By Lionel Yeo
Wouldn’t it be awesome if we could travel around the world for six months?
I’m talking about visiting 9 countries across 6 regions. Not rushing through them like your typical packaged tour, but spending a leisurely 3 weeks in each country so you can really soak in the culture.
Being on the road is tiring, so you’d only want to fly on full-service airlines (no low-cost carriers!) on your epic adventure.
When you get to each destination, you’d like to explore everything there is to do: visit historical sites, climb mountains, chill on a beach, etc.
And at the end of the day, you’d like to retire back to your private bedroom so you can catch a good night’s sleep.
If you added everything up, how much do you think it’ll cost you? Take a quick guess.
$100,000? $200,000? $500,000?
Let’s find out.
While it’s pretty cheap to fly to South-East Asian countries from Singapore, a longer flight to the USA or South America will likely involve 1-2 stopovers – and a much higher cost.
Your epic trip to 9 countries will (at …read more
By Singapore Man of Leisure
I’ll leave out the link to the news source to spare the embarrassment to that young financial planner who said he starting thinking of retirement planning at 16… That’s not the intention of this post.
Of course he is talking his own book.
But that’s not the way to sell financial planning…
I’ll do something different this time. Instead of my usual poking, I’ll put on my snake-oil skin back on and do something positive for you young snake-oil wannebes out there.
Financial planning is a vehicle; not a goal
When asked what you want to be when you grew up, hands up how many said you want to be financial planners? Insurance or property agents anyone?
You are in this line now for one reason and that reason only – to make lots of money!
Not entrepreneurial enough to start your own business, and studies not good enough to get yourself headhunted before you graduate, how else to make big money in double quick time?
Can you see the difference between what you want and how to get there?
Now you know why I cringe each time I hear some snake-oil sell retirement or financial planning as a goal… How newbie can you get?
Holes in our hearts
We …read more
On more than one occasion, I have been told that the articles I write are too ‘cheem’. They require too much thought, my wife would say. Why can’t you write something that does not give the reader a brain haemorrage by the second paragraph?
Well there are two reasons actually. The first is that I believe bigfatpurse readers are sophisticated and advanced in the ways of investing and money matters. You are here because you want to be exposed and educated. You want to see your minds stretched. If you had wanted entertainment, you would have gone for cat videos.
The next reason is purely self serving. I like to let my mind wander. I am curious about many things. The more obscure they are, the more outlandish they seem, the more it turns me on. I derive pleasure from linking what I read back to investing and money matters. The more crude amongst you would call it an act of intellectual masturbation. I have no objections to that.
Ok. Preamble over. Now that you have been warned, I can safely go on to talk about Liberal Paternalism and the Singapore Budget 2016.
Liberal paternalism first. The term …read more
By Singapore Man of Leisure
After making a comment at Frugal Daddy’s blog, I all of sudden had a realisation.
By Alvin Chow
Recently, a famous retailer of Apple products in Singapore was hot on the news. Jon covered the generics about the project in this post.
It was the first time, a subsidiary of a listed company has raised money through crowdfunding in Singapore.
I think it is important to know the actual entity that is borrowing the funds. The Listed Company is not borrowing, but one of her Subsidiaries is:
Source: EpiCentre Holdings’ 30 Jun 2015 Report
The loan of S$1m, at an annualised interest rate of 13.5%, was raised within 48 hours. This shows the credibility of a listed company’s backing, and how yield hungry Singapore investors can be.
Despite that, the act raised many eyebrows among investors – why is EpiCentre raising money through crowdfunding?
I don’t know the answer but I want to lay out the possible reasons in this article.
Possible Reason #1 – Having Some Issues With The Banks
Borrowing from banks is usually the first avenue for business who needs funds. The interest charged by the banks should be lower than on a crowdfunding platform. It is of no surprise that some observers may suspect something going was on between EpiCentre Pte Ltd and the banks.
We should gather some information from the …read more
It has been an exciting week for the local crowdfunding scene. Taking retail investors by storm, Apple product reseller EpiCentre has completed (almost) three tranches of fundraising on crowdfunding platform Moolahsense for close to $1.5 million.
This development is significant for a few reasons. The size and the speed notwithstanding, this is the first time a listed company has taken to crowdfunding for funds. It is a small but significant step as crowdfunding moves into heads and hearts of retail investors. Kudos also to Moolahsense for pulling this off. This deal is a significant one for CEO Lawrence Yong and it will no doubt cement their position as the front runner in the fledging crowdfunding space.
First up, some background. EpiCentre Pte Ltd, a subsidiary of the Catalist board listed EpiCentre Holdings is looking to raise up to $2mil for the ‘purchase of inventory and general working capital’. They will be offering a nominal interest rate of 13.5% per annum. An investor can contribute to this amount via the Moolahsense platform, and expect to receive interest payouts every quarter. For more details, check out this post by SGYI.
The fact that retail investors practically queued up to participate in this …read more
By Louis Koay
On Tuesday 15th March 2016, MOH has announced that private insurers will release Standard Integrated Shield Plans (Standard ISP) starting from May this year.
This is a new initiative introduced by MOH. It will help those who wants to have better coverage than what basic Medishield life can provide, but yet pay lower premium as compared to the existing Integrated Shield Plan.
Also, as compared to the existing ISP, where coverage varies from one insurer to another, the coverage of standard ISP is identical throughout. This will help the public make easier decisions when it comes to the purchase of ISP.
What is the main benefits of Standard ISP
The main benefits of Standard ISP are as below:
- Coverage up to B1 ward of restructured hospital. At B1 ward, patients can choose their doctors and enjoy air-conditioned rooms
- No “As Charge” coverage
- No deductible and co-insurance
- No pre and post hospitalisation coverage
- Annual claim limit of $150,000
For the full benefit schedule of standard ISP, please refer to the MOH website here.
What should I do?
You will be given an option …read more
Most retail traders and investors think a stop order is only an exit order – be it a stop loss (limit loss) or profit stop (protect profit).
By Lionel Yeo
I’m just gonna put it out there: My fiancee is way better at planning our wedding than I am.
She often tells our friends, “Lionel is getting an invitation to our wedding. There will just be a big X on the floor with “STAND HERE” written in big, easy-to-read words.”
Yes – I’ll be first to admit it: I am a terrible, terrible wedding planner. If you left it to me to plan my wedding, I’d have everyone gather at my place, hand out McDonald’s nuggets and potato chips (maybe some beer), say our vows, and call it a day.
And after talking to friends and colleagues, I’ve realised that this is pretty normal phenomenon. For most couples, it’s usually the lady who does most of the wedding planning, and the guy helps out in the (extremely limited) ways he can.
Yes, this actually happened
(I can hear the chorus of guys brimming with righteous anger yelling, “Hey, that’s not true – I planned my wedding and it was awesome!!!” I get it, I get it. I’m making a veeeerrryyyy generalised observation here, amigo.)
Why …read more
By Alvin Chow
Mebane said that there were many studies to show dividend paying stocks beat non-dividend paying stocks, or the broad market as a whole:
Looks impressive right?
Yeah! Dividend stocks for the win!
But little did people realise the dividend stocks that beat the broad market were because they were also VALUE stocks.
To help you understand the differences I have drawn a Venn diagram for you:
In a nutshell (I am generalising here to simplify the explanation),
Section A = Value Stocks = They tend to outperform the market as a whole
Section B = Dividend Stocks = They tend to under-perform the market as a whole
Section C = Value Stocks that pay Dividends = They tend to outperform the market as a whole
It is important to note that we are comparing Total Returns (capital gains + dividend gains). Also, the reason I am using ‘as a whole’ is because there are failed examples in all sections if you dig hard enough. There are both value and dividend traps but if you hold a diversified portfolio in each section, the above outcomes hold true generally.
Bottomline, it is the …read more