Jacky Yap - Seedly
Jacky Yap

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Jacky Yap

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Jacky Yap

35Upvotes
  • Answers (15)
  • Questions (3)
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Bank Account

Jacky Yap
Jacky Yap
Level 4. Prodigy
Answered on 11 Jun 2019
Hi there! Im not too sure about the various foreign banks so I can only share my experience with the local banks. I think it all comes down to convenience . Some context, when i opened my first SME account, I was using OCBC. And then I used DBS SME for my second SME account. We have dealings with overseas client. In my experience, as our clients are mostly in Singapore, going with a local bank is much more convenient for us as we will need to regularly visit our local bank for off the counter services (cheque facilities, forms endorsements, updates of particulars) etc. If you are using a foreign bank, they might not have as big a network of bank outlets as the local banks. That will probably be the main reason why most businesses choose local banks over foreign banks. Foreign banks might have longer clearing period for banking transactions too. When we deal with overseas clients, banking matters are also quite minimal as they can just do the TT into our local bank account. It also helps that DBS is the largest bank in Asia so most transactions will go through. In my mind, perhaps you are considering using other foreign banks because of better rates for some of their products (credit facilities). Using a local bank doesnt stop you from using the facilities of other foreign banks. For us, our Malaysia office uses Maybank (the biggest local network in KL), and for our experience, even if we wanted to use Maybank Singapore, we understand that both the Maybank in Msia and Singapore are operated differently. You cant bank in a Malaysia Maybank cheque via a Singapore Maybank. So it's hard to find a reason why someone would want to use a foreign bank account as their primary bank account . Maybe one can consider using certain facilities of a foreign bank, but a local bank as a primary bank account definitely brings more convenience. Since we are talking about this, in my experience, DBS SME is slightly better than OCBC SME (used / using both), because somehow there are more people using DBS personal / SME account, hence when you do your bank transfers to your supplier / employee / invoice payments you save up more - DBS to DBS fast transfers do not need fees while interbank transfers usually charges a $0.50 service fee. :)

Investments

SAXO Capital Markets

Jacky Yap
Jacky Yap
Level 4. Prodigy
Updated on 11 Jun 2019
Hi there - im using saxo too. I believe it is a TT if your registered account is in USD. If it is a Singapore account it might be a giro transfer. Best is to just call the hotline. :) I remembered withdrawing from my USD account too and was charged a small fee.

Bank Account

Savings

Investments

Jacky Yap
Jacky Yap
Level 4. Prodigy
Updated on 07 Jun 2019
Hi there, actually i think the best thing you can donow is just, get a broker account, deposit 1k - 2k inside, and just buy any stocks (something that you can see / understand eg local banks / telcos / big global companies), and then you will figure out the rest. Even if you lose some money (lets say 10% on the 2k), it's probably a small amount ($200) considering the fact that this will make you take action today. the inaction today will probably make you lose out on more money (in terms of compounded return) in the long term. :)

Funding Societies

P2P Lending

Investments

SeedlyTV EP07

Jacky Yap
Jacky Yap
Level 4. Prodigy
Updated on 07 Jun 2019
hello! Yes i think it is ok. p2p lending is run by experienced team who will screen all the loans before they take them in and open the loans to public investors. im not in the p2p business but i think this is the process: 1) loan application by SME from P2P 2) P2P platform screens, does audit of the SME's business and determines risk and suitability + loan quantum 3) If business is sound, P2P approves the loan, if it is a bad business, P2P platform wont approve 4) Once loan approved, P2P platform publishes the loan and avails it for investment by public investor 5) public investor can take a look at the summary of the SME, the risk assessment and decides if he wants to invest in the SME's loan. So you can choose which business loan you want to back. And you can choose the amount. It is also in P2P platform's interest to ensure that the default rate is very low so that investors will continue to invest, because a bad apple will really break investor's confidence in the P2P platform. Funding society's default rate is <2% overall so is actually not that bad. For me, ive been on Funding society for almost 1 year now, no defaults so far. Returns should be around 7-9% after deducting the fees by funding societies. Overall experience is not bad, would personally recommend it for investors with medium to high risk profile. :)

Investments

Jacky Yap
Jacky Yap
Level 4. Prodigy
Updated on 07 Jun 2019
Hello there, a lot of people will tell you to start reading up etc. that's a given. :) Let me share with you my personal experience, but this is by no means a formula or financial advise (im not affiliated with any financial institutions too). When i started to decide what to invest in, i first decided what is my risk profile. As an impatient guy, my risk profile is quite high, hence i dabbled into US stocks. US tech stocks have been going up so i was lucky to catch some part of it since i started a year ago. US stocks is probably one of the investment product with the highest risk (daily fluctuation of 1-5%). Understand that my investing journey will be 10-20 years, so i am more focused on building my capital now (because no money) - hence US stocks fits me best because it can provide a decent capital gain in a short period of time (can go both ways), and i can stomach the risk. Other products like ETFs, REITS etc, you can only see the return in 5-10years for the compounding interest to kick in. After putting in some money into the US stock market, i realize that i need to balance out my portfolio with lower risk investment products, hence i looked into funding society for p2p lending, and then a little bit in SG REITs to build my long team dividend portfolio. These are done using the capital gain from my US stocks, diverted into my smalll dividend porfolio (ie REITs). So to sum up: my first 2 years of investing: - US tech stocks for capital gain (super high risk) - balance risk of US tech stocks with p2p lending (medium risk) my hypothetical 2-5th year of investing (not there yet this is my 1st year only) - capital gain from tech stock slowly converted to SG Reits for future dividend portfolio (medium to low risk) my hypothetical 5th - 10 year of investing - slowly build up dividend portfolio and waiting for dividend to compound the returns (medium to low risk) - CPF should have some money (low risk) And the constant thing from start of investing: 1) Read up, follow financial bloggers 2) Save money 3) Reduce expenses (sometimes it is harder to think of how to make extra S$200 a month, than to cut down on S$200 a month in expenses, both resulting in +S$200 in wealth) 4) optimize on credit card rewards 5) be insured 6) always remember that this is a long game (10-20 years) At least that's the plan la hahah. kthxbye

Investments

DBS Multiplier

DBS Vickers Securities

Savings

Bank Account

Jacky Yap
Jacky Yap
Level 4. Prodigy
Answered on 03 Jun 2019
Hi there - that's funny because it's auto-linked for me. When i execute a trade on vickers, my vickers account will be "negative" and then it will be deducted from my multiplier account.

Investments

General

Jacky Yap
Jacky Yap
Level 4. Prodigy
Updated on 22 May 2019
Woah congrats! Many would aspire to be in your position in early 30s! There are so many ways to construct an investment portfolio that is it so hard to answer this. But the fundamentals of an investment portfolio comes down to, what is your risk appetite. Low risk = higher allocation in low risk investments (High yield savings account, SSBs, defensive REITs) High Risk = higher allocation in high risk investments (REITs, growth stocks, alternative investments) Im not a financial advisor so I can only share what i wish would be in my portfolio if i have S$250,000 in savings. Risk appetite: Moderate to high risk Cash in high yield bank account: S$50,000 . I'd allocate these into DBS multiplier for a 2-3% annual interest rate. This forms my daily expenses, emergency fund, serves as liquid cash. REITS: S$100,000. I'd aim to get some good quality REITs which gives me 5-6% of annual dividends, of which I'll reinvest to get more REITs. US Growth Stocks: S$100,000. I'd aim to get 6-8% of annual capital gain from this, of which I'll reinvest into my REITs portfolio to get more recurring dividends. Of course, if I were to do these, I would have made sure that I have S$50,000 - S$80,000 in my CPFSA as a safety net / buffer for my high risk appetite. Disclaimer: This is an illustrated portfolio, and I'm not a financial advisor. :) Private property is great but with S$250,000 - it's pushing it a little, even more so if its a single owner occupancy. A 3BR condo can be between 500k - 1M or more, and the downpayment, renovation, monthly upkeep and mortgage can be stressful. Are short term saving plans eg. lock up capital for 3-5 years with 2-3% returns good? Hmm i honestly dont think its good. There are many other instruments that gives u 2-3% without the capital lock up (high yield savings account, some defensive REITs). Hope this helps!

Savings

Jacky Yap
Jacky Yap
Level 4. Prodigy
Answered on 17 May 2019
Hello there! Every individual's personal finance situation is different so there is hardly a right or wrong answer, but whether the circumstances are acceptable to you at this stage of your life if you are considering to settle down with him. I think there are a few other things that you should take into consideration: 1) Will his earning power increase? - At 24 years old, i'd imagine if he is a PMET / working professional, his earning power should improve over time. If he is proactively upskilling himself and performing well in his work, these are great telltale signs that his earning power will increase, after which his savings rate will definitely increase. - Bad sign = if he is not motivated in life and has no concrete plans as the years pass by. - It is not uncommon to hear someone at age 24-25 (within first 2-3 years of graduation) to not have any savings, and then start saving up substantially after the second job or when he realizes that he needs to plan for the future. This awakening is part of the adulting process. - Adulting also means - giving up short term discomfort (cook during the weekend instead of restaurants or bars) for long term wealth. 2) Does he have any bad money habits? - "living pay check to pay check" implies that he might have high monthly expenses. It probably will be a good time to talk to him and examine these monthly expenses. the "problem" will be better if these expenses are variable expenses (food, cab) which can be cut down. - If he is spending what he earns / more than he earns, he should probably reflect internally and see if this is sustainable. - If the monthly expenses are for fixed expenses (insurance, rental, bill payments) , it could mean that he has many commitments that he has to be responsible for - can see down together to see what is absolutely necessary and what is not) There are too many facade to this question but i think if he is willing to relook into his personal finance and take ownership of it , proactively upskilling himself for potential increase in earning pwoer, willing to not spend unnecessarily , actively reduce liabilities, I think it's ok to not have much savings at the age of 24. He probably still have about 4-5 years to save up for his first few milestones in life (marriage / hdb) - which is quite manageble. If both of you save 1k a month now for 4-5 years, you can save up quite a bit! For additional context, at age 24, i have less than 3k in savings, living pay check to pay check (first job paid me 2.2k) and have student loans to pay off! Hope this helps and hopefully, love conquers all! Ps - not a financial advisor + just another guy with less than 3k in his bank account at age 24

Savings

General

Jacky Yap
Jacky Yap
Level 4. Prodigy
Answered on 25 Apr 2019
Actually i have a rather different take on this question. Whenever I see other people recommending a "6 months" raining day fund, ill ask myself do i do that? The answer is no and I ask myself why. I found out that my excess funds are often invested in rather liquid investments and i can withdraw them into my cash need whenever i need. Of course I adjust the risk based on overall sentiments of the market (thats the whole different question on portfolio management). For me i look at things at % chance of happening vs the risk rewards. My thought process is this - whats the chance of a loss of income? If the chance is moderate to high - then i probably should have at least 6 months. For most people, id think the chance is low (if u are performing well in work, and u are adequately covered by term insurance). If the chance of a loss of income is zero to low, i think the 6 months raining day fund can be invested in liquid assets that can be liquidated in 1-2 weeks (id think most stocks or reits has this liquidity). So for me, instead of 6 months raining day fund, im keeping like 2-3 months and the rest is invested in the market or just as a war chest. I also make sure that im adequately covered by a term insurance. Why just 2-3 months? That's because the % chance of making some money in the market is higher the % chance of needing the raining day fund especially in the bull market. If i need more money, i can liquidate some stocks for my cash needs. I hope this doesnt come and bite me in the ass. So then it boils down to your risk appetite, and also largely at which life stage you are at now. + I'd think if you have a family and many dependents, you will definitely need more than 6 months, like maybe 12. + If you are single and young, you probably don need / dont have 6 months worth of raining day fund. + If you are getting married / expecting a baby, hopefully you would have channelled some budget into your marriage / home / baby budget. So i think the answer "6 months raining day fund" is too general an answer to everytime this question is asked, though it is a good guideline. Just my 0.02.

Investments

Jacky Yap
Jacky Yap
Level 4. Prodigy
Answered on 26 Feb 2019
I'm using Saxo - been using it for years now. - Very low fees (USD3.99) per trade so if your trade is USD2000, the fees is roughly 0.2% - instant trades - Fund depositted reflects into saxo account quite fast - Made withdrawals before all no problem. Do note that saxo is a custodian account. :)
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