Random Sunday Rants

Recently, most of my colleagues are feeling down due to the closing of the Singapore office. One of my colleague who is about 44 years old this year, he told me that he just signed an endowment fund. He needs to contribute $200 per month. 

I was not tactful and did not think before I speak, "You just screw yourself." He commented politely, "I cannot afford to lose money." After thinking through, I must admit that I do not know his financial situation and I am sure his financial planner is an honest guy who understands his needs. The chance of losing his capital is low but does not mean it will not. I do not know how long the coverage is for, assume for another 20 years, it will probably promise a guaranteed return of about $50k. If he can spend his free time in educating himself on financial knowledge and invest for the next 20 years, I am quite confident he can achieve $100k or more.

Another colleague commented sarcastically, "You think everyone can just invest his retrenchment package? What if I lose all of them, then what do my family eat?" His remisier asked him to switch all his money in shares $8k to Ezra and it left with $800. I told him to switch it out to Genting SGD at $0.76. The win was two-fold, he saved his $800 from becoming worthless and Genting generated dividend and capital gain. That is the difference. My answer deep down in my heart is "I will invest all the money from my retrenchment package". There was never a doubt I will do that.

Another colleague asked me what should he do with his retrenchment package and whether he should do something with it to buy funds or contribute to CPF. Since he comes from a wealthy family and his wife is rich as well. I will recommend him to use his money to split into 3 sections, 1 to buy ETF and another 2 portion to buy funds. Alternatively, he can pump his money to CPF and transfer all OA to SA as he told me he will not need the OA to finance the house.

Interesting perspective from individuals as we have the different level of commitments in terms of liabilities. Many of them have only one source of income and once the main source of income is depleted, they will panic and rush to look for the next job.  I have told them that multiple sources of income are very important. I have three sources of incomes but two of them are not strong enough and the main source of income from work is drying up.

During my course of work, I have industry people who always commented that I do not stay in a place for long. They have names for me such as grasshopper, etc. I do not agree with them. If you are good, other companies will want you. If you can continue to grow your skill sets, it is important to move on to acquire them if the career growth is stagnant. There is no iron rice bowl anymore, your employer will not be loyal to you. I always consider myself as a contract worker. I always go into a job, hit the ground running and learn as fast as possible, do as much as possible. I will volunteer for all the difficult tasks and try to pick up the necessary skill set along the way. I do not sit and wait, I go out there and make things happen. That is the reason why my income continues to grow. In addition, companies do not last as long as the previous era and industry may be gone tomorrow, it is important that you continuously learn and evolve. You do not need to be branded with a certain company and be in there all your life. If you can stay in one and grow in your corporate ladder, good for you. Whereas, I choose my ladder differently. I always dare to be different. I have fallen many times but I do not regret. I will fall again in future, this I know but I will definitely stand up again.