I saw this Facebook post the other day and I felt it is one of the most common misconception about insurance. The Eldershield is meant for old age but the pool is young and so the claims are low. However, an insurance product should not be judge based on cash flows but based on its liability. For instance, you are 40 years old and if the claim is expected to occur at 70 and ends at 80 and assuming a $7,200 a year of payout, the liability to the insurer is given by the formula assuming a … [Read More...]
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Dimensional Funds are now available for retail investors
For those who are into index investing will know how frustrating it is to do so. Vanguard has decided only to make its index funds available to Accredited Investors. Those who prefer to invest in MAS approved funds could only invest in Infinity Global Stock Index which feeds into the Vanguard funds. Due to the feeder structure, the cost of Infinity Global Stock index is not low. The adventurous have no choice but to invest in foreign listed ETFs. However, foreign ETFs are not without … [Read More...]
Featured articles
What we can learn from Warren Buffett? Part 3
This is a multi part article. For the previous article, you can read here: What we can learn from Warren Buffett? Part 2. Treat the investment as a business Unlike many investors, Warren Buffett … [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
What we can learn from Warren Buffett? Part 2
This is a multiple part article. For the previous article, please refer to this article: What we can learn from Warren Buffett? Part 1 Having a diversified portfolio As at end of 2017, SEC 13F … [Read More...]
What we can learn from Warren Buffett? Part 1
BYD Co Ltd was listed on the Hong Kong exchange in 2002. It was one of China’s biggest rechargeable batteries maker. Berkshire Hathaway - the holding company which Warren Buffett is the largest … [Read More...]
Share Repurchase vs dividends
Many investors understand what dividends are. However, not many realized that there is another type of invisible dividends that is called the share repurchase. Both shares repurchase and dividends … [Read More...]
SingHealth breach: what does it mean to lose your data
By now everybody would have read in the news that 1.5 million SingHealth’s patients’ information were stolen. Singapore has a population of 5.79 million. So 26% of the population got their personal … [Read More...]
Why this company’s stock price plunged despite large profit announcement?
Q: Wilfred, Company X5 announced on 8th March 2018 that its full year results for 2017 was US$163 million in earnings. This was significantly larger than that in 2016 of only $6.7 million. However, … [Read More...]
Human capital and investing in employee stock benefits
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 … [Read More...]
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 … [Read More...]
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...]
$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...]
featured articles
Widespread financial illiteracy on retirement planning, says CPF Advisory Panel
It was reported that Singaporeans are suffering from the lack of financial literacy. The problem is actually widespread despite Singapore scoring tops in mathematics. “There is a difference between … [Read More...]
It’s too late to do retirement planning when old, says Citi-SMU
According to Citi-SMU (SingaporeManagement University) symposium on financial Literacy for young adults, it is important to start managing one's finances when young. This is because picking up … [Read More...]
Tips in selecting a Universal Life
Stroll down to the end of this page if you are looking for the Universal Life Calculator I created. Universal Life products are often marketed to the high networth individuals. It appears to be … [Read More...]
3 Reasons Singaporeans Cannot Retire
Do you know that a survey shows that Singaporeans comes up number one in financial literacy? The strange thing is that in the same survey, it was found Singaporeans failed in retirement … [Read More...]
Millions of dollars of retirees’ money lost in property scam
It was reported that $60 million worth of investors’ money was lost in a property ponzi scam right in Singapore ("Investors caught in $60m ponzi scam", Straits Times 24 May 2015). Ms Leong Lai Yee … [Read More...]
The risk of using investments for retirement are often underestimated
In this article, I want to write about a little-known danger when using investments to support one’s retirement. Very often, I hear of clients using stocks and REITs as a source of income to support … [Read More...]
Life Expectancy and the Importance of Retirement Planning
We have heard in the news that life expectancy is rising. But how much is it rising and what is the impact to retirement planning? I downloaded the statistic from Singapore Department of Statistics … [Read More...]
