Investment Archives | Page 15 of 19

Practical Ways To Ease Your Stress On Financial Responsibilities

DO NOT BE FOOLED BY THE 0% INSTALLMENT PLANS

There are an array of goods that you can buy through 0% installment plans such as furniture, designer bags, electronic devices and appliances. Without control, you can potentially pile up your installment plans to the point that you can no longer afford paying for credit card bill.

Say you are strolling around the mall in the lazy weekend when you suddenly saw a shiny sign that says:

“FULL HD FLATSCREEN TV FOR SALE

S$1,400 (U.P. S$1,600)

0% INSTALLMENT THRU UOB & OCBC CREDIT CARDS.”

It sounds tempting, right? But do you really need that telly when you have a functional one at home? Do you need another burden to add on your credit card bill? Well, it is time to live within your means!

UTILIZE YOUR CPF ACCOUNT WISELY

The Central Provident Fund (CPF) is a compulsory savings scheme for Singaporeans that is automatically deducted from the wages. Your CPF account can be used to support crucial financial commitments such as retirement, healthcare, and property purchases. While it is sitting there passively, you can maximize its use by utilizing it wisely. For instance, if you are using your account to purchase a new flat or refinance your current one, examine the situation every few years to see which is the better economical option.

And if you are not touching your CPF savings for a long period of time, consider putting it to the CPF Investment Scheme. It is a way to invest your CPF savings to various banks such as OCBC, DBS, or UOB. The money you will generate from your investments will eventually go to your CPF account and not your pockets. Compare the investment options and their charges. Instead of complaining about your “useless” account, why don’t you start investing?

FOR MARRIED COUPLES, SUPPORT EACH OTHER

Alongside merging two souls, marriage merges two finances together. Having another person to run to for support, opinion, and advice can help you make better financial decisions. For instance, if you are searching for a space at an Executive Condominium (EC), consult your spouse first. Are your incomes enough to suffice the payment of the EC? You do not want to end up working took hard for an EC when what your spouse just wanted an HDB all along.

Setting long-term and short-term financial goals such as purchasing a house or establishing realistic budget should be done together. Along with the goals, you must assign financial responsibilities to each other. Encourage and support each other throughout the process.

ALWAYS COMPARE PRICES

Almost every shopping hack includes a section about comparing prices so that your money would not go to waste. True enough; reading reviews and shopping around helps you get the best deal. Since comparing prices in physical stores is a troublesome and time-consuming activity, people have turned to technology. For example, browse at PricePanda if you are camera shopping. PricePanda.com.sg, the leading price comparison website for emerging markets worldwide, provides its users with prices, technical details and other information about the latest gadgets.

And if you are looking for an affordable wedding banquet, turn to SingaporeBrides.com.

Image Credits: pixabay.com (CC0 Public Domain)

SingaporeBrides.com is your one-stop portal for your local wedding festivity needs. Here you will see that the cheapest banquet venue for lunch and dinner costs S$501 at LingZhi Vegetarian.

Sources: 1 & 2

You Wouldn’t Believe How Much Gold’s Price Has Fallen

Dan Gable once said: “Gold medals aren’t really made of gold. They’re made of sweat, determination, and a hard-to-find alloy called guts.”

In his own definition, gold’s essence translated to the person’s special characteristics. However, majority of the world perceives gold as a value commodity.

“What makes gold so valuable?”, you may ask. For starters, it lasts for a long period of time, it can be easily manipulated, and its appearance is very appealing.

But aside from this, gold is a rare element because no mine has an unlimited supply of it. Once all the gold is sold and spent, the mining company’s stock will fall. Any efforts to get more gold will affect the company’s wealth.

Gold’s rarity makes it more valuable than other common elements such as aluminum or iron. Its prices are not set by a single organization, rather they are influenced by the cost of production and the amount people are willing to pay for it. For instance, when the demand of gold is relatively high at a given base price and the competition is higher than expected, it is just right to increase the base price in order to regulate the demand of gold. And if not so many people are interested in purchasing gold, its price will stay closer to its actual production cost. Whether you like it or not, we are currently observing the latter statement about gold.

Gold’s price has dropped by about 1.4% last Thursday (14th April) – that is US$1,228.70 (S$1676.32) per ounce. This is in conjunction with the rising Asian shares and the strengthening of US dollar. Moreover, regional currencies weakened against the greenback after the country’s central bank set the rate of appreciation of the Singapore dollar policy band at 0%.

According to Gold Rate 24, a website that partakes information about the gold’s prices around the world, an ounce of 24K gold is priced at S$1,672.04 (US$1,226.99) while a gram of 24K gold is priced at S$53.76 (US$39.45) as of today. A substantial drop has been seen within 30 days from S$1,702.81/oz to S$1,672.04/oz.

HSBC analyst James Steel was quoted saying:

“Gold is weakening on a recovery in investor risk appetite. The sharp (equities) rally and the leveling off of gold-ETF demand recently argue for some period of price consolidation.”

Steel’s claim of the lowering investor risk appetite towards gold is supported by the figures of the world’s largest gold-backed exchange-traded fund – SPDR Gold Trust. Assets of SPDR Gold Trust fell 5.05 tones to 806.82 tones last Thursday, its lowest in a month.

The demand drop of gold affects the prices of other valuable elements such as silver, platinum, and palladium.

Sources: 1, 2, 3, 4 & 5

4 Don’ts Of Real Estate Investing

Since land is scarce in our country, properties had always been a go-to investment option for many. The majority of these investors have strategies limited to purchasing, reselling, and renting flats or condominiums. While others consider other options such as the Real Estate Investment Trust (REIT).

REITs allow the investor to have a professionally managed portfolio of properties by purchasing a publicly traded investment product. Investors of REITs purchase units of the trust similar to shares of a common stock.

But no matter what type of property you purchase, here are 4 Don’ts Of Real Estate Investing to help you on your journey…

1. DO NOT FORGET TO IDENTIFY YOUR GOALS

Before committing to a property or even a property visit, it is important to understand what you want to achieve from investing on real estate. Be on a peaceful place where you can think carefully about your goals for the long-run.

You must have a transparent idea of your existing income, current expenses, and outstanding loans before diving into another complex route. Also, you must identify your budget and type of risk you are comfortable with.

2. DO NOT GO WITHOUT RESEARCHING

After identifying your financial circumstance and your investment goals, you must do your research on real estate investments in order to be sure that it is worth your money. For example, a two-bedroom HDB flat can cost about S$250,000. That is a huge sum of money you may be willing to risk if you are serious in property investing. The risks only increase when the investor does not understand how the property market works or when and where to invest. Hurrying up without analyzing the situation thoroughly can only bring about more damage (e.g., bankruptcy) than good.

So if you lack sufficient knowledge, seek advice from a financial consultant or other professional advisers. And when you find the “right property”, ensure that you keep your expectations realistic and keep your finances in tact.

3. DO NOT EXPECT TO BE A MILLIONAIRE QUICKLY

Do not fall into the trap that some real estate investors set – offering you properties for small amounts of cash with higher returns. These “undervalued assets or profitable investment opportunities” are mostly likely unsold overseas property projects. You see, real estate investors usually do not offer “jackpot” properties to complete strangers. They only invest with the people they know well.

There are no shortcuts to success on real estate investments! In fact, you must allot a long period of time on finding a property in a decent location, building a good relationship with the tenants, and maintaining the condition of the property. Time that may not be in the good side of most.

Image Credits: pixabay.com (CC0 Public Domain)

4. DO NOT PURCHASE A PROPERTY WITHOUT VISITING IT

In support of your in-depth research, you must drive to the property itself before signing any contracts. There are a number of reputable realtors and agents who can give you feedback about certain properties but you must follow your own instinct in the end.
There are no shortcuts to success on real estate investments! In fact, you must allot a long period of time on finding a property in a decent location, building a good relationship with the tenants, and maintaining the condition of the property. Time that may not be in the good side of most.

Sources: 1, 2, 3, & 4

Beginner’s Essential Guide To Unit Trusts

WHAT IS UNIT TRUST EXACTLY?

A Unit Trust follows an unincorporated mutual fund or trust structure that allows funds to hold assets and pass profits thru the individual owners. Money is pooled with the money from other investors and it is managed by a fund manager. The portfolio of assets is set according to the fund’s investment strategy and objective. Hence the success of a unit trust depends on the capabilities, expertise, and experience of the management company.

In Singapore, local and foreign unit trusts offered are regulated as collective investment schemes.

WHY MUST YOU INVEST ON UNIT TRUSTS?

Since funds are invested in an array of assets, one advantage of investing in unit trusts is diversification. In the current unpredictable market, this potency helps investors to adjust with the ups and downs without having to worry too much about the performance of a single stock. Generally, unit trusts provide you with more safety in terms of the performance of your investment.

WHAT SHALL YOU CONSIDER BEFORE AND AFTER INVESTING?

Before investing on unit trusts, you must assess the type offered as well as its fees. Also, you must examine the fund manager himself. Determine if the fund manager has the sufficient experience, skills, and resources to lead you to success. Look beyond the short-term performance and look into one’s long-term track record.

After investing on unit trusts, you must regularly monitor if its performance meet your expectations. Then monitor the economic and political risks of the markets you invested in.

WHAT IS ITS NET ASSET VALUE?

The price of each unit is based on the net asset value divided by the number of units outstanding. It is typically calculated daily to reflect changes in the prices of the investments maintained by the fund.

HOW CAN YOU BUY THE UNIT TRUSTS?

Aside from cash, you can purchase unit trusts by the CPF Investment Scheme (CPFIS) and the Supplementary Retirement Scheme (SRS). Furthermore, some insurance companies offer investment-linked insurance policies.

Image Credits: Ken Teegardin via Flickr (CC Licence Attribution-ShareAlike 2.0 Generic)

Sources: 1, 2, & 3

The Good And The Bad Sides Of Jewelry Investment

More than just a sparkling indulgence, investing on jewelry is an embedded tradition in many Asian cultures. In fact in Indian and Chinese cultures, jewelry can be given as gifts as individuals approach the marrying age.

To these cultures, investing in gold jewelry is a sound investment. Truly, gold has continued to rise, up to five-fold in a decade, in value despite the worldwide economic slowdown.

However, anyone who is considering jewelry as a means of investment needs to carefully contemplate on its advantages and disadvantages.

Here are some of them:

LABELS

It is not just about what jewelry pieces you buy but where you buy them. Pieces with designer labels are more susceptible to the erosion of value (over time) as you are paying mainly for the marketing costs.

For example, a sterling silver necklace sold by a lesser known retailer in the third world country may cost about S$15 while a sterling silver necklace sold by Tiffany & Co. in the first world country may cost about S$400! They are made of the same material but the branding and craftsmanship attached to it makes the difference.

PORTABILITY

Jewelry is an investment that you can wear. Whether it be gold rings, silver necklaces, and diamond earrings, you can always carry your wealth around wherever you go.

Image Credits: pixabay.com (License: CC0 Public Domain)

PRICES

The craftsmanship can add up to 30% on the price of the actual jewelry pieces. So if you want to benefit from the full price of gold alone, you can invest in products and funds that are associated to gold. For example, you can consider SPDR Gold Shares as they are backed by gold exchange-traded fund.

VINTAGE

Some pieces from the past are still fashionable today. Vintage jewelry from 1920s to 1930s have strong linear designs incorporating diamonds and platinum that can very much look modern!

Furthermore, second-hand jewelry (e.g., at auctions) are less expensive than contemporary pieces as they are not affected by the mark-up of the retailers. If you purchase this from a source that has low costs, it can prove to be profitable to own.

TRADITIONS

As said above, a positive side in jewelry investment is keeping one’s heritage. In fact, India is one of the world’s largest gold market due to the cultural demands during Deepavali and wedding season (i.e.,jewelry may be offered as wedding dowry).
The embedded notion is that jewelry retains (if not increases) its value over a long period of time. Although, this is not always the case.

Image Credits: pixabay.com (License: CC0 Public Domain)

The value of investments and gains can go up as well as down. Sometimes your may get back a value lesser than the amount you have invested. This is why it is recommended that you seek expert financial advice first before making any investment decisions.

Sources: 1 & 2

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