Zen Rogue Xuan - Seedly
 
Zen Rogue Xuan

Shiny Things, BBCwatcher, Kelhot2001 fan

Zen Rogue Xuan

About

Shiny Things, BBCwatcher, Kelhot2001 fan

Credentials

Zen Rogue Xuan's credentials are not filled up yet.

Zen Rogue Xuan

  • Answers (67)
  • Questions (8)
  • Reviews (6)

CPF

Family

Loans

HDB BTO

Resale HDB

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 23 Sep 2019
It depends on your outlook towards CPF: how do you view it? If you are disgruntled with the system and have no confidence in the increasing minimum sum, as well as the constant raising of withdrawal age, then one would use CPF to pay off the loans. However, do be aware that on top of mortgage interest, any sum withdrawn for housing would have accrued interest. Essentially, whoever that used their CPF for housing would penalized with a double whammy - you will be paying interest twice: 2.6% to HDB, and 2.5% to yourself . In other words, you will be forgoing a the CPF OA's higher-yielding instrument in favour of servicing a lower cost of debt. This was the situation that many Singaporeans found themselves in as they speculated on the housing market, which resulted in them being "asset-rich, cash-poor"! If you choose to use cash only, you will face liquidity risk ie too little cash flow and maybe overwhelmed by emergency events eg sudden loss of job/hospitalisation. As such, the better option would be to use a mix of both CPF and cash. The best way to approach such a decision is to think of it this way - if you use CPF to pay your monthly instalments, would you be disciplined enough to diligently set aside the extra cash-on-hand and earn a return equivalent to or higher than CPF OA (2.5% - 3.5%)? If yes, then go ahead and pay your mortgage off with CPF. If not, then stick to cash and allow the CPF monies to accumulate a risk-free return of 2.5%. You can see a more elaborated answer here: https://seedly.sg/questions/is-it-possible-to-pay-for-bto-with-cash-and-cpf-also-what-are-the-pros-and-cons-with-using-cash-or-cpf

Stocks

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Updated on 18 Sep 2019
When would be a good time to buy the stock? I answered a similar question here, and will now elaborate on it. This is one of the questions people have been asking themselves since the dawn of money. Why buy something if its price falls in the future? Or don't buy, and watch as the price goes up, then regret not buying it cheaper? Famously narrated by Aristotle in part XI of Book 1 of his ‘Politics’, Thales of Miletus, the 6th century BC Greek philosopher, went to the olive-presses owners in Chios and Miletus to strike a bargain for the exclusive use of the presses after the harvest. Because the harvest was in the future, and nobody was sure if the harvest would be plentiful or not due to natural disasters like drought or fire, from the olive press owners’ point of view, they were protecting themselves against a poor harvest, by earning at least some money upfront, regardless of how things turned out. The harvest was excellent and there was heavy demand for the presses. Since Thales held the contract, he was able to enjoy a monopoly by renting them out at a huge profit. Thales was brilliant as he had shrewdly calculated that a poor harvest would not lose him much in terms of lost deposits, whereas the upside of a good harvest was enormous. “Thus he showed the world that philosophers can easily be rich if they like, but that their ambition is of another sort”, wrote Aristotle. In effect, Thales had exercised the first known options contract, more than 2500 years ago. Today, we would term it as buying a ‘call option’, the option to buy something at some designated price at some future date for a fixed fee (or ‘premium’). Put another way, it is an agreement that gives the purchaser the right (but not the obligation) to buy a commodity, stock, bond or other instruments at a specified price (the ‘strike price’) at the end of, or within a specified time period. When the price exceeds the strike price, the option is said to be ‘in the money’. Alternatively, there is also sell a "put" option, which will give the buyer the right to sell the underlying asset at an agreed-upon strike price before the expiry date. The party that sells the option is called the writer of the option. The option holder pays the option writer a fee — called the option price or premium. In exchange for this fee, the option writer is obligated to fulfil the terms of the contract, should the option holder choose to exercise the option. Properly used, options are an excellent vehicle to manage your risk. See how you can hedge your portfolio using options at my answer in https://seedly.sg/questions/how-do-i-hedge-my-portfolio-with-options-futures

CPF

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Updated on 13 Sep 2019
What you must understand is that CPF Life is a public annunity that is compulsory in nature whose payout is based on premiums that you contribute into the Lifelong Income Fund, and the plan you choose: Basic/Standard/Escalating. For the basic plan, 10% of your RA is deducted at age 55. The rest – about 90 per cent – of the Retirement Account savings is untouched and can continue to grow and compound with interest. Near 65, two months before your birthday, there will be a second deduction. This time, it will be approximately 10 per cent of the new money that has built up between your 55th and 65th birthday. The rest of your Retirement Account savings will stay put until your payout eligibility age. In comparison, for the standard and escalating plan, for those who join this plan at age 55, there will be two installments deducted as annuity premiums just at 55 and near 65, just like the basic Plan – but the percentage of deductions differs. Members who join this plan at age 55 will have the Retirement Account deducted for their CPF Life annuity premiums in two installments – at age 55 and near 65. The first deduction is up to the current Basic Retirement Sum of $80,500. The premium goes into the Lifelong Income Fund. Two months before you reach 65, the balance Retirement Account savings will be deducted as the second installment of your annuity premium and channeled into the Lifelong Income Fund. This will include any new money, including interest earned or refunds from sale of property or investments that you have built up between your 55th birthday and 65. For members who join the Standard or Escalating Plan on their payout eligibility age or after, there will be only one annuity premium deduction, which is all the sum in their Retirement Account, made at the time of joining. CPF Life is structured such that 3 out of 4 people will only “obtained" what that has been put into the amount.

Investments

Loans

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Updated on 12 Sep 2019
For 3 years, I would suggest you put into a single premium short term endowment, which typically has a minimum premium amount. Below is a list which I saw posted in Seedly's FB group recently !
Answer image preview

General

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 11 Sep 2019
It depends on what your needs are. If you want to continue to stay in your existing flat, you can explore the Lease Buy Back Scheme. Silver Housing bonus is put in place such that older folks can downgrade to a smaller flat and enjoy the 20,000 grant. 60,000 in your CPF RA gives you about $450-$550 of monthly income

GOMO

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 11 Sep 2019
I assume that you are porting over your number. Once you have inserted the sim, they will assign you a temporary number first which will expire once the number porting happens.

Stocks Discussion

Investments

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Updated on 09 Sep 2019
Volume is one of the best indicator of the trend. Think of the price as a constant war between buyers and seller: Buyers are longing the market, as they feel that the price of the stock is undervalued and that it will apprecate in the future. On the other hand, Sellers are shorting the market, as they feel that the price of the stock is overvalued, and will fall in the future. This constant war between buyers and sellers will thus dictate the price- if there are many buyers, and few sellers, demand is more than supply and prices will go up, as people want to get into this presumed undervalued stock. On the other hand, the converse hold true- many sellers and few buyers would meant supply is more than demand, and that prices will go down, as people want to get out of the presumed overvalued stock. When would be a good time to buy the stock? Volume then, would be the key indicator of price as it would reflect the trend- bullish(appreciating) or bearish(deppreciating), and can signify trend reversal- the bulls or bears may be becoming exhausted, and the other party would take over. Ultimately, it depends on your mindset as an investor, and how you view the value of the stock. If you think that it is overvalued, then sell it. If you think that said stock is undervalued, then buy it. Ideally, volume would help you to guide your decision.

Insurance

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 09 Sep 2019
PA covers accidental death and TPD. The payout based on an accident is usually capped around 5k, and is subjected to a deductible of $50 and upwards. Personally, I do not feel PA plans are necessary unless you work in a high risk environment or have an active lifestyle. That being said, the best "value for money" PA plan on the market would be Sompo's PA Star. They usually have 20% off their PA plans, in the first quarter of the year.

Stocks Discussion

Investments

Insurance

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 06 Sep 2019
Riway is your typical pyramid scheme that hawks health supplements. The product that they tout as the cure-all is Purtier Placenta, a very expensive product that is only available if you join them as a member. https://www.mirror.co.uk/news/uk-news/oh-deer-new-pyramid-scheme-13657143 https://www.straitstimes.com/singapore/hsa-warns-riway-to-stop-false-claims https://forums.hardwarezone.com.sg/eat-drink-man-woman-16/purtier-placenta-does-really-cure-cancer-5792736.html

Investments

Insurance

CPF

Family

Savings

Retirement

Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Updated on 05 Sep 2019
It will depend on when you bought the ILP. If it is within the first 14 days free-look grace period, the premium would be returned to your CPF untouched. However, if you choose to cancel it outside of the free-look period, ILPs typically have a very poor surrender value and you will get a significantly lesser amount than that you put it. I would suggest that you contact the FA who sold you the product- he/she would be able to advise you on the surrender value of said Manulife ILPs.
Load more questions
Level 6. Master
347PointsGoal 750
403 POINTS TO LEVEL UP
Browse Rewards