Author: The Astute Parent

CNY 2020: Best Things to do with Ang Bao Money

​The standard g​reeting phrase most commonly heard during Chinese New Year (CNY) ​is “新年快樂, 恭禧發財“. It literally translate to “Happy New Year, Wish you Happiness and to BECOME RICH!” ​We are a few days away from #CNY2020. Let’s look at the things we can do with ang ​bao money ​you receive and what to do if you are distributing ang bao in this year of the rat. What to do if you are ​RECEIVING Ang Bao Money in CNY 2020 You can receive ang bao money if you aren’t married yet or if you have kids. Here are some...

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Portfolio Financing| How it can enhance gains for you!

Investing with portfolio financing is an aggressive strategy. Quite simply, it is borrowing (leveraging) to invest MORE than what you have! Private banks have been offering this as a method to potentially enhance returns but today, you can get it on a retail level. In this post, you’d see how the IFAST portfolio financing works plus the pros and cons of investing this way. Invest more with less capital Imagine this, you want an investment into FIRST STATE DIVIDEND ADVANTAGE of $100,000 but don’t want to put the full capital for it. First state dividend advantage is merely used...

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Comparing the Best Whole Life Plans (Updated 2020)

​Remember your parents buying insurance for you yet you have no idea what insurance policy is that or what does it do, at best you know it’s either from the “red or blue colour company”  ​In this article, let’s compare 3 whole life plans from 3 different insurers. – Aviva MyWholeLifePlan III – China Taiping i-Secure – Manulife LifeReady Plus All of them have their strength and ​their differences, we​ will​ explore which is more suitable for you. ​Why Now? ​There are several reasons to act now: 1) Premiums increase​ with age. ​For example, ​to cover Male, non-smoker for...

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How To Calculate Mortgage Affordability in 2020!

Before buying a property, it is important to budget This sharing will shed light on how mortgage affordability is calculated for you in 2020! I help private clients on mortgage insurance and mortgage planning and if you’ve questions, I’d leave my contacts below if I can be of help/ I once calculated on OWNING A $5M property in Singapore… This was a peculiar blog because I preach financial prudence. Often it is about budgeting and living within financial means.  ​ The post HOW TO OWN A $5M property was first created on Oct2018 but it was to STRETCH THE...

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Quick Overview of PRUmum And PRUFirst Promise!

NEW pregnancy insurance plan by Prudential and today is a quick sharing of it. PRUMUM is the plan name and can be bought as a standalone pregnancy coverage or with PRUActive Life (which is a wholelife plan). What is PRUMUM Plan It covers for mummies the following conditions listed below. In particular, new conditions covered in Hospital Care benefit such as Lactation mastitis. My wife had it and it was caused by milk that is trapped in the breast. This is in layman terms blocked duct. For claims, conditions must be severe enough to require incision and drainage surgery...

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New Ways To Teach Money! | School’s Financial Literacy Will Not Work

Our government has been supporting money related concepts to be taught in schools. Central Provident Fund (CPF) organised a session where students from Guangyang Secondary School attended a game-show assembly and played interactive board games that taught financial literacy concepts. Source All Year 1 polytechnic and Institute of Technical Education (ITE) students will be taught financial literacy from year 2020. They include budgeting, goal-setting and financial basics such as the effect of compound interest on debt and saving But really, is school’s financial literacy programs going to help you teach your child on money? Schools is responsible for teaching...

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Outrageous Predictions for 2020 & Number 3 Is Something For You!

Outrageous predictions you get here are PURELY TO JOLT YOU TO THINK OUT OF THE BOX! For any investor, it is important to have critical thinking and a contrarian mindset. What others think is impossible are sometimes the highest payoff ideas… Makes sense?   Again, this is #purelyentertainment #notadvice. In last year’s edition, I shared a prediction that Singapore will see it’s first virtual banking license given out. The prediction was premature but today, it was announced that GRAB and SINGTEL are co-bidding for a license and they are a formidable pairing… I’d leave links below to access previous...

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How To Buy Shares Using CPFOA | Why I bought Keppel Corp?

Your CPFOA will grow at 2.5%p.a (for amounts above the first $20k). Hence, this 2.5% is the opportunity cost when it comes to investing it. You’d be better off only if you are likely to get higher returns when you take on risk. At the second part, I’d be sharing why I bought some Keppel Corp using CPFOA. How much can you invest with your CPFOA? To find out, you’d need to firstly log into CPF with your Singpass. Don’t assume, if not a bounced trade can happen and your CPFIS agent bank may still charge you. Check how...

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Will Your Financial Freedom Journey Be Sacrificed In An Aging Population?

In the recent National Day rally 2019, it was mentioned that Singaporean’s life expectancy at birth is now the longest in the world, at nearly 85 years old, longer than that of Japan. We are going to be growing old faster than any society in the world.” Source from gov.sg. Look at the figures below, 900,000 people above age65 in year2030! Even with immigration, the population pyramid will be inverted. That has to be like 15% of population or 1 in 6 people! Wait, let’s talk about today’s expenses for an elderly first! There’s this survey that a Singaporean...

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Silly Investment Mistakes | 5 Of The Worst You Must Know!

I realised these are common pitfall because new investors have similar reactions. Not just that, everyone has the tendency to take similar shortcuts to decision making.  Hence, if you are new to investing, these are some common pitfalls to take note of. It is possible to learn from the silly mistakes of others and this can save you money.  Silly Mistake #1: Choosing a share or a fund based on dividend yield! Bad idea! And a very common one! I’d share with you an example. In Singapore, listed company Asian Pay TV Trust (APTT) cut it’s dividend rate massively...

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8 Common Pitfalls In Investing | Part 1 And Action Plan Next!

I realised these are common pitfall because new investors have similar reactions. Not just that, everyone has the tendency to take similar shortcuts to decision making.  Hence, if you are new to investing, these are some common pitfalls to take note of. It is possible to learn from the mistakes of others and this can save you money.  Common Pitfall 1: Choosing a share or a fund based on dividend yield You can check on stories of companies cutting their dividend rates. In Singapore, listed company Asian Pay TV Trust (APTT) cut it’s dividend rate massively in 2019. It...

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Try Hangzhou instead of Hokkaido | Save at least $ 1000 on a family trip

Just came back from Hangzhou. Maybe it’s recency bias or something… but I really think Hangzhou is UNDERRATED as a family vacation place. It’s feels much less crowded than Shanghai and you’d be surprised, there is a lot of mannerism emphasis there. This “be gracious” sign below was found at a centralised rubbish area near my B&B at Long Jing. I chose to compare Hangzhou to Hokkaido simply because both start with “H”… haha… and also Hokkaido is undoubtedly a popular (though costly) family holiday destination. Difference in experience between Hangzhou and Hokkaido Of course, Hokkaido is a huge island...

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10Min Guide To Know Everything On SRS! | Plus High Income Analysis

Supplementary Retirement Scheme (SRS) was introduced in year 2001 to encourage voluntarily saving for retirement.  And in the last 18years, more than 140,000 accounts have been opened with more than $8B contributed! How does the Supplementary retirement scheme (SRS) account work? If you want to open the SRS account, you can do it online with DBS, OCBC and UOB. The common misconception is SRS is under CPF. It is NOT! Hence, it does not give you the 2.5% interest in CPFOA or the 4% interest in CPFSA. You will ONLY get a nominal interest of 0.05%p.a. for the funds...

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AXA Super CritiCare | Claim up to 600% of Sum Assured

​Along with other insurers, AXA has launched it’s “multi-pay” critical illness plan. ​This plan ​is made up of 3 main components: Critical Illness Coverage, Diabetes Care Program, and Death Benefit. ​Let’s look at them individually to see if this plan lives up to its namesake. Critical Illness Coverage claiming up to 600% of sum assured This plan covers Early, Intermediate, Advanced Stage Critical Illness, Special Conditions, and Juvenile Conditions. ​To draw the line in the sand, here is the maximum claim limits:    “​each” is the keyword here How it works: ​If diagnosed with any of the listed critical...

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How To Save Half Your Income | 3 Powerful Tips For More Savings Now!

Is being frugal being stingy? Absolutely not! Being stingy is to “take advantage of someone” or ” not be generous to someone” but being frugal is about YOU choosing not to spend recklessly. It’s an attitude towards money that you apply to ALL your purchases. Below are 3 important mindsets for you to be more frugal and start saving half of your income! Mindset 1: Be Early For Anything (3 reasons for it!) Reason 1: There are dining apps that give you a discount to eat early! Have you heard of Eatigo? If you haven’t this is the link!...

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