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Alvin Teo

Financial Planner specialising in investments through multiple investment vehicles

Alvin Teo

Financial Planner at Promiseland Independent Pte Ltd

23Upvotes

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Financial Planner specialising in investments through multiple investment vehicles

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Alvin Teo

Financial Planner at Promiseland Independent Pte Ltd

23Upvotes
  • Answers (34)
  • Questions (0)
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Transportation

Lifestyle

General

I have a car and I have friends who also pondered that question. Generally if you work at Jurong Island, and your pay should be quite ok, I would say if you like driving and your work hours are irregular “shift work”, getting a car might make sense. And you have have more control over your time.

Investments

You are ready for this long term commitment today. Just like we cannot predict future performance of active/passive funds, we also cannot predict your future financial health. Many articles debate on choosing between active and passive, but this is not a custody battle. You can do both, since you are new to this, and have some padding in money and insurance (which you should review from time to time. Sorry, occupational habits). Try them out, see how they perform, the fact that no one can answer probably means neither is vastly superior than the other, each have their own pros and cons which only individuals who experienced it can best determine themselves.

Investments

STI ETF

ETF

POSB

The drop in fees is by POSB (by extension of DBS), this makes it cheaper for you to invest, probably due to competition in this space. Seedly did a comparison in the past: https://blog.seedly.sg/which-regular-savings-plan-is-the-cheapest/ It hasn't been updated yet but you can see that it kinda has quite high fees if you start investing more.

Investments

Stocks

The short answer: It depends on the stock price. you must buy minimum 1 lot = 100 share of the stock. and stock price is always quoted for 1 share. If stock price is $1/stock, $500 gets you 500 shares or 5 lots. But in real life, there is other charges which you must take into consideration as well. If your budget is firmly maxed at $500, even if charges is $1, you can only buy 400 shares/4 lots and be left with $99 cash as change. IF the $500 per month thing, my suggestion is to invest ONCE every 2 to 3 months, that way you have $1500 each round and you can buy more and potentially pay lesser charges. Dollar Cost Averaging can be improvised in this manner. It is still an "averaging" investment method, and you have 3 months to decide which stock/etf to buy and really plan how to expend your bullets (cash)

Investments

Savings

Are you also a newbie in the sense that you have no prior knowledge to finance like me? My formal education is in Shipping. So investing and finance as a whole is a complete foreign concept to be, knowing compound interest in school is different from knowing compound interest in finance. Bear in mind, I picked up investing/finance way before I joined the industry. I was trying to figure out how come 25 years mortgage loan has so much more interests than 15 years, this question sent me down the rabbit hole. There are many many aspects to finance and investing is just one of them. There is also your own savings which is important no matter market bull or bear (good or bad). You just have to keep amassing knowledge in order to learn. You can do it through reading texts or books. But here a few main tips which helped me got through learning investments: 1) know that internet is a big place, a lot of things you read/watch could be just opinions and noise. Even if they are from big broadcasting companies. 2) Knowledge is crucial but mindset is even more important. i.e. my risk appetite is basically how well I can sleep at night even when market turns bad. How well you can sleep at night is important because if you lose sleep over investing, you lose focus at work, etc... 3) To loosely quote Charlie Munger, you have to learn how to sit on your hands and do nothing (don't recklessly react) 4) Investing in itself is a contact sport. You can find stocks every where. Just go out for a walk and you'll find tonnes of companies to INVESTigate: tiger balm = haw par group, take taxi = comfort delgro, buy 4D = wish Singapore Pools is listed. 5) If you find a good stock, don't keep it to yourself, the more people participates in your ideas and buy into it, the more the stock will rise. Picture this, you know everyone through 6 friends (6 degrees of seperation), so if you find a good stock and tell someone about it, chances are it may land into the ears of Warren Buffett and invest based on your idea. Wishful thinking but the idea is there. Have fun, play the long game, be responsible for your own money. Quality of Life Time spent on investing.

SeedlyTV EP06

CPF

That’s the rules, no choice. if no accrued interest, everyone will cash out this way and some of not most will squander it away. some people will want to sell their bigger flats to buy smaller apartments to ’cash out’ their flat.

General

Theoretically speaking, if all Chinese nationals decides to slap everyone that’s not from China, almost everyone in the world will get slapped in less than 5 slaps slapped That said, China can be self contained and shut itself out from the world and it will affect the rest of the world more than China itself. But this should affect the rest of the world temporarily as many developing nations will seize this opportunity to prove themselves as a manufacturing powerhouse. US on the other hand functions differently. plus right now, it has a businessman at it’s highest office compared to a career politician everywhere else. this can be a double edge sword.

Savings

Investments

Retirement

Short answer: no longer answer: SRS is mainly to reduce taxes so since you have reduced your tax so much, why lock your money as opposed to having liquid cash? You can use liquid cash to buy investments and ice cream, SRS can only buy the former. Assuming you are years away from your retirement, there is various penalties and/or restrictions on your SRS money. maybe when your taxable incomes becomes sizable then parking some money aside to reduce taxable income can be considered. That is not to say you should max out the contributions every time.

Dividends

Stocks

Investments

General

You don’t. no matter how rich a parent, you never know when they will stop giving you pocket money whether they cannot give anymore or they decided to stop giving. If companies cannot give dividends anymore, it may seem bad, but in bad times, this may also mean prudence in managing available funds. again, dividend is another portion of cash flow management. How companies manage dividends at various financial health is a piece of the puzzle that shows the whole picture.

Retirement

Investments

Alvin Teo
Alvin Teo
Level 4. Prodigy
Answered on 13 Apr 2019
Since you are newbie, I’ll do what I do best, explain in primary school level. 1) I’ll very honest and blunt in saying that unlike many starting young, you do not have much room for experiments or error. Take about 2-3 months to gather info before buying first investment, you can first learn why people invest into unit trust or ETF. Somehow many people regret their first stock purchases in 2-3 months time. 2) For many reasons, ETFs or index funds are considered safer, its typically based on a basket of stocks rather than bonds but it is not crisis proof. many will argue that you can postpone your retirement 2-3 years and carry on working in case of a financial crisis but what if financial crisis occurs during your retirement, are you going to come out of retirement? 3) Buying ETF/unit trust should just form a portion of your portfolio. The other portion that is missing is the fixed income portion which is either bonds/annuity plans. These fixed Income assets will give you returns even during crisis and may even have capital appreciation. To be clear, SSB is not what I meant as it functions more like a fixed deposit than an actual bond because it doesn’t have capital appreciation. Maybe you have CPF but its not enough and it has diminishing returns. 4) Have fun, and at 42 years old, it‘s not worth to lose sleep over any investments.
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Level 4. Prodigy
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