Financial Independence For All

Financial Independence For All Your channel for bite-sized financial literacy.

Think and invest like the rich!There are different type of unit trusts that is available for investors to invest in. But...
29/07/2022

Think and invest like the rich!

There are different type of unit trusts that is available for investors to invest in. But for retail investors, there are funds that they cannot invest in, such as restricted funds. These funds are catered solely for accredited investors and there are requirements that they need to meet to be an accredited investor.

But if retail investors want to invest in restricted funds, there is a workaround this. They can get a investment-linked policy (ILP) and invest in restricted funds.

Think and invest like the rich!

With the market being volatile, what can you do now?When the stock price went down, you always need to understand the re...
22/07/2022

With the market being volatile, what can you do now?

When the stock price went down, you always need to understand the reason behind it. Now is the best time to evaluate the fundamentals of the business and deduce if it is still a quality business.

For business that you invest that still have strong fundamentals, this would be an opportunity for you to double down on this great stock price and reduce your cost of investment. Buy more into them!

This is also a time for you to look into other areas, even those with lower risk such as short-term endowment with cashback.

At the end of the day, best to look at your financial and wealth planning with a bigger picture in mind and ignore the market volatility.

Financial Planning is more than just investing. It includes other aspects as well, as seen in the diagram such as protec...
24/06/2022

Financial Planning is more than just investing. It includes other aspects as well, as seen in the diagram such as protection, savings, asset allocation and asset selection.

The most basic component is wealth protection and this includes your insurance as well as your emergency fund (6 months of your expenses). This is the basic of financial planning and needs to be addressed before going into other aspects of financial planning such as investments. The main aim of this component is to protect your wealth when something happened to you.

After protection would be savings component to accumulate your wealth. This component have the lowest risk with regards to wealth accumulation and will help you to accumulat your wealth with high level of certainty as your retain is certain.

Then we go into investing as part of wealth accumulation. To reduce the risk, it is always recommended to go for a diversified investment followed by asset and bond picks.

Always cover all bases and focus on holistic wealth planning so that you would not have any loopholes and will negatively affect your wealth in the future.

ALL ABOUT CRITICAL ILLNESS PLAN.Do you realise that the cause of death are mostly related to a critical illness? Now, wi...
10/06/2022

ALL ABOUT CRITICAL ILLNESS PLAN.

Do you realise that the cause of death are mostly related to a critical illness? Now, with chances of us getting a pre-existing condition are high, it is best to look into Critical Illness plan.

Critical Illness (CI) plan is one of the protection plan that would help to complement your hospitalisation plan as CI plan gives you a sum of money which you can use for costs that are not related to hospital costs or as a form of income replacement so that you can focus on your recovery.

It is also good to take note that more than 90% of CI claims are made up of major cancer, heart attack of specified severity, coronary artery by-pass surgery, stroke and kidney failure. So by getting a CI plan, you would know that you will be well-covered if something happened to you. Currently, there are even CI Plans that can cover for your pre-existing conditions.

Lessons we can learn from the collapse of Luna.The lessons discussed is not particularly for crypto investing, but for i...
03/06/2022

Lessons we can learn from the collapse of Luna.

The lessons discussed is not particularly for crypto investing, but for investing in general.

Lesson 1: Diversification.
To reduce the risk associated with a particular stocks or industries or asset class, we diversify and invest in different areas. This will then reduce the losses when there is a market downturn.

Other than just looking to invest in other areas, you also need to make sure that you are not overly invested in a particular stocks or industry. This is to ensure stability of your portfolio. If you are overly invested on a particular stocks or industry, and they become volatile have a lot of price movement, your portfolio will then fluctuates imitating the stock's volatility.

Lesson 2: Understand your investment
"Never invest in a business that you cannot understand" - Warren Buffett.

Before investing, we always need understand the companies and industries. We should never invest in them if we do not do our due diligence and analysis of the company or industry. Our lack of understanding of the company can cause a negative effect on our portfolio.

For stablecoins, there are four major categories and it depends on how the stablecoins were created. They can be fiat-backed (supported by currency such as SGD), crypto-backed (supported by crypto), commodity-backed (supported by commodity such as gold), and algorithm-backed (such as Luna). You will then invest appropriately depending on how stable you want the price of the stablecoins to be.

Lesson 3: Do not just follow blindly
Do not just follow the crowd when it comes to investing. You need to do your own research and due diligence to make sure the investment is a sound investment.

Is recession really coming?TL;DR No one really knows for sure.The honest answer is that it is hard to tell. Market watch...
20/05/2022

Is recession really coming?

TL;DR No one really knows for sure.

The honest answer is that it is hard to tell. Market watchers relies on some indicators (ratios and numbers) to predict if a recession is coming. But they are not always accurate.

For the past few years, market watchers have been predicting recession, in 2018 and a COVID-induced recession in 2020 but as we all know, recession did not really happened and economy was still growing.

Lesson learnt: Prediction may not always come into fruition. So do not time the market for the right opportunity as you will just be running after an imaginary 'opportunity'. Start investing and grow your wealth.

To be financial independent, you need to have passive income working for you. This is because, once you are financially ...
13/05/2022

To be financial independent, you need to have passive income working for you. This is because, once you are financially independent, you are most likely going to quit your job to pursue your hobby. Therefore, you need streams of passive income to create your income so you do not need to work for it.

This is also the same for people who wants to retire early. They create multiple streams of income (from investment, business, property, etc) so that when they retire, they do not have to work but still have income.

So if you want to retire early and pursue your hobby, create that multiple streams of income form different sources!

With inflation increasing, we may need to adjust our expenses and lifestyle to accommodate to higher prices of goods and...
29/04/2022

With inflation increasing, we may need to adjust our expenses and lifestyle to accommodate to higher prices of goods and services. Otherwise, we need to find ways to increase our income.

Here are just some of the ways you can do to increase your income. It include doing additional work such as some side hustle such as starting your own business, do additional freelance task, and even take up a part-time job, and this include food delivery driver and ride-hailing driver.

Last one that I include is to invest in dividend-paying investment portfolio. With this portfolio, you would then receive dividend (money) and it can be as frequent as on a monthly basis. This is a passive way to get additional income.

HIGH INFLATION!As reported by MAS, Singapore is expecting a high inflationary year, which means that the expected price...
24/04/2022

HIGH INFLATION!

As reported by MAS, Singapore is expecting a high inflationary year, which means that the expected prices of goods and services are higher this year as compared to the previous year.

But do take note that the inflation rate goes up and down and this is not the first time we are seeing high inflation (refer to photo 3 for the graph). There are years that the inflation is low, and even negative. We should always see the bigger picture.

As a whole, Singapore inflation is around 2.5%.

As usual, stay invested and ride this high inflationary times, and soon enough we will be back to the normal rate.

STOP LIVING IN THE 1980s!Saving your money is an old advice that you should not 100% follow. Save for your emergency fun...
14/04/2022

STOP LIVING IN THE 1980s!

Saving your money is an old advice that you should not 100% follow. Save for your emergency fund first, then invest the excess.

This old advice was effective in the past because the interest rate for saving your money is very high. In 1981, the interest rate for saving was at 10.71% but currently, it is as 0.1%, giving you microscopic returns and it cannot even cover for inflation rate.

So...save for your emergency cash and invest the excess. Only then your wealth can grow!

Here is the trick to become a millionaire! The best tools to make you rich is compounding interest. It will make your mo...
08/04/2022

Here is the trick to become a millionaire!

The best tools to make you rich is compounding interest. It will make your money work for you to make more money. Therefore, it is easier to increase your wealth.

To calculate how long it takes to double your investment, we use 'Rule of 72'. Using this rule, your investment will double in 9 years if your return is 8% per year. And if you invest $100k at the age of 30, it will grow to $1.6million by the age of 66.

At retirement, if you invest in a fund that gives you 7% dividend every year, you will get more than $9k per month for your retirement, and this is equivalent to $3,700 now.

So start investing and make your money work for you.

Dont you love your house? Especially after putting in a lot of money and effort, you definitely want to protect it again...
01/04/2022

Dont you love your house? Especially after putting in a lot of money and effort, you definitely want to protect it against any accident or unforeseen circumstances.

The home insurance that is attached to your home loan only covers for the structure and building of your house, while you are still paying your loan. It will not cover for your house content, your renovations, your appliances, etc.

So, if your house catches fire, the fire insurance will only cover for the structure and buildings, and you have to use your own money to pay for the new renovations, your appliances, your furnitures, etc. And this will adds up.

You will have to start from scratch and without having the appropriate coverage, you will have to use your savings. Because of this, you may have to delay a lot of things in life, like buying a new car or a new luxury bag as you have to pay for new renovations, etc.

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