Career switch pays off

Property agent earns more and has more time to spend with her little daughter
(Abstract from The Straits Times 8th Nov, 2009 by Lorna Tan)

Wishing to spend more time with her two-year-old daughter, Ms Faith Teo left her advertising and marketing managerial post at financial magazine The Edge to become a property agent in July.

So far, her decision to join RealStar Premier Property Consultant as an associate sales manager has proven to be financially rewarding. Not only did she earn the title of 'top rookie' in the third quarter of this year, but her income has gone up as well.

'I'm earning more than before. In the first three months at RealStar, I already earned what I would previously earn in a year, which was $70,000," said Ms Teo, 34.

Her biggest property transaction to date was a 3,000 sq ft bungalow in Bukit Timah, on a land area of 12,000 sq ft, which she marketed for $10.6 million together with another agent. It was a co-broke deal and Ms Teo pocketed $25,000 in commission.

Armed with a chemical processing diploma from Singapore Polytechnic in 1995, Ms Teo worked in the advertising sales departments of a few media and print firms for several years.

She studied part-time while working and graduated with a business administration degree (marketing) awarded by La Trobe University, Melbourne, in 2000. Prior to The Edge, where she worked for three years, she was a senior advertising manager at CR Media.

When it comes to financial planning, she and her husband, Mr Allan Chin, 36, a director in a global risk management firm, share an investment portfolio comprising stocks and cash. They have a daughter, Anya.

Q: Are you a spender or saver?

I save 25 per cent of my income, which goes into investments. Another 25 per cent goes to family expenses and parents' allowances, and the balance 50 per cent is channelled into charitable causes which include the Salvation Army, National Kidney Foundation and World Vision.

Q: How much do you charge to your credit cards every month?

I usually use two out of my six credit cards, which are all supplementary cards from my husband. On average, I charge less than $500 a month on my cards. We pay our card bills in full every month. I draw only about $200 a month from the ATM as I usually use my credit cards.

Q: What financial planning have you done for yourself?

I have a whole life cover, three endowment plans, a hospitalisation policy and several investment- linked policies.

Allan manages our combined investment portfolio. We have a five- to 10-year investment horizon and our target returns are between 5 and 10 per cent per annum. Our current portfolio is about 70 per cent in cash and 30 per cent in blue-chip equities like CapitaLand and real estate investment trusts (Reits) like CMT, StarHill and Suntec Reit. The latter includes my personal investment of about $50,000 in stocks. Separately, I invested $20,000 of my Central Provident Fund savings in investment-linked insurance plans. The funds are mainly in emerging markets and India.

We favour more cash and liquidity for rainy days. We track our family balance sheet's 'quick ratio' (derived from current assets divided by current liabilities) carefully such that we have sufficient emergency cash to last us for at least 11/2 to two years.

Q: Moneywise, what were your growing up years like?

I grew up living with my parents and younger sister in a four-room HDB flat in Jalan Rajah. Life was simple. My father helped to run my paternal family's provision stall in Balestier and delivered gas cylinders, while my mum sewed clothes at home to supplement the family income.

My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.

Q: How did you get interested in investing?

Until I started reading financial books, my knowledge of financial planning was very simple. I was scrimping on what I made and saving very hard...a painfully slow process. Later, I read interesting books like Robert Kiyosaki's Rich Dad Poor Dad and Don't Go To School, which made me ponder on the importance of financial planning. I even attended a two-hour talk by the man himself here in 2001. I also read books by Warren Buffett and Jack D. Schwager.

Last year, I attended some seminars on exchange traded funds and online trading.

Q: What property do you own?

We own a 1,248 sq ft, four-room HDB flat in Bukit Batok. It is our matrimonial home which we bought in 1998 for $276,000. Back then, my husband had just started working as a bank management trainee after his graduation.

Q: What's the most extravagant thing you have bought?

I think my most extravagant purchase was the four Furla bags I bought for a total of $1,400 during a clearance sale last year. I've no regrets as they are of good quality and design and will last me a long time. One is a cream document bag and the other three are handbags of different colours.

Q: What's your retirement plan?

About $6,000 a month in present value will be sufficient for both of us to live very comfortably in our golden years. I plan to continue as a real estate professional for as long as I can work. We hope to be financially independent by our 40s and spend more time with Anya and our loved ones. My belief has always been 'Do your best and God will do the rest'.

We expect our passive income flow to come from Reits and rentals from our future investment properties.

Q: I drive?

A red Toyota Wish.

lorna@sph.com.sg

Lessons from mum and dad

'My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.'

MS FAITH TEO, on what she learnt during her growing up years


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WORST AND BEST BETS

Q: What has been your worst investment to date?

In October 2007, I invested $10,000 in Singapore-listed stock China Oilfield purely out of hearsay and without diligent research.

I bought 10 lots at the initial public offering price of $1 per share.

I'm still invested in the stock and my paper losses amount to $8,350.

Q: And your best investment?

My best investments have been in love, family and friendship, which have delivered great upside beyond the financial dimension. My investments in blue-chip equities like CapitaLand, and local Reits like CapitaMall Trust have been good. From 2007 to now, I have invested about $50,000. Expected returns are about 4 per cent to 5per cent per annum.