AMA SG Young Investment

Held on 11st Sept 2018, Tuesday

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AMA SG Young Investment

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

NOTE: This AMA has ended! Simply view the questions below with the tag "AMA SG Young Investment"

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

NOTE: The host may choose at his/her preference to not answer particular questions. The AMA is moderated by Seedly, so let’s keep the questions friendly and open!

  • Asked by Anonymous

    Isaac Chan
    Isaac Chan
    35 Answers, 58 Upvotes
    Answered 5d ago
    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
  • Asked by Anonymous

    Jonathan Chia Guangrong
    Jonathan Chia Guangrong, Fund Manager at JCG Fund

    Top Contributor (Jan)

    339 Answers, 485 Upvotes
    Answered 4w ago
    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.
  • Asked by Anonymous

    Nicholes Wong
    Nicholes Wong

    Top Contributor (Jan)

    278 Answers, 395 Upvotes
    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.
  • Asked by Anonymous

    HC Tang
    HC Tang, Financial Enthusiast, Budgeting at The Society

    Top Contributor (Jan)

    360 Answers, 869 Upvotes
    Answered on 12 Sep 2018
    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!
  • Asked by Lee Jiahui

    Luke Ho
    Luke Ho, Venture Capitalist at CFX
    160 Answers, 265 Upvotes
    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
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    Answered on 11 Sep 2018
    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).
  • Asked by Anonymous

    Yeap Ming Feng
    Yeap Ming Feng
    41 Answers, 112 Upvotes
    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.
  • Asked by Dominique Lee

    Raimi Jasman
    Raimi Jasman, Workshops Instructor at Commonwealth Retail Concepts
    9 Answers, 23 Upvotes
    Answered on 26 Nov 2018
    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!
  • Asked by Anonymous

    Serene Toh
    Serene Toh
    40 Answers, 80 Upvotes
    Answered on 18 Oct 2018
    It would be Ideal, however, you probably need to set aside a misc savings fund for misc items along the way, e.g. gifts, occasional splurging, etc. plus an additional saving if you plan to have vacation. the rest will be your investment funds, however, you shouldn't invest all in your investment funds. but gradually invest, leaving a mobile sum in your investment fund for deployment, when you find a good deal. Nothing is worst then the market going down and you not having the cash to buy stocks at the best price. (learning the hard way here)
  • Asked by Anonymous

    Teo See Hwa
    Teo See Hwa, MArketing Associate at Propnex
    44 Answers, 52 Upvotes
    Answered on 09 Oct 2018
    Depend on who you talk to. If you talk to 80% they will tell you HDB, if you talk to 20% they will tell you private. HDB with huge profit are limited now. If you got time to waste go the HDB way otherwise Private.
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