to be self disciplined not taking for granted in the free speech internet world.

Tindak Malaysia - click the link HERE - is a very good internet website in promoting a better future for Malaysia Malaysian especially in promoting a fairer electoral system in Malaysia. Go to the introduction page for more explanation and you will know the country is seriously need your close attention in shaping a better future. Study the map and read the analysis, become a volunteer or an objector, or even can request for a forum/briefing/workshop in educating your local constituents how can they help to make a better and fairer Malaysian Government.

I have done my part sharing out this important message and now is your turn! Uphold the core principle of clean, free and fair election which will definitely bring us a better future. You may not dare in fighting extremism but your one vote is strong and silent type that enough to overpower them one day in near future.

  

3 US Dollar Per Gallon And 2.30 Ringgit Per Liter

This is the gasoline or petrol prices in comparing the two countries that have near similarity in the National Flag. U.S. citizens are currently paying 3 US dollar per gallon in their gas stations while Malaysians are paying higher petrol prices effective as at 2nd October 2014 at Ringgit Malaysia 2.30 per liter. We may assume that the past 10 months US gasoline had gone down from about 3.60 to 3.00 while Malaysia petrol prices remained 2.10; Crude Oil had drop near 80 when I work on this post.

If a gallon of gasoline is equivalent to 3.8 liters of petrol, U.S. citizens are currently paying 79 cents per liter of gasoline in their gas stations as compared to 2.30 ringgit per liter in Malaysia petrol stations. If the conversion rate is RM3.30 over $1 today, it is about 70 cents per liter in US dollar term in Malaysia petrol stations. 

Now, look at the average income in year 2013 between the two countries as recorded in the website of wikipedia.org ( that is, the GNI per capita of U.S. citizen is $53,670 while Malaysian is $10,400 ), U.S. citizen will have much more spending power ( 5 times ) than Malaysian while having almost the same level of gasoline or petrol prices as mentioned in the above paragraph. What I manage to digest here is ...

• $50,000 income earned in US, we just pay $0.79 per liter while $10,000 income earned in Malaysia, we pay $0.70 per liter of gasoline or petrol.
• Malaysian will be spending about 16% of the monthly income on petrol while U.S. citizen at 3.5% by assuming an average 200 liters monthly petrol consumption ( or, Malaysians spend $140 per month while U.S. citizens spend $158 per month based on the above assumption ). 
• U.S. citizens still have balance 96.5% or $4,315 every month while Malaysians only have $727 on the 84% balance after deducting petrol consumption expenses.
• $4,315 minus $727 is equivalent to $3,588 which will be extra spending power that Malaysian wish to have like US citizen. 
• Can the monthly extra $727 build a better future than the $4,315?    

By just reading the above FIVE points, it is sad to tell the Malaysian Government that even when we reach the developed country status in year 2020 at $12,000 on the average income in US Dollar term, we are still much far behind the developed country on our general spending power. To all Malaysian, it is not meant to ask you to migrate for better living, working up the ladder of developed country status is your duty too. 

Double up your effort to go above the year 2020 target level and you will surprise to see that the spending power in percentage basis is actually dropping near to the average U.S. citizens with just about 3.5% difference. In conclusion, it is believed that the 7% of your monthly income on petrol consumption bills will definitely create a better future for yourself and the country too.  

Finding Multiple Losing Trades

This article is more about futures trading using technical trend indicators and the capital risk ratio needed in order to have trading success.

As we will not know when we will keep buying and selling on trades that keep generating losses in a row on every single trade for more than we can afford to lose, we need to find the best solution by doing historical data collection and back testing them to find how is the pattern of the losing trades.

There was a very good example that happened recently on a technical trend indicator using in my 2 books especially in the "101indicators On Futures Trading" book where there were total 8 multiple losing trades in a row. If 1 point of losses is equivalent to 25 dollar, the 8 multiple losing trades had a total of 198 points of losses which costed a trader to lose slightly more than 5000 dollar per contract which included its trading cost. Without a higher capital risk ratio that more than 3x or even higher to 5x, a trader will fail to proceed his/her technical trend trading dream in futures trading after being hit with such a bad incident.

Remember, this can be happened in just a short period of time for less than a month while the technical trend trader may take more than three months only to recover the losses and accumulate profits in the next three months; which mean, it will be seven months to see a better result if the trader does face the losses in the first month where he starts. Can a novice trader equip with such a strong psychology patiently keep doing trades for seven months?

No doubt the technical trend indicator did make nearly 1000 points in 10 months in its accumulated profits since the beginning of this year, or 25,000 dollar per contract in accumulated profits in 10 months, it is still important for traders to realize that multiple losing trades will kill traders if there is no control in their capital risk ratio management.

In a simple note: Over-trading kills good technical trend traders. No need to keep searching high and low to find how to avoid multiple losing trades if you do not have such risk management discipline. Remember to find a technical trend indicator that can make good accumulated yearly profit year after year and you will be safe along your trading life cycle as a technical trend trader in futures trading.

Why Market Is Shortchanging Investors

Wouldn't it be nice if all investors in stock market could fatten up too and not the so called "zero sum" game investing terminology or jargon depend on the market up and down to get some profit or face losses along the trading life cycle?

20 years in capital market industry and still searching for a right alternative in accumulating wealth, I am wondering how can a market not shortchange investors! We all are being brainwashed on the zero sum game in capital market and are probably earning lower than inflation rate while seeing few top guns in listed companies being paid well with extravagant bonuses and shares options.

We are not jeremiad against those "excessive pay" but the yield they get and what investors have received is not well balanced. No doubt that investors can take advantage of market gains by selling off the shares to profit take or cutting losses, but why not the company simply pay higher dividends to attract and keep more investors? (Value Investing should be the main objective)

The capital market is used to raise money to grow your business from investors, but when your business has done well you have forgotten the investors? The partnerships have turned sore and those top guns may argue that their hard work should be well compensated, and should investors simply not be paid for the risks they are taking is no longer the issue for them!

While believing the zero sum game in capital market trading which had been inherited so long a go, is anyone thinking of win-win situation that can last forever by practicing the motto - never shortchanging investors while growing up your business. Don't use this well regulated platform to raise money if you fail to deliver value in the end.

Last but not least, investors must discern enough on value investing too. Investing stock is like buying a business. Buy only good stocks! Don't speculate unless you don't mind to buy high sell low.

(I am doing my best in telling the world of value investing, send this article to your friends if you think it can be a good reminder for investors)

What Is 1000 Billion Meant To Me

1000 Billion!? A trillion!? Yes, it is 1000 Billion the figures that appear daily in my new computer system to reflect the financial health level of our top 30 component stocks in Bursa Malaysia. It is the market capitalization of the total 30 largest stocks that is reflected in the FTSE Bursa Malaysia Kuala Lumpur Composite Index, or FBM KLCI index in short, at about 1800 level.

Believe it or not, FBM KLCI index may have impact to our daily life! For example, they (the 30 stocks) have issued shares and borrowed money from all investors (included all of us who purchased the shares) through the shares listing in Bursa Malaysia. When listed in Bursa Malaysia, they have their values (that is, shares prices). With the shares prices and the issued shares, we indirectly get the 1000 Billion value which is reflected in FBM KLCI index!

If FBM KLCI index at 1800 level, we may have 1050 Billion in value for all the 30 stocks, and if FBM KLCI index down to 1750, we have 1000 Billion in value. FBM KLCI index fluctuate everyday and so it the 1000 Billion value!

Just imagine: if the 1000 value is going down below 500? FBM KLCI index "crash boom bang"! The money we "lend" to the 30 stocks will lose half the value and it will affect our daily life too! Again, you may think you do not lend the money to them and will not be affected, you are wrong because your government agencies do invest in the 30 stocks using your "money"!!! (your "money" did go up from 500 to 1000 before that!!!)

A Day In Melbourne - Page 2

As mentioned in the page 1 about the SkyBus return ticket at $70 aussie, here is the sample return ticket for a family with 2 adults and up to 4 children as indicated in the tickets below:

Just remember to keep the ticket safely if you have purchased a return ticket; or else, you may have to re-purchase another ticket to Melbourne airport again as the SkyBus driver will surely ask you the return ticket for verification. You can actually get the SkyBus ticket purchasing from hotels if you only buy an one way ticket when reach Melbourne. It will be more expensive as compared to return ticket.

A photo from a room in Tune Hotel Melbourne. It is the upper Swanston Street that has a cross junction with Queensberry Street, a 5-minute walk and you will reach the trams station operated by Yarra Trams - website: http://www.yarratrams.com.au/. The website has a lot of information, including the trams history in Melbourne. It is this stop that brought us to see the daily life of Melburnian besides walking down along the Swanston Street.

The Yarra Trams - Queensberry St / Swanston St Stop

A Day In Melbourne - Page 1

Touched down Melbourne Airport or Tullamarine Airport at 8:20 am (or 6:20 am Malaysia time) on 16th April 2014 by taking the AirAsia X for about 8 hours flight from Kuala Lumpur LCCT had given new experience in my travel logbook. (Knowing long travelling is tiring but many do believe that it is help in improving our mood and reducing stress. I do believe that taking a break from our daily routines at home or at work can really prolong life and I wish the travel logbook can rejuvenate all and start planning your own holiday trips.)

The simple easy access of direction sign board in the second busiest airport in Australia was so good that we got on board directly to the SkyBus by purchasing the family return ticket at $70 aussie without second thought after leaving the airport customs. The SkyBus is the express bus that bring us to the city centre at Southern Cross Station and a complimentary hotel transfer service is also provided to us by using its shuttle bus. We reached the Tune Hotel early before the official check-in time at 2pm. Paying $2 per luggage for safe keeping in the Tune Hotel, we started our first day in Melbourne - free and easy travel holiday.

It is about 20 minutes travelling on SkyBus 

As shown in the above Google Map, it is 25-minute drive from the airport to Tune Hotel stopover Southern Cross Station with a driving distance of about 26 kilometers but the SkyBus did show a 20-minute ride to Southern Cross Station on the board. (Just click the above google map for better viewing if needed.)

Tune Hotel Melbourne is new and located at the upper end of Swanston Street (a historical street) intersected with Queensberry Street. We was told that it had over 80% occupancy rate during our stay.

Little Hulk And Iron "Man"

Photo of the Year...the two superheroes that being teamed up to save the world!

Hulk & Iron Man 

The Iron "Man" & The Little Hulk

This green little Hulk is really like a monster that always thought himself is a hero. Things that constructed by the lovely Iron "Man" always broke into pieces once the Little Hulk joined in.

Saving 10 years vs 40 years - which is better?

There is an article on retirement saving - when saving for 10 years pays more than saving for 40 years - it compares saving age 21 to 30 (10 years) against 31 to 70 (40 years) with compound interest of 7% on 2,500.00 pound saving a year.

Conclusion: Both will have about 500,000.00 or half a million pound at the age of 70 but the young savers who did 10 years "job" earn a better return and less work! So, do it when they are young, even as soon as they are born. You (parents) will save some from your income tax reliefs too while helping your children to have a better future.

Start investing early no matter how small the figures is, as quoted in Albert Einstein legacy - “He who understands it earns it; he who doesn’t pays it.”

Source: The Telegraph & The Wall Street Journal

CAP: Mobile Devices Are Health Hazards - Tell Your Love Ones

Please tell all your friends who have kids...

High dependency on wireless mobile devices a growing concern worldwide as it has been found to be hazardous to health in numerous studies... Wireless mobile devices (WMDs) like smartphones, tablets, phablets, notebooks or other digital devices are weapons of mass distractions... can have various psychological, behavioral and neurological side effects. 

According to research, among WMDs’ drastic effects on humans include: 

• Diminish depth of thinking: We become shallow thinkers and less intelligent beings. 
• Distract and disrupt concentration: Their addictive nature can leave you with an attention span of nine seconds – the same as a goldfish.
• Change our reading behaviour: We become cursory readers, browsing instead of actually reading which involves deep brain processing for critical thinking, imagination and reflection. 
• Promote the habit of multi-tasking, which is addictive and causes stress.
• Multi-taskers are less able to concentrate and focus on a particular task. They are less patient, less creative, less productive and less able to make good decisions than those who do one thing at a time. 

A study revealed that 38% of Americans under age 2 were using WMDs to watch videos, play games and other media-related purposes, and 78% of them would have a WMD by age 8. 

Smartphones can disrupt children’s sleep pattern, 4 out of 5 smartphone owning teens would sleep with their phones by their beds according to a survey. 

In Britain, children as young as 4 became so addicted to smartphones and iPads that they require psychological treatment. 

To minimise the adverse impacts of digital media on our lives, it is imperative that we learn to limit its use and educate our tech-savvy young on its potentially damaging effects.

Source: FreeMalaysiaToday

How To Learn Meditation!

Have a smile and learn meditation... Norman teacher is teaching En En student.

Norman teacher: Close Your Eyes...
En En student: Hi Hi Hi...
BOTH: Ommm....Mama!

Learning such a meditation from kids will light up your day. Thanks to the Auntie AYOYO on page design and the camera man, Uncle KC.

Happy Chinese New Year 2014!

How Much Do I Need For Retirement?

No doubt financial adviser may give you an accurate number; but, we must always have a simple mathematical mindset to calculate the amount needed before we can really think of retirement. The simple mathematical calculation is involved two simple questions - what is your yearly expenditure? and what is the number of year on retirement?

For example, if your yearly spending is 100,000 and retirement number is 25, your ideal retirement fund will be 2.5 million.

Then, think about the yearly rate of return where the fund can generate a passive income of 100,000 a year from the 2.5 million retirement fund. If the retirement fund is able to generate a net 4% yearly rate of return in order to get 100,000 a year, you will definitely have enough money to spend in your whole retirement years until your heart stops pumping! It is basically more than 25 years, it is a perpetual passive income if you can hit the 4% rule!

Go check your yearly expenditure now! You will know the answer, start saving and investing for the 4%!

New Year New You (2014)

Year 2014 now, what is in your mind for the "New Year, New You"? Reading an article in a magazine recently, The Expat, had motivated me writing down some notes for the new year. Wishing all individuals can let go of past stresses and start afresh, do writing down your own creative solutions and making a list of new year resolutions for this upcoming year even though they may be just your dream or wishful thinking.

In Life There Are No Failures, Only Lessons. Keep energising yourself and moving forward as this can really help in changing our perception about the meaning of our life. Practise meditation - simply close your eyes and focus your breathing for 10 minutes - it may release your stress and keep you inspired.

Write Down Goals For The Upcoming Year. Though they may just your wishful thinking, making such a personal list help maintaining positive thinking in our mind. It is ok to be as ambitious as you want to make it like you want to be a millionaire this year and bla bla bla. Find a topic to kick start and you never know where your interests could lead.

Just be happy with yourself, no matter how poor or how rich you are now!