Author: A Singaporean Stockmarket Investor (ASSI)

Is early critical illness insurance necessary?

I have blogged about the importance of having critical illness insurance before and because I get questions from readers now and then on whether early critical illness insurance is essential, I decided I should blog about it. Please bear in mind that this is just my opinion and some might disagree. Reader: I’ve started my investing journey and I am quite amazed I’ve learnt quite a lot ever since I started reading your blog last year. I would like to seek your talking to yourself opinion. Is it essential to get an early critical illness term insurance? The premium...

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SingTel and Netlink NBN Trust.

Some people keep asking me what have I bought recently. Hmm. Let me see. Eggs, extra virgin olive oil, butter, dark chocolate, matcha ice cream and some other stuff. What? Wrong answer? Jokes aside, to those who like asking me what did I buy or if XXX stock can buy or not, you should know you would be disappointed most of the time with my answers. You have been warned. ;) Anyway, in an interview a few years back, when asked what was the first company I ever invested in, my answer was SingTel. Like many Singaporeans then, we were given...

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Reader regrets ILP but what to do?

Reader: I was introduced by my colleague to your blog and only started to read it last night. Many useful tips indeed and I really regret not reading it earlier. I am single and 47 this year. I bought an ILP from Prudential for an assured sum of $100,000when I was 27 for an annual premium of $2,000 for death, PD and CI. My surrender value now is about $40,000. Shall I follow your blog advice to terminate it and purchase a term policy till 62? Currently almost half of my annual premiums is used to cover the cost and will escalate once I enter into my 50s. ...

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CPF-SA savings 10 years from now.

The biggest downside of not being gainfully employed is the lack of mandatory CPF contributions. To ensure that my CPF savings will become a more significant bond component of my investment portfolio in my golden years, I have been making voluntary contributions. Checking on my CPF account last night, I wondered how much would I have in my CPF-SA by the time I am 55? 55 years old. That is also when money from my CPF-SA will be moved into my newly created CPF-RA to fund the annuity called CPF Life. My CPF-SA savings in January 2017: $215,862 Assuming...

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60% higher interest income from age 55?

Reader: Would you leave your money in CPF-OA (beyond 55)? I can understand CPF-SA @ 4%. Wouldnt it be better to move into CPF Life for better returns? Noted that leaving it in CPF-OA will provide more flexibility. Thanks. AK: We have the option of moving more funds into the CPF-RA up to the prevailing ERS (1.5x the prevailing FRS) at age 55. Is it better?  If what you want is a higher payout from CPF Life, yes.  However, do note that you will be required to move funds from your CPF-SA first and not from your CPF-OA. Only when the...

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CPF Life Escalating Plan.

Reader: (On CPF Life) Is 70 the max age to leave the money there? Can continue to leave it there, and then bequeath everything? AK: We can choose our CPF Life payout start age to be any age between 65 to 70 years old. If we did not make a choice, the payout will start automatically under the CPF Life Standard plan at age 70. We must remember that CPF Life is an annuity and not a legacy planning tool. It is meant to help fund our retirement. If we would like to use the CPF as a legacy...

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Options with CPF Life and SRS in retirement.

Reader: Just wondering if you have given any thoughts on when you will start your CPF LIFE payout? Do you mind blogging about it? I have been building up my SRS savings. By the time I hit the Official Retirement age of 62 (for now), if I start withdrawing my SRS at 62 to 72, the annual sum will be equivalent to CPF LIFE. Now the question is, should I start my CPF LIFE payout at 65 or delay till 72 to gain more interest and thus a slightly higher monthly payout? According to the picture you posted on...

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QAF’s 2Q17 profit after tax fell 72%.

Part of QAF’s large decline in earnings should not come as a surprise since, one year ago, in 2Q 2016, QAF recorded an exceptional gain of $9.7 million from reducing its stake in Gardenia Malaysia (GBKL) to 50%. If we were to exclude that exceptional gain, however, profit after tax still reduced by 58%, year on year. Not as bad as 72% but still rather attention grabbing. Singapore and Malaysia QAF’s share of profits in Malaysia is reduced because of its smaller stake in GBKL. However, the reduction is bigger this quarter compared to the last quarter. It was...

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Centurion Corporation’s sky rocketing earnings.

I made quite a few new investments in the last six months to a year but, of these, the largest investment was in Centurion Corporation. I was attracted not just by their ability and willingness to pay meaningful dividends but also their clear and viable strategy for growth. With insiders eating their own pudding too, it was a vote of confidence which regular readers know I have always liked. 2Q 2017 was another stellar quarter. 72% rise in earnings is definitely nothing to scoff at. However, what I am more impressed with is that the gross profit margin improved...

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My family almost went bankrupt.

As my blog grows in readership, there are many more questions which are repeated. There is some level of predictability when it comes to questions from readers, I see. This is why I find it useful to share some older blogs regularly on my Facebook wall. It is mainly for the benefit of my new readers and also readers who are more forgetful. A question which I get asked before and which has picked up in frequency in recent months is why am I the way I am? This is a question I have addressed on a piece meal...

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Wondering about QAF Limited.

Reader #1: I wonder if any of your readers have written to you recently about the longer term aspects of QAF- both in dividend yield and share price? Reader #2: Hi AK, I know you are an investor in QAF Limited. Any reason why the share price is plunging? I know a long time director just stepped down last year. Do you think that has an effect? Singapore’s Longest Sandwich AK: Don’t ask me about share price. Ask Mr. Market. There is no way I can tell how prices might move now or in the future (with certainty). Past prices,...

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Healthy cash flow is most important.

Reader: Time flies and I’m glad to have taken your advise previously to do well in studies. I am currently reaping what I’ve sow for my study & career. Good news is that i have gotten a job that pay me well compared to my first job 3 years ago; i got close to 50% pay increment! However, my life had been quite a drama due to conflicts at home. So, i end up moving out, renting a room to keep myself in peace. With that, expenses increased and i am having difficulty sustaining it. As i am single...

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HWZ says AK "self-victimise himself".

A friend read something in hardware zone and thought I would like to know. He had a good laugh and I had a good laugh. I am sharing it here so that maybe many more people would have a good laugh. Now, read this with an open mind. There could be some truth in what the person says. Oh, and this video clip is just for dramatic effect. HWZ forumer, w1rbelw1nd: I dont think very positively on local bloggers, frankly. Yes, most of them may be altruistic and do it out of interest and passion, but also because of doing...

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Investment philosophy and property market.

After my blog about nibbling at Tuan Sing Holdings, a reader commented that I seem to be building up a position in property counters and asked if I am waiting for a rebound in property prices. At the same time, a couple of readers shared that DBS is expecting residential property prices in Singapore to recover by up to 10% in the next two years. Here is what I have to say: I know some analysts are positive that residential property prices have bottomed and are going to rise next year or the year after. Is this going to...

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