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Cheng You Yi

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Cheng You Yi

Financial Advisor/Remisier at Phillip Securities Pte Ltd

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Financial Advisor/Remisier at Phillip Securities Pte Ltd

Cheng You Yi

Financial Advisor/Remisier at Phillip Securities Pte Ltd

  • Answers (7)
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AMA The Fifth Person

Investments

Why is the Federal Fund rate so important to investors? shouldn't this only affect the rate at which banks can lend to each other/ with the Central Bank?
You are right, the rate applies to interbank borrowing. But it does have spillover effects to the economy at large. If fed rate increases, it becomes more attractive for banks to lend/deposit with the central bank. Hence, lesser funds are available to loan out to public. To make it more attractive for banks to lend out to consumers/businesses, loan rates will have to increase. Another spillover for this is that for banks and companies to get more funds from the public, they will naturally increase interest rate/bond coupons rate. The opposite will occur when fed rate reduces; banks will choose to lend more funds to the public, lowering loan rates to attract more lenders and deposit rates since they do not need that much funds.
šŸ‘ 4

Endowment Policies

Term Life Insurance

Insurance

Which insurance company offers Limited-Pay Term Life Insurance?
Cheng You Yi
Cheng You Yi
Level 3. Wonderkid
Updated on 07 Jun 2019
Believe it was AXA
šŸ‘ 0

Retirement

What do you think of the Aviva MyRetirement plan?
Cheng You Yi
Cheng You Yi
Level 3. Wonderkid
Updated on 07 Jun 2019
The internal rate of return is 2.57%. Total premiums: $38,500 Total guaranteed income: $95,400 If I remember correctly, there is also a maturity payout for this plan. Generally speaking, this is a decent plan. While some might say, you are still young, should put in investments instead, I find nothing wrong to have some level of guaranteed income set up to hedge against dividend fluctuation in your retirement. This is especially true if you are risk adverse. Additional recommendations will be to compare between different insurers and different plan (there are some that provide lifelong income) to see which one is more suitable to your retirement goals.
šŸ‘ 0

Insurance

AMA Christopher Tan

What insurance would you highly recommend for fresh graduates? I just graduated and can only afford a yearly premiums of maximum $1k?
Since you are still paying down debt, you should first and foremost get a hospitalisation plan. If you are concerned that your income might be affected due to disability, get a disability income insurance. For term life, whole life, you can wait till you have paid off your debt unless you have dependents (your parents, wife or child) that are highly reliant on your income.
šŸ‘ 0

Investments

Is Fundsupermart or Poems better for long term investments of trust funds?
Cheng You Yi
Cheng You Yi
Level 3. Wonderkid
Answered on 20 Dec 2018
Hi, are you looking into ETFs (echange traded funds) or unit trust/mutual funds. For Unit trust funds, POEMs has zero sales and platform fees.
šŸ‘ 0

Insurance

Would getting a term insurance till 65 be better than a whole life cover? What happens after 65 then?
Cheng You Yi
Cheng You Yi
Level 3. Wonderkid
Answered on 12 Dec 2018
I advocate a basic WL (with CI/ECI cover) plus term till 65. This will provide cover for after 65 as well as affordable and sufficient cover during your working years Of course, the argument why you don't get WL if you buy term invest the rest is that after 65, the investment you have built up will serve as sufficient self-insurance. There are a few points to take note if you choose BTIR route: 1) Market conditions when you are 65 is uncertain. Sure, over 20 years, markets generally are better, but this is not a guarantee. 2) Your investment after 65 should be providing you a passive source of retirement income. If something major happen, you will have to dig into this portfolio. Depending on the severity, the passive retirement income you are depending on will drop.
šŸ‘ 0

Lifestyle

Why do people say "the poor get poorer, the rich get richer"? Even though there are examples of poor or disadvantaged people who became fairly well-to-do, or sometimes even rich?
Cheng You Yi
Cheng You Yi
Level 3. Wonderkid
Answered on 02 Nov 2018
It takes a lot more effort for the poor to go up the ladder. Not only does not the poor have more obstacles to hop through, the rich also has more resources and opportunities to get to the next level.
šŸ‘ 2
Level 3. Wonderkid
33PointsGoal 40
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