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Recently, I saw and heard many news about people got deceived by lots of investment schemes out there. At first, I was really happy that those people have finally got penalized by the authorities’ action. However, after that I saw quite a number of people are having all kinds of troubles, for instance, losing income, investment capital wiped out, run out of cash for daily transactions, and the list goes on.

For the past months and years, they high depend on these schemes for cash flow. Now, they lose a source of income. It’s understandable how mad and sad they are.

The worst thing is, there are people who try to suicide!

But… Who shall me blame for all the frustration, disagreement and argument?

I believe the authorities raid the companies because of valid reasons. For sure they’ve suspected the companies aren’t following certain laws  in their business operations and that’s why the authorities took such action. If I were suspected by police for involving in some crime, the police could come my house without any notice. This is totally understandable.

The laws are always there. The only concern is, whether the companies are obeying the laws or not. Some investors and consultants aren’t happy that the authorities raided the companies without prior notice, and they have full confidence that the companies aren’t doing anything illegal.

However, what investors and consultants are being told and “educated” might not be the truth. If I were the company’s CEO, I make sense for me to hide all the ugly truth in front of my consultants, sales agents and customers because they are the people who will pour cash into my pocket. This is totally logic. Unethical people might have done event worse thing, which is to fool and cheat those people so that they’re loyal to the company. This is again very logic in marketing world if we exclude the issue of ethics and integrity.

We never know the truth unless everything is presented in black and white. Hence, instead of simply showing confidence in something that I am not sure with, I believe we should be safe rather than sorry. In this world, a lot of people get fooled because they do not have sufficient understandings about something and yet they think they’ve understood everything. Hence they end up jumping into the trap.

Some people say, investing is risky, or running businesses is risky. Hence, they join some so called guaranteed return investment schemes and they think they have understand the world and they’ve found the shiniest diamond in the world. Because of marketing magic, they close their mind and stop acquiring more knowledge, as they pretend they’ve understood enough. When things happen, they got into trouble for reasons that they don’t know, hence they blame everything else around them!

The laws are always there, authorities are always there, things around us are always there. They blame things around them which they can never change, instead of changing themselves! Blaming things that we cannot change is pure stupidity!

In our life, the greatest risk that we might take is being IGNORANCE!!!

Every time when it comes to those investment schemes I always try to figure out some facts before I consider joining:

• How does the company generate the returns?
  Banks give us 4% interest per year for FD because banks earn interest from loans at more than 4% per year. This is completely logic. If a company were to GUARANTEE you 3% per month, how does the company generate that for you? What about the commission for salespersons and cost overhead of the company? Marketing cost?
• What are the history of the company?
  When the company is founded? What they’ve been doing for the past years? Have they been into any legal cases? If yes, why they got into the problems? How the problems are solved? And etc…
• What assurance are you getting? Are the assurance guaranteed by legal parties or just merely some promise of the company?
  Often there are companies they tell you you’re guaranteed or protected by this and that. Do check those assurances. Are they legally bounded or just merely the promise of the company? If the company goes into trouble, is your capital guaranteed?
• Check out the products.
  A word of caution: Some companies are trying to sell you some schemes and you will get some physical products. However, bear in mind that even if the products are legal, the scheme can be a scam. Some companies are trying to lure you in by mislead you with the products. 

I’ve a lot of friends recently joined some MLM companies  They kept on asking me to join the “business”. When it comes to MLM companies  I am pretty selective too, as there are many pyramid schemes and scams now:

• How does upline generate monetary reward?
  Upline can generate monetary reward via two methods: When there are new people join as downlines, or when there are sales generated by the upline himself and the his downlines.
  -If monetary reward is given when there is repeated sales (means you or your downlines are selling products), this is a normal MLM whereby company has sufficient margin to be distributed as reward. This makes a lot of sense to join with no doubt, because this business model is clean. These MLMs usually cost a little to join.
  -If monetary reward is given when someone become new downlines, this means that the company reward you when there are new comers. There are known as pyramid schemes. Obviously, the money generated is from your downline. This kind of business is also known as headhunting. It’s illegal in some countries. To identify this, usually it takes a lot of money (few thousands) to join, because portion of the money has to be passed up to the upline. Well, these companies usually will give you some products when you first join, but this is just to give you in illusion on their business model.
• What are the history of the company?
  Same as the previous explanation. 
• How about the products?
  What products are the company offering? When I want to do some research about the products, there is no point asking people who are in the MLM business. For sure they’ll only comment the positive things. Try to question people who aren’t joining, or people who have used the products but never buy again. Ask them why.

People who are showing the plan to you will definitely tell you need not worry about those rumours, and they will come out with the logic taught by their uplines. For several times, my friends presented me a company whereby its company’s name has changed for few times. I questioned them why they’ve to change the company’s name if the company is doing so well.

Once I got the answer: “After operating the business for many years, the company wants to reach another level and sets a new vision and mission.“

This is the worst answer I’ve received, ever. It makes no business sense. The reason why those MLM-ers will find this reason valid is because their common sense is uncommon, and their common sense doesn’t make sense!

Bill Gates has the vision of getting everyone in the world has one computer each, running with his operating system, Microsoft. I believe he has achieved this and Microsoft is carrying out more R&D to bring them to another level. My question is: Why I don’t see Microsoft becomes Macrosoft or Microhard?

A successful business will never changes name. Coke is still called Coke. McDonald is still called McDonald even though it has been taken by Ray Kroc, and he didn’t rename it. It’s all about branding their businesses. If you change the name, the company would suffer a huge loss in terms of reprinting marketing tools, rebuild the brand name, licence and so on. It makes no business sense!

However, why would people believe in those reasons? It’s because of IGNORANCE.

When the gold guaranteed companies are raided, few persons and I were predicting that the next scam would be Forex. Guess what.

This was last week. 2 weeks after those gold companies are raided.

Scams are increasing. To prevent ourselves from being trapped, it’s very important that we have to increase our financial knowledge, because knowledge is power!

Stay tuned!

A lot of people have been posting and sharing the news of Robert Kiyosaki’s bankruptcy case in Facebook. The news can be found in Forbes.com, Daily Mail and New York Post.

A lot of people are commenting this issue in Facebook. Some are showing their disappointment and some are giving out negative comments. However, I find this issue interesting. I am eager to know why a well-known financial guru will make such decision. It must be something that we don’t know or cannot foresee.

People often say “Never judge a book by its cover”. Hence, instead of commenting anything with just the article titles, I am trying to search and ask for more information.

The word “bankrupt” or “bankruptcy” have been stereotyped negatively. The moment these words go into out mind, most of us will relate to a bad news. However, in corporate world, it can be one of the smartest move.

What’s really happening

As an entrepreneur, Robert Kiyosaki owns several businesses. One of them is Rich Global LLC, which has been filed for corporate bankruptcy. This company is ordered to pay nearly US$24 million to the Learning Annex and its founder and chairman, Bill Zanker.

For the past few years, Kiyosaki was utilizing the Learning Annex platform for several high profile speaking engagements. The U.S. District Court jury ruled Zanker and the Learning Annex were entitled to a certain percentage of the profits from those engagements. “I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage and he reneged,” Zanker said, “We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his ‘Rich Dad’ brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said no.”

Mike Sullivan, CEO of Kiyosaki’s Rich Dad Co., reported that “Robert and Kim are not paying out of personal assets. We have a few million dollars in this company, but not 16 or 20. I can’t do anything about a $20 million judgment . . . We got hit for what we think is a completely outlandish figure.”

According to him, Robert would not losing any personal assets and he claimed that the judgement is far more than Rich Global LLC’s value. In fact, this bankruptcy is not affecting Robert Kiyosaki’s wealth. Neither his wife, Kim.

The Beauty of LLC (Limited Liability Company)

In Malaysia, Limited Liability Company is known as Sendirian Berhad (Sdn. Bhd.). The beauty of this is that the company and owners (known as shareholders) are having separate entity, unlike Sole Proprietor or Partnership. When a limited liability company goes bankrupt, the assets of the shareholders are not affected.

I personally think that Robert Kiyosaki is taking the most strategic move. Rich Global LLC has been filed bankruptcy. However, Rich Dad Co. is still generating millions. His investment in gold, silver and oil will not be affected too.

Is Robert Kiyosaki a Bankrupt Dad?

Articles are using the term “Bankrupt Dad” to describe Robert Kiyosaki right now. However, I disagree with it.

If today I own a sole proprietor pr partnership business, I am bankrupt if my business goes bankrupt. However, if I own a Limited Liability Company or “Sdn. Bhd.” company and the company is filed for bankruptcy, I am not bankrupt.

So is Robert Kiyosaki bankrupt? The answer is a big NO! So how can he be titled as “Bankrupt Dad”?

The only problem…

In the entrepreneurial world, Kiyosaki’s move makes a lot of sense. However, Learning Annex has been giving him many platforms to brand “Rich Dad”. I am not sure whether US$24 million is a fair value or not, but I personally feel that Learning Annex deserves some monetary returns. Filing bankruptcy is the best move to prevent losing of assets, but it’s somehow way too cruel for the opposing party. It’s all about the matter of integrity.

I’ve been in precious metal investment for quite a while, and I am retailing physical silver bullion to investors. Often there are investors who previously invested or are investing in a Gold Guaranteed Investment Scheme, come to me and ask who silver investment works. After they know how we invest in silver, they insist that silver isn’t profitable as it gives no cashflow. They still think that investing in the Gold Guaranteed Investment Scheme is safe and it’s the best move ever. I will often reply, “Go Ahead”.

I feel bad for my friends who have been brainwashed and joined the scheme and they simply cannot understand how the real precious metal investment works. There is no free lunch in this world. The scheme, paying 2% to 3% per month just makes no sense at all. Imagine investors are making 36% per year and agents get 1.5%per month, which is 18% per year. The company has to produce a 54% of annual return just to satisfy the promise to its investors and agents. What about other costs and expenses?

If 54% is legit, Warren Buffet should sell all his stocks and migrate to Malaysia and Singapore and get an ROI of 54% per year. That’s ridiculous.

Weeks ago, the company was being sued in Singapore, and the news were all over the country.

Another newspaper article from The Straits Times, Singapore.

That time I was thinking, when it will happen in Malaysia. And it happens YESTERDAY. Check out this news: Authorities in Malaysia, Singapore raid gold trader Genneva’s offices

After blacklisting for few years, our authorities finally took some action.

Special Thanks Daniel Foo of Silver In Malaysia for the photos

Hopefully this can serve as a lesson for those who are being attracted by the cashflow offered. There is no free lunch in this world. Often, greed drives us to losses, because it affects our decision making process. When we want to put money into any investment, we have to make sure we understand how the investment works, as well as other issues such as legitimacy, reliability, risk, possible taxes and so on.

This is just an wake up call for those who jump into investment schemes without prior knowledge and understanding about the investment itself. To understand how gold & silver investment works, you can always visit Silver4u Malaysia’s Official Website to find out more information.

After settling everything, finally I’ve the chance to touch my blog. KL is notorious for its hectic lifestyle, and there is a need for me to catch up with it. I am still imagining the challenge that I will face when I receive my car most probably in November. The challenging part isn’t driving in KL, but the car’s transmission, which is manual!

Right now I am staying behind Tropicana City Mall. Good or bad?

Staying somewhere near to the mall should be a good thing for me. Buying groceries and enjoying my free time shall not be a problem. One of the good things I love this mall is, my favourite Chatime is inside! (Well, even if it isn’t inside, there is another branch near my workplace)

Surprisingly, I found out that there are no shops selling men’s cloths inside the mall!

Another thing that I was worrying before I came here was…

Yeah! Food!

I am a person who cannot bear any hunger. I was worrying that around my area there were no places to dine. Well, Tropicana City Mall and the 7-Eleven nearby my house have given me the solution!

I remember last time somebody told me that KL is a place without nice food. Now I officially prove this statement is wrong! Malaysia’s food rocks! Despite the price level of the food here, I enjoy dining in KL.

Life here after working is somehow relaxing. I enjoy reading books that I’ve bought but never had the chance to read before. Stop studying enables me to gain industrial experience and do what I wish to do after working. I often believe that the way one spends his free time determines who he is. Reading books about business and investment is definitely one of the best ways to spend my free time.

However, knowledge isn’t everything. It’s just the first stage. Knowledge doesn’t give one a fortune. In fact, applied knowledge is the thing that enables one to create something.

Everyday, I’d glance at this thing.

It’s given by my good buddies. I often called them “Monkeys”. They’re a group of graceful juniors and few peers. Before I left, they actually made this for me. Inside the book, everyone wrote paragraphs of wishes and inserted a photo.

After those wishes, they fill the pages with our memories. The moment we celebrate each other’s birthday, the moment we go out shopping, the moment we gather and do something crazy, the moment we rock Miri & etc…

Everyone has emotion. Every time when I see this cute little hand-make booklet, I will remind myself: No matter what happen, there are always people who are supporting me at the back.

Life can be very meaningful and interesting with the presence of these buddies.

I haven’t actually told all my close friends about the greatest decision I’ve ever made in my life. However, people are spreading in the campus and also outside of campus. I’ve been asked several times regarding my decision. Is it true? Why? When? How are you going to bla bla bla?

I posted this in Instagram. This is the first one-way ticket that I’ve bought in my life.

I am going to KL next week and start another new chapter of my life. I’ve stopped from studying and get out from the freaking academic stress.

People have been asking…
“Why don’t you finish your degree? It’s a waste?”
“Not having a degree is risky! At least finish your degree. It’s more secure.”
“You’ve spent so much time and money. If you give up now, you lose everything!”

Well.

At the first place, I never think of getting a degree. It’s just because my family isn’t rich enough to finance me and start a business. Jumping into degree and finance with loans is not actually what I want. But it’s a norm, whereby people nowadays think that everyone shall follow it.

I don’t like to follow what the crowd do. The reason I got into Curtin at first place is just to shut the mouth of people around me and also, during that moment, I had no money and good idea to run a business.

After about 2 years of studying, I founded my own business, and also joined a private franchising in this year. All in this year.

Right now, my company, Silver4u Malaysia, has organized a seminar in Curtin and also a seminar spoken by Jonathan Quek, founder & CEO of True North Asia Sdn. Bhd.

Personal Finance & Wealth Preservation Sharing Seminar by Jeen Hao

Why Gold & Silver Seminar (Live in Miri) By Jonathan Quek

Besides, I am doing physical silver bullion retailing. The sales isn’t big, but it’s growing and I see something. At the same time, of course, I am investing in it.

People say, I am wasting my time and money.

I am being honest to myself. Studying is never my cup of tea. It’s just a “standard” whereby people follow, but it doesn’t mean that it’s a must.

I’m offered to become a Business Developer Executive in a one of the fastest growing companies in Malaysia. If I continue my study, I would be wasting this golden opportunity that many people out there are looking for…

For many other people, continue my degree is mandatory so that I won’t be wasting the effort (money & time) I’ve been putting in the past 5 semesters.

For me, if I continue studying, I am wasting more money and time and get a paper that I don’t need in the future. I’ve to be honest to myself: Getting a safe, secure job is not the option I want in the next 5 years, or 10 years.

When my customers buy physical silver from me, they never ask me if I have a degree. They ask for information, knowledge and news.

When I register my business in the resident office, they don’t ask if I have a degree. They ask for my IC.

When I register my CDS and trading accounts, my broker doesn’t ask me if I am going to get a degree or I have a degree. He asks for my IC and Bank Statement.

Sometime, people just feel insecure if they don’t do something that people are doing. This is why not getting a degree is insecure because other people are getting the piece of paper that cost us a vast sum of money and time.

It’s time to follow my passion and what my heart says…

If life is a book, then now I am flipping to the next chapter.

KL here I come!