Seedly PFF 2019 - Seedly

Seedly PFF 2019

Singapore's largest festival for young working adults to learn about personal finance in an unbiased no-sales manner.

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Introducing the Seedly personal finance festival 2019.Singapore's largest festival for young working adults to learn about personal finance in an unbiased no-sales manner. Designed for beginners to intermediate in your personal finances in Singapore.

Date: Sat, March 2, 2019

Location: Suntec Singapore Convention Center Hall 406

ASK YOUR QUESTIONS BELOW!

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PFF Panel 2

Robo-Advisors

Seedly PFF 2019

Amanda Ong
Amanda Ong
Level 3. Wonderkid
Answered on 09 Apr 2019
Hi there, My name is Amanda and I am the Head of Client Engagement at StashAway. We do not generally comment on our competitors and do not engage in debates on this topic online or offline. We will provide you with all the information you need on StashAway to make an informed investment decision. We also recommend investors to do their own research before deciding on a robo-advisor or an investment product. With that said, there are a few inaccurate observations highlighted by Tai Zhi below that I would like to just clarify. 1) We completely agree with Tai Zhi's point on the fact that research has shown that active fund managers tend to underperform the market. It is true, there is a lot of data published by SPIVA that prove this point. In fact, this is something we have discussed extensively and advocate for in our seminars on investing. Let’s be clear of what this “active” vs “passive” comparison looks at: in this comparison, “active” means to participate in securities selection (buy and selling single names stocks or bonds for example), and “passive” means to buy an entire asset class through ETFs or Index Funds. We believe in passive investing: StashAway invests using ETFs which are an index-tracking investment vehicle listed on a major exchange. Moreover, research shows that 80%+ of differential returns among porfolios come from asset allocation. This is where it makes sense to have a dynamic, strategic approach, rather than a static one. If you've read the white paper on our Investment strategy (https://www.stashaway.sg/r/stashaways-asset-allocation-framework), this is the exact basis of our investment framework. It focuses on asset allocation and not individual security selection. When there is a fundamental change in economic conditions, StashAway will re-optimize your portfolios for you. What this means is that, for example, if the economy were to go from “good times” to a “recession”, StashAway will recommend a re-optimization that will reduce equity exposure and concentrate it in protective sectors (e.g., consumer staples), and increase allocations to asset classes such as government bonds, particularly for long maturity dates, and gold. Our investment framework (ERAA) is risk-centric: the goal is to maintain your risk exposure constant across market and economic cycles while optimizing returns. We will always be more than happy to share details about how we've performed. If you'd like this information, you can reach out to us via [email protected] or ask our Co-Founders during the Q&A of our Academy Seminars. We are more than happy to share that with you. 2) Contrary to the belief that it "may expose the investor to a lengthy court process to claim back the assets if the robo-advisor ceases operations for some unforeseen reasons", the process at which you can claim your assets back should StashAway go bankrupt is actually quite simple. We hold a Capital Markets Services License. We decided to get a license with stricter capital, team experience, compliance and audit requirements (vs a Financial Advisor one) as we felt that it was important to build StashAway on solid foundation that can provide the necessary peace of mind to our customers. You can read about our license on MAS website here. To clarify, Tai Zhi writes that “AutoWealth, on the other hand, adopts 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”: they do so through SAXO, and you can check SAXO’s license on MAS website here, so that you can drive your own conclusions: both StashAway and SAXO have CMS license for Fund Management and Dealing in Capital Markets Products. Unlike SAXO, StashAway does not have a custodial license, and that’s why our customers’ assets are protected by the custodian relationship with SAXO and their sub-custodian institutions (HSBC for cash and SG securities and Citibank for US securities), such that those funds are kept separate and un-mingled with StashAway’s finances. 3) Tai Zhi write that “Other robo-advisors like Stashaway are pure digital platform with little or no human touch.” This is incorrect. StashAway leaves the option to you- you can decide to have zero human interaction if you want, or talk with any of our Customer Engagement (CE) team members through a variety of tools. If you're a client with us, you would know that you are able to choose to upload your documents with us via WhatsApp. In that interaction, you are talking to a CE team member who is assisting you with your onboarding. This WhatsApp feature has been available since day one when we launched in July 2017. To make it easier for you to reach out to us, we have also started placing the WhatsApp chat feature in our mobile app last year. You will see a button at the corner of the app that allows you to quickly open up WhatsApp to speak to the CE team. When you send an email, WhatsApp, Facebook message or call us, you are speaking to an actual person from my team. For our clients, you would already know this. If you are not currently a user, you can contact us via any of the aforementioned channels, my team will be happy to answer any of your questions (https://www.stashaway.sg/contact) If you’d like to meet our team in person, we host weekly seminars in both Singapore and KL and we are always happy to stay back for Q&A sessions. You can find the calendar on our StashAway Academy page. I do hope the above has clarified some of the misconceptions or inaccuracies stated about us. If you'd like to learn more on any of the above points or on StashAway, please feel free to reach out to me or my team at [email protected]

PFF Panel 4

Property

Seedly PFF 2019

Jefremy Juari
Jefremy Juari, Financial Writer at Medina Books
Level 3. Wonderkid
Answered 2w ago
With 50k you can buy many assets. Did you know in 2017, Singapore's medical inflation rate was 10%. It means your money is worth 10% less today compared to last year. 2.5%? Any good asset with cash flow could beat that even with no capital appreciation. Don't burn your money so easily.

Seedly PFF 2019

Investments

Savings

CPF

Insurance

My wishlist speakers are: 1. Joshua Giersch aka the one and only Shiny Things and Author of the book Rich by Retirement. 2. Andrew Hallam, author of Millionaire Teacher

Investments

Seedly PFF 2019

Seedly

Stocks

Like Gabriel mention, Singaporeans are not affected by capital gain tax but affected by 30% withholding dividend tax. If you want to trade US stocks, it is better to look at overseas brokers like TD ameritrade, Charles schwab and so on as they usually have better commissions compared to local brokers but you have to double check.

PFF Panel 1

Lifestyle

Seedly PFF 2019

Junus Eu
Junus Eu
Top Contributor

Top Contributor (Jun)

Level 8. Wizard
Answered on 16 Apr 2019
First and foremost, it's best if you both understand each other's approaches and philosophy to finance. It's one thing to take care of your own finances, and another to take care of joint expenses (and this includes extended family say in-laws etc). For example, I have seen disagreements where recently married couples cannot agree on how much they should give their respective parents etc. Budget Really examine what the expenses are to live together. Utilities, food, transport etc. Clearly, it will be even more with children. Understand how much it will be, so as to minimize surprises in the future. Both parents might even have different perspectives on what is deemed 'essential' for a child. One parent might think that chinese tuition classes at $200 a month is absolutely critical, whereas the other might not. More income Look at side jobs, and take on projects that leverage your own skillsets. P.S. I would probably not spend so much on a wedding, but that's my personal take.

PFF Panel 1

Insurance

Seedly PFF 2019

Why not do a cost benefit analysis to cancelling and putting into another investment instrument to make a better decision? What's it the yearly yield? How much did it deviate from the benefit illustration? Have you requested for a new BI? Most life plans yield sweet spot is around 70 years old to 80 years old, and the incentive to hold onto the plan is less attractive. But still, DYODD. Or hire my services.

Cryptocurrency

PFF Panel 3

Seedly PFF 2019

Anu Singh
Anu Singh
Level 1. Freshie
Answered on 12 Apr 2019
Of course, it is a yes. Investing in cryptocurrency can be tricky, meaning that the market is highly volatile and there can be a huge risk. On the other hand, it can prove to be very profitable also. Here I am mentioning some pros and cons of cryptocurrency: https://www.pcex.io/blog/is-crypto-a-good-investment/

PFF Panel 1

Insurance

Seedly PFF 2019

Dawn Fiona
Dawn Fiona
Level 5. Genius
Answered on 03 Mar 2019
The premiums for term insurance increase with age, so your total premiums paid if you have term insurance for your entire life may be higher in total vs. the total sum paid for whole life / limited-pay whole life plans. So it depends on what you want to cover. Cos not everyone buys term insurance for their entire life - when you're 60+, your parents are likely to no longer be around and your children are already grown up and earning income, so you don't have to support them anymore. Thus many people who buy term would consider to reduce their life insurance coverage at this stage onwards. Buying term during the stages of your life where you have the highest financial risks and dependents to support = the cheaper option vs. whole life. Even better if you can invest the difference.

PFF Panel 1

Insurance

Seedly PFF 2019

Allan Lee
Allan Lee
Level 2. Rookie
Answered on 09 Apr 2019
An advice to you here is to check how much premium have been paid, what is the current value of the policy and what are the cost of insurance for all the plans (This can be costly when the age of the life assured is higher than 50.)
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