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工程技术，地产投资，信仰家园，时尚生活
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Me & My Money Series (Sunday Times)
Two weeks, and two spenders in a row. This guy sounds like he made his money cashing in on the dot.com boom - nothing to be too proud of. The story sounds similar to last week's and his worst "investment" is two Porsches?? 
May 22, 2011
me & my money
'A house is not my retirement plan'
Entrepreneur prefers to channel savings to businesses and other investments
By Lorna Tan, Senior Correspondent
Lured by the excitement and potential of doing business over the Internet, Canadian Derek Gehl could not wait to start his own in 1998. He was 21 and had just obtained a technical diploma from CDI College, Vancouver.
In August that year, Mr Gehl and a business partner set up Internet Marketing Centre with a few hundred dollars, selling electronic gadgets such as software and third-party e-books online. Its turnover was US$1.5 million (S$1.8 million) a year later. As interest in Internet marketing grew, the firm ventured into teaching people how to build online businesses, and selling its own proprietary e-books, books and marketing tools.
By 2006, the firm had 100 staff and hit an impressive annual turnover of US$30 million. Mr Gehl, 34, declined to provide the firm's bottom line but said that it is usual for an Internet business that sells electronic gadgets to enjoy a profit margin of some 30 per cent to 40 per cent. In 2007, the business was sold to a US private equity firm for an eight-figure sum.
Mr Gehl stayed on as chief executive for two more years before leaving the firm. While serving out his two-year garden leave from 2009 till early this year, during which time he was not allowed to teach Internet marketing, he built websites and worked as a freelance consultant.
He said it is possible to set up passive streams of income from operating online businesses. Currently, he runs 16 websites, each serving a different niche market, from making bath soaps to selling spa products.
'A perfect example is a little website I picked up a few years ago for under US$2,000. After purchasing it I made a few small tweaks and changes, put it on autopilot and it has been generating US$500-US$1,000 per month,' he said. That website is http://www.makebathbombs.com.
Now that his garden leave is over, Mr Gehl is in the midst of starting a new firm to get back to Internet marketing training. Recently, he visited Singapore and spoke at an Internet marketing seminar organised by training firm Wealth Mentors.
He is married to Ms Coralynn Webber, 39, who is an accountant by profession and helps him in his business. They have two sons - Carter, 12, and Hunter, three.
Q: Are you a spender or saver?
I'm more of a spender. I like to have fun but it has to be balanced with family responsibility. I like to travel and do fun stuff with my kids. My business partner Corey Rudl died in an accident when he was 34 in 2005. He was just starting to enjoy the fruits of his labour then.
Q: How much do you charge to your credit cards every month?
Because I do all of my business online, my credit cards are my primary form of payment for most of my business expenses. So if I am running seminars or buying advertising I have been known to spend up to C$200,000 (S$256,000) on a credit card in a single month. But I always make sure it gets paid off before the interest kicks in.
Q: What financial planning have you done?
My wife and I own four universal life insurance policies from which I have C$5 million in insurance on my life. The total premium is C$1,200 a month and I put in another C$1,500 to C$2,000 a month into the investment portion of the plans. The latter are invested in equities and unit trusts. The investment portion is now worth a six-digit sum.
I also invest a percentage of my income up to a cap of C$20,000 a year in a registered retirement savings plan (RRSP). The latter allows me to enjoy tax savings as the tax on the investment amount is deferred. Both the universal life plans and the RRSP are my safety net. To accumulate wealth, I prefer to invest in new business strategies.
Q: Moneywise, what were your growing-up years like?
I grew up in a middle-class family of four. My father was a police officer and my mother is a legal assistant. I have an older sister. We lived on an 8-hectare cattle farm in British Columbia outside Vancouver.
I was encouraged to work from a young age. I started helping out at the farm when I was eight, shovelling manure and feeding the animals. When I was a teenager, we moved to a three-storey, 3,500 sq ft home in the suburbs.
Both my parents have an entrepreneurial side and were very hard workers. Ever since I can remember, my father had a side business going either building houses, farming, teaching at the university or writing books. The work ethic my parents instilled in me has been a huge benefit. But after watching my dad work so hard and sacrifice so much, it motivated me to find an easier way. My dad is retired, while my mum still works as a legal assistant.
Q: What property do you own?
I don't own any property. I had one investment property - a 2,500 sq ft, three-storey house in British Columbia - that I bought for C$100,000 in 2003. It was sold in 2008 for C$310,000. A few months later, the property market in Canada crashed.
I don't think the market will improve for at least another two years. Until then, I will continue to rent. Besides, a house is not my retirement plan. I don't believe in channelling my savings towards a mortgage where you pay predominantly interest in the first five to 10 years. I prefer to invest my savings in businesses and other investments that have potential for higher returns.
Q: What's the most extravagant thing you have bought?
In 2007, I bought two Porsches - a Porsche 911 convertible that cost C$85,000 and a Porsche SUV for C$90,000. I had wanted to buy one but bought both almost on impulse when I saw them in the showroom. I sold the convertible in 2009 and lost about C$40,000. It was the worst financial decision I've ever made.
Q: What's your retirement plan?
I am still young, so I have no plans on retiring at this point. As long as I am still having fun and my body allows it, I will work. Currently, I need about C$12,000 a month for my family and me.
Q: Home is now...
I live in a 7,000 sq ft, three-storey home on the side of a mountain just outside Vancouver, British Columbia. I'm renting it for C$4,500 a month.
Q: I currently drive...
A black Porsche Cayenne (SUV) and a charcoal Toyota Tundra Platinum that cost C$55,000.
lorna@sph.com.sg
---------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
Buying two new Porsches at the same time in 2007. The minute I drove them off the lot I lost at least C$40,000 in total because of the depreciation. Ouch!
Q: And your best?
Definitely investing in myself... in my own education. Since 1998, I have spent roughly C$300,000 on courses and training seminars, mainly on Internet marketing and running businesses, all over the world.
The returns have been phenomenal and I will continue to pay for such education for the rest of my life.
May 22, 2011
me & my money
'A house is not my retirement plan'
Entrepreneur prefers to channel savings to businesses and other investments
By Lorna Tan, Senior Correspondent
Lured by the excitement and potential of doing business over the Internet, Canadian Derek Gehl could not wait to start his own in 1998. He was 21 and had just obtained a technical diploma from CDI College, Vancouver.
In August that year, Mr Gehl and a business partner set up Internet Marketing Centre with a few hundred dollars, selling electronic gadgets such as software and third-party e-books online. Its turnover was US$1.5 million (S$1.8 million) a year later. As interest in Internet marketing grew, the firm ventured into teaching people how to build online businesses, and selling its own proprietary e-books, books and marketing tools.
By 2006, the firm had 100 staff and hit an impressive annual turnover of US$30 million. Mr Gehl, 34, declined to provide the firm's bottom line but said that it is usual for an Internet business that sells electronic gadgets to enjoy a profit margin of some 30 per cent to 40 per cent. In 2007, the business was sold to a US private equity firm for an eight-figure sum.
Mr Gehl stayed on as chief executive for two more years before leaving the firm. While serving out his two-year garden leave from 2009 till early this year, during which time he was not allowed to teach Internet marketing, he built websites and worked as a freelance consultant.
He said it is possible to set up passive streams of income from operating online businesses. Currently, he runs 16 websites, each serving a different niche market, from making bath soaps to selling spa products.
'A perfect example is a little website I picked up a few years ago for under US$2,000. After purchasing it I made a few small tweaks and changes, put it on autopilot and it has been generating US$500-US$1,000 per month,' he said. That website is http://www.makebathbombs.com.
Now that his garden leave is over, Mr Gehl is in the midst of starting a new firm to get back to Internet marketing training. Recently, he visited Singapore and spoke at an Internet marketing seminar organised by training firm Wealth Mentors.
He is married to Ms Coralynn Webber, 39, who is an accountant by profession and helps him in his business. They have two sons - Carter, 12, and Hunter, three.
Q: Are you a spender or saver?
I'm more of a spender. I like to have fun but it has to be balanced with family responsibility. I like to travel and do fun stuff with my kids. My business partner Corey Rudl died in an accident when he was 34 in 2005. He was just starting to enjoy the fruits of his labour then.
Q: How much do you charge to your credit cards every month?
Because I do all of my business online, my credit cards are my primary form of payment for most of my business expenses. So if I am running seminars or buying advertising I have been known to spend up to C$200,000 (S$256,000) on a credit card in a single month. But I always make sure it gets paid off before the interest kicks in.
Q: What financial planning have you done?
My wife and I own four universal life insurance policies from which I have C$5 million in insurance on my life. The total premium is C$1,200 a month and I put in another C$1,500 to C$2,000 a month into the investment portion of the plans. The latter are invested in equities and unit trusts. The investment portion is now worth a six-digit sum.
I also invest a percentage of my income up to a cap of C$20,000 a year in a registered retirement savings plan (RRSP). The latter allows me to enjoy tax savings as the tax on the investment amount is deferred. Both the universal life plans and the RRSP are my safety net. To accumulate wealth, I prefer to invest in new business strategies.
Q: Moneywise, what were your growing-up years like?
I grew up in a middle-class family of four. My father was a police officer and my mother is a legal assistant. I have an older sister. We lived on an 8-hectare cattle farm in British Columbia outside Vancouver.
I was encouraged to work from a young age. I started helping out at the farm when I was eight, shovelling manure and feeding the animals. When I was a teenager, we moved to a three-storey, 3,500 sq ft home in the suburbs.
Both my parents have an entrepreneurial side and were very hard workers. Ever since I can remember, my father had a side business going either building houses, farming, teaching at the university or writing books. The work ethic my parents instilled in me has been a huge benefit. But after watching my dad work so hard and sacrifice so much, it motivated me to find an easier way. My dad is retired, while my mum still works as a legal assistant.
Q: What property do you own?
I don't own any property. I had one investment property - a 2,500 sq ft, three-storey house in British Columbia - that I bought for C$100,000 in 2003. It was sold in 2008 for C$310,000. A few months later, the property market in Canada crashed.
I don't think the market will improve for at least another two years. Until then, I will continue to rent. Besides, a house is not my retirement plan. I don't believe in channelling my savings towards a mortgage where you pay predominantly interest in the first five to 10 years. I prefer to invest my savings in businesses and other investments that have potential for higher returns.
Q: What's the most extravagant thing you have bought?
In 2007, I bought two Porsches - a Porsche 911 convertible that cost C$85,000 and a Porsche SUV for C$90,000. I had wanted to buy one but bought both almost on impulse when I saw them in the showroom. I sold the convertible in 2009 and lost about C$40,000. It was the worst financial decision I've ever made.
Q: What's your retirement plan?
I am still young, so I have no plans on retiring at this point. As long as I am still having fun and my body allows it, I will work. Currently, I need about C$12,000 a month for my family and me.
Q: Home is now...
I live in a 7,000 sq ft, three-storey home on the side of a mountain just outside Vancouver, British Columbia. I'm renting it for C$4,500 a month.
Q: I currently drive...
A black Porsche Cayenne (SUV) and a charcoal Toyota Tundra Platinum that cost C$55,000.
lorna@sph.com.sg
---------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
Buying two new Porsches at the same time in 2007. The minute I drove them off the lot I lost at least C$40,000 in total because of the depreciation. Ouch!
Q: And your best?
Definitely investing in myself... in my own education. Since 1998, I have spent roughly C$300,000 on courses and training seminars, mainly on Internet marketing and running businesses, all over the world.
The returns have been phenomenal and I will continue to pay for such education for the rest of my life.
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