M Farhan M Samsudin

Do wealthy people buy life insurance?

The following is my answer to a Quora question: “Do wealthy people buy life insurance?” Wealthy people buy the most life insurance. It is an irony of sorts that the people who really need life insurance underinvest in it, whereas the people who might have a lesser need overinvest. People of a higher socioeconomic strataContinue reading “Do wealthy people buy life insurance?”

Do I have to pay Zakat on wealth in Ramadan?

[Zakat in Practice (part 5)] [Introduction: This series is a sharing on zakat from the perspective of a financial planner. It is hoped to be educational, informative as well as practical to help readers better understand Zakat, especially Zakat on Wealth, as a Muslim in Singapore. Topics to include: Zakat on Investment, Zakat on Savings,Continue reading “Do I have to pay Zakat on wealth in Ramadan?”

Budgeting your expenses

Quite often, when we mention “budgeting”, we’d often be told to differentiate our needs and our wants. This 50/30/20 rule reminds us that on top of needs/necessities and wants, we should also set aside a portion of our budget for financial goals. Personally, I prefer the 4321 rule shared by Alfred Chia (CEO, SingCapital) whichContinue reading “Budgeting your expenses”

How do commission-based financial advisors help customers without conflict of interest?

The following is my answer to a Quora question: “How do commission-based financial advisors help customers without conflict of interest?” Within the context of Singapore, there is the balanced scorecard (BSC) framework. A financial advisor must conduct a thorough fact find, and justify any recommendation. There is an annual ethics assessment, market surveys post-transaction checksContinue reading “How do commission-based financial advisors help customers without conflict of interest?”

Is it time to buy or sell your investment?

[This post was originally posted on my FB page on 9 March 2020.] Timing the market may not be a wise move. There are at least a few factors to be considered: what’s the purpose/objective of the investment? is it a single sum investment or regular contributing investment (dollar cost averaging)? what sectors are youContinue reading “Is it time to buy or sell your investment?”

Zakat in Practice (part 4)

[Introduction: This series is a sharing on zakat from the perspective of a financial planner. It is hoped to be educational, informative as well as practical to help readers better understand Zakat, especially Zakat on Wealth, as a Muslim in Singapore. Topics to include: Zakat on Investment, Zakat on Savings, and Zakat on Estate.] [Previously:Continue reading “Zakat in Practice (part 4)”

Zakat in Practice (part 3)

No best way to invest

The following is my answer to a Quora question: “Why is there not a best way to invest?” There is no best way to invest in the same way there is no best car. Some people like road racing, some like off road racing; some like rally racing. Investment strategies depend on the investment horizon,Continue reading “No best way to invest”

Shariah-compliant Investment and Debt

Recently, I came across a Facebook ad on what makes Shariah-compliant Investment different. One of the points mentioned is “No debt or interest payments in the investment structure.” This is a laughable claim as it reflects ignorance of the Facebook page. Anyone who has been involved in Islamic finance would and should know of DebtContinue reading “Shariah-compliant Investment and Debt”

Wise advice from a rich person

The following is my answer to a Quora question: “What is the wisest financial advice you have heard from a rich person?” One of my ultra-high net worth clients once told me, “The banks are not there to make you money; the banks are there to make the banks money.” What this means is thatContinue reading “Wise advice from a rich person”