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Me & My Money Series (Sunday Times) Wow, didn't know Navy people spend so much, haha! $200,000 on a sports car is really very extravagant, considering the money could have been compounded through investments in equities or perhaps property. The gains from property through leverage are not considered high, as the property purchase was shared with someone else. I feel it is more important to be mindful of spending, and only spend on appreciating assets instead of depreciating assets.
Jul 24, 2011
me & my money
Ex-Navy man sets sail for charity work too
More than 3,000 underprivileged kids have received help from his aid group
By Lorna Tan, Senior Correspondent
Former naval officer Terence Quek enjoyed his stint in the Navy's corporate communications department so much that he decided to set up his own firm focusing in that area.
In 2006, he co-founded strategic communications consultancy firm Caelan & Sage with a friend, Ms Deborah Chew, 35.
This was a year before Mr Quek, 36, left the Navy after having spent 13 years there. He joined Caelan & Sage full-time in 2007. That year, the firm managed events such as tennis player Maria Sharapova Live here, among other projects.
In 2008, he set up visual communications firm Thinking Designs with Ms Chew, who used to manage executive programmes, and Mr Mark Lim, 33, a former creative head at an IT firm. And last month, he and Ms Chew set up communications training firm Right Impact Training.
Besides his business, Mr Quek's investment portfolio comprises unit trusts, shares and insurance. Having bought and sold two condominium units in the recent past, he is on a constant lookout for investment properties.
He also wants to give back to society: In 2008, Caelan & Sage set up Project Happy Feet, which supports the education of underprivileged children in developing countries. In 2009, Project Happy Feet was registered as a public company.
It has raised more than $180,000 to date and supported more than 3,000 children here and in Vietnam and Cambodia. Those interested to find out more of its inaugural Project Happy Feet Slipper Race in November can check out http://www.projecthappyfeet.org.
While in the Navy, Mr Quek trained as a naval officer in Britannia Royal Naval College in Dartmouth, Britain, as part of a military training award. In 1996, he returned to Britain under an academic training award. He graduated with a Bachelor of Science degree in psychology from University of Sheffield, Britain in 1999. He is single.
Q: Are you a spender or saver?
I used to be a big spender when I was in the Navy. I didn't think very much about savings, and had a high-risk appetite when it came to investing in stocks and shares. I had bought and sold two condominiums, but had also lost about $100,000 in investing in start-up businesses and shares. After I left the Navy in 2007, I took a different approach to money. Now, I would save at least half of what I make, and am more prudent with investing.
Q: How much do you charge to your credit cards every month?
I have three credit cards and charge about $2,000 a month to them. I would always pay off the bills before the interest kicks in. I draw about $1,000 each month from the ATM.
Q: What financial planning have you done for yourself?
I have about $100,000 invested in shares in companies such as Koh Brothers and Low Kian Huat. Since 2003, my parents have been managing my stock portfolio on my behalf. To help them in their selection criteria, they read newspapers, analysts' reports and annual reports.
I also have another $150,000 invested in unit trusts, of which $120,000 is invested via four investment-linked insurance plans. Some of the funds include DBS Shenton Global Opportunities fund, Henderson European Property Securities fund and First State Regional China fund.
I also own a health plan, an endowment plan, two whole life plans and two accident plans. My life cover is about $350,000. In addition, I have some equity in a material trading firm and a fitness and sports performance firm.
Q: Moneywise, what were your growing-up years like?
I come from a family of four and I have a younger sister. My father used to be a quality and safety manager in an American oil company, while my mother helped out with her father's garment business every now and then. My parents have always advocated thriftiness although both have been avid investors in stocks and shares till this very day. My parents are very generous people when it comes to friends and family, and that is where I also learnt that while money is important, relationships are even more so. For instance, I recall that my mother would cook for friends during mahjong games. We used to live in a four-room HDB flat in Telok Blangah.
Q: How did you get interested in investing?
I became interested in investing when I was in the late 20s. My parents and friends were all buying and selling on the stock market. However, my first significant investment was actually a property. I didn't have sufficient cash for the down payment but I had enough savings in my Central Provident Fund. So I combined my resources with a friend and bought my first property at Caribbean at Keppel Bay in 2004. When the property market improved, we sold it off, and made a small fortune.
Q: What property do you own?
In 2004, I bought a 1,281 sq ft unit at Caribbean at Keppel Bay with a friend for $860,000. We sold it two years later for $1.1 million. It was rented out at $3,400 a month.
I just sold off my second property - also a joint purchase with another friend - of a 905 sq ft unit at Domain 21 at Delta Road for about $1.2 million. We bought it in 2009 for $1.05 million and were renting it out at about $3,000 a month. I'm currently looking for my next property and am considering investing in Bangkok and Vietnam.
Q: What's the most extravagant thing you have bought?
It's got to be my black A4 Audi convertible which I bought when I was 29 and foolish. It was bought in 2004 for $199,000. I sold it off about three months ago for $57,000. It set me back by about $200,000 after accounting for interest paid. I could have invested in another property with the money.
Q: What's your retirement plan?
I don't think I'll really retire because I know I'll get bored not challenging myself. I aim to be financially independent by 42. I think I'll be quite comfortable with $2,500 a month, and about $15,000 a year for travel and leisure. I also plan to put in more time and energy into Project Happy Feet, a not-for-profit organisation I helped set up. Of course, plans may change when I get married.
Q: Home is now...
A four-room HDB flat, also at Telok Blangah, which my parents bought 10 years ago for $220,000. It's not the Telok Blangah flat I grew up in.
Q: I drive...
I take the bus, MRT and taxi or get chauffeured by my colleagues, or drive my family's silver Toyota Corolla.
lorna@sph.com.sg
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WORST AND BEST BETS
Q: What has been your worst investment to date?
In 2007, I invested about $100,000 in a start-up textile supplier business here. In less than a month, my business partner's father absconded with the money. I learnt that I would be better off investing in my own firm because I would have more control. I also learnt to be less hasty when making investment decisions.
Q: And your best?
My investment in Caelan & Sage. Not only did I not put in a single cent, but also the company has grown exponentially over four years. We're looking at crossing the million-dollar revenue mark this year and we are in the midst of conducting due diligence in preparation for a merger with a high-performing local company. |
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