SG Wealth Builder

My favorite personal finance blogger

August 24, 2015 sgwealthbuilder 707 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 650 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 771 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 810 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 542 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 926 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.

Career management

My Career Low

August 8, 2015 sgwealthbuilder 866 Views 2 Comments

This year marks the 10th year anniversary of my working life. It seems not so long ago that I stepped out of the university, fresh and ready to take on the world. I was driven, curious and hungry for success back then. Yet now, I feel like a spent force, jaded and weary of my journey. So many things have happened to me for the past 10 years, both good and bad, and they have inevitably shaped my character and thoughts.

I like my current job because of the opportunity to make significant impact in the industry I am working in. Yet, I came to realize that there is another side of the job equation that cannot be decoupled, and that is human relationships. Having the soft skills to deal with day-to-day issues are important in career success and unfortunately, this is not taught in school. Through the years, I came to realize that successful people are those with strong Emotional Quotient (EQ) and they tend to get ahead than those who are smarter or technically stronger. And this is the area which I fare the worst – the ability to manage my emotions.

For the past few years, I have lost my temper in office on a number of occasions and my bosses had noticed my outbursts.

Stocks

CapitaLand to boost digital efforts with technology stalwarts as members of its newly formed Technology Council

August 7, 2015 sgwealthbuilder 824 Views 0 Comments

Below is a press release from Capitaland, one of the companies that I respect the most because of its foray in China over the years. The Singapore listed giant recent move into the use of technology to boost its real estate business would definitely help to give the company competitive edge in China. It is interesting to note whether such trend would take place in Singapore.

CapitaLand Limited has formed a new Technology Council consisting of high-calibre digital visionaries to boost its digital efforts to drive its real estate business. The council members are notable venture capitalists Foo Jixun, Managing Partner of GGV Capital and David Su, Managing Partner of Matrix Partners China, both of whom have strong tech focus and a keen eye for the next tech game-changers; as well as Gabriel Lim, CEO of the Media Development Authority of Singapore, the agency key to Singapore’s Smart Nation vision in mapping innovative infocomm media solutions. Together, the council provides strategic critique of CapitaLand’s operations and insights to the digital universe.

Mr Lim Ming Yan, President & Group CEO of CapitaLand Limited, said: “CapitaLand’s technology drive is part of the Group’s efforts to sharpen our customer-centric focus to develop real estate of the future – integrated and interconnected smart communities through smart buildings as well as seamless online and offline customer experiences.

Stocks

The sky is falling for Singapore shares investors

August 4, 2015 sgwealthbuilder 899 Views 0 Comments

Many Singapore investors would be happy to see the back of July as it capped an awful month for the stock market. A total of $37.4 billion was wiped out and the combined value declined sharply by 3.9 per cent. I also saw an article in a local finance blog where one reader wrote how depressed he was to see his hard earned money evaporated away because of the market correction.

To put things into perspective, I have always advocated readers to only invest in monies that you can really afford to lose. If you have only $30,000 hard cash, you don’t invest all of it in shares. That’s pretty stupid and risky. The worse case is concentrating all your investments on a couple of shares when you are just learning how to invest. Obviously, such an approach is akin to asking for trouble. A market rout would have wiped out all your monies.

The mayhem in the China stock market is not surprising, given that it had surged to record highs for so many years. A correction is inevitable and would of course inflict mighty pains on many investors. Such is the growing pains of an emerging market. On this note, investors worldwide should be cautious of this development because the fallout from the China market, coupled with the Greece debt crisis and the potential adjustment in interest rates, can affect investors’ confidence drastically and induce unstoppable financial crisis.

Gold

BullionStar explained the merits of fractional gold coins

August 3, 2015 sgwealthbuilder 1061 Views 0 Comments

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.

Often, customers come into our shops and ask for the gold coin with the lowest premium. In this case, our answer is always the Royal Canadian Mint 1 oz Gold Maple Leaf. The Gold Maple Leaf offers not just the best value for money, but you also buy into a brand that is globally recognized for high manufacturing quality.

Why then, do we offer fractional coins in the form of fractional gold maples, kangaroos, pandas and lunar series and why do people purchase them even though the premiums are higher? Today’s editorial will discuss the different reasons people who buy gold buy fractionals.

Liquidity

Fractional coins offers the advantage of liquidity. Should one need a sum of money, one can sell a ¼ oz coin for example instead of selling an entire ounce. Now this is especially useful when the price where one bought the coin at is higher than current prices when you are deciding whether or not to sell.

Career management

When Should You Resign?

July 30, 2015 sgwealthbuilder 925 Views 2 Comments Buy SG50 Bullion

Last year, during my reservist in-camp training, I had a chat with one of my platoon mates on when is the right time to resign from a job. He was much older than me and was in his early forties. So obviously, given his wealth of experience, I thought what he said would probably be true.

In our conversation, he shared with me that when your boss starts to load you with many assignments or meaningless tasks, its a sure sign that he is trying to force you out of the company. Clearly, my friend wasn’t happy with his job but I didn’t urge him to be positive because at that point of time, I couldn’t really fathom what he was driving at.

Fast forward to a year later, his point really hit me. On thinking back, I am able to empathize him now as I am now going through the same situation as him then. For the past 6 months, I was loaded with many key projects with pressing deadlines, and also many small trivial tasks that don’t add value to the organization or myself.

On a daily basis, I was chased by colleagues from other divisions for trivial issues that could really be solved if they had bothered to put in some efforts.

Property investment; Singapore market;

Making a Smart Move for Your Mortgage

July 28, 2015 sgwealthbuilder 920 Views 0 Comments

An Information and Networking Luncheon by Property Club Singapore

In the coming months, my mortgage loan will be due for refinancing. Under the loan agreement, I am supposed to be paying interest fees at board rates set by the bank and the interest fees payable are scheduled annually accordingly. The fees payable is of course much lower than the HDB concessionary rate.

However, last month, I received a surprise upward revision in the interest fees, probably due to the soaring SIBOR rates in the market. This triggered me to check the term and conditions in the loan agreement, which stated that the bank actual reserves the rights to revise the fees according to market conditions. In my opinion, this is a fair clause and I am not complaining about the bank practice. But I thought that as an engineer by profession, I should have factored in safety margins in my mortgage loan to cater for such unexpected circumstances.

While the additional amount to be forked out is small because my mortgage loan is not much, many others in Singapore may be starting to feel the heat from the rising SIBOR rates. Aspiring homeowners, upgraders and investors are starting to feel the pain as banks start to adjust the refinancing and repricing packages.

Gold

Gold Spot Price at Five Year Low

July 23, 2015 sgwealthbuilder 742 Views 0 Comments

At USD1098 per ounce, gold price has fallen to a five year low. At the rate it is going, gold price seems on course to drop below the critical support level of USD1000. Many analysts also predict that the correction will last till the year end.

But then again, when it comes to gold, nobody can accurately predict the direction of its price. After all, the world has regarded the precious metal as safe haven and expected its price to escalate in view of the current Greece debt crisis and the recent China stock market rout. But it recent performance has confounded even the ardent gold bugs.

To put things into perspective, the gold rally has lasted for more than ten years already. From 2001, gold’s price rocketed from USD300 per ounce to USD1800 per ounce in 2011, making many gold investors rich. Invariably, an asset bubble is clearly forming. And whether investors like it or not, a massive correction for gold price is looming. So it is unsurprising that gold price is 40% lower than the 2011 peak.

The meltdown in gold price was initiated in 2011 when US economy began to revive following the financial crisis. For the last two years, with the recovery gaining pace and the improving job market, gold price seems destined to decline and had in fact, gradually dropped.

Gold

BullionStar: China’s Stock Market : A short summary of the rout and what lies ahead

July 17, 2015 sgwealthbuilder 1046 Views 0 Comments

The almighty Shanghai Stock Exchange Composite Index has been one of the best performing financial asset, hitting a 7 year peak in the middle of July and having risen by more than 150% in the past 12 months. Shocking then, when it starting plunging and plunging with 30% of it’s market value lost in the following 3 weeks. The sell-off is incredible considering that 80% of the index consist of retail investors and not the traditional huge institutional investors. The high retail investor percentage in the index has been due to the availability of cheap credit made available and the availability of margin lending by brokers.

What happened after the plunge?

In the wake of the plunge, the Chinese government intervened and allowed almost half of the companies trading on the Shanghai Stock Exchange Composite Index to suspend trading of their shares to prevent a further loss in value.

Gold; portfolio management

BullionStar on gold developments in Singapore

July 8, 2015 sgwealthbuilder 817 Views 1 Comment

SG Wealth Builder is pleased to conduct an email interview with Torgny Persson, CEO of 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.

1) In view of the emergence of China as the leading producer and importer of gold bullion, what do you think would be the implications for the global markets and how should investors in Singapore position themselves?

The Chinese public are buying vast amounts of gold. Our precious metals analyst Koos Jansen is writing regular updates on the withdrawals from the Shanghai Gold Exchange. Total Chinese gold demand can be measured by the amount of physical gold that is withdrawn from the vaults of the SGE.

The Chinese government hasn’t updated its official gold holdings figure of 1054 tons for several years, but many have speculated that the actual figure is much higher (probably by several thousand tonnes) than the official one.

In addition to increasing their reserves, the Chinese government is actively encouraging the public to invest their savings in physical gold as they believe that gold will, in one form or another, be a part of a new financial and monetary landscape.

Gold

Increased demand for physical gold

July 6, 2015 sgwealthbuilder 589 Views 0 Comments

Below is a piece of editorial 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.

Singapore: Demand for physical gold has increased significantly in the last week leading up to the Greek referendum and is expected to continue to increase following Sunday’s outcome of the referendum with 61 % voting No.

Mr. Torgny Persson, CEO of BullionStar Pte Ltd says: ”Demand for gold has more than doubled in the last week compared to previous weeks and is at much higher levels than what is normal for the season. We’ve seen a large influx of new customers not only concerned about the Greek situation but also concerned about the state of the global economy with its unprecedented debt levels.”

Gold refineries and wholesalers around the world are likewise reporting higher sales and people are concerned about the risk of looming gold shortages.

Mr. Persson continues “We are still well stocked on most products but replenishing is starting to become more challenging.

Stocks

OSIM’s Share Price in Free Fall Mode

July 5, 2015 sgwealthbuilder 804 Views 0 Comments

It had been a year since I wrote an article on the performance of OSIM, Singapore leading massage chair maker cum lifestyle company. Last weekend, as part of my stock review, I was shocked to find that there was a massive meltdown in OSIM’s share price. Granted that I have not been monitoring the local stock market trend for quite some time, OSIM’s free fall merits some attention.

Firstly, in my previous post, I predicted that OSIM’s share prices would reach $3.30 in end December 2014 based on the historical EPS and PE ratios. Instead, the company missed market expectations and profits fell more than 50% to $14 million in the first quarter ended March 31. The market took the cue and reacted immediately. The share price subsequently dropped to $1.61 as of 3rd July 2015, way off the $3.30 target price I had predicted.

The disappointing 1st Quarter performance could be attributed to the lack of new OSIM product launches. OSIM’s new massage chair, uMagic, was launched in April, so the 2nd Quarter would probably see an improvement in sales. The company also reiterated its strategy to pursue growth through new product developments, such as uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music.

Entrepreneurship

Young and Entrepreneurial: Singaporeans seek more opportunities to learn, grow and network

July 2, 2015 sgwealthbuilder 1641 Views 0 Comments

SG Wealth Builder is pleased to share the results of a recent survey conducted by Peatix, an event ticketing platform in Singapore that is passionate about building strong communities through events.

Singaporeans are increasingly keen on entrepreneurial and startup events. Specifically, 23% of participants would choose to attend startup and entrepreneurial events, and 25% want to see more of such events here. Notably, interest in these events was equally high for those aged between 25-30 and those above 40.

“This display of interest in seminars, talks, workshops and networking events to increase one’s knowledge and professional growth even amongst youths today is a wonderful testament to Singapore’s growing entrepreneurial spirit,” says Emi Takemura, Co-founder and Head of Asia at Peatix.

The Peatix Survey has also found that 88% of Singaporeans consider themselves happy, and that attending events regularly contributes to this.

These results run contrary to previous reports of Singaporeans being unhappy – in fact, less than 1% of the 600 survey participants considered themselves to be very unhappy.

New survey reveals a 25% increase in demand for startup and entrepreneurial events in
Singapore.
SINGAPORE, Tuesday June 30th – An independent survey by global online ticketing platform Peatix has discovered that Singaporeans are increasingly keen on entrepreneurial and startup events.

Gold; silver

7 tips to start stacking Silver coins or bars

June 23, 2015 sgwealthbuilder 1569 Views 0 Comments

Below is a piece of editorial from Gold Silver City, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like Gold Silver City, 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.

If you are new to stacking and don’t have a clear concept on how to start, here are some tips here. I am no expert, there are many more experts out there preaching their advice. Be cautious though, as many advice can be confusing and not suitable for newbies. I learnt this the hardway. I started some years ago and learnt through the school of trials and errors:-

start stacking silver — The joy of seeing your wealth grow

Start stacking silver with a clear budget. Know what amount of your disposable income you can afford to start stacking. Only use spare cash that you can afford, for example, how about reducing your entertainment expenses like that weekly drinking session? Or cut down on that expensive daily starbucks? Those small bills can pile up to be a good silver stack.
Do not get carried away and over-stack.

Career management

How to be successful in your career

June 21, 2015 sgwealthbuilder 607 Views 0 Comments

Throughout my career, I have always heard people claiming that they should have certain level of salaries or pay increments to justify the cost of living in Singapore. My stance is that to we should first and foremost prove our values or worth to the organization in order to make that sort of demand to your employers. Simply telling your bosses that the inflation rate is much higher than your pay increment is not a valid reason for a higher pay check. Today, during lunchtime, my boss shared with me his insights on how to achieve career success.

Why do some people succeed in life?

Have you ever wondered why do some people able to achieve career success despite them having mediocre academic qualifications? Apparently, there are unique traits that make them stand out from the rest of the crowd and that is the ability to see challenges differently. Successful people would strive to prove their merits to their bosses before demanding his desired pay package. Most importantly, they view challenges as opportunities, rather than obstacles. This trait spurs them to achieve goals and drive them to career success. When faced with challenges or setbacks, instead of whining, they remain resilient and bounce back from failures.

Gold Property investment;

Release of second half 2015 Government Land Sales (GLS) Programme

June 17, 2015 sgwealthbuilder 800 Views 0 Comments

On 11 June 2015, the Singapore Government announced the second half 2015 (2H2015) Government Land Sales (GLS) Programme, which comprises 4 Confirmed List sites and 13 Reserve List sites. These sites can yield up to 7,825 private residential units, including 1,340 Executive Condominium (EC) units, and 277,580 sqm gross floor area (GFA) of commercial space.

Among the Confirmed List sites, Alexandra, Clementi and Siglap are expected to generate the most interest since they are located in matured estates. The Siglap site alone will generates about 750 units. Overall, the Confirmed List comprises 4 private residential sites (including 1 EC site) which can yield about 2,130 private residential units (including 520 EC units).

For the Reserve List, the Stirling site is bound to attract competitive bids from developers as it is located at the popular Queenstown area. The site can accomodate more than 1110 units. The Bedok South Avenue 3 site is also expected to generate interests among buyers as it is located near the Tanah Merah MRT and Bedok Town Centre. The Reserve List comprises 8 private residential sites (including 1 EC site), 2 commercial & residential sites, 2 commercial sites and 1 White site. These sites can yield about 5,695 private residential units as well as 275,580 sqm GFA of commercial space, mostly for office use.

Gold; silver

Texas building gold depository

June 17, 2015 sgwealthbuilder 569 Views 0 Comments

I found this article about Texas building a state owned gold vault making the gold in it “non-confiscatable” very interesting.

To summarize, the US state of Texas signed a bill into law 12 June that will allow Texas to build a gold and silver bullion depository. Texas is furthermore planning to repatriate USD 1 billion worth of bullion from the Federal Reserve in New York upon completion of the depository.

It thus looks like the state government in Texas are losing faith in the ability of the Federal government and central bank to safekeep bullion.

The law specifically includes a provision stating that a purported confiscation, requisition, seizure or other attempt to control the ownership is void and of no force or effect!

It’s perhaps not strange that Texas politicians are concerned about the financial health of the federal government.

Property investment; Singapore market;

SG Wealth Builder Email Interview with Co-Founder of FirstPropInvest.com

June 16, 2015 sgwealthbuilder 704 Views 0 Comments

SG Wealth Builder is pleased to conduct an email interview with Myles Clement, co-founder of FirstPropInvest.com, a property platform that connects Singapore investors to the UK property developers.

1) Congratulations on the launch of FirstPropInvest.com! Can you share with the readers what gap or problem is the platform addressing?

Thank you! Firstpropinvest.com was created to give Singaporean investors CHOICE when looking to invest in the UK. We saw there is a gap in the market to create a clear, simple, impartial, platform that brings investors the latest UK properties directly, with no heavy sales tactics as we are not agents. Currently only the medium to large developers can afford to market their developments out here at great cost. Why not allow everyone to be able to market to the Far East market, bringing greater transparency, more choice, and hopefully better value to the investor, as opposed to being sold what is launched on any given weekend. We feel investors aren’t being given the best options available to them within their budgets. You have worked hard to buy that investment property in the UK why not have a choice.

2) Who is the target customers?
FirstPropInvest.com targets anyone who is interested in investing in property based in SE Asia, from the first time investor, to the professional investor with large portfolios already.

Property investment; Singapore market; private housing prices

Mortgage Interest Rates– Key Factors That Impacts it

June 13, 2015 sgwealthbuilder 622 Views 0 Comments

Interest Rate
Interest rate charged is the reward for taking the risk on the capital. Interest rate is often referred to as the “cost of funds” or hurdle rate.

Risk to Capital
If the lender perceives a higher default risk on capital lent out, the higher the interest demanded. The causes to credit risks can come from shocks to the financial system from within the country or beyond. As the world’s financial systems are increasingly interlinked, any credit event far away can increase potential default risk.

Demand for funds
The increased demand for funds when it outstrips the supply will also cause interest rates to rise. Genuine demand of funds comes from the industry’s need for investment. Industry will borrow money for investments if they think their investments returns can better the interest rate. This type of capital demand can help a country increase its productive capacity. The other types of demand are for household consumption such as housing mortgages, car loans, renovation loans or personal consumption.

Supply of funds
The supply of funds varies in each country. The supply of funds can come in local currency or
foreign currency. The supply of funds generally comes from the banks. The banks in turn receive
their funds from equity and depositor’s funds.

Gold; currency

BullionStar: Storage of Coins

June 2, 2015 sgwealthbuilder 812 Views 0 Comments

A common question that our customers ask us is, “How do I keep my precious metals such that its’ condition will be immaculate forever?” The short answer is that for silver, it is not possible since silver tarnishing is a natural process, as discussed in another editorial by my colleague Gustav. However, there are ways in which we can delay the process for as long as possible so that your precious metals are still beautiful to look at.

1.Keeping your precious metals in a cool and dry place

For collectors who are beginning their collection, it would be good to invest in a good storage solution in order to protect the coins. One could consider large air-tite boxes or even camera cabinets that allows for the adjustment of humidity. Do take care to keep the boxes in a place where it would not be exposed to high temperatures or light.

Insurance coverage; medical shield; financial planning; personal finance

How to be a successful investor

May 25, 2015 sgwealthbuilder 892 Views 0 Comments

Last year, during a meet up with the man behind BeMoneySavvyToday.com, Brendan Yong shared with me his insights on how to succeed in investing. Brendan works in the financial industry for 11 years and is a veteran when it comes to insurance matters.

First and foremost, most Singaporeans tend to rely on tips from friends and investment bloggers on when is the best time to invest and which are the best stocks to invest in. Most of them either are not financially savvy or have no time to do research. But to succeed in investing, there is no shortcut and you need to put in a lot of hard work. Half the game is won if you make the effort to analyse and take care of the downside risks.

Secondly, you must understand your character and priorities. Your personality and behavior determine the outcome of your investment decision, not the market. Over time, you would realize that your greatest enemy is yourself because managing your emotions is key to winning the investment game. On priorities, many of us have family commitments or hectic careers, so not many people can have the luxury of time to do stock research. For this group of people, choosing a reliable financial planner would make sense.

Gold

Authentic gold in Singapore

May 23, 2015 sgwealthbuilder 824 Views 0 Comments

We often get questions on the authenticity of different products.

How can I know it’s really gold?

How can I test?

Is there a certificate of authenticity included?

Let’s address the last question first. Most bullion bars and bullion coins don’t come with any certificate of authenticity. The refinery’s stamp on the coin or bar is the refinery’s guarantee of the authenticity.

It’s after all much easier to fake a piece of paper certificate than it is to fake the metal. As a matter of fact, a metal can’t be faked, it can only be imitated in regards to some characteristics but never all.

One of the most important characteristics for gold is its high density. The density for gold is 19.3 g/cm³which is almost the highest density of all elements on earth.

Gold

Singapore is among top 40 countries with reported official gold holdings

May 19, 2015 sgwealthbuilder 896 Views 0 Comments

In the latest gold demand trends reported by World Gold Council, it was stated that Singapore central bank amassed more than 120 tonnes of gold as reserves. The amount constitutes only 2% of our reserves and the report also ranked Singapore as number 27. The top country with the most gold holding is USA, with more than 8100 tonnes of gold, followed by Germany with 3400 tonnes. Not surprisingly, North America and Europe dominated the list.

Determining the official gold holdings and demand trends are challenging, given the lack of transparency and sheer complexity of the gold market. The report by World Gold Council is based on a complex methodology of data collected from domestic sources and international trade.

The important thing that can be gleaned from the report is that there was a 17th consecutive net purchase by various governments, reflecting a sign that central banks continue to rely on bullion as a form of hedge against volatile currency movements.

Given that Singapore is neither a country known for gold consumption nor a gold exporter, our strong gold holding reflects the government’s belief in the precious metal’s status as a form of holding value. This is probably because the value of Sing dollar is pegged against a basket of currencies of our major trading partners and competitors.

Gold; silver

BullionStar launches new silver products and bullion competition

May 13, 2015 sgwealthbuilder 731 Views 0 Comments

Below is a newsletter 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.

Nadir Silver Bar Promotion

Nadir Silver Bars are produced by the LBMA certified Nadir Refinery. The Nadir Silver Bars known for their attractive price premium offering investors more silver for their money.

Nadir is one of very few LBMA certified companies to produce 250 gram and 500 gram silver bars. As the price per gram for these bars is lower than for coins, they may serve as a good alternative to silver coins.

We currently run an exceptional time-limited offer for these silver bars reducing the price premium as much as 40 % compared to the normal price! The offer is valid until 24 May or while stocks last.

Nadir Silver Bar 250 gram

Current time-limited price: Spot price of silver + 9.9 % regardless of quantity bought!

Nadir Refinery Silver Bar – 500 gram

Current time-limited price: Spot price of silver + 8.4 % regardless of quantity bought!

Insurance coverage; medical shield; financial planning; personal finance

Frightening Truth about Investment-Linked Insurance Policies

May 5, 2015 sgwealthbuilder 960 Views 1 Comment

Last month, the Monetary Authority of Singapore (MAS) launched compareFIRST with Consumers Association of Singapore, Life Insurance Association of Singapore and MoneySENSE. compareFIRST is a portal that contains information on life insurance products offered by all the life insurers in Singapore. However, way before the website was launched, last year, SG Wealth Builder had an opportunity to meet up with Brendan Yong, of BeMoneySavvyToday.com.

Unlike me, Brendan has worked in the financial industry for 11 years and is a veteran when it comes to insurance matters. Nevertheless, both of us shared the same belief that insurance is a form of protection, and never meant for investment purposes. In that meeting, he revealed a frightening industry secret on investment-linked insurance policies.

When touched on the topic that there was an initiative by MAS to promote online direct purchase for insurance products, Brendan chuckled and commented “Of course I knew that as I work in the industry. As a matter of fact, MAS had a round of consultation with the industry players on the proposed move”. However, Brendan dismissed that such a move reflected that consumers are ready to purchase insurance products directly from the insurers.

He shared that financial planners and insurance agents still has a role in helping consumers in making the most informed choice when it comes to buying the most suitable insurance products.

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