Doing research saves her pain of market selldown

MS ANNA Lee, 47, can afford to pay someone else to look after her investments but she does the hard work and does her own research anyway - and this attention to detail has just paid off handsomely. Ms Lee, director of wealth management at United States-based education firm Kaplan, took heed of a report on www.wealth.com that she read in June, warning of a major correction. She sold off her portfolio in the nick of time, before global stock markets went into a tailspin over problems in the US sub-prime mortgage market. Still, Ms Lee is hardly a typical investor. She has a well-honed ability for technical analysis of stocks, after stints as an international money market broker and having worked in the foreign exchange departments of financial institutions. Not content with ad hoc tips from her remisier, she constantly does her own research. Hobby doubles as investment 'My high-end clocks and watches include a $13,000 Patek Philippe watch, an $8,000 Jaeger-LeCoultre clock and a $7,000 Girard-Perregaux watch. I have nearly 40 watches worth $60,000.' - MS LEE, who also invests in antique furniture, jade, timepieces, diamonds and Peranakan porcelain ware 'If you do something, you should have an interest in it and do your own reading and research.This is because only you would have your own interests at heart. I am constantly updated with company news of the stocks in my portfolio. I keep an eye on about five at one time,' she says. Since she sold off her holdings, she has gone fishing for bargains such as Keppel Corp. She makes it a point to advise her friends and clients not to delay financial planning. Part of her job involves customising training for staff of banks and multinational companies on financial management. 'The people who come for retirement planning at Kaplan are people in their 40s. Most have bought the wrong insurance plans, didn't diversify and find the investment horizon too short to rectify the mistakes they made. Most wished they had started earlier.' Q What are your money habits? A I try to save at least 50 per cent of my income. I am rather happy if I can save 40 per cent. The rest is set aside to pay bills, enjoy life and for emergencies. I set aside 15 per cent of my income for fun money - for movies, eating and holidays. Q What financial planning have you done for yourself? A I am single. I do need to take care of my finances and ensure I do not outlive my money. It is foolish to depend on your siblings and relatives to take care of you during your old age. I have 30 per cent in fixed deposits and the balance in stocks. Sometimes, I get tips from my stockbroker but most times, I do my own research and investments. Recently, I bought Keppel Corp after the market collapse in July, at $12.70 apiece. I'm considering United Overseas Bank. I take profit when the stocks are up at least 20 per cent. I buy only blue chips. In the last two years, I've aimed and achieved 20 per cent returns per annum. Prior to that, the annual returns were 7 to 8 per cent. Q What about insurance planning? A I am richer dead than alive. I'm insured for close to $1 million. My insurance plans range from personal accident, global travel and whole life to endowment and hospitalisation. My annual premiums are $20,000. Q Any other investments? A I invest in antique furniture. I have about five pieces that are between 80 and 100 years old. Valued at about $40,000, the furniture pieces are mostly from China and are intricately carved. I converted a bed to a table and the other pieces include a side table, glass cabinet, sideboards and an unusual table that can rotate. I also like to buy jade, timepieces, diamonds and Peranakan porcelain ware - some were handed down from my great-grandfather, others were acquired over time at $500 to $800 per tea cup. My high-end clocks and watches include a $13,000 Patek Philippe watch, an $8,000 Jaeger-LeCoultre clock and a $7,000 Girard-Perregaux watch. I have nearly 40 watches worth $60,000. Q How did you get interested in investing? A As you grow older, you wish to work less hard and so investing wisely is a short cut to that goal of getting richer without too much blood, sweat and tears. I started investing in stocks because an elder brother, who is a financial adviser, said I should not leave money in my Central Provident Fund because it doesn't pay good returns. That was in 1997 and I bought Keppel Land, City Developments, Singapore Land and OUE. Unfortunately, they fell because of the Asian crisis but rebounded over a period of time from 2001 - it was a slow climb. Q What's your investment philosophy? A Don't invest in anything you don't understand. Instead of listening to others, take matters into your own hands and understand brokerage charges, terms and conditions, penalties, and arrive at a minimum period for your stock investments to grow. Also, don't be greedy, and diversification is key. That's why I put some money into fixed deposits and I'm looking at buying properties. Q What has been a bad investment? A I bought my Raffles Town Club membership at $28,000. Today it is worth around $6,000. I term it a bad investment because I hardly make use of the club facilities, yet I have to pay monthly membership dues of about $90. Q What is your best investment to date? A I just sold my home, a condominium at Eastern Lagoon II in Upper East Coast Road. It was purchased last October for almost $449,000. I sold it at $770,000 and made a tidy profit of 72 per cent. I plan to get a HDB flat and buy a prime district investment property when prices decline. Q Moneywise, what were your growing-up years like? A I'm number 10 in a family of 11 kids. Mum was a housewife while dad worked as a storekeeper. We lived in a house in Serangoon Gardens. We got pocket money from Dad on a weekly basis and there were no additional handouts. That taught us to save if we wanted to buy something. Q What's your retirement plan? A Assuming I retire at 60, I would need at least $1.5 million for the next 25 years. That would be an income stream of $5,000 a month. Q Any financial management tips? A I advise all young people to start planning for their future needs as soon as they start earning. Be careful with credit cards because you may end up spending money you don't have. Buy necessities with credit cards and luxuries with cash - that may give you second thoughts about those luxuries and maybe stop you from buying them. Q And your car is...? A A silver Lexus IS 250.