PFF Panel 2

Panel is moderated by Kenneth Lou from Seedly

ASK A QUESTION
PFF Panel 2

Welcome to Seedly’s inaugural Personal Finance Festival 2019!

Want to invest but not sure how to? Join our panel speakers as they share the various methods you can choose to invest with your salary!

  • Vikas Jain (Senior Director of Funding Societies)
  • Ow Tai Zhi (Co-founder of AutoWealth Singapore)

This panel will be moderated by Kenneth Lou from Seedly.

  • Asked by Anonymous

    Luke Ho
    Luke Ho, Money Maverick at Money Maverick
    Level 6. Master
    Answered 2w ago
    Someone who can answer the conflict of interest well would make a good financial planner. I'm not perfect at it, but its what I'm striving for. Some have even higher aspirations, like being an Independent Financial Advisor (via MAS definition, not working for an IFA). What factors does that consist of? Typically it means that when they pitch you something they give you more than one choice. They also can tell you how it benefits you, and how much commission they make if you ask. They can also answer why they are pushing a particular plan if it happens to benefit them more. That's a good start.
  • Asked by Anonymous

    Jim Tay
    Jim Tay, Director at Jimtay.com
    Level 2. Rookie
    Answered on 05 Mar 2019
    Hey! Whether a HDB is a good first choice for a new buyer is a question of affordability. You are right that at the end of the day you return it to the govt. However, because of the generally lower quantum compared to private properties, it is usually where first time buyers start their real estate asset journey. If you can afford a private property right away as a new buyer, why not? Less restrictions and greater investment potential. Cheers.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered on 05 Mar 2019
    Hi there! Some sectors that benefit from interest rate hikes are consumer discretionary stocks, in other words manufacturers and sellers of consumer staples (food, beverages & hygiene goods) and healthcare stocks . Healthcare stocks will continue to perform as consumers still need to go to the doctor and buy medicine in spite of the market doing well or bad.
  • Asked by Anonymous

    Jim Tay
    Jim Tay, Director at Jimtay.com
    Level 2. Rookie
    Answered on 05 Mar 2019
    Hey! When buying an older flat, I second Zuhdy that you have to be sure that you won't need to sell either to cash out for retirement, or to upgrade to a new one. Make sure that you don't outlive the remaining lease of your flat too! Reason is because a HDB flat with a short lease depreciates very fast and is going to be very difficult to resell again. A newer flat however, can still retain it's value well. I would recommend not overstretching yourself though, if it's your first property. Go smaller, and upgrade later when the need comes.
  • Asked by Kevin Ong

    Jim Tay
    Jim Tay, Director at Jimtay.com
    Level 2. Rookie
    Answered on 05 Mar 2019
    Putting it in the simplest terms, the cost of using your CPF funds is 2.5% per annum. (compounded, and ignoring the additional 1% on the first $20k) So, if you can make more than 2.5% compounded returns on your cash, then use your CPF for mortgage. Otherwise, use your cash.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    I have shared this during last Saturday's panel. The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again. (1) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (2) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks ETFs and bonds ETFs with a higher allocation to bonds ETFs. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds ETFs 40% global stocks ETFs) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    To address your concerns about asset security/safeguards, robo-advisors are required by law to hold clients' assets and monies through a third-party MAS-licensed custodian/trustee. In the unforeseen event the robo-advisor ceases operations, clients assets and monies are still safely held at the third-party custodian/trustee. AutoWealth offers an even higher level of safeguard by opening personal segregated custody accounts for each individual investor in his/her legal name so that the legal ownership is 100% clear and the investor can claim his/her assets from the custodian directly. This is fundamentally different from the "ONE omnibus custody/trustee account holding ALL clients assets" arrangement for other robo-advisors which may expose the investor to a lengthy court process to claim back the assets. You may check out this link for other frequently asked questions: https://www.autowealth.sg/faq.php
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    I have shared this during last Saturday's panel. The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again. (1) Start low risk, build confidence before gradually increasing portfolio risk Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation. (2) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. Therefore, try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi, Chief Investment Officer at Autowealth
    Level 3. Wonderkid
    Answered on 05 Mar 2019
    How do I invest in a US ETF like the S&P 500? You may invest an ETF by trading (ie buying/selling) the ETF off the stock exchange using a normal stock trading account. Both local brokerages like DBS Vickers, UOB Kay Hian, etc and international discount brokerages like Saxo Capital Markets, IG Markets etc would offer the trading account required. Would you recommend that? No, unless you are an expert comparable to Warren Buffet, George Soros etc. (1) Invest broadly to diversify away risk Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss. (2) Include some government bonds holdings Try to start off with a globally-diversified portfolio of stocks and bonds with a higher allocation to bonds. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds 40% global stocks) before switching to a portfolio with higher risk. U.S. government bonds made +5% profit compared to a -10% loss in global equity markets during the Dec 2018 market correction. It made +20+% profit compared to a -50+% loss during the 2008 GFC. Having government bonds would protect your portfolio and also make higher returns for you through portfolio rebalancing (ie taking profit on government bonds then buying stocks whilst they are cheap) Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/
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