When will I have as much passive income as you?

As my blog's readership grows, a question that gets asked more and more often is: "When will I have as much passive income as you?" Of course, one of the things I would say is that we have different circumstances and that financial freedom is not a race.  All of us who reach our goals are winners. Some might take longer than others but they are still winners at the end. Distilled to a word, … [Read more...]

Centurion Corporation Limited and pricing power.

Businesses can either be price setters or price takers. In a fiercely competitive environment where there is perfect competition, businesses are mostly price takers. Customer: "How much is this?" Shop: "$20.00" Customer: "Aiyoh, internet selling $10.00 only." Shop: "Oh... OK, $10.00." If I were the shop owner and if this were to happen on a daily basis, I have something to worry … [Read more...]

Prudent retirement funding strategy for elderly parents.

Reader: Hi AK, apologies for the multiple questions from me. 🙂 I am looking to help my parents with their retirement planning and hope you could shed some light. For convenience of calculation and discussion, assuming the following hypothetical figures, can you share how you would do the planning? Parent A - 500k cash parent b - 300k cash, Zero CPF for both, No existing loans at … [Read more...]

Nano apartments less than 200 sq ft in area for Singapore?

Do you know that a car park lot in Singapore must be at least 124 sq ft in area? That is the rule by LTA. Do you know how big is the smallest flat in Hong Kong? According to an article in The Sunday Times, it is 61.4 sq ft! That is smaller than the smallest hotel room I have ever stayed in! There are more and more homes which are less than 200 sq ft in size being built in Hong Kong and they … [Read more...]

The best insurance in life revisited.

Reader: I like your view on how to see term insurance as paying a sum of money for the protection from the accidents in life. Also how passive income is an alternative to paying for disability insurance.  I like to seek your views, since it take time to build up passive income, would u view buying disability insurance as an temporary expense before we reach our passive income targets? CPF … [Read more...]

Choosing a primary school for your child.

Reader: i need your self talk about my situation. My only child, a girl, will be P3 next year, likely she will have a chance to attend the good primary school like RGPS or NYPS...after GEP selection by the end next year. However she feels dizzy whenever sitting inside a public bus or school bus... from my home BTO to these schools takes 1 hour by bus and i don't wish to own a car due to not … [Read more...]

Free money from the government is good.

Reader: I don't know if this is the correct avenue to ask you a question. I'm hoping that you can give your insights if you're faced with this situation. I bought a HDB flat and took a bank loan plus used a bit of my OA to pay for it. I have about $240k of bank loan left and now I 'owe' my OA $85k. Since the market is kinda 'overvalued' now, so nothing to invest in. What would you do if … [Read more...]

Borrow $100,000 to buy a car in Singapore?

Hi AK,  When I get back to Sg next year, i'm planning on getting a car (depreciating asset boohoo!) Now, on my previous car purchase, I felt i made a mistake of buying too early and had to take a full car loan. It ate up a lot of my monthly pay. So this time round, I wanted to do my sums right before diving in.  I do have enough to pay upfront for a car (eg 100k). But could you talk to … [Read more...]

Can a 34 year old retire with a $300K portfolio?

I am too lazy to visit forums or chat groups. I am also too lazy to visit other blogs. So, when I do leave a comment in other blogs from time to time, it is an "OMG, give me a set of lucky 4D" moment. Listening to a friend and setting up a Facebook page was a giant leap forward for me. Some might not know this but I abandoned that effort after a while donkey years ago, preferring to just stick … [Read more...]

To rent or to buy: Rule of 15 revisited.

Reader: My bf and me are both PR. And the topic of housing is always a big question mark to us. Both of us is not eligible to buy BTO, unless one of us convert to SC and this option will take longer time (apply SC, BTO...) We are not married yet, so not eligible to purchase resale HDB flat. My bf and his brother in law invested in a shoebox apartment in Singapore. So, even if we marry, … [Read more...]

Why do I choose to stay in a condo?

This is for readers who do not follow me in Facebook and for those who do not read comments in Facebook. Reader: By the way , there is nothing wrong to stay at condo also what ... ( AK also stays at condo ) , so long you can afford it , why not ? You work so hard , deserve to upgrade and enjoy also . Save tons of money and not using it also can't bring them with you one day . So , we don't … [Read more...]

Sit with all that cash and do nothing?

Reader: A year ago, I lend $20k to help a friend pay off tuition loan. That was when interest rates were rising and I managed to snap up AIMS AMP Reit and Capitaland retail China on the cheap. Fast forward to today and with prudent savings and by not spending her bonus, my friend has paid me back. However, stock prices seem to have gone up now given the exuberance over positive Q1 news and … [Read more...]

Seeking help with $400,000 inheritance.

Dear AK, Good day to you. I was introduced to your blog as my friend highlighted that you are one of the most eminent bloggers online and I am wondering if you have any interest in offering specialized advice for individuals. I have zero experience in investments except for some ILPs which according to what I have read recently are an absolute mistake. I am in my early 30s and have zero … [Read more...]

More passive income than "richer" friends.

Reader says: "I would like to share a personal experience. "My wife and I have relatively high paying jobs - and we work like dogs for it. But unlike our friends who make about the same amount and stay in condos and semi-d, we are the only couple staying in HDB 5-room. "We find it very comfortable already. Altho I often have to answer younger colleagues (I work in a very big organisation, … [Read more...]

Upgrading from 4 room flat to executive condominium.

Reader: Hi AK, I have been scouring your blog and other cpf articles but need your advice. I currently have about 67k in my cpf OA (I refunded my OA with cash for my hdb installments which I previously paid using OA, thus considered cash payment for my hdb) And 63k in my SA (due to yearly top up). I am turning 30 this year. I started using cash to continue paying for my hdb installments … [Read more...]

Safe investment tip for married couples.

Dear AK, I started following your blog about 6 months ago. I will like to seek your advice on my financial aspiration. I did purchased some stock during my early work year and most of them are below IPO price. My paper lost is around 16k and my investment sum is around 35k. Due to this experience, we are very scare to do any stock purchase. However, we try our very best to save up as much as … [Read more...]

Worried about upgrading your home?

Reader: I remembered you mentioned that our home is consumable. Not a asset. AK: Our home, if fully paid, is an asset. It is just not an income generating asset. ;) Reader: I'm contemplating job change after many years in same company so upgrading also a bit worried. AK: It would be very nice to do something you love. Reader: Just like you now.. be farmer at home and watch … [Read more...]

Make money from Croesus Retail Trust and no worries?

I said before that if an investment is still doing what we want it to do for us, there is no reason to sell unless we have found a another investment that can do a better job, bearing in mind to compare apples with apples. Reader: Hi AK, noticed you mentioned you would prefer not to accept any privatisation of Croesus. Just curious about the reason?  Supposing they pay a 20 percent premium, … [Read more...]

History with Croesus Retail Trust and current thoughts.

When I found out that Croesus Retail Trust could be privatised, I had a feeling of deja vu. It wasn't too long ago that something similar happened to Saizen REIT and, because of that, I lost a significant income generator. Now, it seems that I may lose another significant income generator. As I invest primarily for income, this creates a headache for me, especially when it is a relatively … [Read more...]