Author: Investment Stab

Why I Stopped Value Investing

There are many definitions as to what value investing is, it is the kind of question that you will get different answers depending on who you ask. Generally, there are 2 kinds of value investing. Asset-based: invest in companies selling below their net asset priceIncome-based: invest in companies selling below their earnings potentialThe kind that I stopped doing, is asset-based value investing. Case Study with Properties: You deal with buying and selling of properties. There was a house that you were previously considering buying but did not do so because it was selling at $500k, which you think is...

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CPF Accumulated Accrued Interest

Today’s topic will be on the interest you pay to CPF on your housing loan.This is a follow-up article to our previous article. When you pay your monthly mortgage via CPF Ordinary Account (OA), you are doing several things:Here’s what happens when you pay your mortgage via your CPF Ordinary Account (OA): You borrow money from a bank or HDB to pay for your home.Every month, you repay your loan with money from your CPF OA.The amount that you use to repay your loan will accumulate accrued interest.Upon selling your home in the future, you are required to pay...

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Your HDB is like a Call Stock Option

What is a Stock Option:Before we begin, you need to understand what is a stock option first.So here’s a link to help you understand what is a stock option.Continue reading after you understand what’s a stock option 😉. TDLR (Too Long Didn’t Read) of a Stock OptionA stock option is a ‘contract’ that lets you buy a specific stock at a specific price by a specific date.Eg; I pay $1 to buy a stock option that allows me to buy 1 Microsoft share at $50 before August 2020. Scenario 1: I exercise my stock optionI can exercise the stock...

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Best cashback credit cards to use with SimplyGo for paying Bus/MRT fares

Source: TransitLinkThis article is a guest contribution from our friends over at WhatCardUsing Credit Cards To Pay for MRT/BusLTA launched SimplyGo 6 in May this year, enabling commuters to use credit cards to pay for their MRT/bus fares as an alternative to the trusty EZ-Link cards which have been a part of people’s wallets for more than a decade.We had written about this new scheme in an earlier article 9, and it sparked some great discussions about the pros (you get credit card rewards, no longer have to carry an EZ-Link card around) and cons (you may drop your credit card, there is a short delay/lag when...

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CPF LIFE in Year 2020

Source: CPF What is CPF LIFE in the year 2020? CPF LIFE is a scheme that is meant to provide you with a fixed monthly income from when you start your retirement at age 65 till when you are dead. When you reach 55 years old, a Retirement Account is created and the Retirement Sum is transferred from your Ordinary and Special Account to this account. The money will be used to fund your retirement when you reach the retirement age (currently 65). It is like a one-time annuity insurance payment instead of a monthly annuity insurance payment like...

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The "Apple of X" Investments

Source: PixabayThrowback to the early days of the 2010s where most startups are founded on the concept “We are the Uber of X”, “We are the Tinder of X”, etc. Uber of X: a platform connecting service providers (cars, cabs, space) with customers.Tinder of X: a platform for customers to select service providers by swiping. AirBnB: Uber of HospitalityWeWork: Uber of OfficeBarkBuddy: Tinder for DogBlonk: Tinder for Jobs These startups sucked up a large amount of capital from investors over the past decade – although not a lot of them became as successful as Uber or Tinder (the OGs).It...

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What is CPF Enhanced Retirement Sum (ERS)?

Source: CPF Today’s post is about Enhanced Retirement Sum (ERS)It is currently set at 1.5x the Full Retirement Sum (FRS)Why would someone wish to put more money into their Retirement Account than necessary?That will be what this post will answer. For more information on the different types of Retirement Sums, click HEREFor more information on the amount on the different types of Retirement Sums, click HERE RationaleFinance theory states that as you grow older, you need to take less risk.Hence as you grow older, your retirement portfolio should be fewer stocks & more bonds.In recent years, Bonds’ interest return...

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Should I Get Singapore Companies To Do More Share Buyback?

What is Share Buyback?It is the company buying back shares of itself to reduce the number of shares outstanding, and in return increase the value each share is worth.For a more in-depth explanation about it, refer to the Investopedia page HERE. Why Companies (particularly US companies) Love Share Buyback?The main reason: TaxIn the US and other countries, shareholders have to pay a dividend tax for the dividends they receive.In the US, the nominal tax rate is 30%.This causes shareholders to experience double taxation – once on the company’s profits, then again on the dividends paid out of the profits.To...

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CPF Home Protection Scheme is a Lousy Scheme You Probably Own

What is Mortgage Insurance?It is an insurance plan the homeowner buys when they buy a home with a loan.In the event that the owner passes away, or suffers from a terminal illness or permanent disability, resulting in his/her inability to pay the mortgage, the insurance will pay the remaining balance of the mortgage. What is the CPF Equivalent?It is called the CPF Home Protection Scheme.You must buy this insurance if you are using your CPF to pay for your HDB mortgage.It is automatically deducted from your CPF OA every year when it is up for renewal.For more information about...

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Should I Have A CPF Term-Life Insurance?

Today we will be answering this question: How much is my Dependents’ Protection Scheme (DPS) premiums? DPS is a term-life insurance scheme that provides your family with a lump sum of $46,000 when you:1) suffer from a terminal illness or total permanent disability2) passed away Its is term insurance and is meant to insure you until you reach the age of 60.In simple words, it is a term life insurance that insures you up to $46,000 and is paid by your CPF money. The insurance premiums are paid annually and the rates are as per below.If you would like...

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How I Saved $1000 of my $2500 Salary

Here’s a story (or break down) of how I spend my money every month. Salary: $2,500 per monthExpense: $1,500 per month$300 to my parents$700 for food (breakfast, lunch, and dinner), entertainment, transport, phone bills$300 towards student loan repayment$200 for surprise expenses and insuranceI managed to save $1000 saved every month.Sure it helps that I’m single, am a guy (statistically speaking it is cheaper to be a guy), no family to feed (no kids no wife), no housing loan, no car loan, etc.The only expensive thing is eating out every day, but that’s not too bad in Singapore, compared to...

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CPF Accrued Interest: Why Do I Need To Pay Them Back?

  Today’s post is an answer to the question: Why do I have to return into my CPF account the accrued interest I accumulated? This question is posted by one of our readers. We would like to thank him/her for reading and interacting with us by posting a question for us to answer. If you have any more questions regarding this topic, feel free to comment, ask us, or email us. We would love to hear from you on how you think about this topic or other things that you would like more details/clarity on. 1) What is Accrued...

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Moving CPF RSS to 90 is a Good Social Experiment

If you have not heard, CPF members who are on the older Retirement Sum Scheme (RSS) will now have payouts lasting up to age 90, down from the previous age of 95.Here’s a link to the article. Illustration:If you are retiring at age 65, is not on the CPF LIFE Scheme (aka you are on the RSS), and has $50,000 in your CPF Retirement Account (RA).Previously, when the payout would last until you are 95 years old, your monthly payout would be about $235 ~ $295.Now, after the changes, your monthly payout would increase to about $260 ~ $315,...

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Moving RSS to 90 is a Good Social Experiment

If you have not heard, CPF members who are on the older Retirement Sum Scheme (RSS) will now have payouts lasting up to age 90, down from the previous age of 95.Here’s a link to the article. Illustration:If you are retiring at age 65, is not on the CPF LIFE Scheme (aka you are on the RSS), and has $50,000 in your CPF Retirement Account (RA).Previously, when the payout would last until you are 95 years old, your monthly payout would be about $235 ~ $295.Now, after the changes, your monthly payout would increase to about $260 ~ $315,...

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The Purpose of Big Tech

Source: LogosThere are many Big Tech companies, and they are either added or dropped from the list very fast.From the initial FANG (Facebook, Amazon, Netflix, Google), to the FAANG (the 4 + Apple), or GAFAM (Google, Amazon, Facebook, Apple, Microsoft).But for our case, we are just going to talk about the Big Four: Amazon, Apple, Facebook, and Google. I was watching a video from Scott Galloway – a business professor from New York University, talking about the problem with Big Tech and he gave a point of view which I thought was pretty interest.If you are interested in the...

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