Loo Cheng Chuan
Founder at 1M65 Movement

Top Contributor (Nov)

183 upvotes received
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Founder at 1M65 Movement
Business at NUS / Stanford
Top Contributor
(Nov)
  • Answers (63)

  • Questions (0)

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  • Topics (3)

  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    There is no hard and fast rule about how much your savings rate should be. What is important is to save as much as possible when you are young and put it in a compounding instrument such as the CPF Special Account and when you grow older, you will realise that you do not need to save as much to achieve a comfortable retirement.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - I cannot answer the question without knowing who these financial advisors are. However, I will be very skeptical of someone who claims to be able to provide double digit growth with minimal risk. Do refer to my previous post on the sequence of investment. One should build the financial safety net with CPF first and gradually increase the risk profile of investments and not jump into a high risk investment vehicle or something that you have no idea about. - As a rule of thumb, if I am not sure, I will not invest. For example, I do not understand Bitcoin and I chose not to invest in it. Looking back, it was the right decision for me.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - The best way to clear a $20,000 credit card is to work very, very hard. If you need to, take up 2 or 3 jobs to clear it. The high interest rate of credit card debt works strongly against you. - There are free social services out there that can help with debt counselling and negotiate with credit card companies to lower the charges and you should quickly leverage on these services. - In short,I will try to clear this debt as soon as I can. - I also do not think that taking a personal loan is a good idea.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - At 17, the most important thing is to discover your passion as it can help you identify the right area of study and work. Secondly, learn and internalise the power of compounding and appreciate how it can make you rich. Lastly, build a habit of thrift and saving. Lastly, find the right boyfriend/girlfriend that has the same mindset as you - you cannot work on it alone! - This should provide you with the tools needed to make you wealthy.
  • Asked by Hariz Arthur Maloy

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    The best legacy you can leave to your descendants is the financial know-how to become rich and the ability for them to be independent and become rich themselves. I personally do not believe in giving my children too much which will only serve to spoil them and not to have the need and urgency to work hard and to be thrifty.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    It is a good idea because cash carries a lower opportunity cost compared to the CPF OA. With the CPF SA, you actually get up to 6% returns where the HDB Housing Loan is currently at 2.6% interest rate. Hence, I would suggest you to use cash every month to pay for the HDB housing loan.
  • Asked by Neil Bowyer

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - Minimise withdrawals in terms of property purchases, medical bills, and or investments etc - Set aside as much as you can on SA for 1M65 - You should work as hard as possible (even taking up 2 jobs!) so that you can pour as much money as you can into your OA or SA - To harness the power of compounding, transfer as much as you can from OA to SA so that you have a higher rate of return and also try not to drawdown from Medisave
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - First, marry the right wife. If she spends all her CPF or non CPF monies, then it is an uphill challenge for you. - How you would grow your wife’s CPF is the same as how you would grow your own. 1. Minimise withdrawals in terms of property purchases, medical bills, and or investments etc 2. Set aside as much as you can on SA for 1M65 - You should work as hard as possible (even taking up 2 jobs!) so that you can pour as much money as you can into your OA or SA - To harness the power of compounding, transfer as much as you can from OA to SA so that you have a higher rate of return and also try not to drawdown from Medisave - Hence it is essentially the same for the Man and Wife.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    - I cannot tell you what you should do but here is my advice. I am not a big believer of property as a good investment vehicle. - The 2 reasons for property prices to rise are Population Growth and Economic Growth. At the moment, none of these are growing in Singapore right now, hence I will not invest much into property right now and for many years to come. - That said, I make sure that I am not overleveraged on my property purchase and it is not stretched beyond my purchasing power. On that note, I have always lived in HDB and I am very comfortable in it. - I will be skeptical of using property as a tool for retirement because it does not necessary grow well and there is a lot of property risks involved. - It is also my view that Government being very careful about property bubbles being formed and regularly step in to prick little bubbles that brew in the property market.
  • Asked by Anonymous

    Loo Cheng Chuan, Founder at 1M65 Movement

    Top Contributor (Nov)

    63 Answers, 183 Upvotes
    Answered on 07 Nov 2018
    I am not a big believer of buying life insurance or ILPs. I believe in Term Insurance with adequate coverage, one should focus on investments. Do not mix protection with growing wealth. Once I have become comfortable financially, I will kill all my insurance plans (which I have already done at this point of time).
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