Wednesday, July 20, 2011

Always have a Plan B

I watched "Transformers: Dark of the Moon" yesterday. It was great. Transformers are my childhood heroes. ^^

SPOILER ALERT! Do not read on if you intend to catch the movie.

After my time in the army, I learnt to always have a Plan B ready. My sergeant will always ask me "Soldier, what's the wet weather plan?" I also applied this thinking on my financial planning too. My Plan A is to build a normal career, working a 9 to 5 job diligently. However, if something drastic (retrenchment/ pay cut/ mid-life crisis/ health problems) happens, I also have a plan B to fall back on. My Dividend Portfolio serves as my Plan B, my wet weather plan, by providing me with a steady stream of passive income.

So, while I was watching the Transformers movie, I love the scene where the Autobots escaped from the space shuttle/rocket unscathed. They have a Plan B! They built an escape pod in the first-stage booster rocket so that they could escape the exploding main rocket before Starscream fired the missiles at them.

After watching the movie, I had my lunch at Wendy's. Gonna share some mouth-watering pictures that I took with my phone's camera. Hee ^^

I ordered the Spicy Chicken Burger set meal. The meat patty is more tender and juicier than KFC's Zinger burger.  The bun is softer. Not overly spicy.  Overall, I prefer this over the Zinger. The fries are great too! Crispy on the outside and soft inside.
I ordered the Grilled Chicken Caesar Salad. The serving is huge! The bowl of salad can serve a meal by itself!. Luckily, I have my friend to share it with me, otherwise, I could not finish it on my own.

My friend ordered the Fried Chicken set. He said it is too salty.

So, what's your Plan B? Or maybe you even have a Plan C? Share your comments below. ^^

Peace Out,
Dividends Warrior

Saturday, July 2, 2011

Gold as an insurance against financial armageddon

Hey friends! Recently, I realised I have not been blogging about investing. So, I will like to share something I did before starting on my dividend investing path in 2009. 

Just a quick recap in case you are visiting my humble blog for the first time. I used to have a phobia of stocks, thanks to constant "scare tactics" and "brainwashing" by my conservative parents (who went through the Asian financial crisis). When Lehman Brothers' collapsed and the financial markets nosedived, I felt really relieved that I was not part of it. I just read the financial news everyday for fun and amusement. I even laughed at the plight of those greedy American banks. 

The Fed started QE1 and TARP. The US dollar depreciated. H1N1 was ravaging the global economy. There was extreme fear in the world markets. The world was on the brink of financial armageddon. So what did I do? I did something strange. Instead of picking stocks at historic low prices in March 2009, I bought 2 gold coins. o_O" I thought "Gold will always have value but currencies can become worthless overnight."

I bought the gold coins at the UOB main office. There was no queue at the gold-selling counter. People queueing up at the other counters were looking at me in a weird way. Hahahahahaha. They were stealing glimpses at the gold coins while I was choosing which ones to buy. Even the bank teller who was serving the queue beside me was fascinated by the coins.  But the female bank personnel serving me was rather nonchalant. Maybe she sees gold coins everyday until sianz liao. Or she can see but cannot take, even more sianz. Lol. The best part was that I was only wearing a cheap t-shirt, bermudas and sandals. Muahahahahaha! I dunno why, but I felt embarrassed. 

Half ounce Canadian Maple Leaf gold coin (~S$870, inclusive of GST)
Almost the same size as the 50 cent coin beside it. 

Half ounce Australian Kangaroo gold coin (~S$900, inclusive of GST)
The gold coin is much heavier. I can actually feel the weight on my hand!

I wanted to have a little insurance against financial armageddon. Experts suggest having 10% - 15% of one's portfolio in gold. For me, gold makes up about 2% of my portfolio. The price has increased quite a lot too. By the way, I love how the gold coins glitter. I can spend a good 10 minutes admiring and staring at them every day. I really dun know why. But I feel good and also a little more secured with some gold in my possession. Maybe there is really something special about gold that captures people's eyes and hearts.

So, do you have any gold in your portfolio? If yes, why? If no, why not? Comment below. ^^

Peace Out,
Dividend Warrior


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