Author: Investment Moats

Thoughts on the Singapore Budget 2020: Building Financial Resilience

I spend the majority of yesterday compiling this at my workplace and my boss thought it will benefit the readers over here as well. It is filtered. The unfiltered version is not in this post but in Chan Chun Sing‘s leaked recording and this snippet from Channel News Asia: Basically, the SMEs are really facing seriously tight working capital issues. And the government’s number one priority is to stop the SMEs from cutting employees during this period. Here is my summary of our clients and what we think the right financial posture should take at this point. I think...

Read More

The Side Effect of Coronavirus – No-Pay Leaves and the Need for Life Red Teaming Exercises

I noticed fewer clients coming in during this period. An adviser told me a few clients have canceled their appointments coming in. This Coronavirus feels like a seriously big hit to the businesses depending on local and overseas consumption, as well as certain services. Singapore’s economy is likely to report some really shitty numbers. Singapore is a very open economy. We depend on the export and other countries buying what we created. The way to alleviate this problem is to have adequate human isolation for a period. This killed not just exports but also local commerce. I was commenting...

Read More

The Case for Investing Your CPF OA Monies & Endowus

My friends at Endowus Gregory and Sheng Shi asked me to make a comment about investing with CPF so this is my honest take. I wrote a post five months ago going through a Morningstar research why fees of funds in Singapore could not be as competitive as some other countries. I explained that Endowus is probably the first ROBO to provide an offering to invest your CPF. The majority of the competitors were more focused on cash investment because that is the low hanging fruit. And that is where most of us should have our assets (I think)....

Read More

Future Flat Sizes HDB BTO in Central Places May be Smaller

If we go by the recent HDB Built-to-Order trend, it might be the case that future central BTO will be smaller in sizes. I observed that the latest HDB build to order sales launch was out and it seems rather peculiar that there were no launches in matured estate that is bigger than 4-room. The biggest size flats for Toa Payoh Ridge and Kim Keat Ripples is 4-room. The sizing of the flats is deliberate and HDB should be under no constraint in their sizing. Here are some of the past year launches: My eyes were not playing games...

Read More

Dividend Machines Course Online Now – Taking In the Batch of 2020

At 30 years old, I had 6 years of investing under my belt. But my returns were heading nowhere. One of the main reasons was that I was trying a lot of different things. So I told myself, its time not to mess around anymore and try one method that I feel goes best with my character. Then I doubled down on it. I lean towards investing for dividends. And what a friend said about respecting value makes sense. So I doubled down on value investing with a focus on finding dividend-paying companies. I have been doing that since...

Read More

Focus on What You would Gain Instead of What You Would Lose

It has been some time since I shared some personal finance thoughts but I was triggered by two events so I would like to share something and see if they manage to help you or your loved ones. How do you really convince yourself or get someone to try getting your financial situation in order? This is a problem that plagued many people but more so, it plagues those that are in a relatively good financial situation, but their loved ones are not. Convincing people is hard. Whether you are convincing yourself or someone else, I believe that 9...

Read More

What We Can Learn from 147 Years of UK Home Affordability Data

What would drive residential price growth? If you were to ask me, that would be the wage growth in a country or a particular area. The second thing is the demand and supply dynamics. If you wish to assess residential property is a good long, long term investment, it will be your mastery of this topic. We often say that Singapore is a young country and our housing market going back to 1960, is probably 60 years old. We have been through a period where the supply and demand dynamics have been in one direction and only until recently,...

Read More

Reviewing Manulife US REIT’s 2019 Full Year Result

Yesterday, Manulife US REIT announced its full-year results. This was the first result since their acquisition of Capitol Mall in Sacramento. The results was not a good one. Dividend per unit fell 5.9% from 1.53 cents in Q4 2018 to 1.44 in Q4 2019. Before Jagjit (the previous CFO) left, he told us to focus on the adjusted DPU. Due to the numerous acquisitions, it would be difficult to track what is the dividends based on the enlarged outstanding unit base. So let me focus on it. The Adjusted DPU dropped 4.6% from 1.53 cents to 1.46 cents. Since...

Read More

Singapore Savings Bonds SSB March 2020 Issue Yields 1.71% for 10 Year and 1.43% for 1 Year

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 March 2020’s SSB bonds yield an interest rate of 1.71%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.43%/yr. $10,000 will grow to $11,720 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

Read More

8.88% FD Interest! – This is how your parents came home from a bank with an unexpected investment.

My more financially savvy friends told me that among the stuff that really messed them off the most, it is when their parents go to their local bank branches. My friends have a lot more control over their finances. But they cannot just upload their better understanding of financial products and the financial world into their parent’s (siblings & relatives as well!) brains. When their parents go into a bank to carry out some simple banking needs, they would come home with an endowment plan, structured product or a few unit-trust funds. I have been proposition products in this...

Read More

Topping Up Your CPF Life to Enhanced Retirement Sum (ERS) Might not make Much Difference

In last week’s article, I showed readers 2 different approaches to plan for how much do you need if you wish to retire at 55 years old so that you will have an income stream till 90 years old. We acknowledge that at some point, our CPF Life annuity income will be available for us to spend and thus will have to be factored into our planning. The 2 approaches were: Plan to have an income stream that provides $5,000 a month, that is inflation-adjusted outright for the 35-year durationBreak up into 2 portions. The first portion is to...

Read More

Some Info I Looked into on Elite Commercial REIT

Elite Commercial REIT has all the right metrics you would look for in a worthy Reit to invest in. Great looking yield, long wale, low debt to asset, freehold property and a tenant that looks like someone who you expect to be the last to default on their rent. Sometimes it is either I overthink things or that I am absolutely right to be a little more skeptical. Private equity firm Elite Partners is looking to IPO Elite Commercial Reit. A lot of the context for how to look at this REIT is shaped by the people associated with...

Read More

When a Bond Gives Equity Like Returns…

Oxford University is planning to increase the size of their 100-year bond issuance. The Financial Times reported that the university successfully raised 750 million pounds in 2017. This was a period where rates are low and they were able to issue at an interest rate of 2.54%. This issuance may be priced close to 2.65% and is unsecured. This means that in the case of default, the borrowers will have no recourse over Oxford University’s assets. There are some institutions that are in a unique situation. They can be likened to our Keppel or ST Telemedia. While they may...

Read More

Mapletree North Asia Commercial Trust Q3 FY19/20 Results

Mapletree North Asia Commercial Trust has gone through some tough months. Their main revenue-generating asset, Festive Walk, was caught in the middle of the Hong Kong unrest and was damaged to a certain extent. This uncertainty, have corrected its share price to as low as $1.12 from a high of $1.46. 2 days ago, the REIT announced its 3rd quarter results. There were no surprises that the revenue and income was down. Festive Walk had to close for 48 days in total and the office have to close for 13 days. The mall and the office has since reopened,...

Read More

How much You Need to Retire at 55 years old (factoring in your CPF Life Annuity Income)

If you wish to retire 10 years earlier than the official retirement age of 65, how much money do you need, if you know you will be getting some CPF Life annuity income at age 65? I think many of you would entertain the thought of retiring at age 55, especially if you think you have accumulate wealth well through the years. 55 years old is also the age wherein an equivalent amount of the CPF Full Retirement Sum (FRS), Basic Retirement Sum (BRS), or any amount if you have less than that, is transferred to your CPF Retirement...

Read More

Recent Comments

Latest News from PR Newswire