LIVING within his means and making every cent count have served Surya Subramanian, 46, in pretty good stead.

The chief operating officer (Asia) for Royal Bank of Canada's global private banking business makes it a point of sticking a quarter of his monthly income into savings and investments.

It meant that when annual bonuses came around, he could save every cent.

Perhaps growing up with three siblings in Kolkata and being a trained accountant have helped him to maintain a frugal lifestyle and conservative money habits.

Mr Subramanian estimates that he will need only $5,000 a month for himself, his wife, Suchitra, 46, and his daughter, Surabhi, eight, after his house and car are fully paid up.

He told The Sunday Times how he came to Singapore with just US$500 (S$753 at current rates) in 1991.

"I wasn't born into wealth... whatever I have are my income and what I saved and invested out of it," he said.

With limited financial means and an initially conservative attitude, he put his money into simple assets such as fixed deposits and a four-room HDB flat.

It was the Asian financial crisis in 1997-1998 that gave him the impetus to be more aggressive in his investments, spreading his savings into a self-managed portfolio of short- and long-term investments.

He has since sold his HDB flat and his family now lives in a semi-detached 2,500 sq ft house off Whitley Road.

His last corporate position was chief operating officer at Standard Chartered Bank Singapore (Stanchart).

Mr Subramanian spent most of his career with Stanchart in various capacities, from 1984 until early this year, apart from a three-year stint at Royal Bank of Canada from 1995 to 1999.

In February, he left Stanchart to pursue a more balanced lifestyle and was a full-time investor till he joined Royal Bank of Canada this month.

He and his wife became Singapore citizens in 2003.

Q What are your money management habits?

A My monthly income is divided into four equal portions, with a quarter going to paying taxes, taking care of housing and expenses with some savings left over.

Q What financial planning have you done for yourself and your family?

A When I arrived in Singapore in 1990s, cash flow was important because I had next to nothing - just US$500 in my pocket.

My investment objective then was to have enough cash or Central Provident Fund (CPF) money to service two years of mortgage, so I held simple assets such as fixed deposits to cover six months of living expenses.

It helped that I achieved a lot more in later years. With more cash and a stable career, I could afford to take more risks in the 2000s.

I have 35 per cent in property, 20 per cent in local stocks, 10 per cent in foreign stocks, 15 per cent in high-risk short-term instruments such as equity-linked notes and dual currencies, and 20 per cent as retirement funds.

The latter includes CPF, a supplementary retirement scheme and long-term stable low-risk instruments such as money market funds and fixed deposits.

The overall balance of wealth is 55:45 between long- and short- term investments.

My returns average about 10 per cent, excluding the property investment.

I do play a timing game. I go in at every dip in the stock market and get out when I make 20 per cent profit.

I rely on broker inputs, what I read in the papers, analysts' reports and my own gut feel.

Q What about insurance planning?

A Hospitalisation cover is important. It is better to buy the cover early when you have no illness and premiums are cheaper.

Three years back, I purchased the Aviva IFS Global Health classic plan, which covers me for $1.7 million.

I also have term plans, mortgage-reducing term assurance and investment-linked insurance plans.

I would avoid optional riders that cover premium loss and income holidays as most of these are too expensive relative to the real risks and often inadequate for the actual event.

I also avoid child policies as there is no point covering low mortality risk with an averaged premium.

My annual premiums total $30,000.

Q When and how did you get interested in investing?

A I started actively managing my savings only after the Asian financial crisis.

It was a wake-up call in many aspects. People lost their jobs and properties. I decided I had to build my wealth. The active management of savings has led to a proper spread of investments and risks.

Q What's your investment philosophy?

A No one ever suffered a loss by booking a profit. Don't be greedy.

Also, cut your profit or loss within a pre-defined range. I will book a profit when the returns are 20 per cent and if losses exceed 10 per cent, I cut my losses.

I avoid products that I do not understand. For example, there are some structured products where I don't know who is making the money and how the money is made.

Be comfortable with the worst-case scenario if investing.

Q What has been a bad investment?

A It has to be the failed membership in the old Pinetree Club. I lost $25,000 when I could ill afford it.

Q Your best investment to date?

A It has to be my current house - a 2,500 sq ft semi-detached house off Whitley Road, which I bought in December 2004. It has risen by about 25 per cent per annum in the last two years.

Q Moneywise, what were your growing-up years like?

A There were six of us in my family. My father was a company secretary and my mother a housewife. We lived in a small apartment where the four children shared a room.

Leading a frugal lifestyle helps in inculcating a savings habit. You learn to extract value from the little that you have and spend because every dollar counts. But it also makes you over-conservative in risk taking.

Q What are your retirement plans?

A I may retire at 50. I hope to be in a position then where I can invest in small and medium-sized enterprises, and support charities and the community with personal time and effort. Presently, I am the treasurer for the Citizens' Consultative Committee at Serangoon constituency.

Q And your car is...?

A Cars depreciate in value over time. I use a grey-black Nissan Cefiro.

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