<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>From living the high life to the good life
</TR><!-- headline one : end --><TR>Thomas Mathew traces the ups and downs of his life and how he overcame adversity to reach his present comfort level </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Lorna Tan, Financial Correspondent
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Mr Mathew with his wife Ongmula Dolkar and their daughter Isabella. He says he achieved financial independence last year, so he considers himself retired - meaning he works because he chooses to and not because he needs to. -- ST PHOTO: LAU FOOK KONG
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MR THOMAS Mathew made his first million in 1994 - when he was just 34.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Careful spending
'I spend 50 per cent on expenses, 20 per cent on paying my mortgage and 30 per cent is saved and invested.
I do not waste my hard-earned money on assets that depreciate, so I don't own a car.'
</TD></TR></TBODY></TABLE>But just six years later, he was on the verge of bankruptcy. He had lost a training business that he had founded, was divorced and saddled with a $400,000 debt.
During the good times, Mr Mathew, now 48, lived the high life.
In 1994, in his third year as a life agent with British insurer Prudential, his sales commissions and bonuses totalled a hefty $800,000.
He was also paid $5,000 a day for speaking engagements at training seminars.
In 1996, with savings of $200,000, Mr Mathew and two partners started a training business - Activity Based Consultancy, in Malaysia - while he was still employed at Prudential.
He admits he spent freely then.
'I lived lavishly, bought one luxury car after another - a BMW 7 series followed by a Mercedes Benz - and owned houses in Singapore and Malaysia. My training business was making $1.2 million a year in 1996 and 1997.
'My dream was to be a millionaire from the time I was young. But I wasn't mature enough to handle such a huge amount of money coming in,' he said.
Things started going downhill when his training business in Malaysia was hit by the Asian financial crisis in 1998. At the same time, the Indonesian subsidiary of his training business was forced to shut down when the rupiah dived dramatically.
During that period, his first marriage fell apart. His assets were divided in the divorce and despite disposing of whatever assets he had left, he was weighed down by a $400,000 debt, on top of $4,000 monthly alimony payments.
Not one to admit defeat, Mr Mathew clawed his way back into the black and by last year he had rejoined the ranks of millionaires.
His comeback involved leaving Prudential in 2000 to work at insurance broker DC Williams as a training director, and then joining IPP Financial Advisers in 2002 as a senior partner and financial adviser.
Now he attracts 25 new customers a year and focuses only on the well-heeled with a net worth of $2 million each. He has 40 advisers under his direct management.
Mr Mathew has come a long way since his impoverished childhood. Growing up in a family of nine, he tried to escape the tough times by running away from home to join the SAF Boys' School when he was 14. He spent 12 years in the army.
In 2000, as he got his life back on track, he remarried, this time to Kumon teacher Ongmula Dolkar, 31. They have a daughter, Isabella Namgyal Mathew, seven. He has two other children, Denise Mathew, 16, and Asaph Mathew, 18, from his first marriage.
Mr Mathew has written 14 books and expects to launch his next book, Breaking The Millionaire Code, by year-end. Q: What are your money habits?
I believe in being focused in whatever I do in life. In my book My Formula, I wrote about the secret of 'money mastery' where I encourage people to have the habit of compartmentalising their monthly income. For me, I will spend 50 per cent on expenses, 20 per cent on paying my mortgage and 30 per cent is saved and invested.
I do not waste my hard-earned money on assets that depreciate, so I don't own a car.
My investment principles:
Preserve my capital
Stay invested despite volatility
Allocate assets properly
Q: What financial planning have you done for yourself?
I keep six months' worth of living expenses in fixed deposits and bonds. The latter are with BlackRock and I parked some money in money market funds. My income- generating assets include hedge funds, regular savings funds, stocks, unit trusts, properties and wine.
I have 30 per cent in stocks, 20 per cent in alternative investments, 20 per cent in regular savings plans (Zurich Vista Fund) and the balance in gold and wine. My stocks include Allgreen, Wheelock and Genting and recently I bought UOB and OCBC.
Overall, my portfolio has achieved average returns of 30 per cent annually in the last three years. Two months ago, I invested in wine. I expect to reap 20 per cent annual returns from my wine investments over the next five years.
Next, I'm considering land banking in Alberta, Canada, where I aim to double my investment in five years. Q: What about insurance planning?
My policies are a combination of term and whole life. I don't own any investment-linked insurance policy because of my age. As you get older, the mortality charges for investment-linked plans are crazy. I never buy insurance for retirement planning but only for risk- management purposes.
=> Does not believe in the products he sold?
I used to believe that endowments are good for savings but in fact the returns are far below inflation. My annual premiums are around $30,000. I'm insured for at least US$2 million (S$3 million) on my life and I will top it up to US$5 million by next year. Q: What's your investment philosophy?
My investment philosophy is simple: Be a good steward of your money. My investment principles include preserving my capital, staying invested despite market volatility and proper asset allocation. Q: Moneywise, what were your growing-up years like?
When I was 14, my dad, who was the sole breadwinner as a cab driver, became bedridden due to a terrible car accident.
Due to the huge hospitalisation bills, my family got into debt.
=> While the govt is the BEST PAID in the world?
Perhaps that was when I started dreaming of being a millionaire.
I learnt to be frugal and a good steward of the money I made. Now I make sure that I save 30 per cent of my monthly business income and invest it. Q: What has been a bad investment?
In 1994, I bought a BMW 7 series for $228,000. It was sold for $145,000 two years later. In 1996, I bought a Mercedes E200 for $160,000 and sold it for $70,000 after 18 months. I lost RM1 million (S$420,000) in Malaysian stocks when the firms I invested in de-listed during the Asian financial crisis in 1997. Q: Your best investment to date?
My best business investment is in my own independent financial planning business under IPP. The set-up and expenses exceeded $250,000 but today its value is more than $1 million.
I also have a training and consultancy outfit, www.thomasthecoach.com, where I invested more than $50,000 and its value today is $250,000.
I have a stake in Web construction provider www.clik-a-site.com, where the invested amount was $50,000 but the current value is $2.5 million.
Q: What's your retirement plan?
I achieved financial independence last year, so I consider myself retired, which means I can choose to work instead of having to work.
To me, retirement or financial independence means having a fully paid-up home, 12-month savings and three to five income-generating assets as a passive income.
My net worth is now more than $1 million. Q: And your home now is...?
I'm living in a 3+1 bedroom condo in Punggol which I bought for $450,000 in 1997. Since then, the value has risen to $750,000. [email protected]
</TR><!-- headline one : end --><TR>Thomas Mathew traces the ups and downs of his life and how he overcame adversity to reach his present comfort level </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Lorna Tan, Financial Correspondent
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Mr Mathew with his wife Ongmula Dolkar and their daughter Isabella. He says he achieved financial independence last year, so he considers himself retired - meaning he works because he chooses to and not because he needs to. -- ST PHOTO: LAU FOOK KONG
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->
MR THOMAS Mathew made his first million in 1994 - when he was just 34.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Careful spending
'I spend 50 per cent on expenses, 20 per cent on paying my mortgage and 30 per cent is saved and invested.
I do not waste my hard-earned money on assets that depreciate, so I don't own a car.'
</TD></TR></TBODY></TABLE>But just six years later, he was on the verge of bankruptcy. He had lost a training business that he had founded, was divorced and saddled with a $400,000 debt.
During the good times, Mr Mathew, now 48, lived the high life.
In 1994, in his third year as a life agent with British insurer Prudential, his sales commissions and bonuses totalled a hefty $800,000.
He was also paid $5,000 a day for speaking engagements at training seminars.
In 1996, with savings of $200,000, Mr Mathew and two partners started a training business - Activity Based Consultancy, in Malaysia - while he was still employed at Prudential.
He admits he spent freely then.
'I lived lavishly, bought one luxury car after another - a BMW 7 series followed by a Mercedes Benz - and owned houses in Singapore and Malaysia. My training business was making $1.2 million a year in 1996 and 1997.
'My dream was to be a millionaire from the time I was young. But I wasn't mature enough to handle such a huge amount of money coming in,' he said.
Things started going downhill when his training business in Malaysia was hit by the Asian financial crisis in 1998. At the same time, the Indonesian subsidiary of his training business was forced to shut down when the rupiah dived dramatically.
During that period, his first marriage fell apart. His assets were divided in the divorce and despite disposing of whatever assets he had left, he was weighed down by a $400,000 debt, on top of $4,000 monthly alimony payments.
Not one to admit defeat, Mr Mathew clawed his way back into the black and by last year he had rejoined the ranks of millionaires.
His comeback involved leaving Prudential in 2000 to work at insurance broker DC Williams as a training director, and then joining IPP Financial Advisers in 2002 as a senior partner and financial adviser.
Now he attracts 25 new customers a year and focuses only on the well-heeled with a net worth of $2 million each. He has 40 advisers under his direct management.
Mr Mathew has come a long way since his impoverished childhood. Growing up in a family of nine, he tried to escape the tough times by running away from home to join the SAF Boys' School when he was 14. He spent 12 years in the army.
In 2000, as he got his life back on track, he remarried, this time to Kumon teacher Ongmula Dolkar, 31. They have a daughter, Isabella Namgyal Mathew, seven. He has two other children, Denise Mathew, 16, and Asaph Mathew, 18, from his first marriage.
Mr Mathew has written 14 books and expects to launch his next book, Breaking The Millionaire Code, by year-end. Q: What are your money habits?
I believe in being focused in whatever I do in life. In my book My Formula, I wrote about the secret of 'money mastery' where I encourage people to have the habit of compartmentalising their monthly income. For me, I will spend 50 per cent on expenses, 20 per cent on paying my mortgage and 30 per cent is saved and invested.
I do not waste my hard-earned money on assets that depreciate, so I don't own a car.
My investment principles:
Preserve my capital
Stay invested despite volatility
Allocate assets properly
Q: What financial planning have you done for yourself?
I keep six months' worth of living expenses in fixed deposits and bonds. The latter are with BlackRock and I parked some money in money market funds. My income- generating assets include hedge funds, regular savings funds, stocks, unit trusts, properties and wine.
I have 30 per cent in stocks, 20 per cent in alternative investments, 20 per cent in regular savings plans (Zurich Vista Fund) and the balance in gold and wine. My stocks include Allgreen, Wheelock and Genting and recently I bought UOB and OCBC.
Overall, my portfolio has achieved average returns of 30 per cent annually in the last three years. Two months ago, I invested in wine. I expect to reap 20 per cent annual returns from my wine investments over the next five years.
Next, I'm considering land banking in Alberta, Canada, where I aim to double my investment in five years. Q: What about insurance planning?
My policies are a combination of term and whole life. I don't own any investment-linked insurance policy because of my age. As you get older, the mortality charges for investment-linked plans are crazy. I never buy insurance for retirement planning but only for risk- management purposes.
=> Does not believe in the products he sold?
I used to believe that endowments are good for savings but in fact the returns are far below inflation. My annual premiums are around $30,000. I'm insured for at least US$2 million (S$3 million) on my life and I will top it up to US$5 million by next year. Q: What's your investment philosophy?
My investment philosophy is simple: Be a good steward of your money. My investment principles include preserving my capital, staying invested despite market volatility and proper asset allocation. Q: Moneywise, what were your growing-up years like?
When I was 14, my dad, who was the sole breadwinner as a cab driver, became bedridden due to a terrible car accident.
Due to the huge hospitalisation bills, my family got into debt.
=> While the govt is the BEST PAID in the world?
Perhaps that was when I started dreaming of being a millionaire.
I learnt to be frugal and a good steward of the money I made. Now I make sure that I save 30 per cent of my monthly business income and invest it. Q: What has been a bad investment?
In 1994, I bought a BMW 7 series for $228,000. It was sold for $145,000 two years later. In 1996, I bought a Mercedes E200 for $160,000 and sold it for $70,000 after 18 months. I lost RM1 million (S$420,000) in Malaysian stocks when the firms I invested in de-listed during the Asian financial crisis in 1997. Q: Your best investment to date?
My best business investment is in my own independent financial planning business under IPP. The set-up and expenses exceeded $250,000 but today its value is more than $1 million.
I also have a training and consultancy outfit, www.thomasthecoach.com, where I invested more than $50,000 and its value today is $250,000.
I have a stake in Web construction provider www.clik-a-site.com, where the invested amount was $50,000 but the current value is $2.5 million.
Q: What's your retirement plan?
I achieved financial independence last year, so I consider myself retired, which means I can choose to work instead of having to work.
To me, retirement or financial independence means having a fully paid-up home, 12-month savings and three to five income-generating assets as a passive income.
My net worth is now more than $1 million. Q: And your home now is...?
I'm living in a 3+1 bedroom condo in Punggol which I bought for $450,000 in 1997. Since then, the value has risen to $750,000. [email protected]
