Hao Yu
Advisory Specialist at MoneyOwl
8 upvotes received
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Believes that a little help goes a long way.
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Advisory Specialist at MoneyOwl
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  • Asked by Anonymous

    Hao Yu
    Hao Yu
    5 Answers, 8 Upvotes
    Answered on 24 Jan 2019
    Based on a personal research I did in 2017 using ES3 STI ETF returns from (10/01/2008 till 5/04/2017), the historical net annualized return for a person who did DCA across 10 years period is approximately 5+%. This is based on the following assumption: Transaction fee - 1% 87 set of data - based on 87 different start dates. I used daily share price to compute the returns. Historically, STI ETF DCA can return 5-6% net return after fees. (Note: Historical performance does not equal future performance.) However, to ensure that you can enjoy this type of return over the long run, the key is to stay in the market. Across the 10 years period that I analyzed, the volatility across a 1 year period for DCA is approximately +/- 25%. Without proper understanding and planning of the investment, an investor may panic and exit the market prematurely when there is a market downturn. Therefore, it important for you to also understand the underlying risk and your financial situation to withstand the volatility you may face. The key risk here is not the losses you can potentially suffer but you exiting the investment early due to your emotions.
  • Asked by Kenneth Lou

    Hao Yu
    Hao Yu
    5 Answers, 8 Upvotes
    Answered on 20 Sep 2018
    I have not been there and done that but I am in the same position as you. Apart from the hard financial stuffs like setting goals, having a plan and managing cash flow, I feel that the soft aspect of financials is also very important. One aspect is the mindset that both of you have towards money. Money should be an enabler to achieve the life that you want to live (a means to an end) and not the end goal. so it is important to be aligned on this so that there will be minimal conflict when deciding how to spend money on the household. Another aspect is the type of your lifestyle (often link to money) that both of you expect in the future as a couple. It is important to talk about this matter because it sets the right expectation for both parties and the commitment towards the future. Having talks on this 2 aspects can be done anytime and doesn’t have to be planned out haha like on a normal day nuaing around. It will be fun and exciting to talk about the future :) hope my perspective helps!
  • Asked by Anonymous

    Hao Yu
    Hao Yu
    5 Answers, 8 Upvotes
    Answered on 20 Sep 2018
    My recommendation would be to speak to a Private Banker. The tools that they can provide you as a high net worth client are as followed: 1) A trust to manage your money for you. The advantage of this is that you can set conditions for the trust you set up and have a team of professional manage your money for you. For your case, some conditions can be Capital Preservation which is the preservation of purchasing power since you are not looking for returns. Allocation of a monthly income to you and any of your family members in the future for living expenses. Another advantage is that your money in the trust will be protected against creditors In the event of bankruptcy. However, putting money in the trust effectively means ceding control of your money even though its yours. So be sure to consider the allocation of your wealth in this vehicle. 2. As mentioned in another comment, private placement program. Bonds are often issued In private placement, this give you access to bonds that retail investor has no access to! If you hold a high rated bond with coupon of 3% till maturity, your yield to maturity will be 3% and not affected by interest rate fluctuations. Unlike most of us who invest in bond funds, we have no say when the fund managers sells or buys new bonds, exposing us to interest rate risk. 3. There are many more complex financial instruments such as Accumulators, Currency Exchange Options... but I wouldnt think its suitable for you to go there because these products are complex and risky. There is definitely a lot of option for you to DIY (as you can see in suggestions given by the other comments) but this takes up time and effort to track. Being a doctor, you may not have the time to do it. In addition, given the size of your wealth, the instruments that you have access for DIY is quite limited. Thus, it will be better to find a professional wealth manager or private banker to help you out. Look around and take time to figure out whos the best to help you out! :)
  • Asked by ZH AhHeng

    Hao Yu
    Hao Yu
    5 Answers, 8 Upvotes
    Answered on 08 Sep 2018
    Just to set the stage right, I am assuming you are talking about equities only. For all equities, they generally have both capital gains and dividends Total Returns = Capital Gains + Dividend Yield To decide which type of investments to go for, you need to consider what’s the purpose of investing this sum of money? If its to help you build a passive income stream to sustain a certain kind of lifestyle in the near future, I would say income-driven investments where most of your returns are coming from dividend. If you have no need for the passive income so early in your life, capital gains is what I will suggest. The reason is because if you have no use for the passive income, you will either be spending it unneccesarily or reinvesting. Reinvestment will lead to risk such as inavility to generate the same type of returns had you went for a growth driven strategy, lack of discipline to reinvest etc. Other considerations in determining your investment strategy: 2. How long is your investment period? This is in relation to your answer to the first question. In general, the longer your investment period, the more risk you can take because you will have more to recover in the event of a market decline. 3. How willing are you to take risk? This depends on your reaction towards market volatility. If you’re those that cannot sleep when market is volatile, go for a safer asset class like Singapore savings bonds. If you’re a super aggressive investor, you can go for risky asset class. Last but not least, if you notice, most of my points are about risk and not returns. This is because investment should have a hevat emphasis about managing your risk to get the risk adjusted return you need. Returns will come with due diligence in managing your risks properly. You can simply get super high returns by taking a lot of excessive risk. (but is it worth losing all your money?) There are many other considerations but those are discussion for another day haha hope this helps :)
  • Asked by Yar Hong Chiong

    Hao Yu
    Hao Yu
    5 Answers, 8 Upvotes
    Answered on 04 Sep 2018
    Nope. DBS will only recognize transaction with under the category “Salary”. A stipend from a scholarship will not be classified under “Salary”. In addition, some stipends maybe credited at a semi-annual basis instead of monthly basis. :) as for credit card, it should be no issue if u can hit the min salary!

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