Friday, July 22, 2016

7 Financial Terms Many Singaporeans Get Wrong (Guest Post)

Finance has a language of its own. Most of that if dry is boring - right up to the point where it hits your wallet.

It makes sense for anyone, whether they are investors or not, to understand these common points of confusion:

  1. Nominal versus Effective Interest Rate

You often see two sets of interest rates on a banking product. The nominal interest rate, and the Effective Interest Rate (EIR). What’s the difference between the two?

Well the nominal interest rate is just the stated interest rate. It doesn’t take into consideration the effect of compounding. There is a significant difference between the two. For example:

Assume you have a form of loan that doesn’t compound (a vanilla bond is a good example). You are owed $5,000, after a period of 10 years. If the interest is 5 per cent per annum ($250 per year), you would get $7,500 at the end of 10 years.

But if the interest was compounding, you would get a very different result. You would no longer be getting just $250 per year. You would get $250 in interest in the first year, but in the subsequent year you would get $262.50 (five per cent of $5,250), and in the third year you would get $275.60 in interest (five per cent of $5,512), and so on. You’d have $8,144.47 at the end of 10 years - a difference of around $644.70.

This is why, when you take a loan, the bank is required to publish both the nominal interest rate, and the EIR next to it. You should take note that the EIR is the genuine rate you are paying.

2. Median versus Average

Unless you paid careful attention in school, you have probably forgotten or missed the difference between a median and an average. This slip-up can be used to mislead you.

For example, say you are asked to join a marketing scheme, and to help sell cruises. When you ask how much you can earn, you are told the average amount is $3,950 per month. Does that mean the majority of the sellers earn that much?

Probably not. Consider this:

Say there are 100 sellers in the scheme. 90 of the sellers only make $500 a month. However, 10 of the sellers are tremendously successful, not least because they take a portion of the sales made by the other 90 people (this is how many Multi-Level Marketing schemes work. So now:

90 people earn $500 a month from the scheme. 10 people manage to earn $35,000 a month from the scheme. What is the average?

($500 x 90) + ($35,000 x 10) / 100 people = $3,950.

The average is indeed $3,950 per month. However, we know for a fact that 90 per cent of the sellers don’t earn anywhere close to this amount! They only earn $500 per month.

This is because the unusually high earnings from those at the top of the scheme (the ones earning $35,000 per month) greatly skew the results.

By using the median, we lay out all the numbers in a row, and knock off the numbers from both ends until we come to the middle. In the above example, we would lay off the earnings of all the sellers in the straight line, and eliminate one number from each end until we come to the number in the centre (which would be $500).

This is why reputable agencies like the Ministry of Manpower always report median income, when trying to give a sense of how much the typical Singaporean earns. An average income would be a highly misleading figure.

Bear this in mind when you are told the “average” amount someone can make from a product, or the “average” pay for a particular job.

3. Capital Protection Versus Guarantees Against Loss

Capital protection often sounds like a great form of safety. In fact, many advertisements like to boast that a financial product is safe precisely because of capital protection features.

In reality, capital protection is no guarantee against significant losses.

Capital protection means that only the initial amount you invest is protected. The rest of it is not guaranteed. Now, consider what happens if you invest a large portion of your life savings (say $100,000) in a structured deposit, which promises returns of five per cent per annum. You must commit the money for a period of 10 years. You are warned the risk is high, but you have capital protection.

After nine years, you receive a call that something has gone wrong. The structured deposit has been cancelled (the bank is “calling” the deposit). You will only be receiving your initial capital back.

Have you lost money? Quite definitely.

At the end of nine years, the amount of money the deposit has accumulated is around $155,133. By getting back only your initial capital, you have wasted nine years of growth, and lost over $55,000.

All that time, you could have had the money invested in a safer product. And remember that over nine years, the rate of inflation would have significantly lowered the real purchasing power of your initial $100,000.

Capital protection is of some use, but don’t be under the impression that you are perfectly defended against losses.

4. High Volatility

Many lay investors are scared off by the term volatility, or risk. It’s important to remember, however, that high volatility does not inherently mean something is bad.

High volatility means there are large price movements in either direction. A volatile asset can fall significantly in price, or it can rise significantly in price. Without volatility, profit is impossible (if all prices are permanently fixed, how could you ever find a discount, or run a business?)

Some degree of volatility is needed in order to grow your money. As such, many financial advisors will suggest mixing in a small amount of volatile assets. One such approach, called the barbell strategy, is to have 90 per cent of your assets in safe products (like fixed deposits), and 10 per cent in highly volatile products.

In this way, losses from the volatile products cannot significantly damage your wealth (they account for just 10 per cent). But in the off chance that they pay off, the high volatility means they could triple or quadruple returns, and the high profits will offset the slow growth of safer products.

To put it simply, do not assume that high volatility is all bad. The key is to balance your portfolio by getting the right mix.

5. The “Free” in Interest-Free

There are many misconceptions about how an interest free loan works, particularly with regard to credit cards.

If you use a balance transfer, the interest free option is not without cost. This is the balance transfer fee, which is a percentage of the amount transferred. So if you shift a $2,000 debt to another card, at a processing fee of 4.5 per cent, your total debt grows to $2,090.

At the end of the six month interest free period, you again make a balance transfer, incurring another 4.5 per cent. Now your debt is $2,184.

This is why you cannot evade paying your credit card forever, by repeatedly making balance transfers. It is still growing, even if you hop from one interest free period to the next.

6. Credit Card Instalment Plans

Many credit cards allow you to make instalment plans on big purchases, such as televisions or laptops. For example, you may see an offer from your card that says “Interest free 12 month instalment plan” for a $10,000 plasma screen TV.

You might conclude that, when you buy the TV, the first instalment of around $833 is charged to your credit card. That is not how it works.

When you buy the TV, the whole $10,000 is charged to your credit card right away. If it is interest free, you are simply not paying the interest rate on this specific purchase. But the entirety of the purchase has been charged to the card, and counts toward your credit ceiling - that’s why you might find your card repeatedly declined after such a large purchase.

Also, remember that there is a minimum repayment sum. If the minimum repayment is three per cent of the amount owed, buying that TV raises the minimum repayment to at least $300 per month. You still need to pay this or face late charges.

7. Tactical versus Strategic Asset Allocation

Asset allocation refers to the way a portfolio is balanced. If you have a financial advisor or wealth manager, this is often done for you. The allocation is often described to you in simplified terms (e.g. 10 per cent cash, 60 per cent shares, 30 per cent bonds).

Strategic asset allocation usually refers to a long term, buy-and-hold strategy. These principles require portfolios that are tweaked periodically, often every six months (but this can vary).

Sometimes however, you may hear the term tactical asset allocation. The technical sounding term is sometimes used to avoid alarming you, along with the term “actively managed”. Make no mistake, it refers - to a limited degree - to market timing. That is, the risky process of trying to guess market movements, in order to buy low and sell high.

Some salespeople know that concepts can be offputting to the risk averse, hence the use of the more obscure terminology. While it doesn’t immediately mean something bad or outrageously risky, be aware that tactical asset allocation reflects on active, more aggressive approaches.

This article was contributed by SingSaver.com.sg, Singapore’s leading personal finance comparison platform for credit cards and personal loans.

Tuesday, July 19, 2016

Pokemon Go - What Investors Can Learn From This Phenomenal Game

Pokemon Go
Are you a Pokemon fan? It doesn't really matter, but I am sure you've seen or heard about the latest mobile game craze, Pokemon Go! Currently available only in US, Australia and New Zealand. Fans from Asia got to wait a bit as the game was delayed its launch in the Asia. 

Pokemon Go has broken all sort of records in the US game app markets. It is free to download in iOS and Android phones and nicely blend in the real and virtual world for the fans (or players) to catch the pokemon creatures in "real life". It's kind of like fantasy comes true for the Pokemon fans. 

So, what has Pokemon Go got to do with investing? I think there are much we, retail investors can learn from this cultural phenomenon, here are my take :

1. Good thing takes time. Do you know long it takes for the creator, John Hanke to create this app? Not 1 year, not 5 years but 20 years. Yes, he started mapping the world of Pokemon since 1996, while he was still a student. Just like any investment, it takes time to bear the fruits, so be patience and have faith in your dream or investment, as long as you've done your home work. As the saying goes : time in the market is more important than timing the market. 

2. There is no need to re-invent the wheel. Do you know that the Augmented Reality game concept of Pokemon Go is not something new? Before Pokemon Go, there was Ingress, even though not as popular. Besides, the graphic and design of the pokemon looks average to me too. Just like in investing, there are enough strategy for the retail investors to adopt, there is no need to reinvent the wheel by coming up with brand new strategy. All roads lead to Rome, just find one or two that suit you.  

3. Luck is important! I believed no one, not even the creator, John Hanke has envisaged such a crazy success of his game. What can I say? I believed luck do play a part in everything. Just like in investing, you might have done your 101% research and homework in studying the stock(s), but at times, you still need a fair share of luck in turning it into an hit.     

Would you have a go on Pokemon Go when it is available here? For me, I am not a fan of games but will definitely give it a try just to have a first hand experience of this phenomenal craze. 

Oh! In case you are still really really have no clue of Pokemon Go, do yourself a favor by checking out the following video:


Cheers!

Thursday, July 14, 2016

My Missing Week - In Memento Style

Sorry folks, I have been missing in action (blogging) for exactly one whole week. I am back now and hope that I don't need to wait for another 7 days for the next post ;-)

I like to treat this as a recap on what I have intended to blog for the past one week but didn't got the time to until now. 

To make it slightly more interesting and different from my usual style, I am writing this post in a "Memento" Style. If you are a movie buff like me, I am sure you've watched the movie, Memento (2001), directed by Christopher Nolan (yes, the one that brought us the blockbusters like The Dark Knight Trilogy, Inception etc...subsequently). It is a very intriguing crime story told in reverse order i.e. start with the end and end with the beginning. 

If you have not watched it, it is highly recommended! 

Anyway, back to the original purpose of this post, here is My Missing Week (in Memento Style) :

TODAY...
What a disaster for SGX, if you've not already known, SGX trading platform was down for the whole of today since 11.38 AM. Whether it will be up for trading tomorrow is still questionable but I believed this is the longest halt (due to technical glitch) in the history. Besides, I am pretty sure that some head(s) got to rolls too...

TWO TO THREE DAYS AGO...
As per my earlier post regarding my manual DCA (Dollar Cost Averaging) counter, Singtel, I am supposed to lock in another 200 to 300 shares during this period. However, it didn't happens as the price keep moving upwards and almost hit the 52-weeks high at one stage. I do aware that such "flexibility" should not be applied if I were to follow DCA strictly but I am just trying out the variation of it and see how it goes. 

As the price of Singtel is still at the higher end now, I am contemplating to source for another alternative counter for me to rotate my DCA fund allocation. With multiple counter(s), I believed I can allocate the DCA funds more appropriately. Searching in progress....

FOUR TO FIVE DAYS AGO....
There is no luck this time round! 

I failed at my second IPO attempt (Advancer Global) and missed the chance to be part of the successful IPO (up almost 100% on the first day of trading). Well, try harder next time.

ONE WEEK AGO...
SGX is having a stable and peaceful trading session, mostly greens...What a beautiful day... that was sorely missed TODAY...!

Cheers!

Thursday, July 7, 2016

Advancer Global - Trying my luck on the second IPO

For the past few weeks/days, one of the hottest topic in the local market I believed is about the upcoming IPO - Advancer Global Ltd. Offering at SGD0.22 a piece and tt will start trading on 11th Jul 2016, Monday (9 AM). 

After successfully gotten my minion maiden IPO shares of Frasers Logistics & Industrial Trust (FLT) a couple of weeks ago and further inspired by the blog posts by my friends (B from A Path To Forever Financial Freedom and Derek from The Finance), I decided to try my hand again on this upcoming IPO. 

As usual, since I am an "ikan bilis" retail investor, just trying my luck with 10,000 shares. Why 10,000 shares? As per the research by Derek, "10 to 49" and "100 to 499" have the highest percentage of shares allocation. ;-)

Oh by the way, according to our Mr IPO, Advancer Global Ltd entitled to 3 chilli rating, which is above average rating. 

Let's see how far my luck can bring me this time round ;-)

Cheers!  

Saturday, July 2, 2016

What Are The Correct Habits Of Retail Investors?

Recently, I am reading a book called "The Coaching Habit - Say Less, Ask More & Change The Way You Lead Forever", by Michael Bungay Stanier. It's quite a good read and giving me a different angle of coaching. 

I am almost done with the book and learnt a couple of critical questions to ask when we are performing the role of coaching (whether in work or personal life). This also set me thinking : what should be the correct habits of Retail Investors? What if I changed the title to :

"The Retail Investors Habits - XX Less, YY More & Change The Way You Invest Forever

What would be the XX and YY?

Of course, I don't have the perfect answers for this, even if I have, different retail investors might view it differently. Having said that, I don't mind giving my personal thought, here will be my humble answers and why :

"The Retail Investors Habits - TRADE Less, INVEST More & Change The Way You Invest Forever
  
By Trading I meant "timing the market" by following market movement (I know a couple of my TA friends will not buy it) and Investing I meant "time in the market" by invest for longer term (FA friends will agree more with me on this). 

What about you? What is your BLUE and RED pills? 

Cheers!

Wednesday, June 29, 2016

Saving For Your First Home (Guest Post)


Owning your own home is part of the Australian dream. Entering the property market can come with many ups and downs, but regardless of where and when you're buying, the best thing you can do is to put yourself in a good position financially. 
How much can you borrow?
Whether you are a single or a couple, the amount you can borrow will depend largely on your income and your existing financial commitments. With a greater income you have the potential to make bigger loan repayments, but if you already have large loans or credit card debts, these will be taken into account when assessing your borrowing power. Before approaching a bank or mortgage broker, review your finances and establish what you could realistically afford to pay each month. 
Be aware that earning power does not guarantee your eligibility for a home loan. Lenders will look at your credit history, the size of your deposit, your age and financial stability when assessing your loan application. 
To have a better understanding on what to expect before applying, it is advised to use a free loan calculator.
What size deposit do you need?
In the past, a deposit of 20% was required for purchasing a home. Meaning that someone wishing to buy a $500,000 property would need a deposit of $100,000. Lenders no longer look for a deposit of this size, usually requiring as little as 5% ($25,000 for a $500,000 purchase), but there are a few things to consider before rushing in to a 95% mortgage. 
Having a larger deposit means having a smaller mortgage. The more you can save for a deposit, the less you will have to borrow, meaning less to pay back to the bank. 
With a deposit of 20% or more you will avoid paying Lender's Mortgage Insurance, a step lenders take to protect themselves in the event you cannot meet your repayments. 
Having a larger deposit will also help with your eligibility for a loan. Banks can see that you have the ability to save and therefore make repayments.
First home owners grant
You might have heard about the first home owners grant, a form of government assistance introduced in 2000 to help Australians purchase their first home. The nature and amount varies from state to state, and can also change from year to year, so if you are budgeting with the grant in mind, be sure to obtain up to date information on what is available in your state. 
The scheme delivers a one-off grant to home buyers purchasing their first home, who meet all of the eligibility criteria. The grant amount is often dependent on whether you are purchasing a new or existing property, buying land, whether you are buying in metropolitan or regional areas.  
Bear in mind that the grant may not be paid directly to you, but instead paid as a credit against transfer duties. 
Other expenses
You home deposit and size of your mortgage will be front and centre in your mind when planning to buy a house, don’t forget the other expenses that need to be paid as part of the process.
The exact kinds of costs will vary depending on your situation, but some extras include stamp duty, real estate commissions and conveyancing and legal fees, building and pest inspection fees, loan establishment fees, mortgage insurance and building insurance.

Saturday, June 25, 2016

BREXIT - The Aftermath AND Potential Regrets By The Britons

The historical outcome of BREXIT referendum yesterday (24th June 2016) shocked the world and created bloodbath across the global stock market as well as political unrest (start with the resignation of the UK PM, David Cameron, to be effected in Oct 2016).  

Personally, I am not that into politic and trying to refrain myself from writing post with political theme, but this historical event just creep me up too much and hence this post. 

Let's start with the aftermath of BREXIT 
1.  According to TODAY's report, over US$2 trillion (SGD $2.7 trillions) value of stocks worldwide was being wiped off! Knee jerk reaction? I think it might be more than knee jerk... ;-)

2.  The value of Pound is falling like a heavy metal falling knife...fast and furious style... The weakest since 1985 (30 years) @ US$1.3229
3. Oil price plunged 6.8% to US$46.70 a barrel.

4. And I am pretty sure many more to come from next week onward...embrace yourselves...

And the Regrets?
1. One of the pro-BREXIT's biggest propaganda (350 million pounds pledge to fund the NHS) is a "mistake", as per Nigel Farager himself in a National TV. Are those voted for him regretting now? A little bit, maybe? Check out the article and TV interview here.

2. Some of the voters who voted for BREXIT have shown their regrets openly in the news (always remember, every single vote counts and play a part, don't under-estimate it and vote properly next time, OK?) :

3. Oh, I also find this sarcastic article from The New Yorker very hilarious and apt to share it here too : BRITISH LOSE RIGHT TO CLAIM THAT AMERICANS ARE DUMBER

So what's next for non-Briton like us? 

Life goes on! Markets will continue to tumble for the next couple of weeks/months (my prediction) but we just need to embrace it. On the other side of the coin, I know a couple of my financial blogger friends/opportunists are eagerly waiting to release their Kraken (war-chest) when opportunity strike. So, it's not all bad... 

The BREXIT will officially kick-in only in 2018 and its impact to the Britons as well as the world in general will be forever!

Cheers!

Wednesday, June 22, 2016

Hiring Office Plants vs. Buying Office Plants (Guest Post)


Plants are a fantastic addition to the décor of any office. They look great, have amazing air filtering properties, and most importantly, they are proven to improveemployees’ productivity and reduce absenteeism. The only drawback associated with adding indoor plants to an office is that they require regular upkeep.
From selection of the right indoor plants to keeping up with their water and sunlight requirements, there are several considerations of adding plants to your office. Considering this, some businesses may prefer renting office plants to save the energy and time spent on their upkeep while others may consider buying office plants to be a more cost-effective option.
To help you make the right choice, we are comparing the pros and cons of hiring and buying office plants. Consider the benefits and drawbacks of both and choose the option that suits your needs.

Hiring Office Plants — A No-Hassle Way to Make Your Office Greener

Adding plants to a workplace offers numerous benefits; however, these benefits can only be achieved if the plants look healthy, fresh, and presentable. Neglected, poorly maintained plants with dry leaves not only make your office look untidy, they also have a negative impact on the productivity of your employees. As a result, many businesses prefer hiring office plants from providers who look after the plants and replace them with fresh, healthy plants when needed.
In addition to hassle-free maintenance, there are several other benefits of hiring office plants, such as:
  • No Up-Front Costs — Unlike buying, hiring office plants incurs no up-front costs, making it a cost-effective option for businesses with a limited budget. All you need to do is to pay the costs for the plant hire period which may range from as low as $1 to $20.
  • More Options, Greater Flexibility — Hiring office plants allow you the flexibility to change the planters to compliment your office’s new décor. In addition to this, if you’re moving your business to a place that’s smaller in size, you can always return the plants or replace large troughs with smaller desk top plants.   
  • Free Expert Advice — Selection of the right indoor plants is a difficult decision anyone who is not an indoor plant expert. There are only a handful of plant species that can grow and survive in dimly-lit, closed environment of an office. Therefore, working with a provider that offers plant hiring service provides you an added advantage in the form of free advice from an indoor plant expert. 

Buying Office Plants — An Option Unsuitable to Many Businesses

While buying is the preferred option in case of commodities that have long durability, such as homes, cars, and equipment, it is not suitable when it comes to indoor office plants. Since indoorplants live for 6 to 12 months, they are required to be replaced quite frequently, making buying a less practical option. In addition to this, businesses with limited décor budget cannot spend a large sum of money on buying plants; therefore, they are better off hiring office plants from indoor plant hire companies.

Monday, June 20, 2016

My First IPO Stock - Frasers Logistics & Industrial Trust (FLT)

FLT, Frasers Logistics and Industrial Trust
Slightly more than 2 years ago, I locked in my first stock with Super Group (S10). Last Friday, I've gotten my first IPO stock or REITS, Frasers Logistics & Industrial Trust (FLT). Even though it's only "minionly" 1 lot but I am pretty happy and excited about my maiden IPO stock and I will keep it for its sentimental value. 

If you want to find out more of the FLT's balloting result, you can check out Investment Moat's coverage here

FLT will start trading from tomorrow (21st June 2016) onward. I am not sure how it will go but I am pretty sure will keep it for as long as possible.  

What is your first IPO stock (if any) and are you still keeping it? 

Cheers!

Wednesday, June 15, 2016

Euro 2016 Caused The Double Digits Drop In SGX Trading Volumes In The Past 2 Days?

At the time of my writing, the Euro 2016 match between Russia and Slovakia is on-going and Slovakia is leading by 2-0 at the moment. Being a soccer fan myself, this set me thinking on whether the kick-off of world's most beautiful sport has much impact to our local SGX trading volumes as well as values? If yes, how great is the impact? 

So, decided to do a simple compilation of the brief stats (source of date : SGX website) and following is my initial findings :

SGX Trading Volume and Values For The Past 2 Days
In both trading volumes and values, there are double digits drops! Of course, I am not saying that all the drops are caused by Euro 2016 but I do believed that it does play a key part to it. 

In case you are not aware, Euro 2016 (at France) is a one-month event starting from 10th June 2016 to 10th July 2016 and almost everyday there are games at 9 PM, 12 AM and 3 AM Singapore time. As the saying goes, sleepy man is an angry man (even more so if your favorite team loss) and investing might not be the top priority of the sleepy/angry man! lol 

Are you a soccer fan and following the Euro 2016? If yes, do you see any change in your pattern of your investing/trading? 

Cheers!

Saturday, June 11, 2016

Singtel - My First DCA (Dollar Cost Averaging) Counter

I have been contemplating to put aside  a fixed quantum of amount every month to form part of my DCA (Dollar Cost Averaging) Investment portfolio. Finally, I've made the move and selected one of the blue chip, Singtel (Z74) as my first DCA counter. 

Managed to get 300 shares @ $3.90 yesterday and my plan to investment 300 shares per month on on-going basis. 

In order to have full control and flexibility of my DCA transactions, I've chosen to purchase the shares directly from the market (via POEMS, they are still having their promotional 10 bucks commission [till end of the year] for transaction less than 1,000 shares) instead of through the DCA plan with Maybank, OCBC or POEM (Shares Builder Plan). 

Some of you might be curious as to why I didn't choose the ETF for DCA instead?

There are a couple of reason actually :

1. All a long, I am eyeing to own at least one local telco stock. So, I thought to kick-off my DCA with a telco stock. Among the 3 telcos (Singtel, Starhub and M1), Singtel is the largest [in fact, largest in the Southeast Asia] and has the better valuation in terms of their P/B ratio and profit margin):
Singtel's P/B ratio : 2.52
Starhub's P/B ratio : 22.27
M1's P/B ratio : 5.43

Singtel's Profit Margin : 22.82%
Starhub's Profit Margin : 16.19%
M1's P/E Profit Margin : 15.65%

[The above stats are from Yahoo Finance]

2. The dividend yield for EFT is not as "juicy" as  Singtel's, even though it is less than 1% difference ;-)  

3. In the recent news, Singtel is to list its broadband unit, Netlink Trust by Apr 2018 and hence there is a potential up side for the shareholders (from the disposal) in the short-medium term.   

The intention is to accumulate slowly...but surely... 

Cheers!

Wednesday, June 8, 2016

3 Valuable Things I Gained From My Investing Journey (Money Is Not One Of It)

Time flies, it has been almost 2 years and 3 months since I first started this blog, as well as my investing journey. After more than 730 posts and 1,500 comments, I am still going strong with my blog as well as my investment. 

As I mentioned before, prior to this journey, Accounting or Finance is my Achilles Heel and I never thought of seeing myself get my hand "dirty" with the "game" of shares investment (you see, prior to this, I always view share investment as a form of gambling and luck is the most critical factor. Of course, I've changed my mind now even though am still believed that luck do still play a part in it). 

So, what have I gained or learnt throughout all these years, besides money? Note : the reason why I excluded money from it is because as at to date, my minion portfolio is still experiencing with double-digits paper loss ;-) 

Here we go, the 3 most valuable things that I've gained so far :

1. FINANCIAL KNOWLEDGE:
If I really have to put a measurement on my financial literacy progress from a scale of 1 to 10 (10 being the best), I think I've moved a notch or two from say level 3 to 5. There are much more to be learnt but being an avid reader, I can always reading and learning along the way. 

2. NEW FRIENDSHIP:
I count this as the most valuable and surprising gain as it is never part of my plan when I started off this journey. Managed to get to know up-close and personal with  a bunch of cool and friendly liked-minded peer financial bloggers is godsend. You know who you are, let's keep this friendship 长长久久 !

3. MY BLOGGING STYLE:
From a noob to non-so-noob in the financial world, I've expanded my writing scope from mostly movies to personal finance stuff (especially those posts involving numbers), it has tremendous impact (positively, I hope... maybe) to my style of writing or blogging. 

What about you? What are your top 3 non-monetary gains from your investment journey?

Cheers! 

Saturday, June 4, 2016

Frasers Logistics and Industrial Trust (FLT) IPO - All You Need To Know Now

If you are into IPO and have not already gotten the good news, your new potential baby is coming real soon : Frasers Logistics and Industrial Trust (FLT) is expected to launch the biggest IPO since 2013 from next Friday (10 June 2016). 

While I am still waiting for the prospectus to be released, following are the key pointers that I've gathered from the media for this upcoming FLT IPO :

1. It will be managed by FCL (Frasers Centrepoint Limited)
2. It will be backed by 51 Australian properties in Melbourne, Sydney, Brisbane, Adelaide and Perth (the portfolio has an occupancy rate of 98.3% and WALE (Weighted Average Lease Expiry) of 6.9 years.
3. It is seeking around $900 millions from the IPO
4. It is expected to be priced at 85 to 89 cents per unit.
5. The forecast Dividend Yield is 6.9% to 7.1% this year (2016) and 7.3% to 7.5% next year (2017).
6. Some of the cornerstone investors are : Morgan Stanley Investment Management, Lion Global Investors and JF Asset Management.
7. The IPO will be listed in Mainboard and is expected to open on 10 June 2016 (Fri), with listing targeted for 20 June 2016 (Mon).
 
Personally I am into REITS and have keen interest in this IPO. What about you?

Cheers!

Tuesday, May 31, 2016

Do you think your life will change drastically after Financial Independence?

Without a doubt, Financial Independence (FI) is like the Holy Grail for most, if not all investors. 

The ultimate destination!

The ROME! (and as the saying goes : all roads lead to Rome)

The question is : Even if you've amassed a size-able fortune and has officially attained the FI status (basing on your own definition or the $x in your mission statement), so what? 

Do you think your life will change drastically after that? 

Would you become more spendthrift because you are more than comfortable to?

Would you enjoying or appreciating life more? 

Would you be more generous because you are able to? 

And the list goes on....(you get the idea)

Personally, I don't foresee that our mentality (towards life) will not be drastically changed even if we have attained the FI status i.e.:

You will still eat at the same hawker center or coffee shop that you used to patronize,

You will still wear the same brand of shirts or pants or dress (for girls),

You will still taking the same transportation (be it public transport or your own car), 

You might even continue to work (I know many have the idea of throw in the towel to the corporate world after FI, but you never know)

In fact, my ultimate question to this question is : If you have something in mind to do or act, there is no need to wait till FI! Do remember that we can only live at PRESENT! 

For example, many view that they are spending less time with their loved one because they have spent too much time at work and once they are FI, they will quit and be able to spend more time with them. Yes, the intention is a good one but would it really happens that way? 100% sure? Nobody can say for sure as you might be occupied by other stuff when you are FI. 

So, why can't you make some adjustment NOW to spend more time with your loved one? Why need to wait till FI? 

This post is meant for pondering (for myself too) and I am definitely not against FI! ;-) 

Cheers!

Thursday, May 26, 2016

Personal Money Management Tips

Investing your money is obviously something that you will need to take very seriously. Failure to do the proper amount of research regarding what you invest in and what company is handling your money could result in you suffering a major financial disaster. This is why you really need to pay close attention to every investment you make. The financial world can be very confusing to people who are not familiar with the various terms that are used. You would be wise to learn this terminology in order to help you understand certain investing strategies. Here are some personal money management tips that might be beneficial to you.

1. Talk to many investment companies

Do not simply hand your money over to the first money management company you find. You owe it to yourself to look at many different companies to see how they can help you to reach your personal financial goals. You will find that money management companies have very different strategies when it comes to investing. Some have a very conservative philosophy. Other companies can be much more aggressive. This means that you should only do business with a company that has an investing philosophy that you are comfortable with. Do not be in a hurry to invest your money. Rushing things could cause you to make foolish decisions which could result in you losing money.

2. Set a limit for your investments

You should never invest more money that you can afford to lose. You must always make your investments with the idea that everything will go wrong. In other words, would you still be able to support yourself financially if all of your investments fell through and you lost all of that money? You have invested too much money if the answer to that question is no. Take a close look at your finances and be very careful not to get carried away with your investing when you are just starting out. Set a monetary limit on your investing. This will prevent you from suffering a crushing financial loss that you can't recover from.

3. Be patient

It is normal for people who are investing for the first time to want to make money right away. You need to realize that patience is the key to successful investing. This is something that all reputable money management firms like Fisher Investments will tell you. It is possible for you to make money quickly on certain investments. However, you should not count on this to happen. You would be better off putting your money in a long-term investment that has shown a reasonable amount of growth in the past.

4. Make sure your money manager is experienced

Your money is much too important to your livelihood to allow an inexperienced person to invest it for you. You should only work with a money manager or financial advisor who has no less than a decade's worth of investment experience. Many of the people who work for FI have this level of experience. You do not want your investments to be determined by a kid who is fresh out of college and has no real experience when it comes to investing. You should only settle for someone who has outstanding credentials. Keep looking until you find a financial advisor and money manager who has a proven track record of success.

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