Financial Freedom

In the quest for the path to financial freedom is almost equivalent to the Zhifu islander Xu Fu with ships carrying hundreds of young men and women in search of Mount Penglai, around 200BC where the Eight Immortals lived in order to sought the fabled elixir of life.

There is no proper definition of financial freedom as far as i am concern in dictionary. However, Suze Orman coined this term in her book "The 9 Steps to Financial Freedom", her definition of financial freedom is "when you have power over your fears and anxieties instead of the other way around."

Nonetheless, others define financial freedom as monthly expenses are equal to our passive income. No matter how we define the word FINANCIAL FREEDOM, the most important thing is PROPER FINANCIAL PLANNING with DEBT FREEDOM and FINANCIAL INDEPENDENCE. Hence, you are FREE to do anything (aka TIME FREEDOM). Its a paradigm shift in our mindset with different point of view on GOOD QUALITY OF LIFE WITHOUT financial worries.

I am not talking about being born into a family of HIGH NET WORTH INDIVIDUAL (HNWI) - INHERITANCE of WEALTH.

In this article, i am sharing my ideas on utilizing personal financial planning to achieve "financial freedom." 

Is it possible for us to achieve our financial freedom eventhough we are on steady source of active income? 

Is it a myth? 

Is it achievable?

Can i sit at home and do nothing but earning USD 10, 000 a month?

Can i trade my way to financial freedom with stocks?

There are so many questions and doubts keep baffling with our mind. Therefore i wish to clear some doubts from a non-financial expert eye.

MYTH:

1) freedom to do anything including spending money lavishly and living in a posh service condo/ bangalows with heated swimming pool and jacuzzi

2) swiping my plastic CREDIT card like no body biz

3) no need to put in effort for passive income

4) spend as if like doom's day coming soon

5) no need to learn the meaning of "FRUGALITY"

REALITY:

1) Freedom to arrange our time for active income based on our priority
2) FRUGALITY is still the keyword for WEALTH PRESERVATION

3) PRIORITIZE our expenses

4) Utilizing EXISTING MONEY TO REPRODUCE MORE MONEY (a.k.a INVESTMENT)

5) ALWAYS REBALANCING your PASSIVE INCOME PORTFOLIO (STOCK investing, UNIT TRUST, REAL ESTATE INVESTMENT TRUST, BONDS, PROPERTIES etc)

well, well much said about the myth versus the reality of financial freedom.

Can we achieve it?

Like what i mentioned just now, it is no easy task by just developing the desire to reach the destination called "financial freedom" but the journey to achieve financial freedom requires a lot planning and thinking in advance (let say 30 to 40years in advance) and wealth preservation.

It is Never Too Late nor 

It is Never too Early to Start to PLANNING FOR PERSONAL FINANCE.

In order to plan your finance, either you can hire a certified financial planner (CFP) or DIY.

IMHO, i personally prefers DIY FINANCIAL PLANNING

Steps for Financial Planning

1) Identify our NET WORTH and ESTIMATED PERSONAL NET WORTH

[years to retire X (Annual income minus estimated Annual expenditure)]

2) Define your personal FINANCIAL GOALS 

3) Prioritize them into 

[SHORT TERM] - buying a laptop/ XBOX/ shoes/ watches

[MEDIUM TERM] - buying a car/ hi fi system/ LCD-HD

[LONG TERM] - buying a house/ retirement funding/ children education funding

4) Debt Settlement, Consolidation and Management

-Debt consolidation basically means taking up one loan to pay off another loan with lower interest rate/ fixed rate or convenience by servicing one loan

-Normally, debt consolidation normally involved payment of a number of unsecured loan against an asset that serves as collateral most commonly a house.

-Theoretically it is suitable to pay off credit card loans

5) Retirement planning

-EPF (one thing for sure is that, EPF is not gonna be enough for this time and day retirement, mainly due to high inflation with low returns)

-Even in the EPF website, it is mentioned that EPF initiative to help improve the employment prospects of members above the age of 55 and to enhance financial security of all members upon retirement (some sense of financial security but not financial freedom)

6) Intelligent portfolio management (rebalancing investment based on economy status)

investment vehicles includes: 

-saving account

-fixed deposit

-bonds

-mutual funds

-equities

-properties

-collectible

In the upcoming blog, i will focus on each individual steps mentioned above.

Reference:-

1 Suze Orman. The 9 Steps to Financial Freedom

2 http://en.wikipedia.org/wiki/Security_(finance)

3 http://en.wikipedia.org/wiki/Debt_consolidation

Notes:-

Wealth derives from the old English word "weal", which means "well-being.

The term was originally an adjective to describe the possession of great qualities.

Before Financial Freedom was popularised, Financial Independence and Financial Security were the terms used commonly.

"Financial freedom" is not a comprehensive terminology as being wealth is nothing without health. As we will spend all the money we earn to pay to maintain our health.

======================================

Financial planning + passive income = Debt Freedom 

Debt Freedom + Time Freedom = Financial Freedom 

Financial Freedom = Good Quality of Life

Can i conclude 

Financial Planning + Health = Good Quality of life?

======================================

Is it a illusion equation? or more of a logical equation?

well there is not exact delineation of black and white in life. 

There is always grey area where we are not certain. 

There are 2 certain things in life, DEATH & TAXES!

Malaysians Pay Higher Interest Rate (hire purchase)

Saw this in today's paper TheStar, 28th September 2008

Dont really know what to say, nightmare ?

Coupled with higher consumer price index (CPI) as well as higher Petrol price

quality of life will dropped due to current economic situation, STAGFLATION!

Reference:-

http://thestar.com.my/news/story.asp?file=/2008/9/28/nation/2142760&sec=nation

Wise Words - Warren Buffet

Price is what you pay. Value is what you get. 

Risk comes from not knowing what you're doing. 

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. 

The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective. 

The investor of today does not profit from yesterday's growth. 

The only time to buy these is on a day with no "y" in it. 

Time is the friend of the wonderful company, the enemy of the mediocre. 

Value is what you get. 

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. 

Why not invest your assets in the companies you really like? As Mae West said, "Too much of a good thing can be wonderful". 

Wide diversification is only required when investors do not understand what they are doing. 

You do things when the opportunities come along. I've had periods in my life when I've had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing. 

You only have to do a very few things right in your life so long as you don't do too many things wrong. 

reference:

www.brainyquote.com/quotes/authors/w/warren_buffett.html

“The most powerful force in the universe is compound interest”

Owning a house is everybody's DREAM

BUT the process of owning one is NOT AN EASY TASK

keywords:-

• lots of delayed gratification
• savings
• frugal living
• over time
• part time job

House Prices is NOT CHEAP NOWADAYS

EVEN with RM100,000 downpayment for a RM400,000 semi-Detached house in Selangor will make us toil our precious sweats out for 2 decades or 3 decades

the difference is as follows:

OPS even after paying 2 decades or 3 decades, at term, we still owes bank RM169 ,000 and RM 243,000.

Whereas in FIXED DEPOSIT bank pays us around 3.7% maximum for p.a.

Isnt it compounded interest is the most powerful force in the universe? Attracting everybody's money to the bank.

Thats how the banks make monies right. They are not charity centres.

Therefore, financial planning is of utmost importance as a working adult.

reference:-

http://www.vertex42.com/Calculators/Canadian-mortgage.html

40 keyWORDS To SAVE GAS

][wAys 2 d3aL wItH RiSiNg FuEl PrIc3][

][carpool][public transport][NGV conversion][fuel efficiency][low rolling resistance][aerodynamic drag][unnecessary travel][walking][bicycling][lower loads][off air cond][vvti][vtec][idsi][reduce trips][fueling early hours][stop idling][better lubricant][regular servicing][constant speed][auto cruise][premium fuel][fuel addictive][microcompressor][fuel stabilizer][well inflated tyre][avoid hitting brake unnecessarily][low drag coefficient][40km/h][50km/h][fuel injection][avoid rush hour][credit card rebate][bonus points][no zooming][no high revving][plan your trip][off roof rack][wind up window high speed][online banking][online shopping][

CHIKV

Recently, we have heard about Chikungunya fever outbreak in malaysia. 136 people tested positive for CHIKV from the 631 cases detected at 20 localities in Johor, Malacca, Negri Sembilan and Perak.

Chikungunya virus

-insect-borne virus (Aedes aegypti mosquitoes)

-Alphavirus genus

-symptoms are quite similar to dengue virus fever

• Fever 2 to 5days
  
• The temperature may remit for 1-2 days, resulting in a "saddle-back" fever curve.
  
• prolonged arthralgia of extremities (not so much of larger joints), often polyarticular and migratory in nature
  
• maculopapular rash may or may not be present 
  
• other symptoms includes headache, conjunctival injection, and slight photophobia
  

Common laboratory tests for chikungunya include:-

1) RT-PCR(result is ready in 1-2 days), 

2) virus isolation (result is ready in 1-2 weeks), and 

3) serological tests (Result is ready 2-3 days but with false positive ie O'nyong'nyong virus and Semliki Forest Virus)

Treatment:

1) supportive

2) Vaccine in Phase II trial 

3) Chloroquine phosphate (250 mg/day)

Prevention

1) insect repellents

2) wears a long sleeves and long pants

3) garments can be treated with pyrethroids

4) mosquito coils

5) screens the windows and doors

6) keep surrounding clean (minus the empty cans/ tyre/ container - breeding ground for aedes moquitoes)

References:

1) Chikungunya cases escalate, TheStar, Thursday July 31, 2008.

http://thestar.com.my/news/story.asp?file=/2008/7/31/nation/21964401&sec=nation

2) http://www.myhealth.gov.my/myhealth/eng/dewasa_content.jsp?lang=dewasa&sub=0&bhs=may&storyid=1193386725877

3) http://www.smtbd.com/products.html

4) OnSite Rapid Test for the detection of Chikungunya Fever http://www.ctkbiotech.com/Default.aspx?tabid=118

5) www.dph.gov.my/survelans/Guidelines%202006/SURVEILLANCE%20AND%20MANAGEMENT%20OF%20CHIKUNGUNYA%20DISEASE.pdf

 

6) Edelman, R et al. "Phase II Safety and Immunogenicity Study of Live Chikungunya Vrirus Vaccine TSI-GSD-218", American Journal of Tropical Medicine and Hygiene 62 (6): 681–685.

7) http://www.vadscorner.com/alphaviruses.html

Notes:

Chikungunya means "that which bends up" description for the classical clinical presentation of these patients due to generalised joint pain that is not relieved by NSAID nor Aspirin.

Further information can be obtained from the ministry’s website, www.moh.gov.my or call +603-88810600/0700 during office hours.

Pneumococcal vaccine

====================================
Questions:-

1) What is pneumoccoal disease?

2) Who should be vaccinated with pneumococcal vaccine?

3) Pneumococcal vaccine timing explained

=========================================

Pneumococcal Disease (PnD) manifestations includes:-

- meningitis (infection of the lepto-meninges, covering of the brain)

- middle ear infection

- pneumonia (lung infection)

- sepsis (bacteria in the blood-stream)

Mode of transmission: air droplets via cough or sneezing

Children below 24 months old is at the highest risk of these infection

Around 60% of the preschool children is carrying this bacteria and transmission of this bacteria become imminent when they goes to day care centre.

Therefore, these group target group for pneumoccal vaccination:-

1 extreme ages (<> 65 years-old)

2 individuals with chronic disease (diabetes mellitus, heart disease, chronic obstructive lung disease, alcoholism)

3 individuals with spleen removed (2weeks before splenectomy)

4 individuals had organ transplantation and on immunosuppression

Vaccination timing:~

reference:

a) http://www.azdhs.gov/phs/oids/abx/images/prevnar.pdf

b) http://www.merck.com/product/usa/pi_circulars/p/pneumovax_23/pneumovax_pi.pdf

=========================================

Notes:

1) 1 dose = 0.5ml intramuscular/ subcutaneous injection

2) PREVNAR = heptavalent pneumococcal conjugate vaccine (PCV7)

3) PNEUMOVAX 23 = 23-valent pneumococcal polysaccharide (23PS)

4) for adults, only 1 dose is required. However may need to be repeated 5 to 10 years time.

5) following vaccination, serotype-specific antibody levels decline after 5-10 years.

6) Efficacy in immunocompetence individual is around 50 to 80%

7) PNEUMOVAX 23 may not be effective in preventing pneumococcal meningitis in patients who have chronic cerebrospinal fluid (CSF) leakage resulting from congenital lesions, skull fractures, or neurosurgical procedures.

Questions and Answers on melamine

WHAT IS MELAMINE?

Melamine is an organic base chemical most commonly found in the form of white crystals rich in nitrogen

WHAT IS MELAMINE GENERALLY USED FOR?

Melamine is widely used in plastics, adhesives, countertops, dishware, whiteboards and fertilizers.

WHY WAS MELAMINE ADDED INTO MILK AND POWDERED INFANT FORMULA

In China, where adulteration has occurred, water has been added to raw milk to increase its volume. As a result of this dilution the milk has a lower protein concentration. Companies using the milk for further production (e.g. of powdered infant formula) normally check the protein level through a test measuring nitrogen content. The addition of melamine increases the nitrogen content of the milk and therefore its apparent protein content.

Addition of melamine into food is not approved by the FAO/WHO Codex Alimentarius (food standard commission), or by any national authorities.

HAS MELAMINE BEEN FOUND IN OTHER FOOD PRODUCTS?

In 2007, melamine was found in wheat gluten and rice protein concentrate exported from China and used in the manufacture of pet food in the United States. This caused the death of a large number of dogs and cats due to kidney failure.

In the present event, melamine contamination has been found in a number of different brands of powdered infant formula, in one brand of a frozen yogurt dessert and in one brand of canned coffee drink. All these products were most probably manufactured using ingredients made from melamine-contaminated milk.

WHAT ARE THE HEALTH EFFECTS OF MELAMINE CONSUMPTIONS IN HUMANS?

While there are no direct human studies on the effect of melamine data from animal studies can be used to predict adverse health effects. Melamine alone causes bladder stones in animal tests. When combined with cyanuric acid, which may also be present in melamine powder, melamine can form crystals that can give rise to kidney stones.

These small crystals can also block the small tubes in the kidney potentially stopping the production of urine, causing kidney failure and, in some cases, death. Melamine has also been shown to have carcinogenic effects in animals in certain circumstances, but there is insufficient evidence to make a judgment on carcinogenic risk in humans.

WHAT ARE THE SYMPTOMS AND SIGNS OF MELAMINE POISONING?

Irritability, 

blood in urine, 

little or no urine, 

signs of kidney infection, 

high blood pressure

WHAT IS THE TREATMENT FOR KIDNEY STONES AND KIDNEY FAILURE?

Patients may receive various types of treatment, depending on the severity of the kidney effects. Treatment may include :-

-infusion of fluids and urine alkalinisation, 

-correction of electrolyte and acid-base disturbance, 

-haemodialysis or peritoneal dialysis, or 

-surgical removal of kidney stones.

Reference:-

1) www.moh.gov.my/MohPortal/newsFull.jsp?action=load&id=353

2) Epidemic and Pandemic Alert and Response (EPR)

http://www.who.int/csr/media/faq/QAmelamine/en/index.html

caveats:-

1) how about our malamine wares for food-packaging?

2) how about our plastic toys?

3) Romer labs now offers a rapid melamine test kit

financial quotient (FQ)

All of us have heard of Intelligence Quotient, IQ. The significance of high IQ on our society.
However, later on, we learns that emotional quotient, EQ is equally important in managing our rational decision in a very emotional situation.
Well, have you heard of financial quotient?

Simply defined as knowledge in managing our money and understanding the value of money versus time.

So, how can we achieve high financial quotient?
Some says, we have to be rich, in order to learn this FQ.
IMHO, it is not how much we earn but how much we keep/ save that counts.
Once we learned how to save, then we can plan how to manage our money.
There is another term called Portfolio Intelligence, in simple words, we learn how to allocate our money into different type of investment vehicle and diversification.

Once we are done with the portfolio allocation, we need to monitor our investment. Trying to keep the cost down, there is a few ways (namely; dollar cost averaging, value averaging and unit averaging).

Not to forget, always be smart about taxes. Learn about the exemption of taxes and utilise it.

few pointers to bear in mind:-

*Always keep emotion in check

*Always read on personal financial planning books (knowledge is power, power to make more returns in our investment)

*Time is the most important variable in maximising our returns (invest as early as we can)

*Always identify, which is asset and which is liabilities. (Spend money on liabilities are not considered as investment)

*Always keep the cost down (in other words, value investing the key to success. Thats what warren buffet is preaching)

*Always invest in MAIN STREET and NOT WALL STREET

What is preserved ejection fraction heart failure?

Introduction:-

heart failure is common. Nowadays, it is getting more common as the non-communicable disease (namely diabetes, hypertension and ishemic heart disease) prevalence is increasing day by day.

Heart failure is defined as progressive syndrome characterised by complex cardiac and systemic adaptations that vary over time. 

Pathogenesis of heart failure:-

 -myocardial ischaemia (regional/ global) with myocardium insult

 -left ventricular remodeling/ inflammation (hypertrophy, fibrosis, and dilatation)

  -reduced force of contraction

  -reduced stroke volume

 -local and systemic neurohumoral and cytokine activation, 

-sympathetic over activity stimulates hypothalamus to secrete vasopressin (ADH, water 

         retention)

 -impairment of renal hemodynamic function 

-stimulates the release of renin, catalyses vasopressor angiotensin and it stimulate aldosterone, adrenal glands). neuroendocrine hormones promotes salt and fluid retention

 -vascular dysfunction

 -> systolic and (or) diastolic dysfunction

American College of Cardiology/American Heart Association degree of functional impairment classification:-

Framingham criteria is used to diagnose heart failure.

Heart failure can be classified into few classifications:

1)  systolic versus diastolic heart failure

2)  right heart failure versus left heart failure

3)  backward versus forward failure

4)  low-output heart failure versus high-output heart failure

systolic versus diastolic heart failure:-

50% of the heart failure patient has normal ejection fraction (>50%)

therefore these patient are classified as diastolic heart failure (DHF)

studies shown that DHF associated with 

-elderly patient

-female predominance

-chronic hypertensive patient rather than ischaemic heart disease patient

diastolic heart failure is also known as preserved ejection fraction heart failure

it is hypothesised that failure to relax in diastolic phase reduces the venous return hence reduces the stroke volume. However, the sysolic function may be preserved. Thats why, left ventricular ejection fraction (LVEF) is not impaired.

Management:-

Once we understand the pathogenesis, therefore doctors normally prescribe a cocktail of pharmacological drugs (BB + ACEi + aldosterone antagonist + diuretics + vasodilators).

Latest addition to the management are as follows:-

a) Recombinant neuroendocrine hormones (Nesiritide, a recombinant form of B-natriuretic peptide)

- promotes diuresis and natriuresis, 

-thereby ameliorating volume overload. 

b) Vasopressin receptor antagonists 

-Tolvaptan and conivaptan antagonize the effects of antidiuretic hormone (vasopressin), 

-thereby promoting the specific excretion of free water, directly ameliorating the volume overloaded state

cardiac resynchronization therapy:-

CRT indicated for patients with NYHA class III or IV and left ventricular ejection fraction (LVEF) of 35% or less and a QRS interval of 120 ms

Implantable cardioverter-defibrillator:-

ICD may be beneficial for patients with NYHA class II, III or IV, and LVEF of 35% (without a QRS requirement).

Left ventricular assist devices (LVADs):-

-commoner and often used by whom waiting for heart transplants

Prognostic hemodynamic categories are based on 

-the relative derangement in cardiac output, 

-filling pressures, and 

-systemic vascular resistance.

References:-

1) Margaret M. Redfield. Understanding diastolic heart failure. NEJM 350;19:1930-1931.

2) Incorrect Classification of Patients by the AHA/ACC Stages of Heart Failure.          http://www.medscape.com/viewarticle/490041

3) The EVEREST trial

4) EFFECT rule

wealth vs health

QUESTION:
IS THE HEALTH OR WEALTH MORE IMPORTANT IN YOUR LIFE?

without health, wealth cannot be achieved, however
if
without wealth, can health be achieved?

well, answer is yes and no.

yes, because majority of non-communicable disease (example: diabetes/ hypertension/ obesity) are related to sedentary lfestyle and dietary intake related.

no, because in lower socio-economic income group from less developed nation are struggling to cope with epidemic of communicable disease (namely dengue/ cholera/ gastroenteritis/ protein malnutrition).

therefore, to strike a balance between this two is no a easy task.

Living healthily and in wealth is the objective of my blog.
To explore and share some health tips and wealth tips that i accumulated through-out the years in my university and working life.