Steps to take to accumulate more wealth

Some have asked how I had accumulated $200,000 at a young age. Below were some steps I took. Save a significant portion of salary Don’t live a paycheck to paycheck lifestyle, save a portion of your salary for investments and future consumption.   Don’t put too much Money in Bank accounts and FD I hate putting a lot of money in saving accounts because the interest rates of these … [Read more...]

Nikko STI ETF Portfolio Turnover Ratio Higher than SPDR STI ETF


I received SPDR STI ETF Annual Report in my mail. One thing that caught my attention was the portfolio turnover ratio. The portfolio turnover ratio is indicative of the change in activity inside a unit trust, or most investments managed as a fund. SPDR STI ETF have the following expense ratio and portfolio turnover profile: Expense Ratio 2015: 0.30% 2014: 0.30% Portfolio Turnover … [Read more...]

Why the STI ETF is better than most unit trusts

Are you a full time employee who finds it hard to make time to monitor one’s investment due to commitments? Or feel daunted by the market jargon and maze of financial statements when investing in the stock market? If your answer is yes to either question, it may be good to leave your investment to fund managers. In my opinion, the best way is by investing in an ETF which tracks the Singapore … [Read more...]

Neglect of prior base rates effect

This is the tendency to fail to incorporate prior known probabilities which are pertinent to the decision at hand. Caution: Don’t read on if you are 40 years of age and above! Here’s an interesting question for the rest of you: Why aren’t more young people investing in the stock market? Could it be that you/they are neglecting prior base rates and focusing too much on recent media … [Read more...]

What if the STI goes down 5% every month for a year?


The Straits Times Index (STI) has underwent a major correction of at least 15% in the last 4 weeks.  A lot of investors and stock holders in the local market are definitely feeling the pain. This includes myself. My gains over the last 1.5 years were all gone in the last 4 weeks. I have been buying the STI ETF since Aug 2013. I have invested about S$26,800 from my Supplementary Retirement … [Read more...]

Simple and Effective Automatic Investing with Index ETFs

Investing in the stock market doesn’t have to be difficult or complicated. If you’re just dipping your toes into investing, or thinking about starting, chances are you’ve probably tried reading up and doing research. The problem is, the sheer volume of investing advice out there is mind-boggling, and sometimes, even downright contradictory. Hence the reason why many people end up procrastinating … [Read more...]

The World of Finance As You Know It, Is Changing

A series of events happened over the past couple of weeks and I would like to pen down some of my thoughts. How to invest if you have 20k or more.  An article with the above title appeared in the Sunday Times over the weekend. At first glance it was innocuous enough and some sound advice was being dispersed. It recommended people to ‘define your investment objectives, time horizon of … [Read more...]

Finally an investment idea


Some of you have contacted me (although commenting on my blog posts would be an alternative way, besides e-mail, to communicate with me) and shared your disappointment that I have yet to share an investment tip on Tacomob. There is reason for that and I have shared it here. I hear you (despite my hearing deteriorating—at least that’s what my wife claims) and as I am here to please—you my … [Read more...]

Unpredictability Ignorance


It’s not so easy to be active in the stock market. Because when people I meet learn that I make my money predominantly from the abundant stock market, they—more often than not—flood me with questions on my prediction of the future trends and also, to share one ‘hot tip’. I have to say that the latter—the sharing of the one ‘hot tip’—is easier to comply: I simply don’t give out … [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 … [Read more...]

24 Tales in the Journey to Wealth

RETIREMENT "Financial Independence, Retire Early" (FIRE) - that seems like a wonderful catch phrase to set the flames going. What does it take to achieve this burning desire? I think it boils down to a magic number. [1.] STOCKS To achieve this outcome, I invest in the market, diversified across market regions, … [Read more...]

Get To Know Dividend Withholding Tax

Dividend Withholding Tax was one area that I had a little difficulty understanding. If you have a good and easy to understand resource, please please please share it with me here. Doing Google searches tend to dig up a whole lot of complicated and “cheem” stuff that tend to confuse rather than educate. This is especially important when we have ETFs that are domiciled all over the world. Having … [Read more...]

I Have Never Lost Money Investing

This is not meant to be a boast. I have no secret recipe, no stock tips, no insider knowledge, and no freaking idea how I did it. In fact, I fully attribute it to dumb, beginner’s luck. Good and Bad Apples I started “investing” around 2013, and my first stock was Apple. 1 share cost me more than US$400, and I was puzzled why SGX trades in lots of 1,000! I had no clue what index investing … [Read more...]

Tea with Matthew Seah: Exchange Traded Funds (ETFs).

ASSI's most prolific guest blogger, Matthew Seah, readily agreed to contribute this guest blog when I asked him if he could do it. Such an obliging and intelligent fellow. During the 4th “Evening with AK and friends” session, a young man mentioned cash-based and synthetic ETFs. After some discussion, AK shot an arrow for me to do a guest blog on ETFs, so here it is. Firstly, exchange traded … [Read more...]

About 20 ETFs Will Be Classified As Excluded Investment Products


HAPPY MAY DAY 2015! As per my earlier coverage on the upcoming relaxation of the rules/guidelines for ETFs in Singapore, on Wednesday, Monetary Authority Of Singapore (MAS) has announced the reclassification of some 20 ETFs (including the current 11), which account for about 80% of the asset under management by locally listed ETFs, as Excluded Investment Products (EIPs) [for more details … [Read more...]

More Singapore ETFs Will Be Accessible To The Retail Investors Soon


Aside from the individual stocks and REITs (Real Estate Investment Trusts), one of the other more popular investment vehicles among the retail investors is ETFs (Exchange Traded Funds). As the name implied, ETFs are investment funds that are traded on stock exchanges by producing returns that track/replicate the performance and composition of a specific index such as stocks or commodity. If you … [Read more...]

FAQ on Vanguard FTSE All-World UCITS ETF (VWRD)

Today, we’re going to take a quick look at Vanguard’s Global Index ETF – VWRD. A fair bit of emails and questions I get frequently revolve around the purchase of VWRD. Thus, I thought this blog post would be great at addressing the common queries. Disclosure – VWRD forms 30% of my asset allocation What is Vanguard Group? Vanguard Group is owned by Vanguard funds, which in turn are owned … [Read more...]

4 Reasons Why Spinoffs Outperform the Market Index


In 1993, Patrick J. Cusatis, James A. Miles and J. Randall Woolridge did a research study on the stock performance of spinoff companies from 1963 to 1988. From the research, they found that spinoffs outperformed the S&P 500 by about 10% per year in the first three years of their independence. The study also found that parent companies of spinoffs also outperformed the index by more than 6% per … [Read more...]

The Allure of Gold – Treachery of the Glitter

Gold is such an alluring product. It somehow carries this magical feeling of value. Perhaps it has to do with the Chinese and Indian cultures of collecting gold products as items of value, passing on from generation to generation. Unfortunately in recent years, gold scams have been repeated, case after case. How does it work? Here's the general idea ... The Scam Company sets up shop in … [Read more...]

2 Portfolios of ETFs – Growth vs Income

I was considering how I might structure a globally diversified portfolio based purely on ETFs available on the SGX (Exchange Traded Funds - Navigating Through the Maze). I came up with the below. Growth Portfolio Broadly, full replication ETFs are preferred over those that are synthetic. 15% US - SPDR S&P500 US$ - XD [Full replication] 15% Europe - DBXT MSEurope US$ - Reinv [Full … [Read more...]