Beginning of 3rd Year of My Retirement

Today, February 11, 2021, is marked as the beginning of 3rd year of my retirement.  Since I retired at the age of 47 in 2019, I have never regretted the decision I make.  

I recall that some of my friends told me that I would definitely get bored in 3 months based on their unfavorable experience (They wasted their time and sat there doing nothing. Pity them) but it did not happen to me.  Even until today, some of my friends are still asking me what I do daily during retirement.

As a matter of fact, it took me some times to adjust myself to get use to my retirement life.  At the beginning, I realize that I lost my  corporate identity.  I was a Senior Manager in an Japanese company based in Malaysia. I was also a head of 5 departments with more than 35 subordinates.  The job did give me opportunity to grow in corporate world with tremendous exposure in various aspects of business world.  I learned how to handle people in and out, how to see problems in widen angles, how to get around with the top management and many more.  Some of you might wonder, since this was the case, why I still decided to have early retirement.  Well, simply put, this is not the life I wanted.  I like my job but I dislike to get around with people, see people, think people and react accordingly.  I felt like I wasn't myself but an actor.  I had to absorb all the favorable and unfavorable consequences as my superior won't care and my subordinates couldn't effectively assist me on the problem I faced.  Huge work pressure had affected my health and temper.  To me, no matter how much I earn, I just couldn't buy my health if I lost them.  Since I was financially ready as I started my financial plan in more than 25 years ago, without any hesitation, I tendered my resignation the 3rd time on January 1, 2019.  I still can recall the sweetness of being released.  Finally, I am the owner of myself.  But loss of corporate identity means that I no longer need to wake up early and rush to work which make me uncomfortable in the initial 6 months when I saw the other rushing to work in the morning while I took my time for morning jog.  I felt shame when my neighbor saw me taking care of my plants at 10am in the morning.  I hate people asking where do I work.  I finally get rid of these feeling and proud of who I am 6 months later.

I spend tonnes of time on reading in the initial 1.5 years of my retirement and now I am focusing on learning computer programming by writing some programs which I have been thinking of.  It needs commitment and time to learn. As it is my pure interest, I don't feel any pressure on learning it.  I also learn Japanese language just for my own interest.  I have been watching Japanese dramas in order to improve my listening skill but still a long way to go as they are just talking too fast (LOL).

I plant flowers and vegetables myself.  Fertilizing, cutting, clearing weeds, watching up insects are also keeping me busy.  Helping my wife to cook and do housework and get around with my kids (chatting, discussing, advising etc) are also part of my daily life.  I really don't have time to get bored.

I continue to do my own stock investment but less active due to unstable Malaysian stock market.  Due to outbreak of COVID-19 and MCOs, poor economy has make BNM to reduce interest rate in order to stimulate the market.  Low interest regime is a killer to retirees like me.  I used to enjoy at least 4% p.a. on fixed deposit but now only about 1.5%.  I don't satisfy with this.  I, therefore, look for financial advisor to see whether there is any medium to low risk investment options.  I come to know a financial advisor who is introduced by a good friend of mine.  She shares with me her track records on investing in unit trusts which I hate the most previously.  However, her track records really impresses me.  Furthermore, she is willing to reduce the initial charge to 1% from 5%.  Therefore, I give it a try from January 2021 and the result is promising.  So, I continue to top up my investment on unit trust which I also have opportunity on exposing investment opportunity in overseas market such as China.

Two years of my retirement has passed.  My financial performance is lots better than my plan, mainly contributed by relatively lower expenses with higher investment return.  What I am going to do next is to act according to my plan and review my action should overall investment environment change, just like I start my unit trust investment again that able to give me impressive return with low charge and expert monitoring.  I also would like to realize my wish to travel soon after the pandemic is under control.  I was stuck in my house in 2020 due to COVID-19 and I do hope it could this could be over the soonest.

Here, I wish everyone stay safe and stay healthy.  May your financial dream comes true soon.  I also wish all Chinese readers Happy Lunar New Year.

Are You Financially OK?

Malaysian Government implements Movement Control Order (MCO) for 28 days since 18-March-2020. Non-essential businesses are not allowed operation and all people are requested to stay at home in order to curb COVID-19.  

Has Outbreak of COVID-19 Affected Your Life?

It is rather sad to see the outbreak of COVID-19 around the world. Malaysian Government has imposed Movement Control Order (MCO) to curb the spread of COVID-19. Initially, the implementation of MCO was between 18/Mar/2020 and 31/Mar/2020. Within this 2-week period, we are advised to stay at home except purchase of daily necessities. Even so, purchasers are advise to keep their purchase period short and return home as soon as possible. Only shops that are selling daily necessities are allowed to operate while the others must be closed during MCO period. Malaysian Government later announces extension of MCO to 14/April/2020. First few days of MCO, many feel bored at home. I become puzzle how could this happens. Aren't these people having their hobbies? Since they have more time for themselves now, isn't it true that it is a good time to do what you like?

Thank you! My Fellow Readers

Few days ago, I received a postcard from one of my readers, KM (initial of my reader), who shared with me about how he had benefited after reading my "Freedom".

Taking this opportunity, I would like to express my thanks to KM for your praise. KM particularly emphasized on how important on knowing "Personal Inflation Rate". Yes, indeed. Without proper inflation rate on financial needs calculation, your financial plan might not realistic. 

A Sure Way Towards Financial Freedom

Extracted from Sin Chew Jit Poh Fortune Investment Weekly dd 10th Feb 2020 Page 22

This Chinese article is sharing how an 30-year-old American accumulates $1 million at the age of 26. His secret is very simple: Live Frugally. He is a Youtuber cum real estate investor. He claims that he is not a big spender and saves 99% of his income. For example, he doesn't go to expensive cafe for coffee but buying coffee beans and make it at home; he doesn't go for branded outfit but go for cheaper alternatives; he compares prices when shopping etc.

One Year Anniversary of My Early Retirement is Coming Soon

By mid-February 2020, I will celebrate my first anniversary of my early retirement. My friends keep asking me questions like:

1. How do I feel for the past one year? 
2. Do I feel bored? 
3. How do I spend my ample time? 

Do You have to Quit when You are Financially Free?

Last week, I read an article which shares a 32-year-old young retiree goes back to work two years after his retirement. He says the reasons for him to return to work are:

逾半国人储蓄难撑3个月 About half of Malaysians' Savings Can't Last for 3 Months

新洲日报2019年10月5日财经版第3页

看到这篇报导，感到些许无奈。原来马来西亚人的储蓄是那么的少。到底问题出在哪儿？

二十几年前，刚大学毕业的我刚开始工作时，薪金也是惨不忍睹。当时的我只是一味的量入而出，不浪费辛苦赚来的钱。有规划的消费，从来没当过月光族。就因为这样，那时的我因工作的关系虽居住在外地，每个月还能储蓄超过七成的收入。虽然低薪但至少还有储蓄。在那同时，我也努力学习投资。在投资领域里我也跌到过。但我从错误中学习让我创建自己的投资模式。之后收入虽然增加，也因为结婚，生子，买屋，买车等等负担下，我还能存下至少四成的收入。控制花费，储蓄，投资与积极的财务管理让我在30岁时达到无债务，40岁时完成财务自主，47岁正式提早退休。因此，我还是真的不是很理解为何当下那么多的马来西亚人的储蓄撑不过三个月。

我认为国人应该留意自个儿的消费模式。当我在外走走时，我不会随意消费。但我观察到那些奶茶店却挤满了年轻人。他们面不改色的花超过马币10块钱来买一杯奶茶。我的眼镜几乎要掉了下来。我可以在普通咖啡店里用不到马币1.60喝到的奶茶，为何那些年轻人要多花超过10倍的数额购买？为何时下的人们愿意花千元换手机而不储蓄？说到底，不就是要跟潮流，要最新最好的，只为了一时的过瘾。其实我们只要在消费时三思，情况肯定会好转，想成为月光族都很难。就从今天开始，好好研究消费模式吧！

This Chinese article is sharing some information about 43% Malaysian's savings can't last for more than 3 months. I was shocked when I saw this report. It turns out that the savings of Malaysians are so small. What is the problem?

Twenty over years ago, when I was a fresh graduate, my salary was terrible. However, I did not waste my hard earned money. Careful consumption planning had make me saved more than 70% of my monthly income. Although my salary was low, I was still able to some some. Meanwhile, I also learned to invest. I failed in  investment as well but I learned from my mistakes. This has make me to create my own investment model. Years after, even though my income increases, burden on marriage, childbirth, buying a house, buying a car, etc. increase, I still able to save at least 40% of my income. Continuous spending control, savings, investment and active financial management have allowed me to reach debt-free at the age of 30, financial free  at the age of 40, and early retirement at the age of 47. Therefore, I still don't really understand why there are so many Malaysians don't even three-month savings.

I believe people should pay attention on their own consumption patterns. When I walk outside, I don't simply spend. But I observe that the tea shop was crowded with young people. They queue to buy a cup of tea that cost more than RM10 while I can have the same at RM 1.60 in a regular coffee shop. Why do those young people spend more than 10 times more for a cup of tea? Why people willing to spend thousands of dollars to change their mobile phones? In short, it is just to follow the trend for the moment of fun. In fact, as long as we think twice before we consume, the situation will definitely be improved. Start today and study the consumption model!