What is the difference between stocks and bonds?

Here I’ll briefly summarised from The difference between stocks and bonds explained. If you choose to invest in a company, there are two routes available to you: Equity (also known as stocks or shares) Debt (also known as bonds) Shares are: issued by firms priced daily listed on a stock exchange Bonds are: effectively loans,Continue reading “What is the difference between stocks and bonds?”

Saving $100k by 30 years old?

Perhaps you’ve read Saving $100K by 30 Years Old… Is It Even Possible? A lengthy read but worthy to know that it’s possible. But here are my thoughts: In all honesty, one would probably save like this when he plans to get married. Bootstrap to save 50% of take-home income. And most of that savingsContinue reading “Saving $100k by 30 years old?”

Who invented investing?

The following is my answer to a Quora question: “Who invented investing?” When the first hominid set aside some food for the next day instead of eating everything in that one meal, so that it could be traded for favours in scarcity, that was investing. Investing is putting aside assets for later use, or greaterContinue reading “Who invented investing?”

Of Shariah-compliant investments

[This post was originally shared on my FB profile on 27 December 2019.] When asked about shariah-compliant investments, I personally would steer towards realm of permissibility as it would widen a client’s option. I personally do not view investments for Muslims to be too rigid as how some would portray it under the claim ofContinue reading “Of Shariah-compliant investments”

Dollar-cost Averaging or Periodic Investing?

So you probably read DCA is not what you think it is and wonder, was my agent/broker wrong? Did he confuse two different investing strategies? Wide variety of readings in this instance would help you better understand, and not rely on one source of reference. The author at The Simple Sum argues that people useContinue reading “Dollar-cost Averaging or Periodic Investing?”

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?”

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”

Dollar-cost averaging (DCA)

Dollar-cost averaging (DCA) is an investment strategy in which you: put in regular contributions (for example, monthly or quarterly) over a period of time (say 3 to 5 years, 10 years, or more; depending on your objective) The strategy is to ride or sail thru investment and market fluctuations such that you buy more shares/unitsContinue reading “Dollar-cost averaging (DCA)”

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