Tuesday, 10 August 2010
How to answer some typical questions in a job interview
Tuesday, 8 June 2010
Investment strategy with property in Australia
Wednesday, 5 May 2010
Historical individual income tax rates in Australia
$32,00 and over - $12,153 + 68.3675% for each $1 over $32,000
1975
65%
1976
65%
1977
65%
1978
65%
1979
61.5%
1980
60%
1981
60%
1982
$4,041 - Tax Free Threshold
$34,479 and over - $12,153 + 60% for each $1 over $34,479
1983–84
$4,594 - Tax Free Threshold
$35,788 and over - $11,963.88 + 60% for each $1 over $35,788
1984–85
$4,594 - Tax Free Threshold
$35,788 and over - $11,867.36 + 60% for each $1 over $35,788
1985–86
$4,594 - Tax Free Threshold
$35,000 and over - $11,346.25 + 60% for each $1 over $35,000
1986–87
$4,889 - Tax Free Threshold
$35,000 and over - $10,954.19 + 57.08% for each $1 over $35,000
1987–88
$5,100 - Tax Free Threshold
$35,001 and over - $10,001 + 49% for each $1 over $35,000
1988–89
$5,100 - Tax Free Threshold
$35,001 and over - $10,001 + 49% for each $1 over $35,000
1989–90
$5,099 - Tax Free Threshold
$50,000 and over - $16,157 + 48% for each $1 over $50,000
1990-91
$5,249 - Tax Free Threshold
$50,000 and over - $15,734.75 + 47% for each $1 over $50,000
1991-93
$5,400 - Tax Free Threshold
$50,001 and over - $15,314 + 47% for each $1 over $50,000
1993-94
$5,400 - Tax Free Threshold
$50,001 and over - $14,556.50 + 47% for each $1 over $50,000
1994–2000
$5,400 - Tax Free Threshold
$50,001 and over - $14,102 + 47% for each $1 over $50,000
2000-03
$6,000 - Tax Free Threshold
$60,001 and over - $15,580 + 47% for each $1 over $60,000
2003–04
$6,000 - Tax Free Threshold
$62,501 and over - $16,182 + 47% for each $1 over $62,500
2004–05
$6,000 - Tax Free Threshold
$70,001 and over - $18,612 + 47% for each $1 over $70,000
2005–06
$6,000 - Tax Free Threshold
$95,001 and over - $28,200 + 47% for each $1 over $95,000
2006–07
$6,000 - Tax Free Threshold
$150,001 and over - $47,850 + 45% for each $1 over $150,000
2007–08
$6,000 - Tax Free Threshold
$150,001 and over - $47,100 + 45% for each $1 over $150,000
2008–09
$6,000 - Tax Free Threshold
$180,001 and over - $58,000 + 45% for each $1 over $180,000
2009–10
$6,000 - Tax Free Threshold
$180,001 and over - $55,850 + 45% for each $1 over $180,000
2010–11
$6,000 - Tax Free Threshold
$180,001 and over - $54,550 + 45% for each $1 over $180,000
Around 10% of Australian taxpayers pay the top marginal income tax rate.
Monday, 26 April 2010
Future investment trends
Wednesday, 21 April 2010
Enjoying your wealth in Hong Kong
Hutong
28th Floor, One Peking Road, Tsim Sha Tsui
Aqua Roma
29th Floor, One Peking Road, Tsim Sha Tsui
Hung Tao Chinese Restaurant
2/F, 94 Granville Road, Toyo Mall, Tsim Sha Tsui
Tai Ping Koon (soy chicken wings)
40 Granville Road, Tsim Sha Tsui
Dai Wing Wah (fried rice with lard - 猪油饭)
2/F Koon Wong Mansion, 2-6 On Ning Road, Yuen Long
Tung Po Sea Food Restaurant (cuttlefish cooked in squid ink with noodles)
2/F, 99 Java Road, North Point
Drinks
Salon de Ning
B/F, The Peninsula Hotel, Tsim Sha Tsui
Knutsford Terrace
Kimberley Road, Tsim Sha Tsui
Hillwood Soho
Hillwood Road, Tsim Sha Tsui
Circle Tower
28 Tang Lung Street, Causeway Bay
Phonograph (cocktails)
G/F, 2 Austin Avenue, Tsim Sha Tsui
Activities
Avenue of the Stars
starting from New World Centre to Salisbury Garden, Tsim Sha Tsui
West Kowloon Waterfront Promenade
10-minute walk from Kowloon MTR station
Wing Lee Street, Sheung Wan
off Ladder Street, near Caine Road
Tai Pan Reflexology Beauty & Foot Spa
B/F, 83 Nathan Road, Tsim Sha Tsui
Happy Valley races on a Wednesday night. Take the Happy Valley tram as it will circle the racecourse.
Diamond Coast Kart Circuit
http://www.dckart.com/index.php?lang=en
22, Sheung Tan Village, Lung Kwu Tan, Tuen Mun
Cattle Depot Artist Village
63 Ma Tau Kok Road, To Kwa Wan
Oil Street, North Point
near Fortress Hill MTR station
Kwun Chung Cinema
30 Kwun Chung Street, Jordan
near Austin MTR station
Kubrick (Obscure books, music, film)
Shop H2 Prosperous Garden 3 Public Square Street, Yau Ma Tei
Nature
Signal Hill Garden
East Tsim Sha Tsui. Walk up Minden Row off Mody Road/Minden Avenue.
Kowloon Park
Behind Park Lane Shopper's Boulevard on Nathan Road
Centenary Garden
East Tsim Sha Tsui. Corner of Chatham Road South and Mody Road
Mody Road Garden
Off Mody Road, behind East Ocean Centre
Trio Beach, Sai Kung
Sai Wan Beach, Sai Kung
Tai Tam Reservoir Road
Off Wong Nai Chung Gap Road, Happy Valley
Robin's Nest
Sheung Shui
Fei Ngo Shan
off Clear Water Bay Road in Choi Hung
Bride's Pool
Bride's Pool Road, Plover Cove Country Park, North East New Territories
Dai Long Wan
Big Wave Bay Road
Tai Mei Tuk Village (for Thai food)
near Tai Po
Shopping
Sin Tat Plaza (for mobile phones)
83 Argyle Street, Mongkok
Argyle Centre (DJ plays in the evenings)
688 Nathan Road, Mongkok
Yan On Building (war games)
1 Kwong Wah Street, Mongkok
Tuesday, 13 April 2010
Another metric for housing value in HK
Time = distance / speed.
Even though the distance may be greater, as long as the speed is faster, there is no change in time. Faster speed may be attributed to less traffic congestion, less traffic lights, less stops along a train line, etc. Due to the efficient public transport/general transport infrastructure in Hong Kong, speed is generally faster than in other countries.
A value metric for property based on travel time is proposed.
Price (purchase price or rent) is usually a function of convenience and also property size. One factor when determining convenience is the travel time to reach to Central, which is where most office jobs are located.
19.9kms - Seasons Monarch -> Prince's Building
Via MTR from Seasons Monarch
Kam Sheung Rd MTR -> East TST MTR -> TST MTR -> Central MTR
27 minutes + 4 minutes (walking time) = 31 minutes
$4.9 + $15.9 = $20.80 fare
Door to door is 45 minutes
leave Seasons Monarch at 8:45am, arrive in office at 9:30am.
Kam Sheung Rd MTR -> Nam Cheong MTR -> Hong Kong MTR -> Central MTR
15 minutes + 12 minutes (3 minutes walking time at Nam Cheong and 9 minutes from Hong Kong MTR to Central MTR) = 27 minutes
Via Bus from Seasons Monarch
Tai Lam Bus Interchange -> ICC at Kowloon MTR via KMB bus no. 968, 969, 969P
20 minutes
Tai Lam Bus Interchange -> Central via KMB bus no. 968, 969, 969P
40 minutes
Via MTR from Park Avenue
Olympic MTR -> Hong Kong MTR -> Central MTR
7 minutes + 8 minutes (walking time from Hong Kong MTR to Central MTR) = 15 minutes
Seasons Monarch
$7,753,340 - Purchase Price/Cost Base on 13 October 2009
2,837 square feet. 1,322 square feet internal (usable). 46.59% efficiency. Excluding roof, driveway & backyard.
$2,732.94 price per square foot
$2,732.94 X 32 minutes = $87,453.96 to Central
$5,864.85 price per internal square foot
$5,864.85 X 32 minutes = $187,675.20 to Central
Park Avenue
$8,000,000 - Purchase Price on 27 May 2008. 8.8% compound annual growth rate.
$4,343,000 - Purchase Price on 1 March 2001
982 square feet. 743 square feet internal (usable). 75.66% efficiency.
$8,146.64 price per square foot
$8,146.64 X 15 minutes = $122,199.6 to Central
$10,767.16 price per internal square foot
$10,767.16 X 15 minutes = $161,507.4 to Central
Considering time to travel to Central with the price per square foot, Seasons Monarch is 28.4% cheaper than Park Avenue.
Considering time to travel to Central with the price per internal square foot, Park Avenue is 13.9% cheaper than Seasons Monarch.
Note 1: We are not including the benefit of a driveway at Seasons Monarch. A car park at Park Avenue is about $2,000 - $3,000 per month. To buy a car park is approximately $320,000. To make a fair comparison, then the $320,000 should be added to $8,000,000. The price per square foot for Park Avenue becomes $8,472.51. Therefore considering time to travel to Central with the price per square foot, Seasons Monarch is 31.2% cheaper than Park Avenue.
Note 2: We are not including the travel time door to door. It takes 5 minutes using the shuttle bus from Seasons Monarch to reach Kam Sheung Rd MTR station and 10 minutes to reach the Tai Lam Bus Interchange. However, it also takes 5 minutes walking time from Park Avenue to Olympic MTR station.
Owning in Seasons Monarch versus Renting in Park Avenue
$9,886.53 - monthly cash expense at Seasons Monarch (interest, management fee, rates, insurance) for 2,837 square feet
versus
$25,000 - monthly rent at Park Avenue for 982 square feet, in Tower 9, upper floor.
Assumptions:
If you live in the same location, but pay lower cost, then this is better.
If you live further away and pay a higher cost, then this is worse.
If you live closer and pay a higher cost or live further away and pay a lower cost, then we need to calculate whether it is better value or not.
Seasons Monarch - 32 minutes X $9,886.53 = 316,368.96
Park Avenue - 15 minutes X $25,000 = 375,000
Sorrento - 13 minutes X $26,000 = 338,000
Mei Foo Sun Chuen - 21 minutes X $16,000 = 336,000
The lowest value above indicates best value for money in terms of travel time to Central.
What HK property boils down to
1) Live in an old, run down place
2) Move further away from Central
We chose option 2).
Monthly housing expenses
$7,554.70 - Interest (average over 48 months)
$2,078 - Management Fee
$675 - Government Rates
$405 - Government Rent
$598 - Home Insurance
-$1,424.17 - Home Loan Interest Tax Rebate capped at $100K
$9,886.53 - TOTAL
on a per square foot basis, this is $9,886.53 ÷ 2,837 square feet = $3.48 per square foot.
which can be used to compare against the rent price per square foot of other properties.
Monthly housing cashflow
$16,442 - Mortgage repayment instead of just interest
everything else the same
$18,773.83 - TOTAL
Owning versus Renting
The HK government believes the rateable value is $13,500 per month. They are not far off in their calculation compared to $11,519.33. Landlords in Seasons Monarch are asking $25,000 per month in rent. Therefore your monthly saving by owning rather than renting in Seasons Monarch is $25,000 - $9,886.53 = $15,113.47.
In 4 years time when you want to sell your house, the savings accrued will be $15,113.47 X 48 months = $725,446.36.
Profit Potential of Owning
Non-capital expenses when purchasing the property were:
$281,250 - stamp duty
$2,500 - solicitor's disbursements
-$42,000 - HSBC cash rebate
$241,750 - TOTAL
Total cash used in 4 years:
$2,250,000 - deposit
$253,340 - renovation cost
$241,750 - non-capital expenses when purchasing the property
$18,773.83 X 48 - monthly housing cashflow
$3,646,233.84 - TOTAL
Assuming the renovation cost is added to the cost base of the property, then the property after renovation should be worth $7,753,340.
Loan principal outstanding after 4 years is $4,887,374.20 maximum.
A conservative estimate on the capital appreciation of your house would be that it is in line with inflation in Hong Kong. The inflation rate in Hong Kong is 2.8% at February 2010. Of course if the property appreciates faster than the inflation rate, the cash-on-cash return would increase. e.g. for a moderate annual growth rate of 5% or bullish rate of 10%.
Annual Growth Rate - Cash after repaying mortgage - Net Cash Return - Cash-on-Cash Return
2.8% - $3,771,497.16 - $125,263,32 - 3.44%
5% - $4,536,859.03 - $890,625.19 - 24.43%
10% - $6,464,290.89 - $2,818,057.05 - 77.29%
If you did not own you would not enjoy any capital gain on the property you are renting. However, with the opportunity cost of not buying a property with your cash, you could leverage and make money from another investment, i.e. share investing.
Net Profit at the end of 4 years, total capital gain % at the fourth year
Capital Gain % - Profit/Loss
Nil - -$716,303.63 loss
11.68% - $189,286.47 (2.8% p.a.)
21.55% - $954,541.13 (5% p.a.)
46.41% - $2,882,021.45 (10% p.a.)
Net Savings at the end of 4 years, total capital gain % at the fourth year
Capital Gain % - Profit/Loss instead of renting (saving of $725,446.36)
Nil - $9,142.72
11.68% - $914,732.83 (2.8% p.a.)
21.55% - $1,679,987.49 (5% p.a.)
46.41% - $3,607,467.81 (10% p.a.)
Basically, the property could be sold for 0.12% less than the cost base of the property, and you would still be the same as if you had rented. This is the only fair comparison that should be made. Therefore there is plenty of upside potential and minimal downside risk.
Monday, 29 March 2010
Socialised healthcare
Critics cite that when something is free, it is usually of poor quality, inefficient, is ultimately more expensive (due to the inefficiency and higher taxes) and creates long waiting queues.
I would agree, that anything that is free to the patient, creates the "free rider problem". In other words, people with a lower socio-economic background consume more than their fair share of public healthcare and of course shoulder less than their fair share of the cost because their income is lower and they pay lower taxes than everyone else.
But in a user pays system like the US had, this did not not necessarily mean health costs were much lower due to greater competition or efficiency. If insurance companies and doctors collude on pricing, they could control the market as prices were unregulated. Since health care is a necessity, patients would have no other choice but to pay because health care is price inelastic (price changes have a small effect on the demand for health care). Also, the US is very litigious country and therefore doctors pay to pay hefty insurance premiums in order to practice. Therefore tort reform by limiting the damages that could be claimed is an important aspect to reduce the overall cost of healthcare.
In Australia, the Medicare system is totally free to the patient if the doctor provides "bulk billing". Under "bulk billing" the doctor receives 85% of the scheduled fee from the government. The benefit for the doctor is that they avoid the costs of and risks of debt collection since the government will pay. However, this incentivises the doctor to see more patients in a smaller amount of time in order to increase their own income, which may lead to poorer quality patient care.
An alternative to "bulk billing" is where the patient pays the doctor first, and then the patient seeks a 85% to 100% rebate from the government for the cost. Under this alternative, the doctor is not restricted to the scheduled fee and can charge what they please. Usually the doctor can spend more time with the patient since their fees are not capped by the government, which may lead to higher quality patient care.
The "free rider problem" is most likely encountered with "bulk billing" doctors. There is usually much longer queues for doctors who offer "bulk billing". Instead of zero cost to the patient, the government or doctor should charge a nominal fee for the visitation, perhaps $10. This would discourage a significant amount of free riders as it poses an upfront cost, and only patients with significant illness would see a doctor under such circumstances. However, this would not eliminate the incentive for doctors to try and see more patients in a fixed amount of time and therefore the quality of service may not necessarily improve.
In Australia, people can also purchase private health insurance. Theoretically, they are paying more for health care, and therefore should be able to jump waiting queues and receive better quality of service. Australia incentivises wealthier people to have private health insurance otherwise they pay a higher taxation levy on Medicare.
The problem with the Australian system is that it does not encourage people to consciously adopt a healthier lifestyle to avoid illness. Perhaps the Singapore system should be adopted in part because it similar to a user pays system with a government safety net. In Singapore, a percentage of your salary is credited to a MediSave account. When a person is sick, they use the monies accumulated in their own (or family members') MediSave account to pay for their medical bills. For a healthy person, they would hardly use anything in the MediSave account and should they die, the money in the MediSave account could be passed onto family members. If the MediSave account is depleted, then the government provides a safety net to cover costs of essential health care.
Rather than 100% of the costs being paid from the MediSave account, perhaps the government should co-pay so that it is 50-50 between the government and patient paying for their medical bills. This is slightly more socialised than fully privatised. Also, tax rebates should be offered for people who choose to purchase private health insurance. This would encourage wealthier people to pay higher premiums for private health insurance to reduce their tax burden while at the same time supposedly obtaining better health care.
My proposal for Australia:
- Reduce (or eliminate) the compulsory 1.5% Medicare Levy on taxable income.
- Eliminate the 1% Medicare Levy Surchage if your household income is greater than $140,000. Instead, offer a tax rebate (e.g. 1%) if a minimum level of private health insurance is purchased. This would encourage not only families earning more than $140,000 household income but also those earning less than this because a percentage tax rebate would apply to anyone with a minimum level of private health insurance. By increasing the pool of consumers of private health insurance this would generate more competition in the private health insurance which may lead to lower premiums.
- Introduce a compulsory MediSave account where each taxpayer (or person within working age) must set aside 6 to 8% of their income to meet future personal or immediate family's hospitalization, day surgery and for certain outpatient expenses. The government should then reduce (or eliminate) the compulsory 1.5% Medicare Levy on taxable income. Also, the government should co-pay instead of 100% payment from the taxpayer for their medical expenses. This would ease the medical cost for any unfortunate illness or injury that may occur for an individual.
- Allow doctors and hospitals to set their own prices to encourage competition and greater quality of service. But there must be a government authority to monitor any price collusion/price fixing. There should still be some government hospitals where the cost is very affordable but there may be longer waiting queues or the quality of service may not be as good. Payment for medical bills should still come from a mixture of private health insurance, MediSave account and co-payment from the government.
- Continue the Pharmaceutical Benefits Scheme (PBS)
Tuesday, 9 March 2010
The 48 Laws of Power
The 48 Laws of Power
by Robert Greene and Joost Elffers
Law 1
Never Outshine the Master
Always make those above you feel comfortably superior. In your desire to please or impress them, do not go too far in displaying your talents or you might accomplish the opposite – inspire fear and insecurity. Make your masters appear more brilliant than they are and you will attain the heights of power.
Law 2
Never put too Much Trust in Friends, Learn how to use Enemies
Be wary of friends-they will betray you more quickly, for they are easily aroused to envy. They also become spoiled and tyrannical. But hire a former enemy and he will be more loyal than a friend, because he has more to prove. In fact, you have more to fear from friends than from enemies. If you have no enemies, find a way to make them.
Law 3
Conceal your Intentions
Keep people off-balance and in the dark by never revealing the purpose behind your actions. If they have no clue what you are up to, they cannot prepare a defense. Guide them far enough down the wrong path, envelope them in enough smoke, and by the time they realize your intentions, it will be too late.
Law 4
Always Say Less than Necessary
When you are trying to impress people with words, the more you say, the more common you appear, and the less in control. Even if you are saying something banal, it will seem original if you make it vague, open-ended, and sphinxlike. Powerful people impress and intimidate by saying less. The more you say, the more likely you are to say something foolish.
Law 5
So Much Depends on Reputation – Guard it with your Life
Reputation is the cornerstone of power. Through reputation alone you can intimidate and win; once you slip, however, you are vulnerable, and will be attacked on all sides. Make your reputation unassailable. Always be alert to potential attacks and thwart them before they happen. Meanwhile, learn to destroy your enemies by opening holes in their own reputations. Then stand aside and let public opinion hang them.
Law 6
Court Attention at all Cost
Everything is judged by its appearance; what is unseen counts for nothing. Never let yourself get lost in the crowd, then, or buried in oblivion. Stand out. Be conspicuous, at all cost. Make yourself a magnet of attention by appearing larger, more colorful, more mysterious, than the bland and timid masses.
Law 7
Get others to do the Work for you, but Always Take the Credit
Use the wisdom, knowledge, and legwork of other people to further your own cause. Not only will such assistance save you valuable time and energy, it will give you a godlike aura of efficiency and speed. In the end your helpers will be forgotten and you will be remembered. Never do yourself what others can do for you.
Law 8
Make other People come to you – use Bait if Necessary
When you force the other person to act, you are the one in control. It is always better to make your opponent come to you, abandoning his own plans in the process. Lure him with fabulous gains – then attack. You hold the cards.
Law 9
Win through your Actions, Never through Argument
Any momentary triumph you think gained through argument is really a Pyrrhic victory: The resentment and ill will you stir up is stronger and lasts longer than any momentary change of opinion. It is much more powerful to get others to agree with you through your actions, without saying a word. Demonstrate, do not explicate.
Law 10
Infection: Avoid the Unhappy and Unlucky
You can die from someone else’s misery – emotional states are as infectious as disease. You may feel you are helping the drowning man but you are only precipitating your own disaster. The unfortunate sometimes draw misfortune on themselves; they will also draw it on you. Associate with the happy and fortunate instead.
Law 11
Learn to Keep People Dependent on You
To maintain your independence you must always be needed and wanted. The more you are relied on, the more freedom you have. Make people depend on you for their happiness and prosperity and you have nothing to fear. Never teach them enough so that they can do without you.
Law 12
Use Selective Honesty and Generosity to Disarm your Victim
One sincere and honest move will cover over dozens of dishonest ones. Open-hearted gestures of honesty and generosity bring down the guard of even the most suspicious people. Once your selective honesty opens a hole in their armor, you can deceive and manipulate them at will. A timely gift – a Trojan horse – will serve the same purpose.
Law 13
When Asking for Help, Appeal to People’s Self-Interest, Never to their Mercy or Gratitude
If you need to turn to an ally for help, do not bother to remind him of your past assistance and good deeds. He will find a way to ignore you. Instead, uncover something in your request, or in your alliance with him, that will benefit him, and emphasize it out of all proportion. He will respond enthusiastically when he sees something to be gained for himself.
Law 14
Pose as a Friend, Work as a Spy
Knowing about your rival is critical. Use spies to gather valuable information that will keep you a step ahead. Better still: Play the spy yourself. In polite social encounters, learn to probe. Ask indirect questions to get people to reveal their weaknesses and intentions. There is no occasion that is not an opportunity for artful spying.
Law 15
Crush your Enemy Totally
All great leaders since Moses have known that a feared enemy must be crushed completely. (Sometimes they have learned this the hard way.) If one ember is left alight, no matter how dimly it smolders, a fire will eventually break out. More is lost through stopping halfway than through total annihilation: The enemy will recover, and will seek revenge. Crush him, not only in body but in spirit.
Law 16
Use Absence to Increase Respect and Honor
Too much circulation makes the price go down: The more you are seen and heard from, the more common you appear. If you are already established in a group, temporary withdrawal from it will make you more talked about, even more admired. You must learn when to leave. Create value through scarcity.
Law 17
Keep Others in Suspended Terror: Cultivate an Air of Unpredictability
Humans are creatures of habit with an insatiable need to see familiarity in other people’s actions. Your predictability gives them a sense of control. Turn the tables: Be deliberately unpredictable. Behavior that seems to have no consistency or purpose will keep them off-balance, and they will wear themselves out trying to explain your moves. Taken to an extreme, this strategy can intimidate and terrorize.
Law 18
Do Not Build Fortresses to Protect Yourself – Isolation is Dangerous
The world is dangerous and enemies are everywhere – everyone has to protect themselves. A fortress seems the safest. But isolation exposes you to more dangers than it protects you from – it cuts you off from valuable information, it makes you conspicuous and an easy target. Better to circulate among people find allies, mingle. You are shielded from your enemies by the crowd.
Law 19
Know Who You’re Dealing with – Do Not Offend the Wrong Person
There are many different kinds of people in the world, and you can never assume that everyone will react to your strategies in the same way. Deceive or outmaneuver some people and they will spend the rest of their lives seeking revenge. They are wolves in lambs’ clothing. Choose your victims and opponents carefully, then – never offend or deceive the wrong person.
Law 20
Do Not Commit to Anyone
It is the fool who always rushes to take sides. Do not commit to any side or cause but yourself. By maintaining your independence, you become the master of others – playing people against one another, making them pursue you.
Law 21
Play a Sucker to Catch a Sucker – Seem Dumber than your Mark
No one likes feeling stupider than the next persons. The trick, is to make your victims feel smart – and not just smart, but smarter than you are. Once convinced of this, they will never suspect that you may have ulterior motives.
Law 22
Use the Surrender Tactic: Transform Weakness into Power
When you are weaker, never fight for honor’s sake; choose surrender instead. Surrender gives you time to recover, time to torment and irritate your conqueror, time to wait for his power to wane. Do not give him the satisfaction of fighting and defeating you – surrender first. By turning the other cheek you infuriate and unsettle him. Make surrender a tool of power.
Law 23
Concentrate Your Forces
Conserve your forces and energies by keeping them concentrated at their strongest point. You gain more by finding a rich mine and mining it deeper, than by flitting from one shallow mine to another – intensity defeats extensity every time. When looking for sources of power to elevate you, find the one key patron, the fat cow who will give you milk for a long time to come.
Law 24
Play the Perfect Courtier
The perfect courtier thrives in a world where everything revolves around power and political dexterity. He has mastered the art of indirection; he flatters, yields to superiors, and asserts power over others in the mot oblique and graceful manner. Learn and apply the laws of courtiership and there will be no limit to how far you can rise in the court.
Law 25
Re-Create Yourself
Do not accept the roles that society foists on you. Re-create yourself by forging a new identity, one that commands attention and never bores the audience. Be the master of your own image rather than letting others define if for you. Incorporate dramatic devices into your public gestures and actions – your power will be enhanced and your character will seem larger than life.
Law 26
Keep Your Hands Clean
You must seem a paragon of civility and efficiency: Your hands are never soiled by mistakes and nasty deeds. Maintain such a spotless appearance by using others as scapegoats and cat’s-paws to disguise your involvement.
Law 27
Play on People’s Need to Believe to Create a Cult-like Following
People have an overwhelming desire to believe in something. Become the focal point of such desire by offering them a cause, a new faith to follow. Keep your words vague but full of promise; emphasize enthusiasm over rationality and clear thinking. Give your new disciples rituals to perform, ask them to make sacrifices on your behalf. In the absence of organized religion and grand causes, your new belief system will bring you untold power.
Law 28
Enter Action with Boldness
If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.
Law 29
Plan All the Way to the End
The ending is everything. Plan all the way to it, taking into account all the possible consequences, obstacles, and twists of fortune that might reverse your hard work and give the glory to others. By planning to the end you will not be overwhelmed by circumstances and you will know when to stop. Gently guide fortune and help determine the future by thinking far ahead.
Law 30
Make your Accomplishments Seem Effortless
Your actions must seem natural and executed with ease. All the toil and practice that go into them, and also all the clever tricks, must be concealed. When you act, act effortlessly, as if you could do much more. Avoid the temptation of revealing how hard you work – it only raises questions. Teach no one your tricks or they will be used against you.
Law 31
Control the Options: Get Others to Play with the Cards you Deal
The best deceptions are the ones that seem to give the other person a choice: Your victims feel they are in control, but are actually your puppets. Give people options that come out in your favor whichever one they choose. Force them to make choices between the lesser of two evils, both of which serve your purpose. Put them on the horns of a dilemma: They are gored wherever they turn.
Law 32
Play to People’s Fantasies
The truth is often avoided because it is ugly and unpleasant. Never appeal to truth and reality unless you are prepared for the anger that comes for disenchantment. Life is so harsh and distressing that people who can manufacture romance or conjure up fantasy are like oases in the desert: Everyone flocks to them. There is great power in tapping into the fantasies of the masses.
Law 33
Discover Each Man’s Thumbscrew
Everyone has a weakness, a gap in the castle wall. That weakness is usual y an insecurity, an uncontrollable emotion or need; it can also be a small secret pleasure. Either way, once found, it is a thumbscrew you can turn to your advantage.
Law 34
Be Royal in your Own Fashion: Act like a King to be treated like one
The way you carry yourself will often determine how you are treated; In the long run, appearing vulgar or common will make people disrespect you. For a king respects himself and inspires the same sentiment in others. By acting regally and confident of your powers, you make yourself seem destined to wear a crown.
Law 35
Master the Art of Timing
Never seem to be in a hurry – hurrying betrays a lack of control over yourself, and over time. Always seem patient, as if you know that everything will come to you eventually. Become a detective of the right moment; sniff out the spirit of the times, the trends that will carry you to power. Learn to stand back when the time is not yet ripe, and to strike fiercely when it has reached fruition.
Law 36
Disdain Things you cannot have: Ignoring them is the best Revenge
By acknowledging a petty problem you give it existence and credibility. The more attention you pay an enemy, the stronger you make him; and a small mistake is often made worse and more visible when you try to fix it. It is sometimes best to leave things alone. If there is something you want but cannot have, show contempt for it. The less interest you reveal, the more superior you seem.
Law 37
Create Compelling Spectacles
Striking imagery and grand symbolic gestures create the aura of power – everyone responds to them. Stage spectacles for those around you, then full of arresting visuals and radiant symbols that heighten your presence. Dazzled by appearances, no one will notice what you are really doing.
Law 38
Think as you like but Behave like others
If you make a show of going against the times, flaunting your unconventional ideas and unorthodox ways, people will think that you only want attention and that you look down upon them. They will find a way to punish you for making them feel inferior. It is far safer to blend in and nurture the common touch. Share your originality only with tolerant friends and those who are sure to appreciate your uniqueness.
Law 39
Stir up Waters to Catch Fish
Anger and emotion are strategically counterproductive. You must always stay calm and objective. But if you can make your enemies angry while staying calm yourself, you gain a decided advantage. Put your enemies off-balance: Find the chink in their vanity through which you can rattle them and you hold the strings.
Law 40
Despise the Free Lunch
What is offered for free is dangerous – it usually involves either a trick or a hidden obligation. What has worth is worth paying for. By paying your own way you stay clear of gratitude, guilt, and deceit. It is also often wise to pay the full price – there is no cutting corners with excellence. Be lavish with your money and keep it circulating, for generosity is a sign and a magnet for power.
Law 41
Avoid Stepping into a Great Man’s Shoes
What happens first always appears better and more original than what comes after. If you succeed a great man or have a famous parent, you will have to accomplish double their achievements to outshine them. Do not get lost in their shadow, or stuck in a past not of your own making: Establish your own name and identity by changing course. Slay the overbearing father, disparage his legacy, and gain power by shining in your own way.
Law 42
Strike the Shepherd and the Sheep will Scatter
Trouble can often be traced to a single strong individual – the stirrer, the arrogant underling, the poisoned of goodwill. If you allow such people room to operate, others will succumb to their influence. Do not wait for the troubles they cause to multiply, do not try to negotiate with them – they are irredeemable. Neutralize their influence by isolating or banishing them. Strike at the source of the trouble and the sheep will scatter.
Law 43
Work on the Hearts and Minds of Others
Coercion creates a reaction that will eventually work against you. You must seduce others into wanting to move in your direction. A person you have seduced becomes your loyal pawn. And the way to seduce others is to operate on their individual psychologies and weaknesses. Soften up the resistant by working on their emotions, playing on what they hold dear and what they fear. Ignore the hearts and minds of others and they will grow to hate you.
Law 44
Disarm and Infuriate with the Mirror Effect
The mirror reflects reality, but it is also the perfect tool for deception: When you mirror your enemies, doing exactly as they do, they cannot figure out your strategy. The Mirror Effect mocks and humiliates them, making them overreact. By holding up a mirror to their psyches, you seduce them with the illusion that you share their values; by holding up a mirror to their actions, you teach them a lesson. Few can resist the power of Mirror Effect.
Law 45
Preach the Need for Change, but Never Reform too much at Once
Everyone understands the need for change in the abstract, but on the day-to-day level people are creatures of habit. Too much innovation is traumatic, and will lead to revolt. If you are new to a position of power, or an outsider trying to build a power base, make a show of respecting the old way of doing things. If change is necessary, make it feel like a gentle improvement on the past.
Law 46
Never appear too Perfect
Appearing better than others is always dangerous, but most dangerous of all is to appear to have no faults or weaknesses. Envy creates silent enemies. It is smart to occasionally display defects, and admit to harmless vices, in order to deflect envy and appear more human and approachable. Only gods and the dead can seem perfect with impunity.
Law 47
Do not go Past the Mark you Aimed for; In Victory, Learn when to Stop
The moment of victory is often the moment of greatest peril. In the heat of victory, arrogance and overconfidence can push you past the goal you had aimed for, and by going too far, you make more enemies than you defeat. Do not allow success to go to your head. There is no substitute for strategy and careful planning. Set a goal, and when you reach it, stop.
Law 48
Assume Formlessness
By taking a shape, by having a visible plan, you open yourself to attack. Instead of taking a form for your enemy to grasp, keep yourself adaptable and on the move. Accept the fact that nothing is certain and no law is fixed. The best way to protect yourself is to be as fluid and formless as water; never bet on stability or lasting order. Everything changes.
Monday, 8 March 2010
Trust
Negotiating a pay rise at your current job
Regarding my expected salary, I envisage that a more appropriate time to discuss this matter would be during or after my meeting with [NAME OF SUPERVISOR], when we have reached a meeting of the minds. However, I have no doubt that a prestigious firm such as [NAME OF FIRM] would be offering a competitive package consistent with the market for a person with my experience, background and technical skills.
I am much more interested in doing [TYPE OF WORK] here at [NAME OF FIRM] than I am in the size of the initial offer.
I will consider any reasonable offer
You are in a much better position to know how much I'm worth to you than I am.
Salary counteroffers
Discovering average salary without disclosing your own to another
Transfer pricing to minimise tax

International transfer pricing is also known as profit up-streaming. It is a strategy of moving profits from a high tax jurisdiction (Australia/New Zealand) to a low tax jurisdiction (Singapore/Hong Kong).
Services may be performed by a service provider in Hong Kong for a client in Australia. No work is performed in Australia, and if any income is received by an Australian entity a corresponding charge by the Hong Kong entity to the Australian entity as a supplier should match to minimise any tax liability in Australia. In other words, the Australian entity should have little or no profit to declare to the Australian Tax Office.
The Hong Kong corporate tax rate is 16.5%. But the individual tax rate is only 0 - 15%. The Singapore corporate tax rate is 17%. Individual tax rate is 3.5 - 20%.
Furthermore, technology costs and labour costs are much cheaper in Asia than in Australia. There is no payroll tax and the MPF is much less than the 9% superannuation required in Australia.
Thursday, 4 March 2010
Bought too much for your business
Monday, 22 February 2010
Options for Skype
3 Skypephone
You can use a 3 Skypephone so you don't have to be at home to make a free call using Skype. The only cost is the purchase of the 3 Skypephone and leaving a small credit balance (which may never be used). The 3 Skypephone allows you to make free Skype calls to anyone on Skype including other people using a 3 Skypephone. The 3 Skypephone will use the Three (3) network and therefore it basically functions as a mobile phone so you don't need to be near an Internet connection with a traditional Skype phone.
- answering machine
- call recording
- contact personalisation
- e-mail forwarding
- video recording
- chat recording
- Skype Answering Machine (SAM) by KishKish Products
- CallButler
- PrettyMay Call Recorder
Saving telecommunications cost
- HK$5.12/minute on Three (3).
- HK$7.15/minute on PCCW IDD 001
- HK$1.99/minute on PCCW 0060
- HK$4.98/minute to an Australian mobile phone on PCCW 0060
- HK$0.166/minute to an Australian fixed telephone.
- HK$1.609/minute to an Australian mobile phone.
- HK$0.166/minute to a Hong Kong fixed telephone or mobile phone.
HK$0.203 - per minute to an Australian mobile phone.
HK$0.166 - per minute to Hong Kong fixed telephone or mobile phone
