On Love, Money and Career

I've had some time to think about my future lately. I'm glad to say that I have emerged much wiser from the contemplation and reflection. I believe that a person's past shapes his future. The experiences and hopes, strengths and vulnerabilities that a person possess at some point of his life, determine his destiny. Here are my thoughts on some relevant issues in my life:

On Love

Love is beautiful because it inspires you to be more than you can be. It teaches you the beauty of self-sacrifice and giving. Love reminds you to take time to smell the Roses...to cherish who ever God has blessed you with...to gain a deeper understanding into the character of two different people (your partner and yourself). Being in love means that you have a little hearth in your heart no matter how violent the storm outside is. It means that you have a reason to wake up in the morning. Love and being loved imbue life with meaning and enrich it with many beautiful and priceless moments...you become strong when you are loved...simply because you don't want to let down those who have placed their hopes in you...Every moment spent loving is a step closer to Heaven...Afterall, what can be purer and more noble than having someone to love?

On Money

My philosophy towards money is, " Make your money work for you"...Gone are the good old days when putting money in a fixed-deposit account would ensure that you would not starve upon retirement. Increasingly, low bank interest rates and ever-rising inflation have dramatically led to the decline in the appeal of fixed-deposit accounts as an instrument to build a nest egg. With the coming of age of Singapore as an international financial hub, there has been an influx of financial products and services. Low risk tolerance? No problem, just buy bonds. Narrow time horizon? Go for REITS. Want a little bit of everything? Then start doing homework on mutual funds and Investment-linked Insurance Policies...After thinking through, I am convinced that my ideal investment portfolio would have the following characteristics:

1) Diversity

In order to reduce the risk of market volatility, I would place my money in a variety of avenues as opposed to just one avenue (eg. equity). This softens the impact if a market crash occurs. I would also be less affected by the vissicitudes of the various markets for financial products. As I have a wide time horizon, I can afford to put more money in annuity schemes and bonds that take a longer time to mature. I have relatively few financial commitments as of now. Therefore, I am not in debt. I can afford to invest more money without fear that I would be unable to service my debts. In this sense, I am less sensitive to large changes in the markets. In a way, my risk tolerance is relatively high.

Diversification is the way to go as I do not believe in being overeliant on any one asset class. Even in the same class of assets, I would devote different proportions of my income to different sub-classes. For instance, a proportionately larger investment in growth stocks as opposed to income stocks. This is because growth stocks have the potential to rise in value, but the value of income stocks is unlikely to rise. Moreover, dividends from income stocks are taxed, but the capital gains from growth stocks are not taxed.

2) Quality

It is useless to have a diversified portfolio if the various funds, stocks and bonds are of low quality. As such, I would do a thorough cost-benefit analysis before purchase. Factors to consider would be potential of the company to grow, future value of earnings per share, current value of the stock and strength of the management. As for bonds, I would have to consider the relationship between the interest rate climate and its impact on the value of the bond. Ideally, I would love to invest in blue-chip stocks and gilt-edged securities. However, the costs of these products will be beyond my means for some time to come.

3) For The Long Term

The stock market rises and falls following decisions driven by greed and fear.
Investing for the long term means that you avoid speculative risks and are less likely to put your money where prevailing market sentiment lies. Doing so could be dangerous because you expose yourself to market volatility.

Assets And Liabilities

Although there are temptations aplenty in today's world, I strongly hope that I can be prudent and avoid overspending or accumulating massive credit card debts. I aim to develop a firm understanding on what constitutes and asset and a liability. For instance, a car is a liability at my stage of life because of high purchase and maintainence costs, not to mention tax and depreciation. In addition, the opportunity cost of purchasing a car is money that could have been spent on investing in other assets.

My Career

I want to practise Corporate or Criminal Law. I want to play a part in upholding corporate governance, justice and transparency in Singapore. I chose to study Law because a legal education trains me to think critically about issues...I was an Arts student, but Law is a much more compelling subject because it requires the highest order thinking skills-evaluation and decision-making...I seek to let my passion and enthusiasm for the subject to manifest itself in every assignment, every assesment and every obstacle. Whatever it takes, I am in this for the long haul.

Someday, I hope to write and teach as well. I want to share my life's experiences with society. I want to be someone whose opinions are valued and respected. I want to be an inspiration to generation upon generation of poets and artists. All of us will die one day. But before I go, I want to leave a body of work that enriches the society that I once lived in.