The End of the Private Investment Fund and Return to the Rat Race

It has been a wonderful year of 2003. During that year, I lived a life many could only dream of. I had struck out as a realtor and moved on to manage a private investment fund. This private investment fund has consistently returned about 10% every month, and allowed me not to need a job. With the time given to me, I have learnt web design, have continued to minister to children in chapel worship and have even cut a worship album. I founded a company to train pupils in leadership and entrepreneurial skills. I worked only an hour or two each day from home, and supported my wife (by being a house-husband!). And of course, since I still love teaching, relief teaching became a part of me.

Everything came crashing down on me about Oct 2003.

It was nobody’s fault but mine. I knew very well that I could manage about 2%-3% per month without major risks to my capital (due to capital protection measures I took). But I was consumed by greed and wanted bigger yields. I was arrogant and thought my first few successes would see me through. Instead of doing what I know I could manage, I took on positions that could return me 20% a month, and refused to take on any less. But in doing so, I took away the safety net of my capital protection measures.

One dark Wednesday, everything went against me and my positions crashed faster than I could salvage them. When the smoke cleared, I was down to 20% of my capital – most of it belonging to my investors. And I had promised them capital safety. There was no contract except the contract of my word and my reputation.

There is no way I can give my clients the 7% returns promised if I were to use the ‘safer’ method of investing. I knew then that I could do what Ponzi did when he started his scam. Ignore the problem and continued to take money from his clients, knowing that the money will continue to flow in due to the high returns promised, and running away when he could no longer pay up. But that would run contrary to the ethical values etched within me in my 15 years with God. Integrity says that I must face up to it, even at a personal loss. I decided to close the Private Investment Fund – and return the money to my clients out of my personal wealth.

With the closure of my Private Investment Fund, I have no means of support for my family. My company has not been securing enough sales to sustain me. My family and I still have the debts from credit cards and the car mortgage. I had no choice but to return to the rat race, to take up employment once again.

What have I learnt from this terrible financial blow? I have learnt to take the bird in the hand rather than the two in the bush. It is more important to protect your capital than to get higher returns. I have learnt that people respect your integrity. My former clients told me they would put their money with me again if I were to ever return to running investment funds.

Most importantly, I have learnt something about myself. I enjoyed the seminars that I run for the pupils. I enjoyed leading devotion and relief teaching. I realised that my true calling in life is still to be a teacher. That was confirmed when I was accepted for interviews with the Singapore International School in Indonesia (for Vice-Principal) and the Singapore International School in Shanghai (for Head of Department). I chose to go to China. In future, I will stick to my calling. Even when I get to run an investment fund or to start a business again, I will still continue teaching.

It really has been an interesting year for me, and it will have many memories for me. I do not blame anyone, least of all God. I took on the risks willingly, and I will move on with my life. I have taken the talents, and lost it is trading, rather than bury it in the ground. I have learnt much and will move, for I know I have a calling, to return to Him ten talents for the five that I know He will give me. One day I shall return, and fulfil what He has called me to do.