He saves $16k out of his $20k
pay each month
Financial adviser Eugene Soo makes regular investments and his unit
trust portfolio reaps annual returns of 20%
Sunday Times, The (Singapore)
Invest
March 16, 2008
Author: Lorna Tan, Finance Correspondent
MR EUGENE Soo, 26, has barely worked for two years since graduating
from Nanyang Technological University (NTU) with a degree in
business administration in 2006. But he is already earning an
income that is surely the envy of both young as well as old
graduates.
A licensed financial adviser representative with Professional
Investment Advisory Services, his gross monthly income exceeds
$20,000 a month. This includes his own sales commissions and
overriding commissions of his team of 40 advisory
representatives.
His interest in the field of personal finance was ignited when he
signed up for a banking and finance diploma at Nanyang Polytechnic
and found himself topping his cohort in the first year.
'I found out that I was inclined towards finance and numbers...and
that spurred my interest in investing,' he recalled.
At NTU, he was the president of its Investment Interactive Club
where he had a hand in organising talks and competitions to improve
the financial literacy of students.
Before long, he was itching to join the real world of investing and
eventually took the plunge in his final year at the university by
joining a financial advisory firm as an advisory
representative.
That year, he qualified for the Million Dollar Round Table - an
international, independent association of the world's most
successful life insurance and financial services professionals -
and was earning $8,000 to $10,000 a month. This was on top of his
other income from giving tuition and running a mobile motorbike
washing business which he had set up in his polytechnic days. He
joined his current firm in September last year.
'I enjoy what I do. Helping people to grow their finances and
giving them advice gives me satisfaction and drives me to want to
excel,' he said.
His advice to young people is that they should start planning early
as the most important factor in growing one's wealth is not how
much you have, but how long you have to grow your money.
'Make it a habit to save and the desire to own something, be it an
asset, material stuff, or your dreams. Aim for something in life.
Never wait for an emergency before realising the importance of
planning early,' he said.
Q What are your money habits?
A I used to be a spender when I was in school and when I
first started work. I spent almost all that I earned. I would save
for something and one big purchase would wipe out my savings.
But I am now a saver and I save close to 80 per cent of my income
for long-term goals. I pay cash most of the time and use credit
cards only if there is an interest-free payment tied with the
purchase.
Q What financial planning have you done for yourself?
A About 15 per cent of my investments are in
investment-linked insurance products (ILPs), while 75 per cent are
in a unit trust portfolio which I started in my polytechnic days.
The balance is in stocks.
My unit trust portfolio comprises 100 per cent equities, mainly in
commodities and Asia-Pacific funds. It is also mainly in high-risk
sectors because I am building it on a long-term basis.
I monitor it on a weekly basis and it has generated an annual
return of 20 per cent.
Q What about insurance planning?
A I have mainly term plans, a whole life plan and ILPs. I am
covered for $500,000 on my life. Annual premiums come up to around
$5,500.
Get a foundation plan like a whole life and enhance it with a term
cover in your prime years. The advantage of a basic whole life plan
is that it locks in the premiums at an early age and still gives a
cash value when you surrender it in your later years.
Q What's your investment philosophy?
A I believe in dollar-cost averaging over a long period of
time. I have been in the market since my polytechnic days and have
been pumping in regular investment amounts using my salary from
part-time work.
Over the past few years, there were many uncertainties and events
that adversely impacted the returns of my portfolio. But by
constantly investing into the market, I was able to average out my
cost as I am able to buy equities more cheaply when the markets are
down.
Overall, this helped me to achieve decent positive returns that
outdo the returns of savings accounts.
Q What businesses have you gone into?
A I have a passion for motorbikes, which was how I got the
idea for a mobile motorbike washing business. This was set up
during my polytechnic days and it generated close to $6,000 a
month, excluding exam periods.
I went to condominiums and offered washing, waxing and polishing
services to motorbike owners. Now, I still get assignments from
clients, which I pass on to my friends. I intend to expand the
business once I find time off from my busy schedule.
I have also bought and sold motorbikes. It started out quite by
accident when I was surfing the Internet and saw a cheap buy. I
spotted the opportunity and made the transaction. It is possible to
make up to 40 per cent profit, which amounts to about $2,500 a bike
from such transactions.
When at NTU, I ventured into event planning, such as organising
company dinners, which was very lucrative. The business involved
securing deals and coordinating with different suppliers.
Q Moneywise, what were your growing-up years like?
A I live in a four-room flat in Aljunied with my parents and
sister. My father is a stockbroker, and when I was young, I
witnessed how exciting watching the daily teletext could be. My mum
is a housewife.
I was taught from a young age to earn money to get the things that
I wanted. I did not have many toys or video games and most of the
items were hand-me-downs from an older cousin.
My mum, who is a saver, used to take me to different banks every
week just to deposit $10 or $20 into my accounts. 'Without $10, you
think you will have $100?' she always said.
Q What's your retirement plan?
A I intend to retire before 50 and achieve a passive income
of $20,000 a month. I hope to own properties in Australia and
travel there often to relax.
My nest egg will be a lump sum of money invested into different
asset classes such as properties for rental income, shares, unit
trusts and a high guaranteed single premium plan.
Q And your car is...?
A A white Honda Integra. I bought it just before I graduated
from NTU with my own money.
[email protected]
Copyright, 2008, Singapore Press Holdings Limited
