Author: A Path to Forever Financial Freedom (3Fs)

Credit Rating methodology for Reits – how it can help you choose the right investment

The investment community in our globalized world has grown ever so bigger each day and it is easy to see why some investors can get lost when picking their investments. One tool that can help you decide is the credit ratings assessed by the credit agency. The three top agencies – Moody, S&P and Fitch are the world’s top rating agencies which provides assessment on companies accredited ratings. Different rating agencies give you slightly different framework but from the broad view they generally serve the same purpose – the higher your risk profile, the lower your ratings and vice...

Read More

Dividend Income for August — The reality of dream

National Day is here and it means it’s another month of dividends for investors. This has become one of my favorite section as I continue to build my warchest while at the same time able to reap the fruits from the existing portfolio. Dividends are basically rewards to investors without having active work that you have to do like in the office. The best part is it gets really automatic now and it keeps on piling up till the day you retire or leave the earth, whichever is later.   Dividend investing continues to play a big part in...

Read More

Treat your bad debt as your greatest sworn enemy

We know that debt can be classified as good or bad. While it is possible to live completely debt-free for most of your life, it is not necessarily the best move you will make. Good leverage can be a form of investment that will multiply your income and generate greater returns. Bad debt, however, can do exactly the same – the opposite way in fact and it will harm you over the course of time. There was an article that was posted a couple of days ago about a person named Ken Ilgunas (Article link) of how he managed...

Read More

How much capital should you have at your age?

We often hear financial bloggers preach that different people requires different needs in different situations. The amount of savings a person needs is highly dependent upon how much he earns and spends, and going back further how much a person earns and spends is very much dependent upon his education qualification and judgement of what is enough. Chris Farrell, author of “Your Money Ratios” has some rule of thumb regarding how much capital a person should have at their respective age. The way he did this is through a ratio of the Capital to Income (CIR) which means this...

Read More

Olympic Gold Medal up for grabs at USD35K

Many times we hear of poor financial planning from the rich and the recent news have proved once again it’s still in existence. Here is the story extracted out: In 1993, when he was drafted by the Milwaukee Bucks in the years before rookie-scale contracts, Vin Baker signed a 10-year agreement with the team. That deal included an opt-out after the sixth season, by which time Baker had made nearly $17.3 million. He then signed a seven-year, $86.7 million contract with the Seattle SuperSonics, though he chose to negotiate an opt-out settlement after five years in order to make...

Read More

What is fair or not fair?

First story. An employee signs an employment contract with an employer whose official working hours start from 9am to 6pm (5 days a week). In the contract, there’s a small clause that states that the employee may be required to work overtime occasionally during peak period. The employee comes to work everyday at 9.10am and goes back home at 6.30pm. Fair or not fair? Second story. A young couple who was recently married and are both working full-time discusses the amount they should contribute to the household. Not knowing what methodology to use, they decided to use the percentage of...

Read More

What was your experience dealing with Investor Relations?

I had started my new role at a new company a few weeks ago and I enjoyed some of the detailed learning which I’ve never really encountered in my previous work experience. Sadly, one of our portfolio analyst is resigning and due to the small organizational structure of the company the CEO had asked me to take over his role as an investor relations. The Scope of Investor Relation? So what is exactly the role of an investor relations? Here are some of the main purpose why an investor relations department is set up in a company:   Bridging...

Read More

How much do you really need to open a restaurant/cafe in Singapore?

You’re a fresh grad out of university or you’re one of those who have been dreaming about opening a restaurant or cafe and now you’re raring to go to make your dreams come true. I have once been in this position – trying to live my glamorous dream, but yet not too sure on whether I had enough money to start off. How much do you really need to budget your costs before setting up your restaurant or cafe? This weekend I have the privilege to meet up with one of my former classmate who has been in the...

Read More

IREIT Global – IPO Review

Markets seem to be bullish as there are more IPOs coming in the 2nd half of the year than the first. Today, we look at the latest REIT IPO  – IREIT GLOBAL. To give a little bit of some of the macro background on this IPO in case you have not read the prospectus. They are the first SGX listed office REIT with an investment mandate solely focused on Europe, with an initial 4 properties located in Germany (Bonn, Darmstadt, Munster, Munich). Also, based on the Q1 data, it appears that the office market is in the upward trend...

Read More

Why do Bronze winners ended up happier than Silver Losers?

The world cup has finally ended. GERMANY triumphed over second place Argentina by a score of 1-0 courtesy of Mario Gotze goal in extra time. What I would like to point out here is the psychological consciousness of the 2nd and 3rd place. As we all know, Bronze medal winners would need to lose first then win. On the other hand, Silver medal winners would need to win first then lose. So what is the difference between the two? Why would silver medal winners be more upset than bronze medal winners? A good example would be the Dutch and...

Read More

The Correlation between Fulfillment and Money

On hindsight, the correlation between fulfillment and money should be positively correlated, that is the more money one earns the more fulfillment one gets. But is that really the case? Based on a research done by Stevenson and Wolfers on the Life satisfaction metrics against Real GDP for each individual nation, we can deduce that our intuition is correct, but not absolutely. It appears that the correlation came up to about 0.70 instead of 1.0 that we imagined it to be. Why is that so? The Fulfillment Curve There has been many debates for a number of decades on...

Read More

"Jul 14" – SG Transactions & Portfolio Update" + Child Portfolio

No. Counters No. of Lots Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. FraserCenter Point Trust 30 1.865 55,950.00 22.0% 2. Vicom 6 6.77 40,620.00 15.0% 3. SembCorp Ind 5 5.40 27,000.00 10.0% 4. SPH 5 4.17 20,850.00 8.0% 5. Ascott Reit 15 1.255 18,825.00 7.0% 6. Mapletree Greater China Commercial Trust 20 0.89 17,800.00 7.0% 7. China Merchant Pacific 19 0.92 17,480.00 6.0% 8. FraserCommercial Trust 11 1.38 15,180.00 5.0% 9. Neratel 20 0.765 15,300.00 5.0% 10. First Reit 10 1.20 12,000.00 4.0% 11. ST Engineering 4 3.77 15,080.00 5.0% 12. Second Chance...

Read More

Startburst IPO – Results

Third time unlucky in IPO application. To be fair, the chances were pretty slim to begin with, from around 3% to 16% based on the number of lots you applied. From the allocation balloting, we can also see that the management is appreciating long term shareholders more than those who were bidding just to sell it off in the near term. The stock made its debut performance today and it closes at $0.42 on its first day of trading. That’s a 35% increase in the stock price and a strong debut performance from the Starburst. At $0.42, I think the...

Read More

What should I do with the savings for my child?

There’s been a couple of bloggers out there who have posted on what they would do to help their parents invest their money. I’ve been thinking over the past few weeks on what I should do with the angpao savings my son received from families and friends during his birth and the 1st month baby shower. The savings amounted to around S$6,200 for now and the objective is to pay for his college and university school fees when he matures later. There are a couple of choice which has been lingering on my mind. The one thing certain is he has a longer...

Read More

Starburst – IPO Review

Everyone seem to be talking about the IPO for Fraser Hospitality Trust (FHT) that Starburst gets hardly noticed by retail investors. There’s a couple of fellow bloggers who have also blogged about this IPO so I will try to give my views here. They will be offering 50 million shares (48 million shares for placement and 2 million shares for retail investors) at a price of $0.31. The IPO will close next week on the 8th July at 12pm. Introduction Starburst is a Singapore based engineering group specialising in the design and engineering of firearms-training facilities. The company has...

Read More

Like us on Facebook

Follow us on Twitter