$100 million just landed on my lap!

Via May’s blog post. Hahahaha.

So what will I do if I have $100 million?? My list is a lot more self-centred than May’s though.. Nothing about dolphins et al and a lot more on investing & earning. hehe…

1. I like May’s idea of buying apartment units to rent out and it’s something that we’ve been doing anyway so this is right up my alley. I shall use $50 mil for investments alone with expected net rate of return of 5% and purchase properties in Singapore and Jakarta.

Actually for Jakarta rental apartment market it is reasonable to expect up to 8% nett (after taking into account all commissions, maintenance and other miscellaneous costs) but to balance out the currency risk I’ll invest also in Singapore market which typically gives 3-4% gross returns. I may also consider the Australian market because I think the rate of returns there is around 5%. The ones I like for my portfolio will the upper-middle ones instead of the really high-end ones (think Four Seasons Residences in Jakarta or St. Regis Residences in Singapore) because the rate of returns tends to be the most profitable in that category.

Expected income from investments: $2.5 mil annually or around $200k/month.

2. $10 mil to own one dream home in Singapore and one in Jakarta.

3. $10 mil as cash gifts to our parents and siblings.

4. $30 mil to set up a foundation that provides free education for needy children. I think some 10 years ago I blogged about this dream of mine (at a separate blog, not this one) detailing how I’ll set up a foundation managing this fund. A foundation fund typically earns conservative returns but there should be enough to start with one school in one Indonesian village. Everything will be provided free of charge and I wish to attract quality academic and non-academic staff who want to make a difference and give back to society. They’ll be allowed to bring their family if they wish, housing will be provided. The school will offer kindergarten up to high school / diploma level. The fund will also award several scholarships yearly for top students to go to universities locally or abroad.

That’s it.

Boring? No parties? No champagne? No traveling? Hahaa..

Oh but wait! All those other fund stuff can come from the $2.5 mil investment income! =p

So here’s a breakdown on how I shall spend that amount of $2.5 mil p.a. or $200k/month:
1. $50k/month for living expenses, including traveling. Because really I still won’t be that extravagant in my lifestyle. But I shall still have sufficient funds for a concert grand piano, dance studio, spacious library and endless books in my dream homes! Yayyy…
2. $400k p.a. for any business venture / ideas / experimentation that Robby may want to do because I know he has some business ideas in mind. The fund will be available to our children too to support whatever ideas / passion they have. As for me? I’m content being the family’s fund manager and board member of the foundation I’ll set up
3. $1.5 mil p.a. to be re-invested in properties. Eventually I’ll move towards commercial properties in addition to residential properties. The intent with the commercial properties will be to set up education centers, so my tenant mix will be education service providers like tuition centers, music and dance schools, international and private institutions, etc. Why education service providers? Because education is the only business interest I have. I don’t care about owning a mall or food centres because I don’t care about retail and food businesses (though I love to eat).

So then I intend to separate the residential and commercial properties into two portfolios: residential for profit-taking and commercial to be set up as a sort of social enterprise where the profits will be channeled to grow my foundation’s assets!

Can you tell that I love thinking about money? Money money money.. Anyone wanna sponsor my ideas? hahaha…