Interesting: Singapore holds record for spending $4000 per household per year on lottery.
Compound interest as a powerful tool
William
- Start retirement account at 20
- invest $4000 annually until 40 (20 years in all)
- Stop funding the account at 40, left money to grow at 10% return
- 2.5 mil
James
- Start retirement account at 40
- Invest $4000 annually until 65 (25 years in all)
- 10% return
- $400,000
Benjamin Franklin
- left $1000 for Boston and Philadelphia
- after 100 years, withdraw $500,000 for public work projects
- rest invested for another 100 years.
- 8% annually
- in 1990 = $6.5 mil (3000%)
Our earned income will never bridge the gap between where we are and where we want to be.
Sir John Templeton
- find bargains at the point of maximum pessimism
- Secret to wealth - gratitude
- When you’re grateful, there is no fear;
- when you’re grateful, there is no anger.
The secret to living is giving.
Life is about creating meaning. Meaning comes from what you give.
The ultimate significance in life comes from a sense of self esteem for ourselves, which is something we can never get from someone else. What matters is what you think about yourself. Whether or not you believe that deep inside you are continuing to grow and push yourself, to do more and give more than was comfortable or you even thought was possible.
The fastest way to feel connection, a sense of how significant your life is, a deep sense of certainty and variety, and put yourself in a state where you can give to others, is to find a way each day to appreciate more and expect less.
9 Financial Myths
Myth 1: Mutual funds work
96% of actively managed mutual funds fail to beat the market over any sustained period of time
Myth 2: Mutual funds fees are insignificant
Invest $100,000 at 35 to 65 at 7% annually
At 65,
less 3% annual annual fees = $324,340
less 2% annual annual fees = $432,194
less 1% annual annual fees = $574,349
Myth 3: Average return
Beware of how returns are being marketed
Myth 4: Brokers help you - They don’t
Myth 5 is on 401(k), Myth 6 is on Target-Date Funds, Myth 7 is on annuities - not really relevant to Singapore context
Myth 8: Huge risks, huge rewards - talks about structured notes, market-linked CDs and fixed indexed annuities as safer forms of investments
Myth 9: The lies we tell ourselves - is about motivation, the stories we tell ourselves, changing our states and our stories.
Knowing How Much Do You Need to Retire
Www.tonyrobbins.com/masterthegame - for app to determine how much is needed to retire
Change your story, change your life
Speed It Up
Save on mortgage, save on car etc.
2. Earn more
2. Earn more
All you have to do to earn more money in the same amount of time is to become more valuable- Jim Rohn
3. Reduce fees and taxes
4. Explore living in foreign city
3. Reduce fees and taxes
4. Explore living in foreign city
How to Invest?
Do asset allocation - diversification to mitigate risk
- Security/Peace of Mind Bucket
- Risk/Growth Bucket
- David Swensen thinks ETF are for trading and not holding for the long run.
- Jack Bogle says if you are 40 years old, 60% should go to equities in your risk/growth bucket, 40% in bonds in Security Bucket.
- Dream Bucket
Do dollar cost averaging and rebalancing
Lifetime Income Plan
Ray Dalios shared All Seasons Portfolio Allocation
Use of annuities
Invest Like the .001%: The Billionaire’s Playbook
Warren Buffett says put 10% in short-term government bonds and 90% in a very low cost S&P500 index fund.
3 Decisions that determine the quality of your life
- What are you going to focus on?
- What does this mean?
- What am I going to do?
How to spend money to increase happiness
- investing in experiences - travel, learn new skill
- buying time for yourself - outsource mundane tasks
- investing in others - give money away
