Author: Investment Stab

Why I am NOT Paying Back my Student Loan ASAP

Most people after they graduate from University and start working, their goal would be to pay down their student debt, and save up for housing, car, marriage, etc.That’s not a wrong idea to have, paying your debts down and all, especially if you took a bank loan that charges about 5% per year in interest.I took the CPF loan out from my mother’s account, and the interest is 2.5%, and honestly, I am not that much in favour of paying back them soon. Here’s why: It’s a low-interest loanOkay, it’s not exactly that low but it’s not that bad....

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Should I Transfer my OA Money to SA?

Today’s post: Should I transfer my OA money to SA? This post was proposed by one of our readers, who asked the question: is it wise to transfer my money in OA into SA? We would like to thank all our readers who posed us questions and sent to us tips. We would love to see more of that coming in, so do feel free to keep sending us these messages! You can contact us via email (investmentstab@gmail.com), comment on our blog, or drop us a message via Facebook or Instagram. There is a scheme in the CPF that...

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How the Rich Play the Money Game

Interest Arbitrage:For those of you who have no idea what this phrase means, let me explain it to you.Interest: interest rates.Arbitrage: is the practice of taking advantage of a price difference between two or more markets.Simply put, the rich get richer by taking in a higher interest rate return than the interest they pay on the loan they take. Simplest Example:I borrow $1 million from the bank at 2% interest.I lend it out to someone at 6% interest.By doing nothing, I earn 4% interest.Of course, the real-life example is not that simple. But as an illustration to show you...

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CPF LIFE Payout Sum’s Difference

In today’s post, we will be discussing why is the Full Retirement Sum monthly payout not double the Basic Retirement Sum’s payout. As you can see above, it is an image of the monthly payout you will get based on the different Retirement Sum savings you at have age 55. Retirement Account Savings at 55:The FRS is 2x of BRS.However, the monthly payout from FRS is not 2x of BRS (2x of $730 = $1460).The same is for ERS, where the payout is not 3x of BRS (3x of $730 = $2190) This is because the Effective Interest Rates...

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Private or Public Housing Loan?

Buying a HDB flat for the first time can be an intimidating experience. It is probably the first big-ticket purchase in your life that will take the next couple of decades to pay off, so you would definitely want to rake in as much savings as you can. Perhaps you have not really thought about what kind of loan to take up. If you do not already know, you have a choice between taking up a HDB loan or a bank loan, provided you are eligible for them. You might want to hold on to your cash and pay off your home loans...

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CPF LIFE or Private Annuity Plan?

Disadvantages of using Private Annuity Plan instead of CPF LIFE.Although this post title is “Disadvantage”, but we included some “Advantage” of Private Annuity against CPF LIFE too below. From what we have found, Private Annuity Plans available in the market tend to supplement CPF LIFE instead of replacing the CPF LIFE. Instead, Private Annuity Plans can be used together with CPF LIFE to1) Boost your monthly retirement income.2) Help you withdraw out a portion or the whole of your Retirement Sum. Advantage1) Potentially higher returns (Annuity plans invest your money into a unit trust which can bring high potential...

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Retirement Might Not Be For Everyone

Reaching your retirement tough, especially with inflation, low-interest rates and longevity.The amount that we are saving might not be sufficient for us to retire at the age we feel we should be retiring. Assuming you make the income as per below.Assuming you save 20% of your monthly income, and there is no inflation. Age Monthly Income Annual Savings 20 – 24 $2,000 $4,800 25 – 39 $2,500 $6,000 30 – 34 $3,000 $7,200 35 – 39 $3,500 $8,400 40 – 44 $4,000 $9,600 45 – 49 $4,500 $10,800 50 – 54 $5,000 $12,000 55 – 59 $5,500 $13,200 60...

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Here’s How You Can Opt Out of CPF Life

Everyone has a goal of retiring comfortably after working more than half their lives out for money.We all hope to get a lump sum retirement fund when we reach our retirement age.But, in Singapore, our money is instead secured away and we are given a monthly income from that pool of money.Although we still think the CPF is a pretty solid retirement scheme, not everyone agrees to this.So if you think you are better off with the full sum of CPF money in your pocket, we will be sharing how you can get that pool of money out of...

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Climate Change Is Real

Polarising views regarding the recent speech that Greta Thunberg gave at the United Nation’s meeting have surfaced and are spreading wildly on social media.One side praised her for determination and bravery, and admire her for pushing world leaders to act on climate change.Another side said her speech was too cringy, that she was hypocritical, amongst much other criticism.I figure I could give my 2-cent view on this whole thing (environment and her speech) since this is what this blog is about (although this is not a finance post, this is a platform for betterment).PS: this is a long post,...

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Who Pays For Your Credit Rewards?

Cashback, air miles, merchant discounts, other perks, these are the incentives that banks and credit card companies (Financial Institutions – FIs) use to attract you to apply and spend on their cards.Every transaction you spend using these cards, merchants are charged a fee by the FIs for providing the card facility. The fees (known as interchange fee) are what the FIs earn and use to pay for your rewards. For example, if you swipe your credit card when you buy a new laptop for $1,500 from Courts, FIs would charge Courts 2% of that money (or $30). That $30 would...

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3 Tips to Starbucks Gold Membership

This is the young adult’s symbol of status, and how much we are willing to splurge for coffee.This Starbucks Gold Card is only available to those who spent $300 per year via their Starbucks card.That’s about $25 per month.But fret not, here is 1 trick that I have been using for the past several years to maintain my Gold status without burning a hole in my pocket, and here’s how you can too! Most of us are trying to reach Gold status via our own effort. I applaud you for that though I think you have started to realise...

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Why Budgets Don’t Work—and What Does

As someone who has spent a huge amount of brain cells mulling over money, a well-known pillar of financial wellness is that you need to budget. Here’s the thing: while budgeting is touted by many in the personal finance blogs as mission critical to getting your finances straight, they don’t always work. Not for long, anyway. For every budget I’ve tried — the 50/30/20 budget, zero-sum budget, spreadsheet, and envelope system — I would start out great. I would meticulously track every purchase and expense, allocate my income into neat categories, and congratulate myself for creating such a neat,...

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5 Numbers More Important Than Your Income

As my friend Mel says, “Numbers are sexy.” We love talking about numbers, and tend to fixate on them — particularly when it comes to how much we earn. “I’m a six-figure freelance designer,” or, “If I take this job, I’ll earn $10,000 more.”  We oftentimes measure our worth based on how much money we rake in. It can be easy to feel like you’re behind, or a grade-A underachiever when your cousin or bestie or partner makes more than you. Sure, your income is important, but there are other numbers that deserve a closer look than how much...

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10 Ways to Save on Insurance

Having insurance is great when the universe decides it’s time to give you a major (or even minor) problem. But when you can get a policy for practically anything, it’s easy to spend more on protecting your life than living it. Don’t worry, though. We can help you keep these expenses under control while still getting the coverage that you need. Here are ten ways to be protected for less: 1. Assess Your Needs Rather than buying coverage simply because you think you should, it’s important to consider your specific situation. Your life today and your future plans should dictate...

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How to Save Money Each Month While Paying Off Debt

You have tons of debt that you want gone. But you also have other important financial goals, like saving money, that need your attention. These competing priorities can make you feel like you’re trapped in a chicken or the egg cycle. If you pay down your credit card debt, you’ll have more wiggle room in your budget and can save that extra cash. But, if you save more money, you won’t have to whip out your credit card next time an unplanned expense pops up. So do you pay off debt or save? The short answer is: it depends Here’s...

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