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Charmaine Chua

Personal Finance Geek

Charmaine Chua

Personal Finance Geek at My Own Life

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Personal Finance Geek

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Personal Finance Geek at My Own Life

Charmaine Chua

Personal Finance Geek at My Own Life

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PolicyPal

Investment Linked Policies (ILP)

Insurance

Life Insurance

Term Life Insurance

Whole Life Insurance

Should I withdraw from my great eastern ILP and purchase a term/whole life insurance product instead?
You should just give up the ILP and buy term life :)
šŸ‘ 0

COVID-19

Economics

The Supplementary Package is an additional $48 billion. If $17 billion from past reserves, so $31 billion will be from current reserves. Do we have that much money in our current reserves?
Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 3. Wonderkid
Answered on 28 Mar 2020
Let me share my thoughts and interpretation my research on this topic. How to distinguish between current and past reserves? According to this article on Today, 'At the end of each term of government, the accumulated current reserves will be transferred to the Past Reserves'. To verify the quote from Today, I checked MOF's website which states that 'Past Reserves refers to the reserves accumulated during previous terms of Government'. Current reserves will refer to all budget surpluses accumulated from 2016 to today. Past reserves will refer to all budget surpluses accumulated from before 2016. How much current reserves have we accumulated so far? To get this figure, we will have to sum up the budget surpluses accumulated since the current government's term started. Based on the article on Today, this will refer to Fiscal Years (FY) 2016 to 2020. In actual dates, this also means 1 April 2016 to 31 Mar 2021. FY 2016 to FY 2018 The surplus for FY 2016 to FY 2018 is available on Singstat, where you can sum the row 'Overall Budget Surplus / Deficit'. The sum is at around $20.2 billion. FY 2019 The surplus for FY 2019 is available on Singstat only as an estimate, under the row 'Overall Budget Surplus / Deficit'. This figure is a deficit of $1.6 billion. For our purposes, let's use this figure. We can then conclude that the 'current reserves' from FY 2016 to FY 2019 is $18.6 billion. Balancing The Figures Back to the question on where do we get the $31 billion? Based on our above numbers, we $18.6 billion can be attributed to our surpluses from FY 2016 to FY 2019. What about the remaining $12.4 billion? This will have to come from FY2020's expenditure. Final question - Is the $12.4 billion a realistic figure? Our total estimated expenditure in FY 2019 was $78 billion. $12.4 billion works out to be around 16% of FY 2019's total estimated expenditure. I would say this is a realistic figure which we are able to utilise from FY 2020's revenue. Disclaimer The above view is based on my research and I have provided the links wherever possible. If I have made any incorrect interpretations, please let me know and I will correct it ASAP.
šŸ‘ 1

Insurance

Investments

Should I be able to trust my insurance agent to ensure that my policies are meeting my needs? Or is it my own responsibility?
Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 3. Wonderkid
Updated on 27 Mar 2020
Insurance can sometimes be made to sound like a simple commitment, when in fact it's not. It's common to hear insurance agents say "Oh it's just $100 a month, nothing much one right?" to induce you to make the purchase. Let's see things from a different perspective. Someone who's 25 years old and wishes to get protection coverage until retirement age of 65 years old. Premiums per month: $100 Premiums per year: $1,200 Premiums until 65 years old: $48,000 Would you sign a $48,000 contract just because someone told you that it's good and suitable for you? I hope not. Yes, insurance may not be the most interesting subject for some. Hunter-gatherers had to learn how to hunt and build shelters to survive. In today's world, understanding insurance is akin to learning how to build a shelter in the hunter-gatherer age. To answer your question, you must not fully depend on your insurance agent to ensure your coverage needs are met. When the unfortunate happens and you realise you did not get the correct protection, your insurance agent bears no legal liability. There's an abundance of resources out there on understanding insurance in the Singaporean context. I can instead share the benefits of taking the time to follow up on your insurance coverage to entice you to spend the time :) - Substantially cheaper price for the exact same coverage. Example from Personal Accident Plans: FWD: $90 per year, GE: $320 per year - Become a less attractive victim to agents who sell you plans which do not meet your needs. Go take a look at how much agents earn from selling a plan and you will discover the immense conflict of interest present in the industry. - Achieving a peace of mind when you are fully aware of how your dependants will be covered should the unfortunate happen. What You Can Do I believe the guys at PolicyPal and MoneyOwl are quite a game changer in the insurance industry where they focus on affordable and correct insurance protection . You can take a look there and see how they can help you. From what I know, they're even offering tele-conferencing consultation during this Covid-19 period.
šŸ‘ 0

Investments

Stocks Discussion

Which should I choose - VTI or VOO?
Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 3. Wonderkid
Updated on 27 Mar 2020
TLDR: Same Same but Different. Up to you if you want one or both. Why Different? While these 2 ETFs have slightly different rules, they end up with slightly similar results. Why? What an ETF does is to replicate the performance of an index. VOO and VTI are replicating different indexes. If you want to know about the indexes being tracked VOO - S&P 500 Index VTI - CRSP US Total Market Index Why Same Same? The reason why they are similar is because the index that each ETF is replicating has quite a number of overlaps in the assets held. If you were to dig into what assets these 2 ETFs hold, their 10 largest holdings are exactly the same! Refer to the below screenshots which I got from Vanguard's website for VOO and VTI. A gentle reminder : Always go to the source to get the answers. Hearsay is not enough when it comes to your own hard earned money. ! !
Answer image preview
šŸ‘ 3

COVID-19

STI ETF

Investments

SeedlyTV S2E01

Given the current COVID-19 situation and DPM speech today, is it a Yay or Nay for STI ETF (RSS)?
Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 3. Wonderkid
Answered on 27 Mar 2020
The key tenet of Dollar Cost Average (DCA) is discipline. Continue to be disciplined at your contributions and your efforts will yield you great returns in the future. You continuing with the RSS will lower the average price of the STI ETF held. In the long run, this can help to increase your returns when the market recovers. I am also assuming that you financial situation has not been negatively impacted by Covid-19. If it has, continuing it might not be viable option if you are unable to finance this investment. But whatever you do, don't sell it and realise these paper losses unless its an emergency!
šŸ‘ 1

Stocks Discussion

Investments

Savings

Insurance

COVID-19

SG Budget Babe

Savings Accounts

As of now IF you have $10,000, will you put it in endowment plan or use it to invest in stock and why?
Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 3. Wonderkid
Answered on 26 Mar 2020
There's more than 2 options to your hypothetical question. Let me broaden the scope of your question by suggesting another option which guarantees your capital, gives you a decent return relative to endowment plans, and gives you liquidity. Singlife Manage is a decent product that gives you 2.5% per annum. :)
šŸ‘ 0

Insurance

Term Life Insurance

Family

Recommendation to get term insurance for 60yo? Would like to help check for insurances coverage as well; said person have personal accident + hospitalization rider only, which would be a good policy to go with these?
Charmaine Chua
Charmaine Chua
Level 3. Wonderkid
Answered on 26 Mar 2020
When it comes to price, I'd strongly recommend you go direct to the insurer. I shopped around quite a lot when looking for my own coverage and realised that FWD and Singlife offer really competitive rates. I did a quick check for you using these details - Male, 60 years old, non-smoker, coverage $400k, coverage term 10 years till 70 years old. FWD - Monthly premium $191.40 Singlife - Monthly premium $284.60 You might want to provide more information like your desired coverage amount, coverage term as these contribute greatly to the calculation of your premiums. That being said, any reason why you decide to get term life insurance at 60 years old?
šŸ‘ 0

Health Insurance

Healthcare

Lifestyle

Insurance

I am a 25 year old student. I would like to get a health insurance for myself but after researching, I got even more confused. Does anyone have any tips on what to look out for?
Charmaine Chua
Charmaine Chua
Level 3. Wonderkid
Answered on 26 Mar 2020
Hello! I think you might be referring to hospitalisation plans on top of your current Medishield coverage. Ignoring the medical jargons, other than the price, you should also be looking at coverage like how many days of pre and post hospitalisation the policy will cover for. That can matter a lot financially when it comes to illnesses with long-term complications.
šŸ‘ 1
Level 3. Wonderkid
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