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Thaddeus Tan

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Thaddeus Tan

Top Contributor

Community Lead at Seedly

109Upvotes
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Investments

Robo-Advisors

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 22 Jul 2019
! Robo-advisors are digital platforms created by humans which provide investment services with little to no human supervision as they are algorithm-driven. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey and then uses the data to automatically invest client assets. In Singapore, there are 5 robo-advisors you can choose to invest with. They are Smartly, Autowealth, Stashaway, MoneyOwl and Endowus. Although they might seem like they were started for the same purpose, there are differences which sets them apart from one another. We will examine them later on. I think that it is important to note that Robo-advisors is not really an asset class contrary to popular belief. Asset classes include stocks, bonds, ETFs, Unit Trusts, REITs and property. By using Robos to invest, you are effectively tapping on a platform so that you can invest in certain asset classes as compared to if you were to hire a financial advisor to do it for you or even DIY. Using robos enables you to adopt a low cost, diversified, passive approach especially since you are letting the algorithm invest for you. Instead, Robos act as platform so that you can invest in certain asset classes as compared to if you were to hire a financial advisor to do it for you. Now to address your question, whether robo-advisors are something that should be considered now, it ultimately voices down to what type of person you are. If you feel that you are somebody who is relatively new to investing, investing for the long term and lastly don’t have alot of time to choose and pick your stocks individually (more passive way of investing), then I feel that you CAN consider Robo-advisors. However, please still do your own due diligence. Let’s compare between robo-advisors and human advisors before diving into the pros and cons. 1. Low cost : The main advantage of robo-advisors is that they are low-cost alternatives to traditional advisors. By eliminating human labor, online platforms can offer the same services at a fraction of the cost. Robo-advisors thus charge a lower fee than a human advisor. 2. Services: The services offered by a robo-advisor is usually only investments. However for human advisors, they usually provide a wider range of services like financial planning etc. 3. What type of people they are for: ! Here are some of the pros and cons of associated with using robo-advisors to invest. ! So now that you know more about robo-advisors, let’s look at what robo-advisors are there that are available for you to invest with. In Singapore, there are 5 robo advisors. They are - MoneyOwl - Endowus - Smartly - Autowealth - Stashaway Here’s some history and their investment philosophy MoneyOwl History : Started in 2018 as a social enterprise and a joint venture between NTUC Enterprise Co-operative Limited and Providend Holding Private Limited, currently led by Chuin Ting Weber, CEO and CIO of MoneyOwl (previously DIY Insurance). Has other functions other than just being an investment robo. Investment philosophy : Building of Global portfolio via Dimensional Fund Advisors (DFA) & iFAST as the platform Endowus History : Started in 2017, led by Samuel Rhee, former CEO and CIO of Morgan Stanley Investment Management Asia. Investment philosophy : Building of Global portfolio via Dimensional Fund Advisors (DFA) & PIMCO fund Stashaway History : Started in 2016 by ex ZALORA Group CEO, Michele Ferrario, ex Nomura MD, Freddy Lim and CTO Nino Ulsamer Investment philosophy : A proprietary investment strategy called the Economic Regime-based Asset Allocation (ERAA) which continually monitors economic and market cycles to rebalance accordingly. Smartly History : Started in 2015 by ex start-up professional, Keir Veskiväli and Investment Analyst, Artur Luhaäär Investment philosophy : Modern Portfolio Theory (MPT) consisting of ETFs that efficiently capture the global stock markets as well as give exposure to bonds and real estate. Autowealth History : Started in 2015 by ex Investment Banker at government firm, Ow Tai Zhi and ex Management Consultant, Noel Lee Investment philosophy : A rule-based investment approach and strategy which places a strong emphasis on diversification across major asset classes, geographical regions, and industries. Should you need to take a look at the full comparison among the 5 robos, we have one here and also a video with the 5 different heads of the respective robos. Different robos have different investment methodologies as seen above. Although the robos are the one that is helping you invest, it will be good to understand the investment methodology of the different robos so that you can choose the one that best fits what you prefer. As always, the information as seen above is there to give you some background on the different robos in Singapore. Please do your own due diligence before deciding which robo advisor to invest with should you choose to use robo advisors.
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Lifestyle

Thaddeus Tan
Thaddeus Tan
Level 6. Master
Updated on 24 Jun 2019
Hi Gabriel, thanks for the concern. As you might have already known, we have made some changes to Seedly web. As a result, the team is still trying their best to make sure everything goes well for our users. We really appreciate the feedback, do let us know if there is anything, thank you!

Bank Account

General

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 19 Jun 2019
Hi Anon, firstly #ORDLOHHH HAHA sorry just had to. But anyway to answer your question. here's some advice! Try to save whenever you can save... If you are in camp week in week out, you get to save quite a bit on transport and food. Some people might think that since they are in camp from Mon-Fri, they have more money to spend on the weekends. NS is also the time when we start doing certain activities which might cause a hole in your wallet especially if you do it often if ykwim. Here's not to say that you should scrimp and save. I understand that there are definitely certain things we want to spend on. You should! It's your hard earned money! But before you do so, it would be good if you could sit down and have a good financial plan . You have a monthly pay of $735, it's not the most and so the more you need to have a plan. You could allocate a percentage to savings, some for Regular Savings Plans (RSP) investment to let your money grow, and leave some for spending. On certain months, when you have nothing to spend on, then you can save and use this money for your future wants down the road. The key here is that you got to plan your finances and be disciplined enough to carry it out throughout this period especially since you don't have much to work with. You should also be paying yourself first, rather than spend first, save later. Another thing you can do is purchase concession for your EZ-LInk card . Like what Clarence mentioned, try to take public transport to camp instead of GRAB etc. as all of this adds up. It would be a bonus if your parents can fetch you to and from camp hahah Grow your money if you can! To grow your money, you can explore doing a monthly investment called RSP. Every month, you are allocating some money for investments. Though it's not alot, it's still something and when you start early, you are giving yourself more time for your money to compound. Isn't that a good thing? You can check out some platforms which allows you to start at a low sum. Some exmples of investment instruments include robo-advisors and local banks etc. What's the best bank to have? I used POSB's SAYE/SAYS as the i/r was quite good. By crediting a certain amount of money into the account monthly and by not touching it, you will get a 2% pa interest on the money in that account. For more info, you can check it out here. Make sure you don't touch the money, if not the higher-than-usual i/r won't apply! Hope it helps!

Investments

Loans

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 18 Jun 2019
Hi anon, I’m answering this question assuming you are asking from an investor’s pov. ! TL;DR It depends! What actually happens to an investors’ money when the loan is defaulted? Well to put it simply, it really depends on the different P2P companies. Different P2P companies have different measures as to how they will deal with a loan default. Generally, every company has a mulit tier level of response which is also dependent on how the company defines 'defaulted' and also the period which the loan is defaulted... For a start, Most P2P companies will always try to contact the borrower and work out how best the borrower can repay the loan. P2P companies will be open to negotiate and discuss the possible courses of action. Should this fail or the borrower does not cooperate... the next course of action will be adopted. Next, A third-party professional debt collector will be hired by the respective company to collect from the borrower the unpaid amounts. Should this still fail... Lastly, If the borrower still doesn’t return the money, legal action will be adopted. Having said that, different firms might have different approaches when it comes to dealing with P2P loan default. The above is just a general guide as to what most companies will do when there is a P2P loan default. You should still contact the company and their management team to find out exactly the procedure they will adopt when P2P loans default. Hope this answers your question!
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SeedlyTV EP05

Investments

REITs

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 18 Jun 2019
Hi anon, this is an interesting question and when I first went to find out more about it, I was quite confused about it too! Let me to try and answer it to the best of my understanding. ! TL:DR 1. REITs - advantages and disadvantages 2. CDOs - advantages and disavantages 3. Why were CDOs AAA and risk free, why isn’t it now? 4. Observed differences between REITs and CDOs REIT which stands for Real Estate Investment Trust is an investment instrument which allows investors to purchase shares in commercial real estate portfolios that receive income from a variety of properties. These properties are grouped under 5 categories which include 1. Healthcare e.g Parkway Life, First REIT 2. Retail e.g CapitaLand Mall Trust, Frasers Centrepoint Trust, Sasseur REIT 3. Office e.g Capitaland Commercial Trust 4. Industrial e.g Ascendas REIT, Mapletree Industrial Trust 5. Hospitality e.g Ascendas Hospitality Trust, Far East Hospitality Trust Below are some advantages and disadvantages of REITs ! What is a Collateralized Debt Obligation (CDO)? From my understanding, CDO which stands for Collateralized Debt obligation structured financial product that pools together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors. The CDO is then sliced into what are called tranches. Each tranche carries a different combination of risk and reward. For example, the selection of tranches might include:The tranches in a CDO vary substantially in their risk profiles. The senior tranches are generally safer because they have first priority on payback from the collateral in the event of default. As a result, the senior tranches of a CDO generally have a higher credit rating and offer lower coupon rates than the junior tranches, which offer higher coupon rates to compensate for their higher default risk. How do CDOs work? When a bank approves loans for either mortgages, automobils or credit cards, these loans are then sold to an investment bank. This is then repackaged to form an investment instrument called as the CDO which is then sold to investors. The principles and interest payments made on the loan are redirected to investors in the pool. The promised repayment of the loans are the collateral that gives the CDO value. Here are some of the advantages and disadvantages of CDOs. ! Since CDOs are broken into different tranches and based on your risk appetite, different investors choose to go for different tranches, CDO cannot be generalised as a AAA credit rated investment instrument. Like all investment instruments, there will be certain risks that comes along with it, and the CDO is like no other. It is not wrong to say that CDOs had a higher credit rating than in the past. I believe this is so as CDOs were backed by a diverse group of loans which limited the risk of default and it was thus well-known for being a stable instrument in the past. Due to the housing boom, the banks started to use alot of sub-prime mortgages (a type of loan granted to individuals with poor credit scores, who, as a result of their poor track record, does not qualify for conventional mortgages ) . as their main source of collateral. With the increase in popularity of CDOs, homelenders continued to lend money to high risk borrowers. When mortgage default started to rise, these sub-prime borrowers could no longer afford their monthly mortgage payments. CDO issuers and the investors suffered mega losses which subjected CDOs to increase in risk. What’s the difference between REITs and CDOs I’m assuming when you are comparing REITs to CDOs, you are talking about Mortgage REITs vs CDOs and I can see why they seem similar. A mortgage REIT acts like a CDO. Although they are similar, here are a few differences which I have observed. !
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Stocks

Investments

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 13 Jun 2019
Hi Anon, interesting question! TL;DR 1. What is a high profit margin stock? 2. Why do people want to invest in a high profit margin stock? 3. What are the risks involved? What is a high profit margin stock? Profit margin = Net profit/revenue expressed as a %. ! This value is known as the profit margin. A high profit margin stock simply means that the net profit/revenue is high. Profit margin is used as a reflection of how much can be retained from your revenue and can be an indicator of business performance. A higher profit margin basically means that the business can increase its profit while minimising costs. Generally speaking, the higher this value, the better it is! Why do people want to invest in a high profit margin stock? Everyone wants to make money that’s why! ! If a company has a high net profit/revenue, it may lead to an increase in dividends handed out and as investors, WHO DOESN’T WANT A HIGHER ROI... RIGHT? ! What are the risks involved? When you invest in a high profit margin stock, the main benefit to take note of is probably that investors would be protected from an unexpected decline in the company’s income- which is a good thing as it is a reflection of business performance (as mentioned above). The better a business performs, the happier the investor should be! Here’s not to say that by investing in a high profit margin stock, you are invincible to the risks associated with investing in stocks. The risks involved when investing in high profit margins stocks are almost the same as investing in anything at all. Investing in high profit margin stocks does not mean that there are ZERO risks involved. There will be risks but the risks might not be so high due to a high profit margin. By investing in the first place, you choose to take on a certain amount of risk! Let me now touch on the risks of investing in stocks. 1. Market Risk Stocks are susceptible to market risks. Due to the volatility of the market, share price fluctuates in a short period of time constantly. All shares are hence subjected to market risks that are affected by factors that are not within an investors’ control. 2. Liquidity Risk Liquidity refers to how easy a stock can be purchased or sold or even cashed out in the event you want to take advantage of a situation or to prevent or minimize a loss. 3. Inflation Risk Also known as purchasing power risk. This might lead to a loss in one’s purchasing power because the value of your investments does not keep up with inflation and hence the cash flowing from an investment today willl not be as much as in the future. Hope this helps!

REITs

SeedlyTV EP05

Investments

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 07 Jun 2019
Hi Anon, there are both advantages and disadvantages to everything and investing in REITs is no exception Here are some of the disadvantages. If you want to understand better, you can do so here. Highly recommended! 1) Leverage 2) Interest Rate 3) Volatility

Lifestyle

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 07 Jun 2019
Hi Anon, one way which you can do so is to get a selfie stick so that when you record videos, due to the distance which you are recording it, it will appear less zoomed. hope this helps ! ! here's how it looks like
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Career

General

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 07 Jun 2019
Hi Anon, this is a very interesting question!! Let me try to answer this question after doing some research and answer to the best of my knowledge. Should there be any disagreements with my answer, feel free to comment and bring it up to me. Over the course of the answer, I will be first covering 3 ways you can kick start a wholesale biz, followed by how to incorporate your business in Singapore (SG). Lastly, I’m going to briefly share what are some other stuff you should take note of. Without further ado, let's begin ! TL;DR: 1. 3 ways you can kick start a wholesale biz 2. How to incorporate your biz in SG? 3. Other documents and clearances you should take note of Starting out for a wholesale biz If you are intending to start a wholesale business, you can do so via three ways. You could choose to 1. buy an existing business 2. start from scratch 3. buy into a business opportunity. However there are certain reservations for each. ! WARNING: Without knowing the type of products you are going to sell, I’m going to assume a few things in my answer. Here is your step by step guide dummies guide to becoming a wholesaler in Singapore. Step 1: Say you want to work with this foreign company ABC. First start off by negotiating with ABC and successfully come to an agreement. This agreement is vital and when this agreement is successful, only then should you move on to the next step. You wouldn’t want to have set up your business and the foreign company you are working with suddenly bails on you right??? ! I would suggest you have a written agreement so that there’s at least some sort of black and white. Step 2: I’m assuming you already know what sort of products you are looking to wholesale. Next, have you thought about the operations behind this wholesale business? Are you going to be renting a warehouse to store your supplies or are you going to adopt the dropshipping supply chain management approach? If you want to rent a warehouse to store your supplies and goods, you would have to follow the necessary procedures. However, if you were to use dropshipping, you will need to pick a marketplace to sell these products or you could choose to set up a website or a platform where you can carry out your plans. Take note that these should all be well developed/thought out in your business plan even before you decide to execute and incorporate your business. Step 3: After being sure that you can work with this foreign company and knowing what sort of approach you will be adopting/ how and where you will sell this products, you can move on and incorporate your business. For a start, one must first decide on the choice of business structure. (Sole proprietor, Partnership, Company) Different business structures have different pros and cons, if you would like to find out more, you can do so here). To register your company, you can do so via ACRA. The procedures for company registration is fully computerised by ACRA in Singapore. ACRA is the Accounting and Corporate Regulatory Authority (ACRA). To register a business, the applicant must log into BizFile+ using their identification number and SingPass. Alternatively, the applicant can also choose to engage the services of a registered filing agent. Some examples include law or accounting firms if the applicant does not have SingPass. Usually, a company can be incorporated in 1-2 days. Upon successful registration, an official email notification confirming the incorporation of the company. The email notification will include the company registration number and this will be treated as the official certificate of incorporation in Singapore. You can obtain a business profile which contains the particulars of the company from ACRA by paying a nominal application fee of S$16.50 on BizFile+ . The above 2 soft copy documents (i.e. email notification of incorporation and company business profile) are sufficient in Singapore for all legal and contractual purposes including opening of corporate bank accounts, signing office lease etc. Moving on, here are some other documents and clearances which you should definitely take note of should it apply to your wholesale business. These documents include employment agreement, non-disclosure agreement, distributor agreement and the business referral agreement. Clearances from relevant authorities 1. Singapore customs restrictions. The wholesale and trade industry deals with exports and imports, and thus there are certain guidelines issued by the Singapore customs which you will have to look at. Depending on the nature of the goods you are selling, you will have to check with the respective authorities and obtain the relevant documents, gain clearance from SG customs. You can find out more about it here You can find out more info here. 2. GST eligibility As you go along the way, you will also have to check and see whether your wholesale business is eligible for GST registration. For some companies, it is compulsory to register while for others it is on a voluntary basis. Should you need more info, you can check it out here. 3. Corporate Tax Regarding coroporate tax, Singapore has been a well-known location to set up businesses due to their attracting tax frameworks and extensive trade agreements. For more info on corporate tax you can check it out here.
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Investments

REITs

SeedlyTV EP05

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Updated on 07 Jun 2019
Hi Rasyad, Seedly will be having EP05 of SeedlyTV tmrw and it will be on REITs! You can tune in tmrw to find out more! You can find out more here!
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