Author: Investment Stab

Difference Using Cash or CPF to Pay Off Housing Mortgage

This post is dedicated to another reader of ours who post us the following question: Is there any difference if I use cash to pay off my mortgage and not use the cpf vs I use my cpf and then add in the equivalent in cash into my cpf account. MORE LINKS CPF Voluntary Contribution Rates What to Own during Rate Hikes? Fine Print of CPF Money Withdrawal 5 Financial Things to do in your 20s Singapore Finance Minister on Personal Finance Part 2 Repaying CPF Accrued Interest – Why? Reducing CPF Housing Accrued Interest Scenario 1: Use Cash...

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What we know about risk is all wrong

The chance that an investment’s actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk. Read more: Risk Definition | Investopedia http://www.investopedia.com/terms/r/risk.asp#ixzz3qE2I9SPs Follow us: Investopedia on Facebook As you can see from the above, Investopedia defines clearly what risk is. Schools preach on what risk is, how it is calculated and how it is quantified. But...

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Reducing/Preventing CPF Housing Loans’ Accruing Interest

One of our readers asked us this question on our blog: Understand that the accrued interest have to paid back when we the property that is used to finance is sold. So if the property is not sold, the amount of OA used will still be incurring accrued interest, in this case can we settle the amount to our CPF OA account using cash to stop it from accruing interest? We went to do some research and asking and we got the answers for you! The answer is below: Yes! You can actually voluntarily choose to use your own...

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Jack Bogle 4 Investment Rules

http://www.cnbc.com/2015/10/14/jack-bogle-follow-these-4-investing-rules-ignore-the-rest.html Jack Bogle, founder of the whole’s largest mutual fund, Vanguard Group, is a long-term advocate of simple long-term Index investing. He has a basic portfolio consisting of ONLY US Stocks and US Bonds. As you grow older, more percentage should shift toward Bonds instead of Stocks. At 86 years old, his current asset allocation is 50% Stocks 50% Bonds. This is very different from what most financial books advice regarding asset allocation: taking 100 minus away your age, that should be your stock allocation, and the rest are bonds. This would result in Bogle having only 14% in...

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What to Own During Rate Hikes

CNBC recently have an article regarding what stocks should investors own if the Fed decides to raise interest rates. We figured it would be good to reproduce the piece here for our readers’ reference. Below is the link to the original article http://www.cnbc.com/2015/09/15/when-the-fed-raises-rates-heres-what-happens.html MORE LINKS GE Effect on STI Raising of Re-Employment Age to 67 Singapore Finance Minister on Personal Finance Part 1 Singapore Finance Minister on Personal Finance Part 2 Getting out of CPF Retirement Sum Investment Play when Interest Rates go Up WINNERS Majority business dealings in US will benefit Strong Balance Sheet companies tend to outperform...

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Fine Print of CPF Money Withdrawal

Everyone knows that when you reach the age of 55, you need to set aside a sum of money in your CPF. You can start drawing That sum is known as Full Retirement Sum (FRS, previously known as Minimum Sum) MORE LINKS What is Full Retirement Sum(FRS)? What is Basic Retirement Sum (BRS)? Singapore Finance Minister on Personal Finance Singapore Growing ETF Choices Raising of Re-Employment Age to 67 How to Escape Minimum Sum? What you do not know is, there are fine prints to this. Withdrawal above Basic Retirement Sum (BRS) is only savings – aka money you...

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To a whole new world!

  As the blog marches on towards more and more viewers, we are also looking for ways to engage you better, more effectively and via a convenient channel. Few months before, we launched a mailing list for you to receive updates as well as feedbacks on our blog easily. It is a simple mailer that anyone could scrap up from the vast resources that the internet now offers but it was a humble beginning for us to connect to our readers. Some might have noticed that we changed the layout of the email updates slightly to make it more...

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5 things that you need to start doing to improve your financials during your early 20s

Most people in the early 20s would think that they still have a long way before retirement and financial planning is too “kewl” for them. Contrary to that, early financial planning can go a long way. This is especially due to the power of compounding. Well, here are 5 things that you NEED to start doing to improve your financials during your early 20s. 1. Tracking your expenses This is one of the most important things that you should do as part of personal finance regime. Without tracking where your money is flowing to, you can never find excess...

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Singapore Finance Minister on Personal Finance – Part2

Following up to our previous post on Singapore Finance Minister on Personal Finance We decided to do some statistics on how effective the method of prudent financial planning was. He mentioned using Government Assets to generate Investment Income, and that income can be used to pay for anything as required by the country Рa never ending stream of cash inflow. We think the same would work for financial planning Рusing your cash/savings, invest long-term, and use the cash inflow to pay for your lifestyle. OTHER LINKS:GE Effect on STIRaising of Re-Employment Age to 67Setting Investment in: Singapore Straits...

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Singapore Finance Minister on Personal Finance

On a recent rally speech, Singapore’s Finance Minister Tharman Shanmugaratnam gave a talk about how important prudent budgeting is for the country. We felt that his point was suitable not only for managing of the country’s finance, but also for everyone’s finance! As such, we will be elaborating how it can be used for our personal benefits. OTHER LINKS:GE Effect on STIRaising of Re-Employment Age to 67 VIDEO LINK:https://www.facebook.com/ChannelNewsAsiaSingapore/videos/10153132279632934/ First 3 Minutes of Video: Prudent Budgeting & Asset Management Last 3 Minutes of Video: Explaining CPF (government retirement fund) returns We will be talking about the First 3 Minutes...

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Singapore Market’s Growing ETF Choices

Today, we have more Exchange Traded Fund (ETFs) option than we did 5 years before. The number of ETFs that grew during this 5 years was more than 100%! With a growing number of ETFs to choose from, this makes investment for the average person much easier! ETFs are great investment tool/vehicle for both the amateur, the average, and the professional investor. A wide range of strategies and purpose can be used with ETFs! LINKSETFs are the New KingETF StrategiesKey Take-Away from The Edge ETF Forum 2015Using CPF to Invest in ETFshttp://sgx.com/wps/portal/sgxweb/home/products/securities/etfs 87 ETFs listed on the SGX available...

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How to Escape the Retirement Sum?

Today’s post is on how to avoid the Retirement/Minimum sum in your CPF when you reach age 55. LINKS:3 Types of CPF Retirement SumsDisadvantages of Private Annuity FundCPF Life VS Annuity FundWhat is an Annuity Plan/Fund?What is CPF LIFE? There are currently 2 ways to avoid having to set aside a minimum sum. Today, we will be sharing about one of it: Buy a Life Annuity Plan Buy a Life Annuity Plan. A life annuity plan is an insurance plan that is set to pay you a fixed amount of money each month/year in the future (usually when you...

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Raising of Re-Employment Age to 67

Today, we will be talking about the raising of Re-Employment age. More links below on Retirement Everyone Should Invest to Retire You NEED Stocks to Retire Reaching Full Retirement is Tough Work Steps to help you reach Retirement During this year’s National Day Rally, PM Lee mentioned that the Re-employment age will be raised from 65 to 67 by 2017. When people tell me that the Government is insane, making us work more and more, consistently pushing the retirement age backwards, my response to them is as per below: There is a difference between Retirement Age and Re-Employment Age....

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STI 3rd Year Trend

Today, we are looking at the 3rd year of every US presidential term and its impact on Singapore Stock Market – in particular the Straits Times Index. We talked about other investment opportunities too, links below: S&P500 Investment Opportunity Carl Icahn Activism Investment Opportunity – Icahn Lift Singapore General Election Impact on SG Stock Market 2015 will be a Great Investment Year Since 1999 to 2015, STI tend to slump in August. It is followed by one of the the biggest rally of the year This is the month to stay invested or start investing! Buy when the market...

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S&P500 Statistical Investment Opportunity

Last Friday, the S&P500 hit red for the first time this year. Just over 1 day, S&P500 fell from 2035.73 (Thurday’s close) to 1970.83 (Friday’s close); a drop of 2.7%. However, during Asian trading hours today, S&P500 fell further to a low of 1913.99 before recovering back to 1933.99. This represents a 1.86% drop from Friday’s close. We did an article describing how this drop in S&P500 presents an investment opportunity for us. 2Weeks Investing Strategy, we discussed how to invest in the next 2 weeks should the opportunity arise. This strategy was formulated based on statistics found on...

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