“What are the factors to consider before you invest, especially in long-term investments?”

Key takeaways: Know your risk tolerance How much liquidity do you need? When do you need it? How adventurous are you in terms of asset classes? (Risk profile and preference) What kind of returns would you like to aim for? The following is my answer to a Quora question: “What are the factors to considerContinue reading ““What are the factors to consider before you invest, especially in long-term investments?””

Investing in a volatile market

There is quite a bit of literature that the market is inherently volatile, punctuated by moments of seeming predictability. However, when viewed from a macro perspective spanning years, the market actually has predictable broad trends. That does not mean this volatility is inherently bad. In fact, these periods of volatility should be viewed as opportunities.Continue reading “Investing in a volatile market”

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?”

What is the best long term advice for newly-wed couple?

The following is my answer to a Quora question: “What is the best long term financial advice for a newly-wed couple?” A lot of marriages flounder because of fights about money. Therefore, have a financial plan, make budgets and keep to them. Put money aside in a separate account for investment, and wealth creation. ThatContinue reading “What is the best long term advice for newly-wed couple?”

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?”

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