Author: Investment Stab

Repay the Accrued Interest from my CPF Home Loan?

Today’s post is an answer to the question: Why do I have to return the into my CPF the accrued interest I would have gotten from my CPF home loan?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 topics or other things that you would like more details/clarity on. 1)...

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How much can I invest in ETF using my CPF Monies

Today’s post will be on: how much can I investing in ETFs using CPF monies. 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. 1) What is ETF? An ETF is an Exchange Traded Fund, a fund traded on financial markets (SGX, NYSE etc) like a stock. For more information on what ETF is, please read...

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Reduce your Insurance Cost

Today’s post is to give you a tip on how you can save up on your monthly/annual insurance premiums. If you have made contributions to your CPF, you are most likely enrolled into the CPF’s Dependents’ Protection Scheme (DPS). DPS is a life insurance scheme that provides your family with a lump sum of $46,000 when you: 1) become mentally or physically incapacitated from ever continuing in any form of employement 2) passed away Its is a term insurance and is meant to insure you until you reach the age of 60. In simple words, it is a term...

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How much is Dependents’ Protection Scheme (DPS) Premium?

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) become mentally or physically incapacitated from ever continuing in any form of employement 2) passed away Its is a 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...

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What is the Historical CPF Minimum Sum?

This post will answer 2 questions: 1) what is the historical CPF Minimum Sum? 2) what is its growth rate like? Below is a table of the historical minimum sum since 2003. The actual minimum sum you need to have is in column ‘MS adjusted for inflation’. Date MS in 2003 dollars % change in MS in 2003 dollars (A) MS adjusted for inflation % change in MS adjusted for inflation (B) B-A Govt stated inflation Jul-03 $80,000 – $80,000 – – – Jul-04 $84,000 5.00% $84,500 6.63% 0.63% 0.40% Jul-05 $88,000 4.76% $90,000 6.51% 1.75% 1.72% Jul-06 $92,000...

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CPF Interest Versus Fixed Deposits

This post will contain a tip on how to increase your CPF returns, namely in the form of interest. One way to earn more interest from CPF is to transfer your extra money, into your CPF Special Account. Your Ordinary Account currently earns 2.5%, Special Account and Medisave Account earns 4% interest while your normal bank Fixed Deposit earns less than 2% annually. Real Life Example: My mum is 46 this year. She wanted to buy a 10 year Fixed Deposit which earns less than 3% per year. I suggested that she put her money into her CPF to...

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Key take-aways from The Edge ETF Forum 2015

My apologies for the long 1-month hiatus from this blog as I was handling some personal issues while juggling NS at the same time. Just an update, I was managing my family’s insurance coverage and finding out more on the Direct Purchase Insurance (DPI) Initiative launched by MAS recently. Hence, I was busy shuffling between investment advisors, insurance agents and insurance forums to check out different information. I would be crafting out a detailed guide on the new initiative and suggestions on how this could potentially reduce your premiums while maintaining your coverage. However, it will only be released...

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To the man who placed us on the map

Today, at 3.18 am, Mr Lee Kuan Yew was passed away peacefully at Singapore General Hospital. A man that many people regarded deeply as a visionary and revolutionist, he is also known as one of Singapore’s founding fathers. Not only viewed nationally, but also internationally. To put it simply, he was the one who placed Singapore, a little red dot, on the map. A man of great determination and mettle, he led the pioneer generation of Singaporeans in laying the foundations of the current vibrant and prosperous country. He faced many obstacles of a developing nation: Communism, lackluster economy...

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ETF Talk by SGX

Dear Readers, There will be a Exchange Traded Fund (ETF) talk on 28 March 2015 (Saturday). This talk is held by Singapore Exchange (SGX) and talk will include the basics of ETFs. The event is from 9am to 11.30am at DBS Auditorium, 12 Marina Boulevard Level 3. Link to the full event description is below: http://sgxacademy.com/index.php?option=com_sgx&task=eDetail&id=1303&Itemid=8 As the event is free, we recommend and hope that our readers will be able to attend the talk and learn more about ETF...

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Key Points of Warren Buffett 2014 Letter to Shareholders

We understand that a lot of our readers do not have the time to read through the whole annual letter by Warren Buffett, the best investor of all time.As such, we have summarized the key points of his annual letter below for the benefit of our readers! :DWe have only summarised points that we think are important for the average investors.As majority of the annual letter relates to Berkshire Hathaway specifically, we were able to eliminate a huge part of the letter to the below 7points. Do read and learn from the Sage of Omaha! 1) Berkshire Hathaway will...

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How ETFs are changing the world of activists (Inspired by an article in Economist)

This post is inspired by an article that was in the Economist, edition dated 7 – 13 February. You may read the following article here: http://www.economist.com/news/briefing/21642175-sometimes-ill-mannered-speculative-and-wrong-activists-are-rampant-they-will-change-american While this is just a sub-topic of the entire article, I believe this would likely be the future of our market if more investors turn towards passive investing via ETFs. ETF investing may prove to be most rewarding to an investor where it requires the least effort but able to  replicate the market returns, which averages beat the average inflation rate. However, when you are investing into ETFs, the index fund uses your money...

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A random theory of evaluating companies

This is a random thought and theory on how to evaluate and price stocks. It might have majors flaws and I have not done any back testing to certify the credibility and performance. Hence, the title of “random” and I wish to stimulate discussion amongst readers. As I was sitting through a lecture, I suddenly had a thought of valuing companies by taking either their accounting averages in a business cycle or during their normalized performance year. Assuming that the company production capabilities and maintains competitiveness, the company should always “bounce back” to normalized rate of operations once the...

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ETF Strategies

We talked about the benefits of investing in ETFs in the previous article.Link to previous article: Today, this article will be talking about the strategies that can be employed when using ETFs!Personally, I am not a technical investor but a fundamental one.Thus the strategies suggested will not require the use of technical charts etc. For me, there is a passive approach and a slightly more active approach.I think both strategies are suitable for investors who do not wish to take a very active role in their investment portfolio (changing only once every half yearly if required) Strategy 1: Passive...

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ETFs are the New Kings

In recent years, there has been a lot of people saying that ‘Cash is King’.Especially now where most markets have hit new highs and interests are at all time low.However, if you are looking to invest for your retirement or for the long-term, staying invested is key, and there is no better instrument than ETFs! ETFs are Exchanged Traded Funds.They are basically funds that are traded on an exchange.You can buy these ETFs just like buying stocks. Benefits of ETFs:1) Diversification –  1 fund investments in many securities, spreading out the risks associated with individual stocks. Eg; a Financial...

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My Investment Loss from Amazon

As mentioned in my previous post: My 30% gain from Netflix Today’s post will be my result from my Amazon trade. I took a Contract for Difference (CFD) position to short Amazon. This was because it is the most economical way to short Amazon. Outright shorting of Amazon stock does not make me feel comfortable – I rarely short stocks, especially in huge positions. The put options for Amazon...

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