By Lorna Tan
Ms Sharon Lie, 38, likes to be in charge when it comes to managing her own money.
Said the head of compensation and benefits at consumer finance provider GE Money Asia, the retail financial services unit of General Electric (GE): 'I am a firm believer in individuals taking charge of their own finances. As a wife and mother, I feel that women in particular should be able to handle their own finances.'
Her investment approach has evolved with her career and age. She admits that she took on more risks when she was younger, but says she has become more conservative since giving birth to her son, Noah, now 21 months old.
Apart from her forays into stocks and unit trusts, Ms Lie also invests in property. She bought her first flat when she was working in London in 1996; she sold it a year later at a 30 per cent profit. Currently, she has two properties: an apartment in Paris and a semi-detached home on the East Coast.
She spent a total of 10 years in Britain, including three years in London as an articled clerk and solicitor after getting her law degree at what was then the University College of Wales, Aberystwyth. This was followed by a four-year stint in Sydney as a consultant in executive compensation before she returned to Singapore in 2003.
She joined GE Money in 2004.
Ms Lie is married to Frenchman Olivier Maigniez, 37, a global account manager at Cisco Systems. They tied the knot in 2000 in Sydney.
In Singapore, GE Money is known for its James personal and auto loan packages and ezyCash.
Q: What are your money habits?
When I first started work, like most people, I had no spare cash to put in savings.
My then-boyfriend, who is now my husband, and I bought our first home within a year of starting work, and everything in our home - appliances and furniture - was bought with the help of loans. We knew depending on loans would be fine as long as we could afford them and we handled them prudently.
I learnt an important technique called 'pay yourself first'. What this means is you should use your salary to pay for your investments first and your bills after. This sounds risky, but somehow, it helps you to be responsible and manage your finances, and enables you to settle your loans and bills.
Currently, 25 per cent of my pay goes towards servicing my mortgage and 20 per cent towards cash savings and investments. The remainder is for expenses.
I keep very little cash and I usually have eight months' worth of my pay in United States shares.
Q: What financial planning have you done for yourself?
I started a stock portfolio in 2003 when I returned to Singapore. It invested in US stocks, for an average return of 25 per cent a year.
My strategy was to exit when the upside or downside hit 20 per cent. I would monitor about 10 US stocks, and I traded them actively through my Sydney-based broker. However, I have since liquidated the shares, with the exception of one blue-chip technology stock that I'm still holding on to.
It was a lot of work, but I was solely responsible for the profit or loss, which was very satisfying. Now, most of my investments are in unit trusts as I'd rather spend the time with my son. Since he came, I have been more concerned about preserving my wealth and making sure there is money for him.
My risk outlook has changed a lot. I'm glad I took big risks when I was younger - borrowing and taking loans when needed, and accumulating more wealth. Now I'm more conservative.
The average returns of my equity funds are about 7 per cent a year now.
Q: What about insurance planning?
I am not a strong believer in buying insurance for investment purposes. Currently, I have mortgage insurance for my two properties and a whole life policy for my son.
Q: Tell us about your property investments?
Olivier and I believe that if you buy the right property at the right time, it will be an appreciating asset. We also believe in buying rather than renting the place we live in.
Our first property was a two-bedroom, 1,200 sq ft maisonette in the heart of London. We bought it in 1996 and sold it for a 30 per cent gain just over a year later.
After that, we bought a bigger ground-floor apartment with a garden in London, and lived there for two years before selling it at a 10 per cent profit.
In Sydney, I bought and sold two properties. I didn't make any profit out of them, but recouped all renovation and legal costs.
The most significant investment my husband and I share now is a gorgeous 1,100 sq ft apartment in Paris that we bought in 2003. We have never lived in it, and have no idea whether we will or when. But the thought of it makes us smile and keeps us motivated. You need to have a dream. Not all investments have to be sterile.
I think the property has appreciated nicely, but we have not checked and don't plan to as we have no intention of selling it. It is being rented out and the rental yield is about 5.2 per cent.
Q: Moneywise, what were your growing-up years like?
I am very fortunate to have parents who follow very different but extremely useful approaches to money. My dad, a civil engineer, is good at making the big money decisions. My mum, an ex-teacher, is great at managing day-to-day expenses and is the world's greatest bargainer.
Together with my two older siblings, we lived in a landed property in the East Coast. We had everything we wanted, but we also knew what it cost.
My mum used to say every cent counted and, when I was starting out, I rebelled against this, refusing to count my pennies. Now, I know she was right: No matter how much you earn, you need to watch what you spend. I would also say that you need to make whatever you save work for you.
Q: What has been a bad investment?
I lost a couple of thousand investing in an initial public offering. The company closed down after 18 months, so its shares were worth nothing and I lost everything.
The experience taught me not to be impulsive about investments, and I learnt that I have to examine the fundamentals of a business before sinking my money in.
Q: Your best investment to date?
My career has been my best investment. Obviously, if you are successful in your role, there are financial returns.
Working in a great organisation offers indirect financial benefits as well. It exposes you to clever people and their lifestyles. It also helps you gain insight into the workings of the business, and that helps you analyse other businesses and their potential.
In terms of financial investments, I made an excellent choice in 2002 when I invested in a Macquarie infrastructure fund. I invested my bonus and the average return has been about 15 per cent a year.
Q: What's your retirement plan?
My son. Seriously, I hope to have the two homes fully paid up and to have sufficient investments to provide an income stream. The icing on the cake would be to also own a ski chalet in the Italian Alps.
I would like to be able to retire at around 50. By then, I would like to be running my own business - perhaps a bookshop. My financial investments should need nothing more than monitoring at that point.
Q: And your home now is...?
A semi-detached, two-storey, 6,000 sq ft house on the East Coast. It was bought in May last year.
Q: And your car is..?
A bronze Saab.
