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Ng Lip Hong Kyith

Engineer. Not the kind of Well Paid Engineer You are Thinking About.

Ng Lip Hong Kyith

Chief Editor at Investment Moats

42Upvotes

About

Engineer. Not the kind of Well Paid Engineer You are Thinking About.

Credentials

Chief Editor at Investment Moats

Computing at National University of Singapore

Ng Lip Hong Kyith

Chief Editor at Investment Moats

42Upvotes
  • Answers (38)
  • Questions (0)
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General

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Updated on 07 Jun 2019
You got to ask people that are pursing this path. Chances are it is such a small subset that you do not have to worry that they are self centered and selfish. Most likely they will keep to themselves, and you will not notice their selfish behavior. Knowing about it and embarking on it are two very different things all together. I know there are those that are not on the path, yet they do not donate. So maybe we should be more worried about those folks

AMA Investment Moats

Investments

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Updated on 07 Jun 2019
HI Ronald, some of their ETF have low expense ratio. However, what I would like to ask you back is what do you understand for the All Seasons Fund? The reason is that I have not gone through but I would like to hear what you understand how the active manager invest in this.

AMA Investment Moats

Investments

Hi, The idea of rebalancing is to bring your allocation to the desired strategic allocation. Often it is to ensure that the portfolio have a balance of reward and volatility. For example, I am a stock investor but on a high level, I am near the end where I won't have much capital injection. So naturally, I wish to reduce the volatility of my net worth. So suppose the market have been favorable such that the stocks portion of my net worth goes up to 65% cash 35%. I am more comfortable that the right fit at this point is 50% 50%. So I will find those stocks that are weakest in terms of future growth versus valuation and sell it. This will bring the allocation back to 50%/50% Now back to your question about REITs and unit trust. Unit trust is a fund or a group of stocks. They are suitable to dollar cost average and routinely rebalance. But u got to choose well because not alot of unit trust do consistently well over time. It's more dealing with the instrument. You wanna dollar cost average into something that makes sense. Usually people dollar cost average into a index fund because it's mechanical, weak stocks gets replaced by strong stocks that grew bigger. You can dollar cost average into it. However, for a unit trust which is active, the manager might be loosing his mojo. If you dca into someone losing a mojo it's not a good thing. Dca allows you to take advantage of volatility to get average prices but it's more of psychological to ensure you don't get psychological traumatized by a plunge. In theory, lump sum has a better performance because markets tend to be positive bias. Going to REITs, REITs is a single stock. Again you can dollar cost average if it's a strong individual stock. A lot of individual stocks do very well or die. So usually I don't advocate mindless dca. A more appropriate method is to analyze it we'll buy when the price is relatively undervalued. The only time you dca individual is when u have prospect and this stock have a good owner operator or a good capital allocator. An example of these are Berkshire Hathaway, Cheung Kong Hutchinson, Cheung Kong assets, markel For REITs if you really want to dollar cost average, perhaps should find some of those REITs that looks to be robust and around for a long time. Those with strong sponsors might help. If you wish a more plausible dca candidate, perhaps it is one out of the three reit ETF. Since this is a basket of REITs, you won't run into the problem of the reit you pick losing it's mojo and you going down with the ship together. One question to ask yourself is if this stock is down, can you find yourself dca into it? If you feel conflicted, it is either not the right asset to dca or you do not understand the motive of dca. In terms of rebalancing frequency, the research is pretty inconclusive. I favor the check once a year to see if the allocation is veering off the objective allocation. If it is then rebalance. This can be strategically adding your capital injection to the more undervalued asset

AMA Investment Moats

Cryptocurrency

Investments

Hi Kenneth, as an IT guy late to this game, I think I am optimistic about a crypto as a currency. But a lot of things needs to happen. 1. Make it a viable medium of exchange for normal day goods and services. Right now is challenging because unlike the Fiat we have now the value keeps fluctuating, it creates uncertainty in people meaningfully using it as the medium of exchange 2. Security and trust. While the whole premise is that there are validation of the transactions and it's transparent, it's not very assuring that once I lose my wallet I will lose the money forever. I guess that's why I prefer to own businesses on stock exchange or hard assets since I can see they are tangible. Bits and bytes are rather intangible. Having said that, in the next financial crisis, the body that bail out everyone might be the world bank.and they have talked about a pseudo currency call sovereign deposit receipts (sdr) and they are favorable of crypto. So we might see them creating something out of it. For what we know we still do not know the eventual form. Would it be btc or etc? It might be neither.

Loans

Ng Lip Hong Kyith
Ng Lip Hong Kyith
Level 4. Prodigy
Updated on 07 Jun 2019
Hi, Firstly we are trying very hard to understand what you are saying. It seems in reverse order. Do you mean your friend act poor thing so you lend the money, to your ex colleague, then he ran away so the debt collector is coming after you with $1200? Are you the guarantor in the first place? If you are not the guarantor just file a police report and tell them off. Find some means to hunt down your ex-colleague. Hard but I am afraid you may not get your money back.

AMA SG Young Investment

Expenses Tracking

Savings

Fresh Graduates

General

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Answered on 11 Sep 2018
You have already gotten your answer. From what you have said, saving is not the only priority. I am a blogger myself. I focus on wealth building. I would say i have an eye on it. my life involves food, family, sleep and money. Thats why i am all alone now.

Savings

Insurance

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Answered on 26 Aug 2018
Hi there, i think i missed out this question that is meant for me during the AMA. I think you can listen to what Luke said about what it is. From my interpretation, Pruwealth looks like a long term endowment that is pretty long. It guarantees that you will earn back your principal at the 20 year mark. From the brochure it does not seem to be distributing cash flow but i think at any time after a certaintime, you can draw down your policy for it. My thought is that this is a savings plan. Some of the folks here will say its not guaranteed and all but then if you put it in a robo advisor, you invest yourself, unit trust or STI ETF, those are not guaranteed as well. From the way its structured it is likely you will get about 2-4% in savings return. You have to ask yourself whether that is good enough for you. Endowment plans is such that for the first few years, you are locked in, and if you surrender, you are going to lose money. Are you ok with that configuration? If not then perhaps this is not for you. I think that as a form of savings with a rough 2-4% returns its not too bad. I got round the idea these stuff is out to fleece you, because there are folks that I cannot help to build up competency. this is a better stuff than a lot of poison i can think of. Would I get somethign like this myself? No I would not. As always, you have to see whether it has a place in your overall wealth plan Hope this helps.

General

Career

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Answered on 22 Aug 2018
It depends on a few metrics there are diffierent ways of monetization. If you have a blog that is based on readerships, pageviews, then you want to have as high page views as possible. The usual way of monetizing that is through contextual advertising or google adsense. There are other advertising platforms as well, and instead of going by clicks (for adsense) they go by cost per 1000 impressions. For those that are wildly popular, they typically take up sponsored posts, or affiliate marketing. for those in teh industry they might be able to deconstruct how much is earned. In my case the sponsored posts dwarfs the other form of advertising. But generally advertising is not a good model to go because to be very profitable, you got to up your rates (you need to be more popular and have more outreach) or you got to do more volumes. Your readers would have time wonder if you become financially free by living through them, or because of what you write about. So usually, most that are viable evolve to become a business based on credit cards, bank related promotions, or selling courses that teaches you some value added stuff. Dollars and Sense, MoneySmart, Dr Wealth, Fifth Person are some that comes to mind. They are not so much bloggers anymore, they are a business. Contrary to what people think, my income is a good to have. I certainly can't pay my annual survival expenses on the income i make. Due to the sponsored posts, it depends on the economy and whether people contact me. So it tends to be lumpy.

Investments

Ng Lip Hong Kyith
Ng Lip Hong Kyith, Chief Editor at Investment Moats
Level 4. Prodigy
Answered on 21 Aug 2018
When you start this, you should have an idea why you buy the ETF that forms your portfolio. So typically folks would want to cover on a global context. Say 1. International Stocks 2. US Stocks 3. Singapore Stocks 4. Singapore Bonds Why the above 4? it is an example but you have a strategic, or high level reason. Typically, the idea is that all 4 over time, are like savings deposits. They have a positive expected return which means that over time their compounded rate of return is positive. It is just that over time, they are volatile. there are some years they are under performing there are some years they do much better. The ideal strategy here is to rebalance those that are doing well into those that is doing not so well. Or if you have capital injection, prioritize injection into the ones that are not doing so well. This is a systematic buy low sell high. Now if you have no idea what is your strategic idea in the first place, then its more challenging to answer the question above.

Insurance

Ng Lip Hong Kyith
Ng Lip Hong Kyith
Level 4. Prodigy
Answered on 21 Aug 2018
I think it should be ok. What you provided is that you get a different category of insurance from different insurer. Usually the trigger for each of these are different, so the administrative cost to handle them should be manageable. There are the odd cases where you will claim more than one category. In that case, you might need to do more legwork, if you do not have an advisor
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