Me & My Money - Vet Clinic Owner puts her eggs in different baskets, invest news & top stories the straits times

30/03/2020 Me & My Money: Vet clinic owner puts her eggs in different baskets, Invest News & Top Stories - The Straits Times
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Me & My Money: Vet clinic owner puts
her eggs in different baskets
PUBLISHED MAR 29, 2020, 5:00 AM SGT
Be it her business or investment portfolio, she diversifies to mitigate risks
Ms Foreen Low, seen here with a client's dog, is the owner of Animal Practice veterinary clinic, which she started in 2006.
It remains one of the few practices here run by an owner who is not a veterinarian. Ms Low says her key investing
strategy "is being comprehensive with the portfolio and not emotional". ST PHOTO: KUA CHEE SIONG
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THE STRAITS TIMES
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Sue-Ann Tan (mailto:suetan@sph.com.sg)
Diversification to reduce risks is the motto for business owner Foreen Low, whether in her company or her
investments.
Ms Low is the owner of the Animal Practice veterinary clinic in Kovan which she started in 2006. It remains
one of the few practices here run by an owner who is not a veterinarian.
The business broke even in less than six months and fully recovered the capital outlay within 1½ years. It
now has a team of 10, with turnover just under $1 million.
Ms Low, 45, says: "Risk is inevitable in any business. No one can make accurate predictions about
everything every time.
"The longevity of a small business, especially, is highly dependent on (how) it tolerates adverse
uncertainties and the buffer it has created.
"I take a prompt approach to refreshing liquidity ratio and reserves. This helps to maintain a healthy bill of
liquidity ratio to cope with acute downturns, while not forgoing any good opportunities when they arise.
"I also apportion part of the reserves for diversification and hedging purposes. What I cannot undertake, I
can always outsource. Never put all your eggs in one basket."
One way Ms Low is trying to grow her business is to look for new ways beyond the traditional store model,
since that is becoming saturated in her industry, she says.
"We have much to learn from Uber, Grab and Airbnb. The veterinary business model needs to evolve to
include media technology and adopt a community concept, and getting clients and services out of its
physical (store) concept."
This approach to business carries over into how she invests.
"I wanted a well-balanced portfolio that offers agility and flexibility for immediate availability in cash flow,
and one that is well diversified to hedge risk and distributed evenly between short and long term returns,"
she said.
WORST AND BEST BETS
Q What has been your biggest investing mistake?
A I learnt what works and does not work for me after two investment opportunities that ended with a total loss
of about $240,000 between 2009 and 2011. Both investments involved people I loved and were close to.
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It was never a decision made for monetary gains to start with. I was prepared for the worst.
It did not help with keeping those relationships intact in the end, which was a greater loss, at least to me.
I learnt not to make investment decisions that come with an emotional price tag attached.
It is usually not a winning formula for the relationship nor the investment outcome. It is double jeopardy at
play.
Q And your best investment?
A My mother had always wanted to see Niagara Falls. It was something on her bucket list she had to tick off.
So I decided to take her there in 2015.
I topped it off with a sponsored retail therapy session at Woodbury Outlets.
It was amid the busiest working year I had at the clinic and I knew my time away would be a costly one.
But something told me I should do it.
She passed away in her sleep about two years ago with no warning. Looking back now, it was the best
investment decision I have made.
These days, whenever I miss her, images from the trip would often surface.
It felt like we were there together, having the best mother and daughter time ever. It was the best $30,000
spent and the returns are priceless.
"The key investing strategy that works for me is being comprehensive with the portfolio and not emotional."
Ms Low, who is divorced with no children, graduated with a diploma in maritime transportation from
Singapore Polytechnic and then earned a bachelor's degree in economics from the University of Western
Australia, majoring in accounts, money and banking.
She also has a postgraduate diploma in ﬁnance from the University of Melbourne, a master's degree in
commerce from Deakin University, also in Melbourne, and is certiﬁed in canine physiotherapy.
Q WHAT'S IN YOUR PORTFOLIO?
A My portfolio consists of 5 per cent in cash holding for immediate liquidity; 40 per cent in equity,
comprising insurance, funds and stocks; 47 per cent in real estate - a fairly new property I am living in; and
8 per cent in collectibles, including art pieces, jewellery, watches and bags.
I am working towards increasing the stake in funds that offer me high liquidity and a decent average return
of about 8 per cent with minimum risk. The average annual return will increase exponentially the longer the
funds are invested and peak at about 12 per cent when fully stretched out to maturity.
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I bought my property when prices were nearly rock bottom, so the investment risk is fairly low. It is
appreciating at about 5.4 per cent annually. This is the foundation block for security, thus allowing me to be
more adventurous with the rest of the portfolio.
I would expect the destination portfolio to deliver an average annual return of between 9 per cent and 12 per
cent during retirement.
Q WHAT ARE YOUR IMMEDIATE INVESTMENT PLANS?
A I am expecting to be more occupied with growing the business in the years ahead, so I am planning to
reduce my stakes in stocks as I will have less time to manage them properly.
Q HOW ARE YOU PLANNING FOR RETIREMENT?
A Succession planning for the business is already in the pipeline, and I hope to pass the torch for the
business to continue its mission.
I am looking forward to providing remote business advisory to the company and nurturing successful
(candidates) for the handover of the business.
Retirement will hopefully be within the next ﬁve to 10 years.
When I get more time away from the business, I will be keen to devoting myself to helping and inspiring
people who are battling psychological challenges. I am working towards doing that professionally after I
retire.
Incorporating inﬂation, I expect that I will need about $190,000 annually to retire comfortably and
accomplish the things I plan to do.
Q WHAT DOES MONEY MEAN TO YOU?
A Money means being able to provide for myself, the people I love and the causes I am passionate about.
Q MONEYWISE, WHAT WERE YOUR GROWING-UP YEARS LIKE?
A My late mother was working at the vet clinic, manning the front desk and accounts before she passed
away. Before that, she worked at the front desk of a banking and securities company.
My father started out as a draughtsman, working at a shipbuilding company before he ventured out to start
his own import and export business.
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My younger brother and I grew up with my mother raising us mostly. Juggling between home and work, she
was the superwoman who took care of everything we needed all by herself as my father was mostly away
from home.
We were taught to budget our spending and maximise every dollar we had. She was strict about setting our
priorities right in handling money. She was thrifty and could accumulate wealth through saving.
My father is the complete opposite. He loves fast cars and branded goods. He travelled a lot for his work and
sometimes took us along with him. It helped us grow up fast and be more knowledgeable about the world
outside Singapore.
We had two opposite styles of money management training from our parents. When I had my own business
and became active in investing, it became second nature to draw on what I experienced from both.
So I learnt to always spend within my means and save more than what I need, plus a 10 per cent buffer in
between.
I started working during school holidays and after school when I was young. My family brought us up to
appreciate that while the basics are provided for, we have to earn our own keep for anything else. The
quality of life we want is always in our own hands, through solid hard work.
Q OTHER COMMENTS?
A Invest in people, always, whether in business or in your personal life. The takeaways are often
unquantiﬁable. Of course, there will be heartaches and the worst people teach you lessons, but how we view
the world is a decision we can make for ourselves.
Q HOME IS NOW...
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A A 1,109 sq ft, four-bedroom condominium unit by Serangoon River, with a leasehold of 99 years from
2014, which I bought in 2016.
Q I DRIVE...
A A white Volkswagen Arteon R-Line. I used to drive a white Mercedes-Benz E250 AMG Cabriolet which
my mother picked out for me.
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Me & My Money - Vet Clinic Owner puts her eggs in different baskets, invest news & top stories the straits times

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