SG Wealth Builder

BullionStar explains the difference between ETF Gold and physical Gold

October 24, 2015 sgwealthbuilder 624 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 637 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 732 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 609 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 748 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 1535 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 716 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 939 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.

Stocks

Stock Investing: Ascott

October 9, 2015 sgwealthbuilder 684 Views 0 Comments

CapitaLand Limited’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), has made its first foray into the popular destinations of Cebu, the Philippines and Pattaya, Thailand by securing five new contracts to manage 875 apartment units.

With 14 management contracts signed in Southeast Asia this year, Ascott has added over 2,700 serviced residence units in the region; more than triple the number of units added in the same region for the whole of 2014.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “We have ramped up our expansion in Southeast Asia as we see strong growth potential in the long-term. With more than 13,000 apartment units in 73 properties across eight countries in Southeast Asia, over 30% of Ascott’s global footprint is now concentrated in this fast-growing region. Southeast Asia is shaping up to be one of the most vibrant and attractive markets for foreign investors – with a young population driving domestic demand, growing export figures and various economic policies in place to attract foreign capital. The upcoming ASEAN Economic Community will not only boost economic integration in the region, it will also transform Southeast Asia into an economic powerhouse with a population of more than 600 million.”

Career management

Online Hiring in Banking and Finance Sector Remains Slow in South East Asia

October 7, 2015 sgwealthbuilder 616 Views 0 Comments

Below is data released by Monster Employment Index, which provide insights on the job market for banking and finance. At the moment, the market doesn’t look good for job-seekers wishing to enter the financial sector, especially in global wealth hub like Singapore.

Launched in May 2015, with data collected since January 2011, the Monster Employment Index is a broad and comprehensive monthly analysis of online job posting activity conducted by Monster India. Based on a real-time review of millions of employer job opportunities culled from a large, representative selection of online career outlets, including Monster.com, the Monster Employment Index presents a snapshot of employer online recruitment activity nationwide.

Southeast Asia, October 5, 2015 – As economic conditions continue to falter, online recruitment activities across Southeast Asia’s Banking and Finance sectors are registering weak growths.

This is according to the latest Monster Employment Index (MEI), a monthly gauge of online job hiring activity by Monster.com, which records the industries and occupations that show the highest and lowest growth in recruitment activity in Singapore, Malaysia and Philippines.

Among the three markets surveyed, Singapore exhibited the weakest year-over-year growth in the BFSI sector, at -13% between August 2014 and August 2015. This is a further dip from July’s -9%.

Gold; silver

Future-proof your wealth

October 6, 2015 sgwealthbuilder 755 Views 0 Comments

Many investors and financial professionals struggle to make sense of gold and silver bullion as a form of wealth-building asset. After all, precious metals do not offer dividends like stocks, nor do they provide investors with interests like bonds. In addition, unlike real estate, they do not allow investors to establish steady stream of passive income through rental collections. So what is exactly the basis for wealth builders to buy physical gold and silver? The answer is simple: risk management and future-proofing your wealth.

When you invest in stocks, there is a possibility of losing your capital invested. Of course, the potential rewards can be much higher than owning gold and silver when the management of the companies deliver on earning expectations. Conversely, if the companies are poorly managed and consistently making losses, your stock prices may also plummet. The frightening thing about investing in stocks is that whenever the stock market crashes, novice investors who put all their life savings into stocks watch in horror as their retirement funds evaporated overnight.

I feel sad whenever I read investors committing suicide as a result of losing all their life savings after dabbling in the stock market. They certainly don’t deserve this and something should be done to educate investors the perils of the stock market.

Money management; personal finance

Time is money

October 2, 2015 sgwealthbuilder 616 Views 0 Comments

After almost two months of waiting, my new car finally arrived last Friday. I was pretty excited because it is my family’s first new car. Previously, I had owned two pre-owned Japanese cars – my first car was Toyota Vios and subsequently, Nissan Latio. So after driving for 5 years, naturally my next car is another Japanese brand, this time its Honda City.

As a wealth builder, I am fully aware that car is a form of liability, this is especially so in Singapore, a city state that discourages car ownership. Given that the cost of a Certificate of Entitlement (COE) is so high, it would seem like an unwise decision to purchase a new car at this moment. As a matter of fact, I bought my car at $105,000 and took a three year loan. Forking out so much money is not matter to be taken lightly and for sure it was not an impulse buy. My wife and I had been planning to buy a car for the past one year because my pre-owned car’s COE was about to end in 1.5 year time.

There were a few factors that prompted me to buy our new car. Firstly, my pre-owned Nissan Latio had been giving me a lot of problems lately.

Gold; silver

Sell gold and silver bullion in Singapore

October 1, 2015 sgwealthbuilder 0 Views 0 Comments

Many investors deem gold and silver bullion as “bad investment” because they don’t yield interests and furthermore incur storage costs. Even the famous Warren Buffett expressed a disdain for gold but it should be noted that the world class investor bought 129,710,000 ounces of silver through Berkshire in the 1990s. In this regard, I don’t deny that gold and silver are a form of bad investment. Because they are never meant to be an investment tool in the first place.

Gold and silver are actually money and have been used as money historically. From a wealth builder’s point of view, gold and silver are meant to hedge money portfolio during time of volatility, high inflation and financial crisis.

Another concern of precious metals is its level of liquidity. This is indeed the case in Singapore where there are not many precious metal dealers willing to buy back gold and silver which are not sold by them. For example, as far as I understand, UOB does not buy back gold bars and coins not sold by them. This is where BullionStar comes in and address the gap in the industry.

Sell Gold & Silver to BullionStar

Sell orders for bullion products are placed on this page.

Money management; personal finance; relationship

CPF Retirement Planning

September 29, 2015 sgwealthbuilder 901 Views 0 Comments

One of the financial mistakes made by Singaporeans is that we always procrastinate retirement planning until its too late. Money issues may dominate your golden years and affect your quality of life if you are not careful with financial planning in your early years.

As a wealth builder, I tend to make this mistake as well but I always force myself to think about what kind of lifestyle I want when I am in my golden years. To do so, mindset needs to be changed. This is because our needs and wants change with time. It may not be realistic to project your future income and expenses based on current situation.

The major reason for so much frustrations among Singaporeans on the CPF Minimum Sum is because most of us depend solely on the amount as the main source of retirement fund, which may not be sufficient given the rising cost of living in Singapore. You need to start investing early and develop sources of passive income, while constantly upgrading your skill and knowledge to achieve better salaries from your day job.

Indeed, you need to have discipline and adopt a long term view when it comes to retirement planning, especially if you have just embarked your working life.

Money management; personal finance; Investment

Profit Mastery Seminar

September 24, 2015 sgwealthbuilder 910 Views 0 Comments

To succeed in your personal finance journey, you need to acquire the right knowledge in the various form of wealth building strategies. One of the ways is to achieve this is through reading. However, reading is a very passive form of learning because you are merely downloading information. There is lack of interaction and exchange of ideas which would otherwise, result in a better decision-making outcome.

That is why I believe that attending seminars would help to broaden a wealth builder’s perspective. Make no mistake, I am not advocating you to sign up for those investment seminars that attempt to hard sell you their so-called secret money making formulas. Neither do I believe that you pay thousands of dollars to attend a wealth building or internet marketing seminar.

However, I do think that there are many affordable yet credible money seminars in the market that offer investors the opportunity to learn and at the same time, network with successful investors. One of them is the Profit Mastery Seminar conducted by Wealth Directions.

The local company is celebrating their 5th year anniversary the best way they know how. That is to share their knowledge about financial planning and investment. During this one day event, they have lined up a few speakers that will talk about:

1) Getting the right investment mind set

2) Key to good retirement planning

3) Market outlook and many more

Similar to past event, Wealth Directions is keeping the cost low to encourage more participants to join.

Money management; personal finance; Investment

CPF Special Account

September 19, 2015 sgwealthbuilder 680 Views 1 Comment

For the longest time, there were several investment bloggers who had been talking up the merits of topping up CPF Special Account (CPF-SA) with cash or CPF Ordinary Account (CPF-OA). They gushed and purred about how parking those extra $7000 into CPF-SA can earn risk-free 4-6% of return. Apparently, many readers were so impressed that they were pretty sure that these two fellows had uncovered the sure-win secret formula to wealth building. One of the readers almost kissed the foot of one of the bloggers.

Finally, today SG Wealth Builder came across one fellow blogger who had the guts to stick out his neck and pointed out 6 Reasons not to Voluntary Top Up your CPF Special Account with cash or CPF Ordinary Account.

If you have not read the article, I would urge you to read it (at least once) because it is one of the most well-balanced investment article I have come across with regard to CPF matters. The author described the approach of topping up your CPF-SA as “dangerous” and cautioned Singaporeans to consider carefully before doing it. As a wealth builder, I fully agreed it!

I shall not list down all the 6 reasons written by the blogger but fundamentally, his points on cash-flow and business opportunity costs were exactly what I had in mind whenever I came across bloggers espousing the merits of voluntary topping up CPF-SA.

Money management; personal finance

The Wealth Dragon Way: The Why, the When & the How to Become Infinitely Wealthy

September 18, 2015 sgwealthbuilder 673 Views 0 Comments

SG Wealth Builder is excited to be given the opportunity to review the book “The Wealth Dragon Way: The Why, the When & the How to Become Infinitely Wealthy“ (April 2015; Paperback; ISBN: 978-1-119-07783-1). The authors of this work, John Lee and Vincent Wong, reveal intimate stories from their past, right up to the present day.

I like many of the key money principles defined in the book because they are aligned to my philosophies as well. I agree with the authors that money solves the problem that not having money creates. In life, we cannot deny the fact that money plays an important role in our society and in many cases, can help to solve many of our daily problems.

The current haze situation in Singapore drives home the importance of what money can do for you. If you have infants or elderly at home, would you not spare some cash to buy air purifiers so that your loved ones can have better quality of life? Conversely, if you are financially struggling and have been living from pay check to pay check, would you not feel guilty for not doing anything for your loved ones?

Having money certainly gives you choices, to either do good or to keep the money for your children.

Gold; silver

Buying gold and silver from BullionStar

September 14, 2015 sgwealthbuilder 776 Views 0 Comments

SG Wealth Builder was alerted to an article written by fellow finance blogger on “Precious Metals: The warning signs are already here”. Personally, I like that article because it provides me value-added information on the latest updates on precious metals. The blogger highlighted that there is currently a tight supply of bullion even though the spot prices for gold and silver are falling. He also cited several notable reputable precious metal dealers to buy from, such as BullionStar. The challenge now is finding trustworthy dealers who have inventory to sell bullion to investors because of the huge demand.

As a wealth builder in Singapore, whilst I have been tracking the prices of gold and silver for quite some time, I did not really note down the price premiums for the gold bars that I bought like what the blogger did. This is because I have always been confident on the long term prospects of both gold and silver, as such, I don’t see the point of monitoring the price premiums. Nonetheless, I was really impressed by the blogger’s research and I must say he really knows what is considered the “normal price premium” for different products.

In his post, he wrote “Today spot silver is at $14.65, but American Eagles are selling for $29.16.

Stocks

Morningstar: Changes in Chinese Equity Market

September 8, 2015 sgwealthbuilder 757 Views 0 Comments

Morningstar Asia Limited, a subsidiary of independent investment research firm Morningstar, Inc. (NASDAQ: MORN), has published a research report, “Change is Afoot in China,” which examines changes in the Chinese equity market and the indices and exchange-traded funds (ETFs) that track the market. Authored by Morningstar’s global manager research team, the report investigates:

 How index providers are changing the way they ”define” China;
 How some of these definitional changes may affect investors;
 Factors investors should be mindful of when evaluating Chinese equity ETFs; and
 How benchmark changes might affect investors in Chinese equity ETFs.

“Change is afoot in a number of respects from economics to demographics to the very definition of ‘China’ and investors need to be prepared as they consider an investment in Chinese equity ETFs,” Jackie Choy, ETF Strategist for Morningstar Investment Managament Asia, said. “Our research report can help investors navigate these changes and make better informed investment decisions.”

Key highlights of the research report include:
 Major index providers, including MSCI, FTSE Russell, and Standard & Poor’s, are considering adding China A-Shares, which are companies listed onshore either on the Shanghai or Shenzhen stock exchanges, to their global benchmarks. MSCI announced that it will include overseas-listed companies such as Alibaba and Baidu in the MSCI China Index in November 2015.

Gold

Importance of trust and reputation in the bullion industry

September 7, 2015 sgwealthbuilder 803 Views 0 Comments

For many years, there were reported cases of Singapore wealth builders fallen prey and lost huge chunk of their wealth to various gold scams. This is not surprising as many bullion dealers set up shops following the implementation of GST exemption of investment grade physical precious metals in 2012. To avoid being ripped off by dishonest bullion dealers, always buy from reputable and trustworthy bullion brokers. Don’t ever go for the ones that offer the lowest premiums because good things don’t come cheap, and cheap things don’t certainly come good.

Developing trust is critical in the bullion industry. To this end, BullionStar has recently reported a good FY2015 report. Revenue grew 43.8% as compared to FY2014. This growth was remarkable given that it took place in the wake of falling precious metal prices. Asian demand had been strong as investors took the opportunity to accumulate bullion to their portfolios at a bargain. So clearly, BullionStar’s CEO, Mr Torgny’s bet on Singapore being Asia’s gold hub had paid off.

In terms of financial strength, BullionStar had been profitable since FY2014 and FY2015. The company also has no outstanding long term debts to financial institutions. Going forward, the company foresee that FY2016 will deliver even better results with a slew several features going to be rolled out that would allow international customers to trade with BullionStar.

Retirement

Singaporeans should not depend solely on their CPF savings for their retirement

September 6, 2015 sgwealthbuilder 741 Views 0 Comments

Singaporeans who thought that they can depend squarely on their CPF savings for their retirement need to adjust their mentality. Given today’s high cost of living, that amount of savings would probably last you a couple of years. So, before you and your partner knew it, there might be a need to press the panic button during your twilight years. Also, in today’s society where Singaporeans must compete with cheap foreign talents, all of us must not take things for granted and assume that we would be gainfully employed until the age of 67.

In fact, you are probably just one step away from financial disaster if you are hospitalized in ICU. The medical costs would probably wipe out all your hard-earned savings in your Medisave if you didn’t make a proper retirement plan. Clearly, Singaporeans need to establish alternative pathways to accumulate and build wealth so that we don’t have to suffer the pain of “money no enough” in retirement age.

Firstly, the purpose of this article is not to question nor criticize the merits of CPF. The aim is to highlight to fellow Singaporeans the importance of taking charge their personal finances and empower their future. Far too many young Singaporeans ignore the importance of retirement planning in their prime age and also tend to regard their CPF savings as their sole ultimate saving plan.

Stocks

SATS to join STI

September 3, 2015 sgwealthbuilder 925 Views 0 Comments

Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Russell announced on 3 September 2015 that UOL Group, Yangzijiang Shipbuilding Holdings and SATS will replace Jardine Matheson Holdings, Jardine Strategic Holdings and Olam International as constituents of the Straits Times Index (STI) following the conclusion of the semi-annual review.

The STI is widely followed by investors as the benchmark for the Singapore market and is used as the basis for a range of financial products including Exchange Traded Funds (ETFs), futures, warrants and other derivatives.

SATS Ltd provides gateway services and food solutions in Singapore, Japan, and internationally. The company’s gateway services comprise airfreight, baggage, ramp handling, passenger, aviation security, cargo, warehousing, perishables and cruise handling, and terminal management services, as well as ground handling and in-flight catering services.

Its food solutions include airline catering, food distribution and logistics, and industrial catering services, as well as chilled and frozen food manufacturing, and linen and laundry services.

The company also provides apron, flight operation and load control, aviation security, aircraft interior and exterior cleaning, and cruise center operation and management services. It serves airline, hospitality, healthcare, food, and airfreight and logistics industries, as well as the government.

On 17 August 2015, SATS Ltd.

Gold

My gold journey with BullionStar

August 27, 2015 sgwealthbuilder 971 Views 0 Comments

BullionStar announces their 3rd Year Anniversary celebration! Time really flies and it seems like yesterday when I forged a working relationship with BullionStar to promote understanding of gold bullion among Singapore readers. Since then, the company has grew from strength to strength and has became a leading bullion dealer in Singapore. It never fails to amaze that the company has managed to achieve this incredible feat within such a short period of time. In this regard, I am proud and honored to be part of their journey, even though I am not their staff.

Even though the gold and silver price premiums of BullionStar are not the lowest you can find in Singapore, what differentiates it from the rest of its competitors is its reputation and content authority on precious metal. The founder of the company, Torgny Persson has a strong conviction in gold as a form of wealth building and firmly believes that Singapore is the most ideal country to invest in gold bullion.

I have gained much insights on gold and silver from my conversations with Torgny and through the years, my perspective on wealth management has been broaden. Like many Singapore investors, I used to think that investing is all about buying and holding stocks.

Trading

Why automated trading stop losses are not always ideal (especially now)

August 25, 2015 sgwealthbuilder 577 Views 0 Comments

Below is a guest post from Cynthia Siantar who is the co-founder of Call Levels, a Singapore fintech that provides free real time financial monitoring and notification service.

I’m sure we all agree that last night and this morning was a total bloodbath in the markets. But one group of people got it worse than others and who are they?

Those that had their automated trading stop losses triggered prematurely (see below), crystalised their losses, only to see the markets rebounded sharply soon after (ouch!). Not to mention there will always be that group that slept through the turmoil and wake up massively poorer. Don’t laugh, they might be someone you know.

And this is the reason why institutional investors and traders still choose to leave Call Levels: Call me when the price reaches this level with salespeople despite having the ability to set their own stop losses. They want peace of mind. When the markets go into panic mode, and none of your technical indicators make sense anymore, they want to be aware when certain price points are HIT but they don’t necessary want to execute that trade.

Inline image 2

As my co-founder, Daniel not-so-fondly recalls that one night many years back, he had at least 20 salespeople calling to update him because almost all his Call Levels were triggered.

Entrepreneurship

My favorite personal finance blogger

August 24, 2015 sgwealthbuilder 652 Views 1 Comment

It was a pleasant surprise to see my favorite personal finance blogger, HYOM back in action after more than a year. For the uninitiated, HYOM stands for Help Your Own Money. HYOM started his investment blog at the same time as me (in 2010) and I have always respected his work. In fact, I am one of his biggest fans and enjoy reading his articles. However, after he suffered from retrenchment in 2011, he begun to blog less often. Since then, the local investment blogging fraternity had taken a different dimension altogether. Sadly, the scene is now crowded with many bloggers who cannot match HYOM’s writing standard. Nonetheless, in his maiden article for 2015, HYOM touched on a very interesting subject that resonates deeply in my heart and that is, entrepreneurship in Singapore.

HYOM’s post was triggered by an article from a former high flying civil servant, Mr Devadas Krishnada who commented that Singaporeans are too risk averse and lamented that this is bad for Singapore’s future growth. Devadas’ frustration stemmed from a recent recruiting experience in which an applicant demanded more money in exchange for the risk in joining a SME like his. While I can relate to Devadas’ pain point of recruiting a local talent to support his company’s business expansion, I agree with HYOM’s that Devadas’ arguments are not well balanced.

Gold

Last Chance for Gold Investors

August 23, 2015 sgwealthbuilder 581 Views 0 Comments

Dow Jones plunged 2 percent on 20 August and seemingly continued its slide on 21 August as uncertainty over the Fed’s timing on interest rate hike and global growth weighed on investors’ confidence in the financial markets. Weak data on China’s growth also dealt another mighty blow to investors and heightened fear on the world number two economy. Given the volatility in the stock market, it is no surprise that investors turn to gold.

Widely seen as a safe haven, investors drove gold price up 7% from a 5-year low in 5 August. This development is a reverse on the recent bearish sentiment on precious metal. According to World Gold Council, demand on gold dropped 12% on a 6 year low in 2Q 2015. The gold market also faced weakness from jewellery buyers in China and India. However, it should be noted that the 2nd half of the year would be more encouraging given the anticipated responses from investors in view of the recent price correction.

Investors seeking wealth protection should diversify their assets and allocate a certain portion of their wealth in gold and silver. The current window is a good opportunity for wealth builders to adopt buy gold on the cheap and preserve wealth.

Retirement

CPF Retirement Planning Roadshows

August 19, 2015 sgwealthbuilder 722 Views 0 Comments

According to a HSBC survey conducted in 2013, more than 50% Singaporeans felt that they are not planning adequately for their retirement. The study also revealed that poor health and not having enough money to spend in their later stage of lives are among Singaporeans’ greatest fears. The results of the survey are not surprising, given our aging population and high cost of living. If you are not careful with your personal finances in your twenties or thirties, chances are, you might not have a positive retirement lifestyle.

To prepare for retirement, the first thing we must ask ourselves is how much is needed in order for you to feel comfortable in retirement. The amount of money is subjective and varies across individuals but the rule of thumb is that the retirement fund should include your dependents’ needs, traveling, medical and other unforeseen expenses.

Once you establish your desired retirement nest egg, develop the financial roadmap to achieve this goal. For example if you need $2 million to retire, work out the monthly or annual savings you need to set aside. Besides the cash components, acquire income generating assets and passive income investments to support your retirement fund.

A common mistake made by Singaporeans is that we often fail to future-proof our financial planning.

Career management

Money no enough for digital marketing talents

August 18, 2015 sgwealthbuilder 734 Views 0 Comments

Agencies and organisations in Singapore are not fulfilling the needs of marketing, digital and creative talent in terms of remuneration and professional development, a new study by specialist recruiter font talent has found.

font’s Market Pulse 2014/15, which surveyed 500 respondents across Hong Kong, Malaysia, New Zealand and Singapore, found numerous disconnects between what employers claim to be providing for employees, and what talent are actually receiving.

Money is the number one consideration for marketing talent in Singapore looking for new roles (81%), yet just 54% of professionals feel they have been fairly remunerated in the past year. Worryingly, just 35% of employers said they offer competitive base salaries above the market average, and only half offer incentives and bonus programmes. However, bonuses appear to be paid adequately, with 22% of talent receiving a bonus between both $3,000-$4,999 and $5,000-$6,999.

In Singapore, the top median annual salaries were found in Digital, Design and Production roles, followed by Creative and Creative Services, while the lowest was in Media (Media Planning, Digital Ad Sales, etc.)

When comparing in-house and agency wages, agencies came out on top with a median annual salary of $58,800, compared with $43,200 in-house. From a benefits perspective, in-house respondents reported more healthcare, company paid training and car park allowances, while agencies offered more flexible working hours, travel allowances, and phone allowances.

Gold

Gold demand falls in Q2 2015 as reduced consumer appetite in Asia outweighs increased buying in some western markets

August 16, 2015 sgwealthbuilder 500 Views 0 Comments

Below is an update on gold trend from World Gold Council. Notwithstanding the recent gold’s price drop and declining demand, gold investors should take a contrarian approach and seize this opportunity to buy gold. In Singapore, you can purchase gold and silver bullion from BullionStar, one of the leading bullion dealers.

The World Gold Council’s Gold Demand Trends report for Q2 2015 shows total demand was 915 tonnes (t), a fall of 12% compared to the same period last year, due mainly to a decline in demand from consumers in India and China. However, demand in Europe and the US grew, driven by a mixture of increasingly confident jewellery buyers and strong demand for bars and coins. Looking ahead, there are encouraging signs moving into what are traditionally the busiest quarters for gold buying in India and China.

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, said:

“It’s been a challenging market for gold this quarter, particularly in Asia, on the back of falls in India and China. The reverse is true for western jewellery markets, as increased economic confidence led to continued growth in consumer demand. It is fair to say that investment demand for the quarter remained muted given the continuing recovery in the US economy and booming stock markets in India and China during the quarter.

Property investment; Singapore market;

The Ins and Outs of Mortgages in Singapore

August 13, 2015 sgwealthbuilder 857 Views 0 Comments

There is much to consider when the time comes to take out a housing loan in Singapore. Though it may seem intimidating and confusing at first, understanding the terms that you are dealing with will help, you get a head start on making your decision. Tools like the mortgage calculators offered by Property Guru can help you plan out payments and what fits best into your budget, but it’s best to start by learning about some aspects of mortgages in Singapore that may be unfamiliar. You’ll want to learn a little bit about how the SIBOR affects interest, the different types of rates that are offered on home loans, and how this factors into why refinancing is common in Singapore. Here’s a bit of an introduction to these concepts to start you on the way to your home loan.

Getting a Grip on the SIBOR
To put it simply, the SIBOR, which stands for Singapore Interbank Offered Rate, is the reference by which banks in Singapore determine interest rates on loans. Experts indicate that the SIBOR is predicted to rise to 2 percent by the end of 2016. You’re probably wondering what this means to you. Basically, the SIBOR will help you determine the initial interest you will be paying on your bank’s home loan, and can in turn help you decide on whether or not a fixed rate home loan or a floating rate home loan is the best choice for you.

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