2015 - SG Wealth Builder

Silver’s Price at a 5-year Low

December 30, 2015 sgwealthbuilder 951 Views 0 Comments

Silver bullion has always been a favorite of many investors because it’s relatively low price as compared to gold allows investors to buy silver at a fraction of the cost of gold bullion. Today, silver’s price has reached a 5-year low of USD14. In fact, this is the lowest price level last seen since the Great Financial crisis in 2009, thus representing a good window of opportunity to buy silver bullion in Singapore.

Is it a good time for wealth builders to buy silver bullion? If so, should wealth builders buy gold or silver bullion? My perspective is that even though prices of gold and silver are expected to continue to slide moderately in 2016 due to the surging strength of the US dollars and improving US economy, precious metals still offer a form of asset allocation for individual investor’s portfolio.

In my previous article on investing in silver, I had touched on the risks involved. One of the key reasons why silver bullion is not featured in many professional investors’ portfolios is because silver can be very volatile. It can surge more than 5 percent in one day and therefore, not many people can stomach this kind of volatility.

Stocks

How to be a better investor in 2016

December 28, 2015 sgwealthbuilder 856 Views 0 Comments

During this festive season, I have thought deeply on my investment style and track records so far in 2015. While I did not make any major investment moves for the past three years, my personal finance is certainly in a better shape now as compared to 2010, the year I started this blog. Along the way, there were several intriguing investment ideas, new philosophies and key lessons that I have picked up from the various people that I have met. In view of this, I thought it is important to pen down my thoughts for more clarity.

Have you wondered why some people just keep winning in their stock investments while others lost huge sum of monies in stocks or fallen prey to silly gold scams which they never should have in the first place? Is it true that “the rich will become richer and the poor will become poorer”? I have come to realize that those who keep making money from the stock market are those who know how to read the game. In other words, they have the available tools and data that enable them to make informed decisions, thus allowing them to get ahead from the rest of the people.

Self improvement

Three important skills to succeed in life

December 24, 2015 sgwealthbuilder 846 Views 3 Comments

As a young parent, I always believe in giving the best for my children. In this regard, my wife and I have been sending my daughter for enrichment classes with the view of developing her thinking, speaking and writing skills. These are the three skills one should possess in order to succeed in life, so we hope to give her a good start.

Contrary to what many people thought, being academically good does not mean you are well-equipped to achieve great things when you enter the workforce. I have seen many scholars who can think and write well but cannot speak confidently in public. Like-wise I have many ‘A’ list friends who can think fast and speak confidently but lack substance in their writing. Henceforth, my view is that it is important to lay a strong foundation for these three skills, starting from a young age. At the end of the day, even if my children did not achieve great things, at least I hope to mold resilient characters in them so that they can overcome obstacles in life.

Thinking Skill

I have been sending my daughter to attend lessons at Clay Works Singapore in East Point Shopping Mall. The idea is to encourage her to think creatively and also to let her experience the fun of learning.

Stocks

How much have you lost investing in Tiger Airways IPO?

December 21, 2015 sgwealthbuilder 820 Views 0 Comments

In November 2015, Singapore Airlines (SIA) made an offer to acquire the remaining 44.23% stake in Tiger Airways for SGD450 million. The takeover, if materialized, would mark a sorry end to the listed company, which has seen its stock price plummeted from $1.50 at initial public offering (IPO) in 2010 to a low of $0.245. SIA is offering to buy out the remaining shares at $0.41.

Investors who remain faithful with Tiger Airways since its initial listing must have lost a lot of money. Suffice to say, the offer by SIA is definitely not attractive enough but then again, the offer of $0.41 represents a premium to the price range it was trading ($0.29 to $0.40) prior to SIA’s offer. So investors who bought during the IPO high of $1.50 need to ask themselves whether is it realistic for Tiger Airways to turn around its fortune and increase its stock price.

Being a budget airline, Tiger Airways has been battling stiff competition within the region against formidable rivals like Jetstar Asia and Air Asia. In 2008-09, the company lost almost $50 million but things got better after it got listed in SGX, with the company clocking in profits of $28 million in 2010 and $40 million in 2011.

Retirement

Growing your CPF Retirement Fund (Part 2)

December 18, 2015 sgwealthbuilder 1162 Views 1 Comment

As a wealth builder, it is important to start compounding your CPF savings as early as possible when you are in your prime. This is because if you start early, the compound interests can work wonders for your retirement sum. When you reach 55 years old, your Special and/or Ordinary Accounts savings will be transferred to your Retirement Account to form your retirement sum. Your retirement sum can be used to join CPF LIFE or the Retirement Sum Scheme which provides you with a monthly payout of about 20 years.

After setting aside both the Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge and the current MMS of $43,500, you can choose to withdraw the remaining cash balances in your Ordinary and Special Accounts, or continue to keep your savings in CPF to earn attractive interest.

For myself, I would be placed on the CPF LIFE scheme but when I saw the monthly payout for the Basic Retirement Sum (BRS), I almost fell off the chair. I mean what can you do with $700 per month? Thirty years down the road, with the onset of inflation, the diminishing purchasing power of money would mean that $700 would be equivalent to today’s $200.

Retirement

Growing your CPF Retirement Fund (Part 1)

December 16, 2015 sgwealthbuilder 996 Views 0 Comments

A few weeks ago, I was pleasantly surprised to receive a letter from MINDEF informing me that I was eligible for the 3^rd milestone of the NS HOME Awards and that they would credit $5000 into my CPF accounts ($3000 into my Ordinary account and $2000 into my Medisave account). Even more surprising was that due to the award, I have reached the Medisave Contribution Ceiling (MCC), which is currently $48,500. This caused the excess of the MCC to be transferred to my Special Account.

Many Singaporeans, including my wife, are clueless on what will happen to their Medisave accounts when the ceiling is reached. Many people also cannot appreciate the difference between the Medisave Minimum Sum (MMS) and MCC. Ignorance is certainly not blissful when it comes to managing your CPF retirement fund because if you are not given the right information, you may be misled by bloggers trying to stir up negative sentiments.

Before proceeding further, I think it is important to highlight the CPF schemes, especially for those who just started working. Every month, you and your employer will contribute to your CPF accounts which consist of Ordinary Account, Special Account and Medisave Account.

The current contribution rate totals 37%, with 20% deducted from your gross salary and 17% from your employer.

Gold; silver

BullionStar’s Bullion Savings Program

December 15, 2015 sgwealthbuilder 1860 Views 0 Comments

SG Wealth Builder is pleased to catch up with Luke Chua, Chief Operating Officer of BullionStar on their latest product offering – Bullion Savings Program.

1) What are the key features of Bullion Savings Program? You can actually convert the grams in BSP to physical metals?

The key features of the BSP are that it allows customers to save and/or trade in precious metals. With the BSP, customers can buy BSP Grams of Gold, Silver or Platinum that is fully backed up by physical precious metals in BullionStar’s stock inventory. Grams in the Bullion Savings Program (BSP) are fully allocated physical precious metals. Our BSP Grams are available in Gold, Silver and Platinum for a low price premium and a low spread. This provides customers with a cost-efficient way to start saving in precious metals.

BSP Gold Grams can be converted in increments of 100 grams to 100 gram PAMP Gold Cast Bars. BSP Silver Grams can be converted in increments of 15,000 grams to 15 kg Heraeus Silver Bars. BSP Platinum Grams can be converted in increments of 1,000 grams to 1 kg Heraeus Platinum Bars. BSP Grams can be converted to physical bullion bars at any time or sold back to BullionStar at any time.

Gold; silver

Silver Market Review for 2015

December 9, 2015 sgwealthbuilder 886 Views 0 Comments

Festive season is fast approaching and now is the time to buy gold or silver bullion as gifts for your loved ones! Before making a move, let’s take a look at the global market trend for bullion.

According to a report by Thomas Reuters, 2015 has been an intriguing year for silver as total supply is forecasted to fall by 3% from the previous year. This represented the weakest performance since 2002, when mine production fell by 2%.

There are a lot of head winds for the silver mine production and on top of this, scrap supply is expected to fall for the fourth consecutive year. Because of this, silver will face a physical shortfall for the third consecutive year. Nonetheless, this shortfall is mitigated by outflows from the ETFs and derivative exchange, thus softening the impact of supply shortage from the mine productions.

Interestingly, the deficit in the supply may not cause a spike in prices. This theory is vindicated by the performance of silver prices this year, which saw silver prices averaged US$15.91 per ounce, which was 18.3% lower than in the same period in 2014. Wealth builders have seized this window of opportunity to snap up silver on the cheap and this led silver bullion coin sales to reach record level in the third quarter of this year.

Stocks

K1 Ventures announced capital reduction

December 7, 2015 sgwealthbuilder 856 Views 0 Comments

Perhaps one of the most overlooked dividend stocks by wealth builders in Singapore, K1 Ventures announced capital distribution of 1.5 cents per share in October 2015 to reward shareholders. The objective of the proposed capital reduction is the maximisation of value, through the distribution of surplus cash to shareholders because the company will not be making any new investments and instead will focus on managing current portfolio. This is the second capital reduction for K1 Ventures since Dec 2007 and for each of the past 10 years, the company had announced dividends.

In announcing the capital distribution, K1 Ventures also released a fantastic 1Q 2016, which saw a net profit of $87 million. Revenue was $89.3 million for the first quarter ended 30 September 2015 compared to $2.9 million in the prior year period driven by an increase in investment income from KUH, attributable to the receipt of a cash distribution of approximately $85.6 million. The balance sheet is also in great shape because net current assets is $144 million and there is no outstanding borrowing. After the disposal of Helm, K1 Ventures had finally become more “asset-lite” and not burden by the heavy borrowings. Cash-flow is also good, with the operating activities at $84 million and cash and equivalents at $135 million.

Money management; personal finance

Choosing the best mortgage loan

December 3, 2015 sgwealthbuilder 787 Views 0 Comments

The soaring SIBOR rates have created much havoc for many home owners as banks started to adjust upward their mortgage interest rates. I am one of those affected as my bank increased the interest by $200 per annual. More carnage is expected for the market as the Federal Reserve is expected to hike interest rates in a couple of weeks. Thankfully, my loan amount is not too big, so the impact of the upcoming Federal Reserve interest rate hike will be minimal. For many home owners, it is prudent to choose the best mortgage loan.

Incidentally, the lock-in period for my mortgage loan will end next month, so I am looking at refinancing or repricing my outstanding mortgage loan. Lets take a look at the important factors when choosing the best mortgage loan packages in the market. You won’t want to get ripped off by the banks.

My first consideration for a mortgage loan is actually the lock-in period. I am looking at 2-3 years of lock-in period because I aim to pay off my housing debt by then using my CPF savings. For the uninitiated, the term “lock-in” is a clause which restricts you from switching to another loan package.

Gold; currency

Rising US Dollar and Its Impact on Gold

December 2, 2015 sgwealthbuilder 847 Views 0 Comments

Gold is often denominated and traded in US dollars, so a weak dollar will cause gold to be less expensive to buy. In addition, when US dollars devalue, investors will seek an alternative safe haven, such as gold, to store value. Loosely speaking, gold’s value is often correlated to the strength of the dollar. However, with the introduction of quantitative easing by the US government since 2008, I have always been puzzled that global inflation has not shot through the roof and purchasing power of the US dollar has not been diminished a single bit. In BullionStar’s website, I found my answer.

BullionStar explained that 80% of the global trade is still conducted in US dollars as businessmen still trust the stability of US government. In my opinion, a lot of credit must go to President Obama, who took over from his predecessor, George Bush, during the Great Financial Recession in 2009. Under Obama’s leadership, he helped to steer United States out of economic recession and in 2015, his hard work finally paid off. United States’ economy is finally showing sign of recovery and unemployment rate decreases substantially since last year. As a result. the value of US dollar rise for the past few months.

Money management; personal finance

What does being an accredited investor mean in Singapore

December 1, 2015 sgwealthbuilder 1295 Views 3 Comments

In the course of my blog adventure, I am privileged to meet people who shared with me their financial insights unselfishly. From them, I gleaned some knowledge on Singapore’s finance sector from the perspective of a retail investor. One of the important lessons I learned is what does being an accredited investor really means in Singapore.

Before you skip this article, take note that being an accredited investor is NOT about taking financial courses to qualify for investing in risky products. It’s about how much money you have in your bank and your earning income bracket.

Under Securities and Futures Act Paragraph 4A, an accredited investor means[This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Stocks

Stock Investing: Is Tat Hong a fallen angel?

November 29, 2015 sgwealthbuilder 1136 Views 1 Comment

It has been sometimes since I reviewed the performance of Tat Hong and I was shocked to find out that the stock had plummeted to almost a five year low. The stock is currently trading at $0.52, barely above the $0.49 recorded in September 2015.

For a company that prides itself as the largest crane company in Asia Pacific and seventh worldwide, its recent stock price indicates that all is not well for Tat Hong.

In the 2015 annual report, the revenue declined 11% to S$608.6 million whilst operating profit (excluding impairment charges) remained flat at S$35.7 million comparable to the net profit achieved in FY2014. Profit after tax and minority interests (PATMI) dipped 85% to S$4.9 million due to non-cash goodwill and asset impairment charges of S$30.8 million taken by the Group’s Australian subsidiaries. One reason for Tat Hong’s terrible performance could be that its business is too concentrated in Australia and Singapore markets, which together accounted for 60% of the Group’s business. Thus, any headwind in these markets can spell big trouble for the company.

Perhaps another tell-tale signs that a company is not doing well is that it is selling its assets. In 2015, Tat Hong disposed its properties in Australia, equipment as well as selling off several “non-core subsidiaries”, Hup Hin Transport and Tat Hong Flo-Line, and an associate, Kian Ho Bearings.

Self improvement

The mystery of life

November 25, 2015 sgwealthbuilder 1075 Views 0 Comments

It’s that time of the year for self reflections again. Since 2013, year end reflections took on a whole new dimension for me with the passing on of Dad. It is strange that when he was alive, I never realized my love for him and that he was so important to me.

Dad had been an influential figure in my life and his abrupt death in early 2013 had a profound impact on me. Perhaps the mystery of life is that you would only cherish something after you lost it. Human beings tend to take things for granted, especially when it comes to interpersonal relationships.

On looking back, one of Dad’s important words of advice to me was to manage and improve my temper. When I was young, I didn’t enjoy a good relationship with my mother and often argued with her over trivial matters. Because of this, Dad always chastened me over my foul temper. Indeed, since young, emotion management had always been a challenge for me. Sometimes when I see red, I would lose my head, much to my regrets later. Apparently, this Achilles Heel has spilled over to my job and thus affected my progression.

This year, I achieved quite a lot in my job and had collected a few awards along the way.

Insurance coverage; medical shield; financial planning; personal finance

Shortchanging your health insurance may cost your life in Singapore

November 20, 2015 sgwealthbuilder 1266 Views 2 Comments

Two weeks ago, I upgraded my whole family’s health insurances to Integrated Shield Plan (Private Hospital) to provide maximum coverage for medical expenses. As I also opted for the rider to cover the deductible and co-insurance portions, the amount of cash forked out was about $1,100 per annum after Medisave deduction.

The decision to upgrade our health insurances came about after a health scare that occurred to my colleague and my brother’s daughter who suffered a broken leg a couple of months ago. These incidents certainly really drove home the importance of buying health insurances when in the pink of health. With the kick-in of Medishield Life with effect 1 November 2015, you are still eligible for Medishield Life even if you have pre-existing illnesses or health problems at the point of applying for Medishield Life. However, do note that if your pre-existing conditions are very serious, you may need to pay additional premiums.

Personally, I am glad that the government has finally decided to provide coverage to Singaporeans born with pre-existing illnesses. This is the right thing to do, especially for new-born babies born with defects or chronic health problems. The Medishield Life will also offer protection for life to Singaporeans and Permanent Residents, so we need not worry about not having medical expenses coverage when we are old.

Gold

The strong demand for gold

November 19, 2015 sgwealthbuilder 1142 Views 0 Comments

As the year end festive season approaches, gold demand from China and India consumers pick up as expected. This is because the Chinese and Indian consumers are traditionally known to buying gold jewelleries and bullion during festive seasons. In the latest report from World Gold Council, the Indian demand was up by 15% to 211 tonnes, while China’s demand increased by 4% to 188 tonnes in Q3 2015. The bullish outlook for gold underlies the strength of the demand of gold bars and coins.

To be a successful wealth builder, one must always adopt a contrarian approach and buy on price dips. This is applicable regardless of any form of financial instruments. For gold and silver bullion, this is no different. In Q3 2015, the outflow of ETF led to a price dip for gold, thus resulting in increased consumer demand. This is because global investors saw the gap and capitalized on buying opportunity. The investment demand saw a spike in this quarter, up 27% to 230 tonnes. In particular, the Western market saw a surge of estimated 33%. The increased in demand was probably triggered by the Greek debt crisis and uncertainties in Europe arising from the standoff between Ukraine and Russia.

Self improvement

Japan business trip

November 11, 2015 sgwealthbuilder 813 Views 0 Comments

I just came back from a Japan business trip and thought that it is timely to blog down some of my thoughts arising from the experience. This is the 6th time that I visited Japan and previously they were all business trips that lasted only a week. What made this trip quite memorable was that I had the chance to visit several interesting places at Tokyo with my colleague.

The first place that we visited in Japan was Daibai to see the giant Gundam robot at Gundam Front Tokyo. I am not a big fan of Gundam but nevertheless was infected by my colleague’s enthusiasm. The place is really unique as there is a Gundam museum with hundreds of Gundam robot figurines and a movie theatre playing Gundam shows.

Beyond the fanfare of Japanese anime and manga culture, I think it is important to recognize the Japanese’s culture of innovation. After all, the Japanese have created so many timeless icons such as Godzilla, Doraemon, Gundam and Dragonball. To develop such a culture is not easy and requires a nation to constantly dream big and think out of the box. In this respect, Japan is way ahead of Singapore.

Just think about it, what icons have Singapore generated over the decades that managed to capture the imagination of the world?

Stocks

Sleep-walking to investment losses

November 7, 2015 sgwealthbuilder 825 Views 0 Comments

Recently, one of my friends had a massive paper loss made on one of the local stocks. Apparently, the stock had risen substantially within the past one year but he got greedy and decided to hold on to it. Eventually, the stock had its run and plummeted to a new low. Unable to cash out, my friend has become a “long term investor”. I have seen far too many investors making the classic mistake of not setting a stop-loss or gain level. As a result, they always sell off a winning stock too early or hold on to a losing stock for far too long. To mitigate this, investors should always monitor their stock investment. Below is a press-release from Call Levels, a free alert system meant for financial tracking.

Call Levels, a real-time financial monitoring and alert service designed to help traders monitor financial assets price movements easily on mobile, today announced that it has closed its pre-series A led by 500 Startups. The fintech startup also raised capital from a consortium of angel investors who are veterans in financial markets and tech industry, such as Timothy Teo (ex-GIC and JP Morgan), Gracelyn Ho (ex-Morgan Stanley) and Koh Boon Hwee.

Stocks

Stock Investing: Ascott REIT’s 3Q 2015 Report

November 1, 2015 sgwealthbuilder 695 Views 0 Comments

Below is a press release from The Ascott Limited, a wholly owned serviced residence unit of CapitaLand, one of the companies which I deeply admire. Ascott has been expanding aggressively lately in the South-east Asia region on the back of the soon-to-be-established ASEAN Economic Community.

Ascott Residence Trust’s (Ascott Reit) revenue for 3Q 2015 rose 21% over 3Q 2014 to reach S$113.2 million. This came on the back of its acquisitions in 2014 and 2015, as well as stronger operating performance from existing properties. Revenue per available unit (RevPAU) for 3Q 2015 grew 10% to S$141 compared to the same period in 2014. Gross profit increased 13% to S$55.2 million.

Ascott Reit’s 3Q 2015 Unitholders’ distribution of S$32.0 million included a one-off item of approximately S$1.2 million relating to the interest cost incurred on the S$250 million perpetual securities issued in June 2015 for the period prior to utilisation of the proceeds in 3Q 2015 to partially fund Ascott Reit’s acquisitions in Australia and the United States of America. Distribution per unit (DPU) for 3Q 2015 is 2.07 cents. Excluding the one-off item, the adjusted DPU would be 2.15 cents, which is 2% higher than 3Q 2014 DPU of 2.11 cents.

Gold; portfolio management

Monetary Authority of Singapore finally regulates gold buy-back schemes

October 30, 2015 sgwealthbuilder 1507 Views 0 Comments

In perhaps one of the most overdue regulatory safeguards for Singapore investors, Monetary Authority of Singapore (MAS) finally announced that precious metal buy-back arrangements will be regulated either as debentures or investment funds, depending on their features. This announcement was made after its consultation paper published on 21 July 2014.

This move to regulate the precious buy-back schemes is a result of the spate of gold ponzi schemes offered by Genneva Gold, The Gold Guarantee and Suisse International in Singapore. Seduced by the so called guaranteed payouts of 20% or incredibly high buy-back prices, many unwitting investors were sold on these gold buy-back schemes. Many of these victims didn’t realize that they were actually walking into traps devised by cheats.

In the aftermath, many victims sought to enlist the help of the authorities to claim back their investments but were shocked to find out that these financial instruments were not regulated at all. There were even reports that some victims sank more than hundred of thousands of dollars of their hard-earned savings into these gold-back schemes. Some even pooled money with their families to join these schemes.

The reason why many Singapore investors were conned was because many of them were attracted to buying gold when it reached its peak during the period 2010 to 2011.

Money management; personal finance; relationship

Lack of monetary wealth led to Kovan double murders?

October 28, 2015 sgwealthbuilder 1154 Views 0 Comments

The recent high-profile trial of former police officer over the Kovan double murders has shaken Singapore. To many, it is unbelievable that such violent murder case could have taken place in a city known for being one of the safest places on earth. Even more shocking is that the accused is a former police officer. I believe that this should be the first case of police officer being accused of murder in Singapore history and it really makes a huge dent in the public confidence of our law enforcers.

As the trial is still on going, I will reserve my judgement on the accused and assume that he is innocent. However, the matter of fact is that the accused had financial difficulties and was facing bankruptcy at the time of the murders. Apparently, he raked up bad debts after his divorce in 2005 and was unable to pay his car and mortgage loans. He also did not declare to his superior that he was financially embarrassed, thus he was taken off front-line duties as an internal investigation was launched against him.

Driven to desperation, the accused then devised a plan to steal from the victim, who had made a police report a few months ago over a theft from his safe deposit box.

Stocks

Stock Investing: Ascott Strengthens Its Investment Moat

October 26, 2015 sgwealthbuilder 927 Views 0 Comments

CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), has extended its global footprint to the fast-developing market of Cambodia by securing a contract to manage its first serviced residence in the country. Somerset Norodom will open in Cambodia’s capital and economic hub of Phnom Penh in 2018. The property will add another 105 apartment units to Ascott’s Southeast Asian portfolio, bringing its total in the region to over 13,000 units in 74 properties across nine countries. The expansion comes hot on the heels of the company securing five properties in Cebu, the Philippines and Pattaya, Thailand early this month.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “We are bullish about the growth potential of the Southeast Asian markets. The establishment of the ASEAN Economic Community in a few months’ time bodes well for Ascott, as it will further boost the competitiveness and connectivity of the region, and increase business activities and foreign direct investments in the markets.

Gold; silver

BullionStar explains the difference between ETF Gold and physical Gold

October 24, 2015 sgwealthbuilder 762 Views 0 Comments

Exchange-Traded Fund (ETF) is a form of passive fund comprising of a basket of securities listed and traded on the stock exchange. To put it simply, ETF combines the best of shares and unit trust, thereby enabling investors to achieve diversification in single transaction with minimum investment. However, ETF Gold is a little bit different and requires a different approach as compared to owning physical gold and silver.

Below is an article from BullionStar, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the the goals of SG Wealth Builder is to educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation.

A Gold Exchange-Traded Fund (ETF) attempts to track and ‘mirror’ the price performance of gold bullion by holding gold bars or derivatives and issuing shares backed by their holdings of physical metal or derivatives. A Gold ETF, like GLD, has their shares sold in baskets of 100,000 and is marketed by State Street. As compared to physical Gold, a key difference is in ownership and redemption.

Ownership and Redemption

Even though an ETF like GLD might be “physically backed,” ordinary investors cannot simply go to the ETF marketer or the vaults in which the bullion is claimed to be stored at and redeem their bullion.

Money management; personal finance; Investment

Will you still love me tomorrow?

October 23, 2015 sgwealthbuilder 789 Views 1 Comment

Lately, a few finance bloggers wrote about the cost of raising up a child in Singapore. Some estimated that the cost might be up to $1 million while there were some who felt that $200,000 to $300,000 should be a comfortable range. Whenever I come across such articles, I always have mixed feelings. Whilst it is important to be pragmatic in a high cost society like Singapore, I don’t like this money culture whereby we view things in monetary terms and measure relationships in dollars and cents.

As a father of two kids, I always tell myself that my love for them must be unconditional and I would not expect anything in return from them when I grow old. By the same measure, my wife and I do not see the point of calculating the cost of raising our children. This is because we do not want our children to grow up wondering how much it would cost to support us when we are old and jobless. We feel that it is our mission to take care of ourselves and be financially independent when old.

My girl and boy are our greatest gifts and we would not trade anything in the world in exchange for them.

Stocks

Haw Par stock analysis

October 22, 2015 sgwealthbuilder 864 Views 0 Comments

On 11 August 2015, Haw Par delivered a good set of 2Q 2015 performance. Profits for the period was $115.877 million and the 6 month period was S$129.33 million, representing an increase of 88% and 75% increase compared to 2014 results. On the surface, this might seem like an impressive showing by Haw Par. However, upon closer scrutiny, the profits was actually bolstered by the S$55.8 million gain arising from the partial disposal and reclassification of one of its assets, Hua Han.

In terms of operating cash flow, the 2nd quarter saw a healthy cash flow of $48.3 million due to the investment income of $38.6 million. As I have touched in my previous article on Haw Par, the company has substantial investments, consisting mainly of strategic holdings in United Overseas Bank Limited, UOL Group Limited and United Industrial Corporation Limited. This investment portfolio provides a stable source of funding – through recurring dividend income – and financial strength – at marked-to-market valuations – over the years.

Is Haw Par an undervalued stock and thus merits investment from wealth builders? After all, it is currently trading at $8.240, well below its Net Asset Value of $12.93. However, it should be noted that the company currently holds about S$2 billion worth of shares in UOB, UOL and UIC.

personal finance

Financial time bomb in Singapore households

October 20, 2015 sgwealthbuilder 794 Views 0 Comments

Almost three-quarters of households in Singapore could face financial disaster in the future due to worrying levels of inertia around wills and life protection, a new survey by online matching service findaWEALTHMANAGER.com has revealed.

• 71% of affluent women in Singapore admit that they/their partner do not have an up-to-date will in place that reflects their current wishes
• Almost a further tenth simply do not know if this vital document has been kept up to date – this despite the fact that 38% of women say they take sole responsibility for financial decisions in their household
• Life insurance and income protection levels are also worryingly low, with just 60% of wealthy women confident that they/their partner have adequate provision in place
Almost three-quarters of households could face financial disaster in the future due to worrying levels of inertia around wills and life protection, a new survey by online matching service findaWEALTHMANAGER.com has revealed.

Currently, 71% affluent women in Singapore admit that they/their partner do not have an up-to-date will in place that reflects their present wishes, while a further 9% do not know if this vital document has been kept current.

Just as worryingly, almost a quarter (23%) of respondents report that they do not have adequate life and income protection insurance in place, with a further 17% not knowing if they have taken sufficient measures to ensure their family’s security.

Gold; silver

Where to store your wealth in Singapore

October 16, 2015 sgwealthbuilder 909 Views 0 Comments

Many critics of gold and silver like to point out that investment guru, Warren Buffett disdained gold for its lack of utility as a form of investment. In my opinion, I find it strange that many people tend to follow what he preached or wrote. Firstly you need to understand that Warren Buffett is one of the richest men on earth and he is definitely not obliged to reveal the details of his wealth to the rest of the world. Nobody can accurately pin down his amount of assets and the various forms of investments he held.

No, I am not saying that Warren Buffett is hiding any things from the public but the matter of fact is that wealth is a personal thing and you don’t reveal something so personal to the public.

One of the greatest fears of the rich is losing their wealth. This is understandable as very few people can take the blow of losing their hard-earned wealth accumulated over years of hard work. It is this fear that drive the rich to seek safe haven to protect their wealth from the risks in the financial system and store their wealth in precious metals. In fact, gold was reincorporated into the financial system only recently by institutional investors in the western world.

Property investment;

HDB: The thin fine line between “Joint Tenancy” and “Tenancy-in-Common”

October 14, 2015 sgwealthbuilder 1778 Views 4 Comments

In Singapore, more than 80% of the residents live in HDB flats. Yet how many are aware of the various HDB regulations and its implications to themselves and their loved ones? Not knowing the rules can potentially land you in financial troubles, but may also cause family disharmony and destroy relationships. One of the most overlooked clause is the Manner of Holding, specifically, “Joint Tenancy” and “Tenancy-in-Common”. Read on if you are a joint owner of a HDB flat and is curious to find out how it can impact you.

When you are buying a HDB flat with your spouse or other family members, you would need to decide on the manner of holding the flat upon the transfer of flat ownership, either through joint tenancy or tenancy-in-common.

Technically, under joint tenancy, all the flat owners have an equal share in the flat. However, in the event of a demise of any joint owner, the right of survivorship applies and his interest in the flat would automatically be passed on to the remaining co-owners. This is regardless of whether the deceased joint owner has left behind a Will.

According to an example quoted from HDB’s website “Mr A, Mrs A (wife) and Mr C (son) own an HDB flat under joint tenancy.

Self improvement

A second chance in life

October 12, 2015 sgwealthbuilder 902 Views 1 Comment

What would you do if you are given a second chance to re-build your life? Would you cherish it and change the way you live your life?

Last week, I received an urgent message from my boss that one of my colleagues was admitted to hospital after having difficulty in talking for 20 minutes. My first reaction was that this could be a symptom of stroke but thankfully it was determined that it was a blood clot as a result of head trauma that he sustained last month during an overseas trip.

On my way home, a lot of things went through my mind. I am in my mid-thirties and being a sole bread-winner with two young kids, what would happen to my dependents if I am down with a severe stroke? It would be good if I had a quick death but what if I survived but became a burden instead to my loved ones? Perhaps many people would dismiss such worrying thoughts as being too pessimistic. However, such an unfortunate tragedy did happen to my father.

Unlike my colleague, my late father was not so fortunate and was not given a second chance. He survived the stroke but permanently lost control of his left side of his body.

Stocks

Stock Investing: Sheng Siong Group

October 11, 2015 sgwealthbuilder 1102 Views 0 Comments

In July 2015, one of the stocks I am tracking, Sheng Siong Group, delivered another stellar set of results. The company is one of the largest supermarket chains in Singapore and recently declared an interim dividend of 1.75 cent per share on the back of a 23.1% year-on-year increase in net profit to $13.6 million for the 3 months ended 30 June 2015.

Notably, the revenue increased because of the increased sales from the four new stores. According to Mr Lim Hock Chee, the Group’s Chief Executive Officer, “We are pleased to open four new stores since the start of the year, bringing our total retail area to 426,000 square feet. This represents a 5.4% growth in our retail area, compared with a retail square footage of 404,000 square feet as at December 31, 2014. We remain committed to our store expansion plans, particularly in locations where we do not have a presence, so as to reach out to our customers. At the same time, we will continue to nurture the growth of both our new and old stores, improve the sales mix and work towards reducing input costs by capitalising on our Mandai distribution centre.”

One of the factors I like about Sheng Siong Group is that the balance sheet is pretty strong and that the company had no borrowings as at 30 June 2015 and 31 December 2014 respectively.