Let your pot of gold do the work

Straits Times: Sun, Dec 04

Mr Roland Tay joined AXA as an insurance adviser 15 years ago when he was 22. He became the top adviser, then the top manager, before becoming the top director. He did so well that the firm created a new title for him last year - that of executive financial services director. 'When I started, I told myself that I wanted Roland Tay to be a household name in AXA in 10 years' time,' says the 37-year-old. 'The top guy was working 61/2 days a week and seeing three to five clients a day. So I worked seven days a week and aimed to see five to seven clients a day.' It was a schedule he maintained in his first three working years, though Mr Tay says hard work alone is not enough for success. 'Working hard alone will not guarantee success. I am very fortunate to be in the right place, where it was recognised.' Interestingly, Mr Tay says he used to be more of a follower and it was his national service stint that brought out the leadership potential in him. 'NS is very good in toughening people up. There, I was given ample opportunities to lead and challenged to perform,' he says. 'I realised I like to lead people to achieve something, to give them direction, to influence them through good or bad times.' Mr Tay is married to Shermaine, 37, who helps him in his insurance business. Q: Are you a spender or saver? I am a saver. I invest 70 per cent of my annual income. When it comes to spending, I do enjoy pampering myself with relaxing holidays. I usually go on several holidays a year with my family and team associates. Such breaks are important to me because it is quality time I spend with my loved ones without any budget constraints. For a long trip, I will pay for business class flights and can easily spend $20,000. Q: How much do you charge to your credit cards every month? Every month, I charge about $12,000 to $15,000 to my two credit cards - one for work and the other for my personal expenses. Q: What is your general approach to money and investing? I believe in working hard for the money when you are young and energetic. It is important to start saving your first pot of gold to start earning passive income, until you reach a level where you are no longer solely dependent on your working income. Money is not the most important thing in life, but it can buy you important things and help you make important decisions in life. It allows me to do the things I like to do without any financial constraints. I personally do not believe in timing the market and investing all you have just because the market seems to be doing well. You should invest only the extra cash that you have so that you will not be caught in a difficult situation when the market is not doing well. Q: What financial planning have you done for yourself? I have health and life insurance policies worth nearly $3 million. For wealth accumulation purposes, I have investment and endowment policies. I first bought an investment- linked policy when I started at AXA and my portfolio of funds and bonds is now worth at least $2 million. During the first decade of my career, I would put in about $1,000 a month. Now, I put in at least $50,000 every quarter. I treat it like a savings account. Q: Moneywise, what were your growing-up years like? I grew up in a family of four. My father was a bus driver in Sentosa and my late mother used to be a factory worker. I knew at a young age that I wanted to be able to provide a good life for my loved ones. Q: How did you get interested in investing? I started investing when I started my career. I believed that I had to invest before I could even recommend my clients to do so. It will be easier for you to achieve your financial goals if you start young. Q: What property do you own? A fully paid-up 1,300 sq ft condominium in Newton, which I bought about seven years ago for slightly more than $1.1 million. My budget then was about $500,000. I bought another unit, a two-bedder, in the same condo a year later for investment. But I sold it too soon. I paid about $700,000-plus, and sold it several months later for a profit of $50,000 to $60,000. Q: What's the most extravagant thing you have bought? Two Patek Philippe watches. One cost about $30,000 and the other about $20,000. I believe good watches can appreciate with time. Q: What's your retirement plan? I am in a business that allows me to work for life if I want to. I would not want to retire as I am enjoying my work and I feel good to be able to help people. Money is no longer a strong motivator for me now. I aim to achieve financial freedom by age 45. In order to achieve this goal, I invest regularly. Q: Home is now... The three-bedroom condominium in Newton. Q: I drive... A silver Saab convertible. [e-mail] WORST AND BEST BETS Q: What is your worst investment to date? My worst investment was in the Malaysian shares I bought in 1997. I lost more than $10,000 and learnt that if you have no time to monitor stocks, it is best not to buy. Q: And your best? This is my AXA investment-linked policy, which has given me average annual returns of 7-9 per cent. I am a simple guy and I like to invest in something that I understand. Source: The Straits Times