Today I would like to introduce the concept of human capital and briefly touch on employee stock purchase program. What is human capital? Human capital is simply the ability to earn money by working. If you earn $5000 a month and has 30 more years of working life, the human capital is 5000 x 12 x 30 = $1.8 million assuming no pay increment and inflation is zero. Because the human capital is the ability to earn money, it is beneficial to increase this human capital as high as possible. … [Read More...]
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Investors always buy high and sell low regardless of asset classes
February 2018 started with a poor market performance. The S&P 500, Nikkei 225, STI and Shanghai Stock Exchange Composite index is down by -5.82%, -7.03%, -4.79% and -7.94% respectively in SG dollars. In terms of technical analysis, the S&P 500 plunged and is almost reach to its support level (chart is as at 9 February 2018): Guess what? Most investors panic and sold their shares. Actually, it is well known that majority of investors buy high and sell low. Frankly speaking, have … [Read More...]
Featured articles
7 real reasons why most investors are not successful
Long time ago, the only way people can invest was by investing in stocks. However, not everybody had the expertise to pick stocks. Moreover, most people were busy working. So, they did not have time … [Read More...]
Conservative Account (for existing clients only)
This is an announcement for existing clients. The Conservative Account is an investment that aims to provide a return of 2-4% per annum (inclusive of dividends) with low volatility. The Account … Read more
$300m company’s share price sliding down like a falling knife (not referring to Noble)
By now, everybody is aware that Noble’s share has been on a decline by a large magnitude. In fact, its share price is down by a whopping 98.43% compared to 5 years ago Like Noble, there is another … [Read More...]
Share price plunged despite good cash conversion cycle
is a technology company listed in Hong Kong. It is a highly efficient company in terms of its cash conversion cycle but it has caused shareholders to lose huge amount of money over the past few years. … [Read More...]
Why this company has high profitability but still lose money?
One of my client asked me about a particular company that is listed in Hong Kong and Shenzhen. She wanted to buy this company. is not a small company. It has a market capitalization of HKD 173 … [Read More...]
Paying dividends from borrowings
In 2015, I met a client who engaged me for comprehensive financial planning. But I was quite frustrated with the outcome because the client did not take up most of my recommendations. In particular, I … [Read More...]
Property investment is illogical especially when its > 100% of networth
Update 30/11/2017: See article: MAS flags risks from 'excessive exuberance' in property market For those who has read my blog for some time is well aware that I am against the way many Singaporeans … [Read More...]
When insurance agents jump ship, clients may suffer
For those who does not read newspaper, the Sunday Times has an article today on the potential problems that could occur when insurance agents are being poached (When insurance agents jump ship, … [Read More...]
3 Costly Mistakes to Avoid in Retirement Planning (Facebook Live)
Topic: 3 Costly Mistakes to Avoid in Retirement Planning. Date/time: 16 September 2017 10am (SGT). Duration: 1 hour. URL: … [Read More...]
A retirement product to be avoided at all cost (This post comes with an IRR calculator)
Not too long ago, I met a client who purchased the most horrible retirement product on planet earth. Apparently, his relationship manager used a Universal Life policy as a retirement product. The … [Read More...]
CPF Life Standard default plan is the worst of the two (22 June 2017 update to the new booklet)
This article was originally written in 8 July 2014 and has been updated to reflect the latest changes. Question: "Wilfred, can you take a few minutes to look at an example of a CPF life annuity … [Read More...]
featured articles
Here’s a video by a bank on how it anyhow sell Universal Life
One of my client sent me this webinar video on legacy planning. The first 11 minutes is educational and I generally agree with the speaker. So you can safely watch first 11 minutes without much harm. … [Read More...]
Question on Investment Linked Policy charges (ILP charges)
Question: Wilfred, my financial adviser sold me a product called X and he told me that the insurance charges are constant throughout my entire life. My premium is $1,200 a year. However, I read in the … [Read More...]
Case study on CPF Retirement Sum Topping-Up Scheme resource optimisation
One of the most time consuming task I have to do for comprehensive financial planning is often related to the allocation of limited resources. Under comprehensive financial planning, there are a … [Read More...]
How to create your own dividends paying portfolio
Today I want to discuss briefly about the quest for income generating investments. Many investors have the desire to invest in income generating instruments such as dividend paying stocks. Here is … [Read More...]
Women likely to be financially worst off after retirement
The latest survey conducted by HSBC Future of Retirement (Healthy New Beginnings) Singapore Report reported that: 32% of women say that their actual financial situation got worst after retirement … [Read More...]
Why using ILPs for children’s education planning is a bad idea?
Many parents use ILP to save for children's education. I think this is a bad idea. This is why: The ILP salesman will market ILP on children's education like this: Life assured on the child. … [Read More...]
No advice given, few documentation and non-disclosures but earns easy money
Here is an example on how a financial adviser sold a life insurance product. The following is a scanned image of a section of the KYC: In the KYC, the client declared "I do not want any … [Read More...]
Get Full Report on CPF Life with Escalating payouts and the Lifetime Retirement Investment Scheme
The government announced that it has decided to introduce two new CPF schemes: CPF Life with escalating payout feature and the Lifetime Retirement Investment scheme. CPF Life with Escalating … [Read More...]
HSBC The Future of Retirement: 78% worried about not having enough for retirement
HSBC made a survey called “Future of Retirement” and it was found that: 1/3 of Singaporeans expect their standard of living to fall when they retire. 78% of working-age Singaporeans are worried … [Read More...]
