Loo Cheng Chuan

Loo Cheng Chuan's profile is not filled up yet.

Loo Cheng Chuan

Founder at 1M65 Movement

131Upvotes

About

Loo Cheng Chuan's profile is not filled up yet.

Credentials

Founder at 1M65 Movement

Business at NUS / Stanford

Loo Cheng Chuan

Founder at 1M65 Movement

131Upvotes
  • Answers (73)
  • Questions (0)
  • Reviews (0)

Savings

Bank Account

Loo Cheng Chuan
Loo Cheng Chuan,
Level 6. Master
Answered 2w ago
People with high salary not necessarily equals to people who are rich. Many people with high salary have high expenses resulting in them being wealth poor. You might be surprise, but many rich people that I encounter with high wealth have ordinary salaries. But it one thing for sure, people with high wealth, mostly put them into income producing assets.

Resale HDB

AMA 1M65

Property

Family

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
- 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.

AMA 1M65

Insurance

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
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).

AMA 1M65

CPF

Retirement

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
I feel that people need to have a mindset change that CPF is a retirement tool. For me, I think of CPF as a get-rich tool, hence it forms part of my portfolio to get rich and as a baseline for a financial safety net so that it help me to feel more secure and to balance my financial emotions for equity (read: riskier) investments

Retirement

AMA 1M65

CPF

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
https://www.cpf.gov.sg/Members/FAQ/schemes/other-matters/others Hope That this link will answer your question.

AMA 1M65

CPF

Policies

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
In short, the key is there is no such thing as 0% risk in any investment. Hence, let’s talk about probability. The probability of this happening in Singapore is very low, compared to the alternative out there. I would and have taken my chances with the CPF and it has proven to be very lucrative.

Retirement

AMA 1M65

CPF

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
From what I know, Generally, SA will be taken out first followed by OA to make up the requested partial withdrawal amt.

Investments

Family

AMA 1M65

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
i have answered a similar question in this series of AMA, go check it out. Key is to note my sequence of portfolio investment. It is probably not well written by investment experts but I firmly believe that if you dont follow a right sequence of forming a financial safety net, you can’t invest well in risky investments.

Investments

Savings

AMA 1M65

Loo Cheng Chuan
Loo Cheng Chuan, Founder at 1M65 Movement
Level 6. Master
Updated 2w ago
Good question on asset allocation. It would be a even better question (if you don’t mind me tweaking your question) if you could ask about the sequence of how I form my asset allocation. First, I build up my 1M65 portfolio. Meaning dump all I could with OA, Cash into the SA to max it out the FRS in my early 30s. This will then form a financial safety net for me to have the right emotional mindset to start allocating into other risky assets. Second I started building up my equities. When I started, I tried to do my stock picks, which over time, turned out largely to be disastrous. Eventually, all my equities are into Index Funds (ETFs). I tried to buy some US, Europe, STI funds across the board. Third, I do have a HDB flat. While I am against heavy property investment, one should always have a roof to your name, bought at a good price and right location. Last, when my assets are all build up, I eventually go into high risk / high volatility funds (which very high returns) and also became an entrepreneur (which itself carries high risk as well). Note the need for me to do it sequentially, else my financial guts would not be at the right level to manage the risk vs returns. Hope this answer your question

CPF

AMA 1M65

Investments

Loo Cheng Chuan
Loo Cheng Chuan,
Level 6. Master
Updated 2w ago
Hi. That’s a good question that I get a lot from passionate equity and property investors. The key is to compare the risk vs reward profiles of all investments instrument. It is arguable that CPF is very Low risk, probably the only risk are policy risk and political risk (risk of a poor government in future). Nothing is zero risk, so this would fit a Low risk instrument. I personally don’t like Property investment in our current state of economic maturity. In the Long term, property prices are driven by economic and population growth rates. However, in Singapore both growth rate are very Low in the foreseeable future. Plus the Govt has a phobia toward property bubbles and has repeatedly pricked these bubbles when they are show signs of brewing. I strongly favour Equity investment. Investment gurus would encourage one to split your wealth across equity and bonds. So I use CPF as a Pseudo Bond portfolio, to manage the risk of my entire wealth. If you were to dump everything into equity, you might not be able to stomach the market swings and fluctuations of the stock market. So park some into your CPF to form a financial safety net, so that whatever happens to your equity investment, there is a large sum on money that awaits you at retirement.
Load more questions
Level 6. Master
131UpvotesGoal 300
169 UPVOTES TO LEVEL UP
Browse Rewards
Top Contributor
Top Contributor
NOV