AMA SG Young Investment

Held on 11st Sept 2018, Tuesday

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(AMA Ended) Here's my plan to hit $1M savings in your 40s. Ask me how!

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Hello Seedly community! 

I'm SGYI and I write at SG Young Investment. I've been an investor for 8 years now and enjoying every bit of economics, finance and investment. I started out reading books on personal finance when I was in army at the age of 22. First book I read was rich dad poor dad by Robert Kiyosaki. Thereafter, things started to progress as I dug deeper and found out how the rich and successful manage their money. I was just an average student during my school days. If not for a good teacher I met in secondary 3, I wouldn't have manage to get a B3 for Maths for my O'levels. Its an irony that my interest is in finance now given the amount of calculations and maths involved. I used to hate that subject but not any more now. 

It was until during my army days that I started to think about my life. I thought that I should start planning for my future and make full use of my time. I wanted to take control of my financial future. The days of investing started then and there were ups and downs in my investing journey. At the end, I realised the most important thing is actually not just investing but increasing our income as well. The more money we can earn and possibly save, the easier it is to achieve financial independence. SG Young Investment blog was started to reach out to more young people on the importance of financial planning and education reaching more than 4 Million viewers who have the hunger and thirst to plan well for their future. 

Feel free to ask me any questions related to:

  • Personal finance tips
  • All about planning for HDB or private property purchase
  • Insurance needs and how to choose the right one
  • Investing to create an income
  • How to create multiple streams of income
  • Balancing between having a life and living prudently

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AMA SG Young Investment

Expenses Tracking

Savings

Fresh Graduates

General

Kok Koon
Kok Koon,
Level 5. Genius
Updated 3w ago
At 26, I didn't have a choice. I gave up a lucrative career in finance/audit to run my own business. So with that mind, I benchmark my peers who are climbing the corporate ladder. Then, my calculation was using the median income of my friends at $X,000. I would need $X,000 x 12 months ( + 2 months bonus) x 1.17 (additional 17% in CPF from employer) x 1.2 ( 20% Risk premium for selfemployment) to make sense for me to stay in business. Otherwise, I should go back to my corporate career. Now I can't turn back. Did I shortchange myself? Perhaps at the initial 2-3 years, but I still went for my holidays (regional to start with), invest in $4,000 courses to master business skills and bring my mom overseas every single year. At 34 this year, 10 years since I graduated, my newly wedded wife and I both hit FRS, maxed MA and have a decent warchest ready for equity investments. I'm nowhere near FI but with the exact same planning - savings and low consumption, I'm on track. If the economy tanks today, my home (bought cheaply) can be paid for with CPF OA for the next 10 years. We can choose to travel on the cheap when there's blood on the streets, all because of savings. #genxyolo -- I'm sharing with you this because I graduated in the ashes of 2008 financial crisis and have made several boo-boos in investments along the way, loosing tens of thousands. The biggest saving grace is that in the midst of it all, high savings help corrected all the mistakes I've made and give me the bullets I need that will propel me to FI when the next financial crisis come. If I chose to consume inordinately, I won't be able to sleep with a peace of mind as my responsibility as a family man grow bigger. Nothing is forever, esp good jobs and good economy. So a good savings habit keeps you dry on rainy days. You also don't need to suffer for FI. Just live below your means.

Investments

AMA Investment Moats

AMA Christopher Tan

AMA SG Young Investment

AS
Anandveer Singh, Epe at Lta
Level 1. Freshie
Answered on 24 Apr 2019
I bought AXA Wealth treasures. But out of curiosity, why the regret with Pulsar?

Investments

AMA SG Young Investment

Isaac Chan
Isaac Chan,
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered on 19 Feb 2019
Hello! It would be a great help if you could understand how to read financial statements , such as income statements , balance sheets and cashflow statements . These statements can be found in the annual report of companies listed on stock exchanges. These statements form the basis for quite a good number of investments, as they tell about the financial health of the company! Companies can smoke investors by saying that they their company has performed very well over the last few years, but numbers don't lie . More importantly, asset classes such as stocks, bonds, ETFs and REITs all utilises financial statements to understand what kind of investments to develop. You can read more about financial statements at the following sites: https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html https://www.thebalance.com/guide-to-understanding-financial-statements-357512 https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/ Video: https://www.coursera.org/learn/financial-statements https://www.youtube.com/watch?v=Jkse-Wafe9U

Investments

AMA SG Young Investment

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 30 Jan 2019
I run my income floor portfolio with a list of reits on sgx, with dca done on a reit counter on a monthly basis. This allows me to get returns of about 5-6+% onwards on my holdings. I focus my income ceiling portfolio in the US market using options. This allows to achieve returns of 60% pa with managed risk.

AMA SG Young Investment

General

Nicholes Wong
Nicholes Wong,
Level 6. Master
Answered on 14 Sep 2018
First thing is not track her expenses. First thing that she needs to do is to cut away all her credit cards. She is a person who cannot control her spending. Letting her continue using credit card will just be worse and worse. If she doesnt listen, just dont care about her alr you are trying to help her and she doesnt appreciate, theres nothing much you can do liao.

General

AMA SG Young Investment

Certainly worth it! Because: 1. You've work part time / school holiday to earn the extra $, not asking/taking $ from parents. 2. You've only grad with the same friends once in your life at the best time of your life. Just like Prom. There's no 2nd take and even if you have trips after work with the same bunch of friends, it felt different and not the same anymore. 3. It's a nice experience if you don't get to go holiday all the time and even if you do, it's with family and not with friends in school and it felt different. I had the chances of going backpacking with few friends from school at 16, even though only to few places in the north of malaysi, it's quite an experience and it's really fun with friends! :) So! Go work for it , earn the $ and Go for it! Life has no take 2. I don't support YOLO or FOMO but this is not one of those but it's a very good experience that you don't wanna miss! Cheers! Happy Grad Holi!

Investments

AMA SG Young Investment

Luke Ho
Luke Ho, Venture Capitalist at CFX
Level 6. Master
Answered on 10 Sep 2018
Historically speaking you wait another 12 years (looking at you, Straits Times Index) or 10 years (MSCI Emerging Markets). Quite frankly speaking, the 40 - 50% statement you made is an assumption. For 2008, in efficient markets it was like 50 - 60%. If you were in an efficient market fund, it was more like 20 - 30%. For EMs, there were 75% drops. Generally most people prepare for this kind of volatility ANYWAY when they invest. Means you're likely yielding your annualized yield DESPITE these market downturns. All you can really do to prepare is the same as any other way you mitigate risk. 1) Diversification: Proper diversification, not just randomly in different places. The standard deviation should be lower and the sectors should be greater for roughly the same yield (best case scenario) 2) Dollar Cost Averaging: Not really my thing because historically it yields lower than lump sum investing, but its a great way to manage risk. 3) Defensive instruments: E.g. Commodities, Bonds. Ugh. I don't even want to touch this, unless you're very old and you're worried about this. If you're above 50, contact me and I'll help you rebalance your portfolio. If you're younger than 40, stick with the equities but make sure you peg it to a purpose - like retirement - and just don't sell beyond a mix of historical and personal threshold. Otherwise, you'll buy high and sell low like 90% of the clowns who try and fail at investing. I specialize in investing. You can always drop me a PM, if you'd like my help, being the FA that I am. https://www.facebook.com/luke.ho.54

Investments

AMA SG Young Investment

If I may add. 1) Keep 6 months of your monthly income as an emergency fund. This can be in a high interest savings account or SSB, but the point is pure liquidity. 2) You have an investment horizon of about 30 years till retirement. You should be investing most of your money and looking to grow it at 6-10% per annum. Calculate your existing asset allocation growth %. 3) You can start investing your CPF and SRS monies into globally diversified funds with a 70% equity and 30% fixed income split. Adjust your fixed income percentage with your age every 10 years or so. 4) Invest excess cash after your CPF and SRS contributions into a similar portfolio. 5) When you start hitting your 40s, move some of your money into guaranteed sources of income that pays out coupons or dividends like annuities or REITS. 6) If you're self employed, your income may or may not be consistent, make sure you protect your downside as well with enough income disability insurance (70% of monthly salary), and Critical Illness insurance (3-5 X Annual Income).

AMA SG Young Investment

Career

General

Yeap Ming Feng
Yeap Ming Feng,
Level 5. Genius
Answered on 11 Sep 2018
Took a pay cut from Bloomberg to be an intern at a Fintech Company too! It was all worth it! In my opinion, you taking up of job should depend on a few things: - Can you learn something and be a better person from your colleagues and bosses? - Do you believe in the value and direction of the company? Make a decision from there, assuming for a start, one does not need much to survive having just got out of university. If you are ok with it, why not try something new and get some experience, provided it is a great company to be in. After your first internship or job, I guess the results for your university degree should matter less in your future interviews as employers will be more interested in your experiences, skills and knowledge.

Insurance

AMA SG Young Investment

Never ever cancel or terminate your dpS! It is good to have and it is auto once u start working and have a cpf deduction. No cash is being use when u are working part time. It doesn’t cost much too! Jiaoyou!
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