It was last weekend when I flipped thru the morning papers and saw an article written by someone who is currently studying MSc Finance and Economics and Political Science.(Well, that was what printed on the page.)

 

He’s giving tips for those seeking to retire early and comfortably. Was surprised he didn’t mentioned anything about Multi-Level-Marketing (MLM) or any of those ‘Get-Rich-Quick-Money-Making-Scheme’.

 

“You want to retire early?” or “You want to be Financially Independent?” – usually are keywords to get you hooked in. They’ll lured you with stories of founding members with their successful portfolios, flamboyant lifestyles, having great time playing golf, while the common average Joe struggling to make ends meet. Honestly, I still sees many of my peers (of whom are already members) still not getting any richer! Hmm…that’s funny?

 

So, I guess this article makes more sense than the latter. Thou, some of the tips given I don’t really agree much, base on the fact that I’m living in a country, where job is something you need to survive till the day you die! In other words, you can’t stop working as long as you live..get it??

 

So, here are his TIPS:

 
  1. Don’t  buy a car – We have a world-class public transport.
  2. Rent to live, Buy to invest – Surround yourself with liquidity when the going is good, because cash truly is king when going gets tough.
  3. Don’t drink or smoke – It’s not cheap when your health is not good.
  4. Don’t gamble – It may not seem much everytime you place a wager.
  5. Don’t own Credit Cards – Credit Cards spell disaster. Use debit cards or NETS
  6. Own a business – no other investment can match the kind of returns that owing a business can give you.
  7. Avoid Unit Trusts – After taking sales charges, management fees and so on into account, you are almost always better off buying a benchmark index-tracking ETFs
  8. Don’t buy insurance unless you really need it – At 5% per annum compounded annually, a 30-year policy will cost you twice as much as 20-year one, all else being equal.
  9. Have 3 or more (children)? You can’t afford it – Kids really are financial black holes.
  10. Live simply – Income is only half of wealth equation.

"Money may be a terrible master, but the mastery of money makes many things possible." Even early retirement.

 

Here are my COMMENTS:

 
  1. Why not buy a car? – We have drunkards driving our public buses. Our Mass Trains are too slow and are always congested with humans. We have people committing suicide on our train tracks (and the authority is not doing anything to improve the situation). So, why not buy a car if we can afford it?
  2. Rent also need money? – In Singapore, you don’t really need hard cash to buy a decent home. You can activate your CPF account to deduct your house purchase. Whereas, you need hard cash to pay for your rental. (Hmmm..?)
  3. Why people drink and smoke – Stressful life maybe the factor. They drink to drown away their sorrows, they smoke to end their life faster.
  4. Don’t gamble? – yeahh…right!! HAHAHA…We are  building 2 World Class casinos, we have legal betting centre called Singapore Pools, we have 4-Ds, Totos, Kranji Racecourse…bla…bla…bla…you name it, we have it. Wih all that, we’ll tell people that we are not into gambling.
  5. No to Credit Cards, yes to NETS? – and NETS service charge is getting higher!?
  6. Own a business? – The SMEs are struggling from day one. Not much help from government. *sigh*
  7. Avoid Unit Trust – Yes I realized it’s true.
  8. No to more insurance  - Refer to the above.
  9. 3 or more children? – If only we get more financial help from the government. Now is too less, too little..I have to agree with this.
  10. Live Simply – Yes. Simple life is the answer.
 Too many contradiction, too many unresolved answers. So do you think I can retire early?