Personal Finance 101 (LLI)

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Personal Finance 101 (LLI)
  • Asked by Kenneth Lou

    Rach Tay
    1 Answers, 8 Upvotes
    Answered 2w ago
    Friendly & pretty emcee, spontaneous and generous speakers, and a community of helpful and enthusiatic people learning about finance. I like that it was free of charge to public as an introductory thing. Launch more sessions for different topics, different age groups and more on CPF as well, hope To attend more! thanks seedly peeps :)
  • Asked by Anonymous

    Gx Xin
    2 Answers, 5 Upvotes
    Answered 5d ago
    Thank you everyone for your replies. :)
  • Asked by Leong Wen Fong

    Gabriel Lee

    Top Contributor (Nov)

    347 Answers, 518 Upvotes
    Answered 5d ago
    Wondering how to stretch every dollar!
  • Asked by Anonymous

    Npm Adele
    9 Answers, 17 Upvotes
    Answered 1w ago
    If you are unable to hold long-term especially through crisis till you have a decent rate of returns, or do not have sufficient liquidity after paying for the property (e.g. too much of salary goes to mortgage, it eats into your savings/emergency funds, can't afford the mortgage without a tenant) then you might want to seriously think about whether you want to invest in property. You may want to, but can you afford to do so?
  • Asked by Anonymous

    Loh Tat Tian, EX-FA at INSURANCE

    Top Contributor (Nov)

    133 Answers, 185 Upvotes
    Answered 1w ago
    I have posted a similar question to many others before. It depends on your current CPF now. But I will try to break it down simply 1) has the total CPF figure (OA + SA + MA) reached $60,000? If not, please keep at least $20,000 in your CPF OA (which earns 3.5%) while continuing to build up your overall CPF. Then the rest of OA (if any) you can move to 2 or 3. 2) Once you hit $60,000, you may wish to keep about 1 year - 2 years worth of Housing loan payment. This is to buffer any job loss etc. The rest of the OA amount, you will have 2 options A) partial pay off HDB loan. This option applies to you if you earn high income because you may wish to do Retirement Sum Topping Up (CPF-SA top up) to enjoy tax relief. This reduces your loan, while also allowing you to enjoy tax relief. B) transfer to SA to enjoy the higher 4% interest. This option applies if your tax rate is low (annual income not hitting $80,000). There are other tax relief options like SRS for you to use if your income increased. You benefit by having compounding interest working for you, and slowly building your CPF OA after (since the interest earn will go to OA after FRS has reached). 3) this applies to you if CPF has both basic health care sum (BHS) and Full retirement Sum (FRS). A) partial payoff everytime OA hits $5,000. This is to reduce loan amount. B) if you have more risk appetite, to do investment using CPFIS to earn higher returns.
  • Asked by Anonymous

    Luke Ho, Money Maverick at Money Maverick
    119 Answers, 212 Upvotes
    Answered 2w ago
    Some common features are 1) Low cost - which is the primary reason people buy ETFs instead of funds. There can be a variety of hidden fees for ETFs as well, since they're designed for trading - so try not to be tempted into giving up your postion on a regular basis. Watch out for other fees such as platform fees, management fees and taxes. 2) Liquidity - Desirable feature for most, impractical for most as well. Investments should be long term. But it is certainly desirable. Outside of crashes or corrections, ETFs are often more liquid than Unit Trusts except during periods where no one is willing to purchase them during exceptionally poor times. 3) Diversification - because otherwise you can just buy some stocks. One of the reasons why I think the STI ETF is basically a hunk of junk about 60% financials https://www.moneymaverickofficial.com/posts/sti-etf-not-good-beginners. Prices are much lower this year than last year though, so you might get some value in the short term. Make sure your ETF spans across all the sectors well. 4) Yield - historical or otherwise. It's why people would opt to buy outside of Singapore as well, since overseas yields, both US and Emerging - have much better historical yields than Singapore. For efficient markets like the US - which is basically a reference to the fact that the majority of information about them is out there which makes it near impossible for a fund manager to outperform that market consistently - ETFs make more sense. Check your market and instrument before choosing an ETF as well. You can always read my blog to learn more about investing in general. https://www.moneymaverickofficial.com/
  • Asked by Anonymous

    Luke Ho, Money Maverick at Money Maverick
    119 Answers, 212 Upvotes
    Answered 2w ago
    ECI is definitely the future. https://www.moneymaverickofficial.com/posts/prioritise-early-critical-illness-insurance-life-insurance Especially because we live in such an advanced country with early detection and treatments. I purchased a substantial amount of ECI. ECI is actually for multiple purposes - expedited treatments/surgeries or specialized treatments, as well as income replacement, a much wider range of coverage, etc. In depth study into the CIs will show you that late stage cases are often irreversible - while ECI is not, and you should beat the crap out of it with a huge chunk of money and reimbursed medical bills so you never experience it again. If you have any questions about ECI, you can always drop me a message directly. I'd be happy to answer them. https://www.facebook.com/luke.ho.54
  • Asked by Anonymous

    Luke Ho, Money Maverick at Money Maverick
    119 Answers, 212 Upvotes
    Answered 2w ago
    Insurance savings plans are typically put into a participating fund with an element of guaranteed and non-guaranteed returns comprising of majority bonds. The general idea is a very conservative growth that keeps up or just slightly beats inflation while preserving capital as well as other features such as a higher benefit in the event of untimely death and expedited payouts. You typically expect 2.5 - 4% net overall. There are other RSPs, especially commonly offered by POSB Invest-Saver for the STI or the ABF Bond Fund, which can have mixed returns as well ranging from 2 to about 7% depending on your risk profile. Lastly, Robos also have a range of risk that you can choose from which will typically generate between 3 - 10% annualized. The risk for robos is typically much higher, since the investments are made overseas and have more focus towards equities - so you add up things like currency risk. Of course, you also get a higher return. In summary, no, they are not the same. Higher risk is higher return. But if you're looking at 'savings' in a conservative sense and not 'investing', then you should stick with conservative investments. If you want to invest aggressively, you can do much better than robos. You can always drop me a PM if you'd like to start saving. https://www.facebook.com/luke.ho.54.
  • Asked by Anonymous

    Luke Ho, Money Maverick at Money Maverick
    119 Answers, 212 Upvotes
    Answered 2w ago
    Such arrangements are actually more common when utilizing your mortgage, or any other asset that you might own in order to gain a low interest rate. With a low interest rate and freeing up a large asset to invest the difference in something like an endowment, you make consistent money between the two differences in interest. E.g. If the Endowment pays 4% a year and your interest a year is 2% - 2% of 1.5mil is a cool $30,000 a year, or $2500 of free money a month that you have. Obviously necessary precaution has to be taken to execute this as its far more pleasant in theory. The reality can be quite complex, but its the financial advisor's job to execute with professionalism. You may want to take a more active role in the process before letting him/her automate it once a couple of payouts are secure.
  • Asked by Anonymous

    Kenneth Lou, Co-founder at Seedly
    289 Answers, 674 Upvotes
    Answered 2w ago
    Personally, I would say the rank should be: - Hospitalisation (H&S) plans - Term or Whole life (depending on your needs) - Personal Accident (limited cases of being only in accidents before claiming) Because if you think about it, if you get knocked down by a PMD.... you will also use your H&S to claim for your hospital stay... anything that is warded, you'll be able to claim using your hospitalisation plan.
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