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My 2015 Year In Review

Hello hello everyone! How’s things been? Gosh, it’s already the end of 2015, with 2016 just around the corner – time flies so, so, so fast!

Are you looking forward to 2016 yet?

Well frankly for me, yes, I am pretty much excited about 2016, as I believe and look forward striving and building a better and better future and life for myself and my loved ones and my businesses and investments and relationships. I am pretty positive for the future.

As 2015 ends, I was thinking of doing a year in review, as a recap for myself (and hopefully for you get some nuggets of useful ideas too). Generally, I’d say that this year has been quite a

  1. learning curve for myself
    • as a new father of little Olivia
    • as my core business (Urbanrehab) grows, how I facilitate growth as well as venturing into other businesses
    • started to learn about investing, identifying my approach to money and investing and actual investing
  2. a few health scares here and there for my loved ones (I don’t want to go into details as it’s private)

Positive Highlights

At the start of 2015/end of 2014, I actually have two major major milestones in my life. One of them revolves around our core business, Urbanrehab, but I am not privy to share that at this moment – I can and will share more with you later.

The other major milestone was welcoming little Olivia into our lives.

20150128_211558

January 28th, 2015 is the day we welcomed our little sunshine into our lives, and truly, our lives has never been the same. Ever. Yes, there are some sacrifices here and there (sleep, intimacy, money) BUT I WILL NOT TRADE THE WORLD FOR HER. Olivia has changed pretty much how I see things, and I believe, more children will do the same for me.

It’s mainly because of her that I am increasingly convinced that I need to overhaul my current way of building businesses and investing, from a very hands-on and ongoing active approach to one that is more passive and safe business and investing. This is for 2 very practical reasons – #1 I actually want time to be with her/children/wife and #2 whatever I do needs to be very conservative – no magic bullets and crazy fluctuations allowed.

Today, it is my immediate family that makes me smile. Oh, my big baby (my wife) and my little baby – you are my world.

Nigel & Family 2015
Nigel & Family 2015

Core Business Urbanrehab’s Growth

Next, my core business, Urbanrehab, which was co-founded by myself and my amazing wife – has grown by leaps and bounds, year upon year. This year end 2015, we have an amazing team of top-notch expert rehab clinicians who are not only amazing at what they do, but they are passionate in doing what they do. I am blessed to have and be with such a wonderful team, and we have a line-up of people waiting to join us here in Urbanrehab. I am a really blessed man, praise the Lord.

Passive Income Businesses (PIB) and Passive Income Investing (PII)

Thirdly, 2015 was the year I also seriously looked into investing and building passive sources of income streams, both from Passive Income Businesses (PIB) and Passive Income Investing (PII). Long term readers would realize that I originally had written on PIIB, which stands for passive income internet businesses (PIIB) which I felt is too limiting to purely online businesses only, as I engage in both offline and online businesses which are dedicated to delivering value to customers as well as on passive income.

Passive Income Businesses (PIB) Report:

Around September 2015, I ventured to learn ClickBank Passive Income (CBPI) from a reknowned internet marketing specialist who is based in Penang, and I went for his two days seminar in KL where he taught us the ins-and-outs of using a platform that he created called CBPI. I personally tested it, and his system works.

CBPI and walking away from the make money online world

However, even though it works, I personally cannot continue using this system because I find that it doesn’t add value to the world, it works by selling what others want to buy in the make money online world. It will continue to work because people will keep wanting to make money online. At this point in my life, I don’t want to be in the make money online niche/industry.

Jeunesse and walking away from MLM

He also introduced to me Jeunesse Global, which is a network marketing in the health supplements and beauty/skincare products niche, that is powered with internet marketing. The products are great and because he’s an internet marketer, my mentor experienced a lot of success in it. I walk away from this business as well not because the products aren’t good, but because of the economics BEHIND the products.

I mean, I love the health supplements industry (I’ve been taking supplements since 2003) but I realized recently that MLM product prices are jacked up multiple times to factor in payouts for the network marketers, which is why their prices range between 4 – 8x higher than other health supplements.

I want health products that are good to be easily accessible and affordable to people. Yes, I love profits always but I prioritize people over profits.

I’d like to take the opportunity to thank my mentor, Patrick Chan, for the opportunity to learn under him CBPI and Jeunesse, and though both works, it doesn’t align with my ideas at this point in my life. But it has sparked thinking and realization of my love and passion for health supplements, and when Xtend-Life CEO Warren Matthews requested a meetup, I felt that something was connecting in my life. I launched an health and skincare supplement called XtendHealthAsia.com on 25th December 2015, as their affiliate and I foresee a mid to long term working relationship with them.

My goal and mission for Xtend Health Asia is

to bring health to Asia and people living in Asia by introducing affordable natural, pure and organic New Zealand health supplements.

Passive Income Investing (PII) Report:

I shared above that my risk profile when it comes to investing is very, very conservative. I may take more calculated risks when it comes to entrepreneurship (even then, I limit my entry-costs to as low as possible) but when it comes to hard-earned money, I prefer to not burn money.

So I went for a couple of courses, and bought several books, which revolves mainly around income investing, index investing and value investing. As I had little time to constantly and actively trade (and I prefer not to have meltdowns and heart attacks – I love to be able to sleep well at night), income investing in very, very safe and stable vehicles made sense to me.

I started deviating away from index investing because index investing was too slow (this is the safest way to invest passively – by investing in the entire market. Every stock market in the world has an index fund, and even Warren Buffett attests to this approach of index investing) for my comfort, though I suspect as my income grows I may relook at index investing again.

Income investing basically means to invest in investments that produce reliable and consistent incomes that are paid out at set moments by the investment. At this point in time, I’ve two types of income investing:

  • Dividend Stock InvestingI started investing into dividend stock by April 2015, and gradually kept adding capital injections as I tested and refined my approach. Below are my dividend outcomes by month for 2015
    • Dividends For May 2015 $131.88
    • Dividends For June 2015 $25.50
    • Dividends For July 2015 $9.00
    • Dividends For August 2015 $269.01
    • Dividends For September 2015 $156.87
    • Dividends For October 2015 $83.44
    • Dividends For November 2015 $513.41
    • Dividends For December 2015 $349.84

Total dividends for dividend stock investing till November 2015 is $1,538.95
My total capital injection including reinvested dividends post tithe is $58,969.91

My effective return on investment for this approach for 8 months in 2015 = 2.61%
When annualized, the rate is = 3.91%

  • Real Estate (Rental) InvestingWe bought a rental property in Australia when the Australian Dollar (AUD) dropped and it was close to 1-to-1 at a rate of AUD 325000. There are rental managers who help us manage the rental and the property, charging a % every month to do so; tenants will pay to them, and then they will pay whatever that needs to be paid, take out their % due to them, and at the end of the month, they will wire the money into our Australian bank account as well as to email us a statement.

Year end 31st December 2015, our rental showed: $7,344.45 for 7 months rental.

That means our effective return on investment for this: 2.259% for 7 months

When annualized, the rate jumps to 3.872% for 12 months

We do have another growth investment which is Walton, but that is more burst-growth approach, which I do not prefer though the return is much higher year-on-year (estimated year on year min 10% to max of 30%).

You can see that the rate of return for dividend stock investing has beaten my Australian rental investment.

  • dividend stock investing 3.91% per annum
  • real estate income investing 3.872% per annum

The OZ real estate I was promised a higher yield/rental because of good exchange rate and that we bought the property at an older, depressed price of 2013, yet the competitive performance is not stellar compared to dividend investing approach I took, because of the associated costs related to real estate but on the flip side, it tends to be more stable though tenancy may not be. Maybe I could have looked harder, but the last I checked when I was looking at a few other rental properties in Singapore, rental yield per annum is almost always less than 2% per year. Another downside to real estate investing is that the price of rental is based on market demands, so it’s sort of locked.

Looking at the numbers, I will now favor dividend stock investing very favorably, as there is a very powerful force at play with dividend stock investing: the power of compound interest. Real estate investment doesn’t have this.  You see, I can reinvest the dividends that I get from the dividend stocks to purchase more dividend stock which will then give me more dividend which I can reinvest…(you get the idea).

Add another 10 years and the numbers go way off the charts. That’s why I rather put my money, in solid and safe dividend stocks, moving forward.

Health Scares

As I type this on year end 2015, I am sick. My little girl is also miserably sick, and I’ve a few other family members who are recovering from bugs or have had a recent health scare, or live in pain.

I lost my dad to a health crisis on 24th May 2014, and I still miss him today. So, so, so much.

I am increasingly convinced that my passion is to spend more time with my loved ones, and I would love for everyone to be in the pink of health, myself included. Which likely reinforces my focus on natural health supplements.

Which is why I’ve explored being a reseller for Herbalife, Cosway, USANA and Jeunesse – all are health supplements which is my passion, but only at year end 2015 I realized that it’s because of the way the business is done, consumers have to pay much much more than what it’s produced at – just because it’s MLM/network marketing business.

My heart is still passionate for health supplements though, despite this awareness, and maybe that’s why I was so inspired when I met Xtend Life’s CEO Warren Matthews – he owns 100% of their own manufacturing plant in New Zealand, are zealous and rigorous to testing, research and only using the best natural ingredients AND he refuses to create a MLM structure because it’d jack up the price just to pay the distributors.

This is why I created XtendHealthAsia.com – to bring affordable, natural, pure and organic New Zealand health supplements to Asia. I do believe this will be one of my next medium to very long term business for the future, on top of my core business.

My focus for 2016 will be:

  • Building up my own health by sleeping well, exercising, taking supplements
  • Building up and going deeper for existing Passive Income Businesses (PIB) such as Urbanrehab, XtendHealthAsia.com, and several other businesses that are set to launch
  • Reinvesting profits and dividends into other dividend stocks and real estate
  • Building up my spiritual walk with Christ

What about you?

How has your 2015 been? What are your goals and plans for 2016? I recommend you to spend 30 minutes to reflect on your year and write your plans for the new year — it’ll be worth it.

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[…] shared in an earlier article of my review of 2015, and how I’m moving away from several projects that I got involved in, and am zooming in to […]

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