It feels so …

…eery, disgusting, sad, “omg”, heartwrenching as I am writing now.

All because I had the nerve to read the financial news to know that DOW has fallen below 9,500 now, that Indonesia had to resort to suspending the stock exchange, that the UK banking system might fail soon, that people are pointing fingers at Fed for allowing Lehman to fall, that it is expected that some airline companies are expected to fold next year etc.

RBS has gotten into the negative highlight for its huge drop in stock value. The last time I saw RBS was during F1 where it is a major sponsor.

Property market is going to lag 6 to 12 months behind stock market and so it means, by end 2009, many private homes after TOP, are going to be let out for discounted pricing. Tenants would be difficult to come by, rental yield would drop. The speculated demand driven by IR will crash in the face of reality.

Why all these now? A better question is, why are we going in cycles? Why do we need to go through a major crisis every couple of years? Wasn’t the 1997 Asian financial crisis enough? Wasn’t the Latin American crisis enough? Events like 9/11 attacks and SARS have brought enough economic damage too. Why haven’t we learnt something to put an end to cycles?

A human life is so akin to the economics of the world. An unconscious live goes through cycles, suffers the happiness, sadness, joys and disappointments periodically so much that it’s predictable what’s next. The economics of the world is just as unconscious.

I feel sick in the stomach when I see the current news. There is a sudden wave of sadness as I absorb the negativity. Why do we have to go through all these again? With every quantum leap we take forward, we also take 2 quantum leaps back.

I don’t see it as a step to improvement. Maybe a step to change of platform but I wonder if it is even considered the evolution of the economic system. From a centric system, we have developed the capitalist system and its varying degrees of market competitiveness. With an ongoing cycle of economic crises, at this rate of companies folding, recapitalization by governments, we seem to be going back to the centric system.

Bite the dust…

Move #1 towards 10.6% (kidding la)

We are sitting at the back of our house now, outside, that is. And we cannot step into the house too often, not until 6 hours have passed. Meanwhile, our trusted contractor is removing the doors and the back windows.

Heh, what’s this all about?

We are changing our house fully from Period 7 to Period 8 since according to the Fengshui master we engaged, our house is pretty confused, being partially in 7, partially in 8. And we are advised to go into the house from the back door where the wealth luck will flow into.

It’s kinda funny but then again, if this can propel us into the 10.6% millionaires, I don’t mind!

Millionaires and their Profile

I read in Business Times today that 10.6% of the households in Singapore has a net worth of at least S$1million. Had I not come across such people in my job, I would not have believed the figures. Thing is, there’s evidence everywhere.

Notice how the shops around us are going towards the high-end range? IKEA’s new line of sofa is actually more “high class” than the past range and in keeping up with times, they have replaced their CRT display with LCD TV. Observe how more and more shopping malls are coming up. There is a second shopping mall coming up in my office vicinity, and I wonder why. No longer are we impressed by Giordano, Bossini, Hang Ten etc. ION Orchard itself is boasting of SIX of the top luxury superbrands, international brands and high street fashion stores. I see the jewelry stores renovating, even though I have been observing their salespeople staring into space most of the time. Within the universities, there is a rise of mid-scale eating places like Sakae Sushi. And I asked my sister, how is it that students have money to spend on such “exquisite” eating habits?

It’s a bit tough to believe that all these are built for the tourists. Yes, STB did make it a target to attract 10.8 million visitor arrival but don’t tell me tourists really come to Singapore for these luxury brands. As far as I am concerned, online shopping gives an even better deal, in spite of shipping charges.

It’s a reflection of our 10.6% millionaire household. No, I am sadly, not one of them.

I can empathize how those trapped in the middle-class income families are struggling to stay trapped. It’s always said that the very rich won’t show their true wealth but the middle-class people need to show it. In my work, it’s very obvious from their expenditure pattern, their way of dressing and choice of house. My high net worth clients meet me in plain T-Shirts, jeans and sandals. My clients from the middle-class income group like to display their Coach and LV bags.

The richer one gets, the more conservative they are with their money, the more anal they are. But they can be generous to people and make swift decisions. The not-so-rich, not-so-poor ones hold a lot of investments in shares and unit trusts, likes to toy with the idea of getting rich by buying and selling properties. This group tend to be paranoid that people are out to suck them dry and takes a very long painful process to decide on something. Unless you show them a free gift.

Being rich is not a function of the income. Believe it or not, one can fetch a five figure salary but is not better off than someone who fetch one tenth of that. Being rich is also not a function of the job. I have a client who is an engineer his whole life and is a millionaire. Being rich is not a function of thriftiness (unllike what is claimed by many) else my daddy should be a millionaire too.

I think being rich is a function of being a step ahead of others, always.

Buy Insurance when You are Young and Healthy

I know I am a Financial Adviser and people would say, of course you will say that.

Clients I met, who are in their thirties and forties, lament that it’s difficult and more expensive to buy at their age, especially when they are plagued by health problems. Even problems as minor as gastric can cause problem in applications.

One more proof. I found this blog.