Your networth is a balance sheet listing your assets and liabilities. The difference for both is called the net worth. However, the net worth or balance sheet contains many “off-balance sheet” items. Today, I’ll write about the most common off-balance sheet item. I will give an example: Let’s say your net worth is as below: Assets Cash $30,000 Property $400,000 Liability Mortgage … [Read more...]
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(Two letters referred by this article are appended at IMSavvy link HERE ) There was a case recently in which IRAS requested payment and penalty for income tax owned by a dead man. What’s intriguing is that the man was already dead for 18 years. Fortunately, the family members had documentary proof stored in their storeroom that the tax was already paid just one year after the man died (think: … [Read more...]
I attended a talk conducted by the Special Needs Trust Company or SNTC. SNTC is the only non-profit trust company in Singapore set up to provide trust services for the benefit of persons with special needs (PSNs). SNTC is jointly supported by the Ministry of Community Development, Youth and Sports (MCYS) and National Council of Social Service (NCSS). SNTC partners with Insolvency and Public … [Read more...]
Not everybody going to like this blog posting but as usual, it is only my opinion. I know of a number of financial advisers who will write financial planning reports for their prospect. I have seen some of these fake reports. Here are my observations of these fake reports: 1. The prospect did not even read it. It is quite amazing when I asked the client whether did he or she read the report. … [Read more...]
The year has just started and I want you to think about escaping from becoming a commodity. Let me explain what is meant to be a commodity. Some Saturdays ago, I wanted to purchase a handphone. I walked into a telephone shop. I looked at all the models on offer. Almost every phone cost $0 (with a contract). I was overwhelmed because every phone looked alike. Since I cannot differentiate each … [Read more...]
When comes to Will writing, some people either do a DIY Will or get a lawyer to do it. Most of the time the Will is either invalid or is valid but practically useless. Why? A Will is merely a tool. If the tool is used wrongly, it is a rubbish tool. An analogy is like buying an insurance product: If you ask an insurance salesperson for specific product advice, the insurance person can give … [Read more...]
Some people asked me why I encourage young graduates to save aggressively to saving accounts and fixed deposits. This is contrary to advice given by financial advisers that given the long time horizon, investing into a higher risk portfolio could yield better returns on a long-run. Firstly, many financial advisers do not do financial planning and so they will just use the textbook answer that a … [Read more...]
Estate planning is critically important for a family person especially those who have young children. An estate plan determines the manner in which your assets are to be distributed on death of either spouses. Since the probably of death is 100%, estate planning is not optional. If you don’t plan, the State has a default plan for you which are pampered with flaws: * If your children become … [Read more...]
MAS flagged two risks to property buyers and painted two scenarios: 1. If the economy growth proves weaker than expected, property buyers may face capital depreciation when market corrects; 2. If the economy recovery stays on course, interest rates will increase causing mortgage loan installments to increase. Home buyers would have to pay a larger cash outflow. My comments: If you look … [Read more...]