Author: Investment Moats

How Much should You Save Each Month in Your 20s?

This is one question that I get a lot from people I interact with for the first time. This is especially good if it comes from a person just about to start work, or have started work for one or two years. However, when they ask this question, sometimes that is not the question that they are trying to find out. The question they want to find out: I want to spend but I want to do the sensible thing, just tell me how much percentage of my take home pay I should save, so that I look like I...

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Singapore Savings Bonds SSB May 2017 Issue gives you 2.32% interest per year over 10 years

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The Apr 2017’s SSB bonds yield an interest rate of 2.32%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) $10,000 will grow to $12,373 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. You can find out more information about the SSB here. Note that every month, there will be a new issue you...

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You don’t need an Innovative Term Insurance on your Credit Card Debt. You need to clear your Credit Card Debt

We should be wary about some of the products sold by banks. This week, I got a call from UOB Customer Service. Being a customer of their bank, this was not surprising. I was expecting them to extend some personal loan or investment plan. This time it is a bit different. The lady explain this new feature for my UOB One credit card. How it works is that if I did not pay off my credit card bill on time on the due date, CreditSure will protect me in case something happens to me, this insurance will provide an...

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How Interest Rate Changes Affect REITs

Real estate investment trusts (REIT) is a class of stock investment that many believe are very much affected by global interest rate changes. For the past 35 years, the world have been in an environment where interest rate is getting lower and lower. There are periods where interest rate do rose, however the trend is down. For the past 5 years, there have been on and off voices that warns us that interest rate is about to rise. Bonds, which are interest rate sensitive, and pseudo-bond like instruments such as MLPs, REITs, business trusts, highly leveraged stocks, utilities are...

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The Expected Return Model – How You can Refine Investment Decisions, Prospect Stocks Clearly, and Sleep Better at Night

Back when I was still figuring out all these investment stuff, I always have some questions that I couldn’t find in books or the people I listened to. Some of the questions that often bugs me was: Should I buy and hold investments for a long time? When some event happen, that affects my investments, how should my plan deviate? Should I still hold on? Should I sell or buy more? How should I size my positions in an investment portfolio, such that I do not get a large part of my capital impaired, yet not be too diversified...

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CPF Talk Review – No General Solutions, Rich Assets vs Good Assets, Opening a CPF SA for your baby, Paying off Home Loans Earlier and Niche Rule of Thumbs

CPF is many things to Singaporeans, and we should be concern about how we can make sense of the CPF, and manage the CPF more efficiently. We conducted our BIGS LIVE on 16 Mar 2017, centering on making sense of your CPF and we have a very healthy turned out. My friends Chris from Tree of Prosperity, Budget Babe and Uncle Createwealth888 provide us with a glimpse of how they live with CPF and we all learn many nuances of the decision making they made that took them to where they are, or where they are heading towards. This turned...

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TDSR, Seller’s Stamp Duty, HDB Resale Grant Changes Aimed at Helping Singaporeans Cushion an Increasing Challenging Singapore Outlook

There are a slew of changes on buying and selling properties announced in this 3 short months of 2017. The way we should look at these policies is that the government have a few levers that they can pull and push to stimulate on the demand side or the supply side. There are various niche market segments as well. Here are some of my thoughts. Change in CPF Housing Grant for First Time Buyers In Singapore Budget 2017, Mr Heng announced that for first time buyers the housing grants granted will be bumped up by $10,000. This looks to...

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Why Fresh Water is Such an Important Commodity – Something to ponder about with the Singapore Budget annoucement

One of the changes announced in the 2017 Singapore budget was that we would be paying a higher tariff if we do not conserve water. This is especially so for those businesses or household who spends more than 4 cubic meters of water. The changes can be summarized by the table above. In the future we won’t have a sanitary appliance fee. The sanitary appliance fee is really stupid if you ask me. Just because you have more installation, you will use more water. This is certainly not always the case for households, and I wonder if this is...

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How Much do you value having Options in Life?

A few days ago, I was alerted to a comment on my Facebook about a blog post. The author of the post came to a conclusion that it is better to use cash to pay down our mortgage, instead of using our government forced savings, the CPF OA account. I tried to understand why this person who shared this post was not very happy. Turns out, according to him, there is not just one scenario you need to think about. There is some in-sensibilities in that, some savings that could achieve, perhaps makes less of an impact in real...

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Singapore Savings Bonds SSB April 2017 Issue gives you 2.27% interest per year over 10 years

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The Apr 2017’s SSB bonds yield an interest rate of 2.27%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) $10,000 will grow to $12,324 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. You can find out more information about the SSB here. Note that every month, there will be a new issue you...

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Managing and Growing Money the Feminine Way – the Future is Female

She looked at the two of us, not knowing what she should do. When you have her portfolio of problems, it is not an easy situation to get out of.  She was estranged from her mother, who thinks that since she is the only one who went all the way to university, she should contribute the most to the family allowance. It would be great if she could share these family difficulties with her boyfriend. As it turns out, her boyfriend have his own set of issues. He couldn’t say no to the finer things in life. Much of...

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My 23 Insurance Philosophy (revised after reflecting on the past 10 years )

Have you wonder if you planned something out, whether you are doing things the right way? 12 years ago, I had the idea how I could plan my insurance protection by doing it myself. I executed it. There were not much resources then in Singapore and the traditional way was to listen and buy what your insurance adviser recommended. These days, readers like yourself are more aware on the different forms of insurance. There are insurance resources out there. This makes DIY Planning easier. Over the years,  I met with more planners, seen more cases studies, did more numbers and...

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UMS Maintains a Full Year 6 cents Dividend Payout and an IPT Acquisition of Klaf Engineering

UMS Holdings announced their fully year result yesterday. Its been sometime since I bought this stock, sold this stock, then bought back again. So here is my brief look at the business Share Price: $0.67 Outstanding Number of Shares: 429 mil Dividend per share: $0.06 (8.9% Dividend Yield) Cash Flow required to pay dividend per share: $25 mil Cash Flow Analysis UMS Income Statement The net profit for the year was $22 mil versus $34 mil in the previous year, a 34% drop. The absolute profit swing was -12 mil. A look at individual line item revealed that the...

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How Malaysia’s East Coast Rail and China’s Future Transportation Strategy impacts Singapore

I am a fan of Benjamin Koh at Lighthouse Advisors. Lighthouse Advisors is a value shop for the accredited investors based in Singapore. What is great is that Benjamin’s letters to clients (which was embargoed for 1 year) and the public is a tome of knowledge for people like myself learning investing. Through his commentary. most often we learn about accounting frauds, or ways to detect irregularities that could show up in the financial statements, or when we think qualitatively. He will cite examples of listed companies in Hong Kong, Singapore or around the region which these irregularities have...

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About Motorcycles and the Higher Taxes in the 2017 Budget

I am not a biker. And I am not going to pretend that I am one. However, if you would like to read a perspective from one that has a vested interest, and is articulated, yet have a quantitative slant to things, you ought to read Ian Tan’s piece on this issue. I always enjoyed his writings. It has a lot of sensibilities about life, as well as the society we lived in. (add his blog to Feedly if you like!) Some of his good points: In the grand scheme of things, based on the data he collated, this...

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