Generating your passive income

Posted on September 22, 2010. Filed under: Uncategorized |

I have always been taken up with the idea of passive income (I knew I have said it way too many times).

I can’t help it. I can’t bring myself to think of not having any form of income streams after my retirement and the thought of me depending 100% on my savings, which will surely deplete faster than my aging process 🙂

Passive income is the ONLY viable source of income that I can depend on when I stop working voluntarily or involuntarily.

Do go to my new website: http://www.jeanchai.com, to read further

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I have moved!

Posted on June 10, 2008. Filed under: Uncategorized |

Please note due to some limitations of using this blog, I will be using a dedicated website for my future blogs. Kindly go to


from now on to view my blogs and articles.  Thanks and see you there!

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Rising Costs – What can we do ??

Posted on June 6, 2008. Filed under: Uncategorized |

We had the price of our petrol hike up as high as 40% yesterday, and we will expect an increase of electricity tariff around 25%. Many more cost rises to come.

Malaysian Trade Union Congress is urging that private sector employers to give their workers a salary increase up to 15% or cost of living allowance in view of the higher price of petrol and diesel. The point is can the private sector afford it? They too are looking at ever-rising costs

Instead of looking at your employers to save you from this ever rising cost of living, perhaps we have to learn how to “save” ourselves:-

1. Plan our monthly income and expenses, make sure we don’t overspend especially for those who rely heavily on plastic money

2. Cut down the unnecessary expenses, like cigarettes, movies, pub drinking. Well, if you were to notice, I merely say we should cut “down” and not “cut out”. I think it would be miserable if we only devoted our time in working and go completely without any form of entertainment to lighten up our days

3. Try to car pool whenever possible. This helps us to save petrol, save parking and save toll too. Did I not mention it will help save the world less air pollution as well

4. Ultimately, try to earn more. We have 600 agents registered as UT agents within this months, I guess this could be part of the motivation force! There are indeed many good income earning choices for us to choose from, if we are desperate enough

Anyway, here is a light-hearted advert I came across.., do a rough count, and yes, we are looking at roughly 40% increase of all the necessity consumer products for the last one year. Who would believe our inflation rate was less than 5% a year?


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Investment tips

Posted on April 24, 2008. Filed under: Investing, Uncategorized |

 Just some general tips on investment:-


1. Put a certain percent of our income towards savings, particularly long-term savings such as a retirement plan/child education planning. This will help ensure that you stay well ahead of inflation. For eg, if I were to invest RM1,000 per month for the next 15 years, with average rate of return of 8% pa, the future value of the invested sum would be RM340,000. Whereas if the same amount is being saved at normal saving account with minimum interest, the total saving by end of 15 years would be RM 180,000.

2. How do you decide whether you should invest directly in shares? Simple. If you haven’t got the time to learn about stock markets, to follow the progress of companies or to track your portfolio, rather invest in unit trust funds. 

3. If you do invest directly in shares, your two most important considerations should be ensuring that you have a properly diversified selection of shares across the stock market sectors to reduce risk, and regularly rebalancing your portfolio. When a share rises in price, you should consider selling some, but not all, of these shares, so that you make a profit, but your overall portfolio remains proportionally the same as it was when you started. By doing this, you’ll be able to reap further profits if the share price continues to rise.  

4. Generally, “savers” and “investors” have different objectives for their money. “Savers” plan to use their money in the next 3-5 years, while “investors” won’t need their money for five years or longer. Many “savers” want liquidity or quick access to their money without penalty. Then perhaps Bonds should be the choice. Bond provides a desirable saving or investment vehicle for many reasons. Bonds tend to be safer than stocks because if you hold bonds until the maturity date, you don’t risk the principal. Plus, bonds can provide a regular, steady source of income (typically, interest payments are received every 6 months). However, bonds tend to have a lower return than stocks over the long term.

5. If an investment product is too complicated to understand, avoid it. It does not mean you are stupid. It simply means that the product provider and/or financial adviser are trying to confuse you. You should not invest until you fully understand the product and the associated risks.

6. If you are a true investor, you invest for the long term and you don’t panic when markets fall. If you want to invest for the short term, you should use a bank fixed deposit or a money market account rather than an investment in the equity markets.

7. It is time in the market and not timing the market that counts. Don’t try to time markets. Few people have got rich from doing this and most have lost money. The best way to get rich is to take time to select an investment product that has properly diversified underlying investments, and then to stick with it for the long term. Most people make the fundamental error of buying into an investment when it is at the peak of its performance and then selling out when its value has dropped. I have made a few of these expensive mistakes. Believe me, it was painful!

8. Investing on a regular basis is a good strategy in volatile markets. If markets rise, your investment improves in value. If markets fall, you get more for your money, and you’ll benefit when markets go up again. This is known as dollar-cost averaging.

9. Don’t become emotionally attached to shares. If a particular share bombs out for good reason, such as bad management or failure to adapt to new markets, get out. But if the share value is falling as part of a general sector downgrade, there is little reason to sell. No wonder when Warren Buffett was asked how he became so successful in investing, he answered: “we read hundreds and hundreds of annual reports every year.”

10. If you are trading shares for short-term gain, you are not an investor, you’re a gambler. Don’t be surprised when you make a loss. Well, again, I am sharing with you my personal experience….


11. Being a contrary investor can make all the difference. As investment Guru Warren Buffett once said: “Be fearful when others are greedy. Be greedy when others are fearful”


12. Never invest on an ad hoc basis. You should have an overall financial plan designed to meet all your financial needs, taking into account your investment goals and life assurance needs. Investing in something simply because someone (friends, relatives, colleagues..) recommends it, is unlikely to help you achieve your financial targets.

13. Be prepared to pay for good advice, as you would for any expertise. But make sure you deal with an adequately qualified adviser. You are lost because you are not equipped with investment knowledge, so why go to someone for financial advice if that person is not properly qualified as yourself?

14. Always have an emergency cash fund. Ideally, the fund should be equal to three months’ income. This way you will not have to cash in investments at an inopportune time or take out a high-interest loan if you are suddenly landed with a major expense.

15. For regular saving, try to arrange your direct debit to channel money into investment as soon as after the pay day so that you will not “accidentally” spent away the money. Believe me, this is a practical advise!


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