Power of disciplined savings and compounding!

"Be decisive. A wrong decision is generally less disastrous than indecision" - Bernhard Langer.

How satisfied are you with your investment plan?

Does your plan take care of the medium term and long term requirements?

What are the consequences of you falling short of your needs at a later stage in life?

What if the long-term inflation is higher than your investment returns?

What if i told that with proper planning, you will only need to set aside half or even a third of what you would need to save ?

Target : $1Million at age 60.

Age	Duration Years	0%	4%	5%	6%
25	35	2,380	1,103	895	701
30	30	2,778	1,442	1,203	996
35	25	3,333	1,946	1,681	1,443
40	20	4,166	2,727	2,435	2,164
45	15	5,555	4,064	3,743	3,438
50	10	8,333	6,792	6,442	6,102

** - Returns above are probable returns for illustration purposes.

From the above table, you could see, you just need to set aside $700 a month if you start early and better manage your investments to make a Million Dollars at age 60. This works out to investment of only $294,000 but grows to $1Million because of disciplined savings, better money management and the power of compounding.

Target : $500 a month

Age	Duration Years	0%	4%	5%	6%
25	35	210,000	452,986	567,037	712,355
30	30	180,000	346,777	415,514	502,257
35	25	150,000	256,916	294,224	346,496
40	20	120,000	183,304	203,629	231,020
45	15	90,000	123,005	132,755	145,409
50	10	60,000	73,609	77,309	81,939

The table above explains the returns for a fixed amount of $500 instead of target of $1M in the first table.

Start early, Be disciplined, Actively manage money and let the power of compounding work in your favor.

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” ― Albert Einstein

Singapore Press Holdings (SPH) - A stock worth holding, Long term

Update : 26th July 2013.

The Share Transfer Books and Register of Members of the Company will be closed on 6 August 2013 for preparation of dividend warrants. Duly stamped and completed transfers received by our Share Transfer Office, Tricor Barbinder Share Registration Services, 80 Robinson Road #02-00 Singapore 068898, up to 5p.m. on 5 August 2013 will be registered to determine shareholders' entitlements to the special dividend. In respect of shares in securities accounts with The Central Depository (Pte) Limited ("CDP"), the said special dividend will be paid by the Company to CDP which will distribute the dividend to holders of the securities accounts.

Dividend Value : 0.18
Record Date : 05/08/2013
Date Paid/Payable : 16/08/2013

Source : SGX.

Have a good weekend.



The much awaited listing of the SPH(T39.SI) Reit is expected to happen by end of July. It's expected to offer a yield of 6%. SPH Shareholders will get a special dividend of 18cents from the capital raised with this IPO, this pushes the yield for this year closer to 10% this year. (24 cents regular plus 18 cents special dividend).

The stock has recovered from two weeks low of 4.12 to 4.32 at the open this morning on the back of this listing news. 

Look at the 5 years performance when the stock offered 10% yield the last time in 2009 :)

http://finance.yahoo.com/q/bc?s=T39.SI&t=5y&l=on&z=l&q=l&c=

Disclaimer : I currently own the stock 

Please find below the news article.

Source : Bloomberg

Singapore Press Holdings Ltd. (SPH), the newspaper publisher that owns the Paragon mall along the city’s shopping belt, is seeking to raise as much as S$504 million ($394 million) in an initial stock sale of its retail assets.

The real estate investment trust is offering 559.9 million shares at between 85 Singapore cents to 90 Singapore cents, according to a preliminary prospectus filed today with the city-state’s regulator. The offer includes an allotment of 251 million units to cornerstone investors including Great Eastern Life Assurance Co. and Morgan Stanley Investment Management Co., according to the document.

SPH REIT plans to offer a yield of as much as 6 percent based on fiscal 2014 projections for the two malls, which have a combined value of S$3.07 billion, it said. Singapore Press said in May it will hold about 70 percent of the REIT after it goes public, and the proceeds will fund the group’s growth and a special dividend.

“The manager will take an active role in managing and enhancing SPH REIT’s properties,” SPH REIT said in the prospectus, adding that it will “assess acquisition opportunities in line with SPH REIT’s investment objective.”

There is an over-allotment option of 56 million units, it said.