Author: Singapore Money Matters

A Beginner’s Guide to CFD Trading

Trading in CFDs , or “Contracts for Difference”, is a potentially lucrative yet risky form of investment. CFDs are a derivatives product allowing you to trade on market movements without owning the shares on which the movement is based. Traders make money by speculating on the future movement of a market – whether that is up or down. CFDs are very tax-efficient – you don’t pay Stamp Duty, as you would when buying shares, as no taxable assets change hands. CFDs are leveraged products which allow you to get the full benefit of the market movement while only putting a small...

Read More

Does travel insurance cover terrorism

Singaporeans love to travel, and most people will buy travel insurance. But have you ever thought if your travel insurance cover acts of terrorism or war? It might be hard to accept, but the recent Paris attack is just a reminder that terrorism is just part of our lives. Making sure your travel insurance covers terrorism is essential when you purchase travel insurance. This post is to help you understand the terrorism cover in travel insurance. From my observation, it seems most basic travel insurance policies offered by airline or credit card companies do not provide cover for acts of...

Read More

One simple investment strategy to ride through tough stock market environments

The recent stock market crash is a good test for the faith of many investors. Should you buy stocks now at distressed price or should you “cut loss” and re-enter the market later? What I am thinking now is, what would Warren Buffett, George Soros or Jim Rogers be doing now? What would Wee Ee Chao or Koh Wee Meng be doing now? What would GIC, Temasek Holdings or the professional traders be doing now? Do you know that the wealth accumulated by the richest 1% people in the world will exceed that of the other 99% in 2016. You see, there are millions...

Read More

How to dig below the sales pitch and choose the right unit trust

For most Singaporeans, unit trust is the best investment instrument to start with. But why so many people lost money in unit trust investment? Because most people chose the wrong funds. If you want to make money, you need to know how to choose the right unit trust for yourself. Few Singaporeans today are complete strangers to unit trusts. You most probably have listened sales pitch of unit trusts from banks, stock brokers and financial advisers, but you are not sure whether they have your interest at heart. Then the ETF providers come to whisper next to your ears, “fund...

Read More

Why Warren Buffett is richer than you

If you dropped or found 10 cents on the floor, would you pick up? Many people won’t, but Warren Buffett, the world’s richest person, certainly does. His concept is, with each penny you pick up, thousands of dollars will come to you in the future. I personally notice a lot of people do not bother to pick up money that they dropped by accident. Maybe they feel undignified to pick up such a small amount, or they think it was not meant to be theirs. In my previous post “You could be richer than you think” , I mentioned $68.3 million...

Read More

Singapore Savings Bonds – A Game Changer

For a very long time, Singaporeans were deprived from investing in good financial products. Bond has always been the cornerstone of financial institutions and high net worth individuals’s investment portfolio. However, most bonds in Singapore had a high entry barrier such as $250,000 which makes it exclusive to the wealthy. When retail investors battling in stock markets with bloodshed, bond investors often sit at the beach enjoying their lives and collecting the coupons. (If you are not familiar with bond and want to check out how it works, you can check out the introduction to bond investment in Singapore.) Fortunately, with...

Read More

4 fun Behavioral Finance videos you should watch

What do most investors have in common with football? Would you have swooned for “tulip mania” in the 17th century? Is Loss Aversion Really just about Dodging Water Hazards? Why investors rather put money in the bank earning low yields, while the real threat of inflation is taking bite of their purchasing power? We like to think we invest rationally, but the field of behavioral finance has shown that there are social, emotional, and even cognitive factors that can affect our investing decisions. By becoming aware of these unconscious tendencies, we have a better chance of meeting our long-term...

Read More

St James’s Place International – A new insurer in Singapore

St James’s Place (SJP) International (not our famous ST James Power Station ^_^) has just been granted a life insurance licence in Singapore. This means that the company can offer its non-contractual, International Investor Account product to clients from its base in Singapore. For those who don’t know, SJP International is part of the FTSE-100 listed SJP Wealth Management Group and has been operating as a Dublin based insurer for more than 20 years, offering SJP’s clients access to its International Investment Bond. This new permission in Singapore follows SJP’s purchase of The Henley Group in June last year. It...

Read More

How will the falling oil price impacts the world and your investment in 2015

Oil, oil and it is oil again. The whole world is closely observing the oil prices, are you? Is the lower oil price doing any good or bad to your investment portfolio? How should you position your investments in 2015? When it comes to oil price and the economy’s performance, the topic becomes so complex, I will try to provide you with some insights from my researches in this article. Three Weeks ago, I wrote “the real ‘time bomb’ from sharp falling oil price” is the risk to financial institutions. Yesterday’ Straits Times article “DBS loans ‘unaffected by lower oil...

Read More

The real “time bomb” from sharp falling oil price

Global oil prices sharply declined by more than 50% in the past few months. What will be the real “time bomb” for this “crisis”? Winners To be sure, there are actually a lot of winners from this steep drop in crude prices. The decline in oil prices is potentially favorable for a host of net-energy importers ranging from developed nations such as Japan and certain European Union members to emerging markets. Keep in mind that the 45% decline in oil prices since the end of July acts much like a tax cut for consumers of energy. Emerging market countries such as Singapore, Thailand and India, which are largely dependent upon...

Read More

An Update on MediShield Life

In his 2013 National Day Rally, Prime Minister Lee Hsien Loong announced the new universal health insurance scheme MediShield Life. There are a lot of debates after the announcement, I have since published two articles about this topics On Jan 19, Health Minister Gan Kim Yong tabled the MediShield Life Scheme Bill in Parliament. Here’s a sneak peek of the MediShield Life details. What is MediShield Life? Medishield Life is a compulsory healthcare insurance scheme which covers all Singapore citizens and permanent residents for life. It will replace MediShield, the current basic healthcare scheme. All Singapore citizens and permanent residents will be automatically covered...

Read More

What you must know about new critical illness defintions

What are the common critical illnesses in Singapore? According to research findings from Gen Re’s “2012 Dread Disease Survey”, over 90 per cent of all severe stage claims received by life insurers are for five critical illnesses (CI) namely: Major Cancers Heart Attack of Specified Severity Coronary Artery By-pass Surgery Stroke Kidney Failure Today, Singapore has a “graying” population with 300,000 people aged 65 or above, and that will triple by 2030. The incidence of chronic diseases among both the young and old is also increasing. Healthcare bills here seen rising 11% a year, this will escalate the nation’s overall healthcare...

Read More

Why Russia’s problem is your problem

Can you foresee that your mortgage interest rate rises 6.5% in a day? That may be unimaginable to many Singaporeans. However, the Russian Central Bank has just shown case and raised its benchmark interest rate from 10.5%  17% to try and stop the collapse of the Ruble (Russia’s currency). While Singaporeans are busy cashing in Malaysia Ringgit at this festive season because it has reached record low to SGD, many did not realize that what is happening in Russia is far more relevant to our daily life. I will explain to you why. Rubble Crisis is global crisis On 17 August...

Read More

Investing in China Yes, Investing in China Not

The “investing in China” story was the hottest scheme since the beginning of this century. But for those who have bought so called China equity fund before, do you know that you never really invested in the real China stock market? In the past, foreigners were not allowed to invest in Mainland’s securities markets, the Shanghai stock exchange (the “A” shares). A lot of funds merely invest indirectly in Hong Kong stock market (the “H” shares) and call themselves China fund. For those who have bought so called China ETF, do you know that you merely purchased a “synthetic product”, which invests in...

Read More

Are you spending too much on raising your child in Singapore?

Singapore’s fertility rate is one of the lowest in the world. Though this can be attributed to many reasons, including time and commitment, it is no doubt that “money not enough” is one of the most important factors. In March this year, it was reported by BBC that Singapore has replaced Tokyo as the most expensive city in the world, and Singaporeans definitely rank high on the amount of money spent on their children. So how much does it cost to raise a child in Singapore? In a Straits Times article last year, Joseph Chong, ex-CEO of a financial advisory firm, estimated...

Read More

Like us on Facebook

Follow us on Twitter