Author: Investment Stab

CPF Bonus +1% Interest for Age 55 & Above

Distribution of the CPF Extra +1% of Interest between your CPF Accounts There is a sequence in how the bonus CPF +1% interest is distributed into your CPF account. The sequence would determine how much money goes into your 4 different CPF accounts. MORE LINKS CPF Bonus 1% Interest for Below Age 55 Accrued Interest More than Housing Profits? What CPF means for those in their 20s? 5 Financial Things to do in your 20s Singapore Finance Minister on Personal Finance Part 2 Reducing CPF Housing Accrued Interest The Christmas Stock Market Rally If you are age 55 and...

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CPF Bonus +1% Interest for Age below 55

Distribution of the CPF Extra +1% of Interest between your CPF Accounts There is a sequence in how the bonus CPF +1% interest is distributed into your CPF account. The sequence would determine how much money goes into your 3 different CPF accounts. The higher the percentage your OA & SA make up of the $60,000, the higher the chances of you drawing out your CPF at old age. MORE LINKS Accrued Interest More than Housing Profits? What CPF means for those in their 20s? 5 Financial Things to do in your 20s Singapore Finance Minister on Personal Finance...

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The Christmas Stock Market Rally

December is the month of the Stock Market! MORE LINKS Accrued Interest More than Housing Profits? What CPF means for those in their 20s? 5 Financial Things to do in your 20s Singapore Finance Minister on Personal Finance Part 2 Reducing CPF Housing Accrued Interest http://www.cnbc.com/2015/11/30/86-years-of-history-point-to-year-end-rally.html December has been a time where the market has never performed worse than any point in the year. December also has a history of posting gains from the start of the month to the end of the month over 86 years. When the market start the month of December above the 200 day...

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What CPF means for those in their 20s

CPF, in short for Central Provident Funds, is a “social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement.”. Source: https://www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-overview This is quoted from the CPF website and as defined by CPF. While most people would think that CPF is just applicable for old people, youngsters should definitely not neglect it. This is especially true due to the magic of compounding interest. So what are the schemes that people in their 20s should know? 1. CPF Education Scheme This scheme allows you...

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NSF Private’s Pay on Li Ka Shing Advice

In our previous post, we shared about how we can adjust Li Ka Shing’s advice on money management to Singapore’s version and circumstances. The link is here: Li Ka Shing’s Advice – SG Version Being an NSF, I think it is only fair that I break down my salary and how I match it to Li Ka Shing’s advice on money management! Of course, I did it with some adjustments to my circumstances. MORE LINKSDifference using Cash or CPF to pay Housing Loan?Accrued Interest More than Housing Profits?Fine Print of CPF Money Withdrawal5 Financial Things to do in your...

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Li Ka Shing Advice – SG Version

http://e27.co/li-ka-shing-teaches-buy-car-house-5-years-20150408/ There was an article in the past that went viral. It talked about the advice given to young people by Hong Kong’s richest man – Li Ka Shing. In the article, he talked about splitting our pay into 5 parts, each for a different purpose MORE LINKSDifference using Cash or CPF to pay Housing Loan?Accrued Interest More than Housing Profits?Fine Print of CPF Money Withdrawal5 Financial Things to do in your 20sSingapore Finance Minister on Personal Finance Part 2Repaying CPF Accrued Interest – Why?Reducing CPF Housing Accrued Interest 30% – Living Expenses, paying for food etc 20% –...

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Accrued Interest More than Profits from Selling of House

Today’s post if to answer if you need to top up cash to cover your housing loan’s accrued interest should a shortfall occurs. The answer is, NO. Illustrations are below MORE LINKS Difference using Cash or CPF to pay Housing Loan? 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 1) Accrued Interest ($20k) > Profits from Selling of House ($15k) Profits will ALL be used to cover the...

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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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