Best hedge against inflation?

The following is my answer to a Quora question: “Which of the following is best hedge against inflation? Land, investment, real estate, precious metals, or a mutual fund invested heavily in large capital stock market?” The best hedge against inflation is property and REITS. The price of homes and property rise with inflation because theirContinue reading “Best hedge against inflation?”

“Do high yield bonds have a high default rate during a recession?”

The following is my answer to a Quora question: “Do high yield bonds have a high default rate during a recession?” Yes. These bonds have a lower credit rating, meaning they are not investment grade bonds. These bonds are not rated corporate papers, or sovereign bonds. Their underlying issuer either has a weak financial position,Continue reading ““Do high yield bonds have a high default rate during a recession?””

“I still need growth on my investment for retirement. Should I avoid bonds?”

The following is my answer to a Quora question: “I still need growth on my investments for retirement. Should I avoid bonds?” That really depends. As you age, and seek growth, you may give greater weightage to equity instead of debt instruments in your portfolio. This should have the involvement of your financial planner toContinue reading ““I still need growth on my investment for retirement. Should I avoid bonds?””

Understanding Whole life insurance

When buying personal life insurance, you’d be introduced to Term life insurance, Whole life insurance, Endowment/savings plans, as well as Investment-linked policies. Each product type has its purpose, advantages and disadvantages. So what is Whole life insurance? Whole life insurance provides coverage for the life of the insured. In addition to paying a death benefit,Continue reading “Understanding Whole life insurance”

What are the biggest lessons you have learned in the insurance industry?

The following is my answer to a Quora question: “What are the biggest lessons you have learned in the insurance industry?” I have learned, over the years, that it is not just about the policies you buy, but how you structure them. I have learned that the wealthy and the masses buy the same policies,Continue reading “What are the biggest lessons you have learned in the insurance industry?”

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?”

How old should your children be before you name them executors of your estate?

The following is my answer to a Quora question: “How old should your children be before you name them executors of your estate?” They may become executors of your estate once they have reached the age of legal majority, which varies from place to place, from as low as 16 years to as old asContinue reading “How old should your children be before you name them executors of your estate?”

Building an Emergency Fund

Why do you need an Emergency Fund? An emergency fund is a sum of money set aside for accidents, sudden injury, or an unexpected loss of income. It’s essentially what you keep aside “for a rainy day”. Unpredictable events can be life-altering as well as expensive, resulting in financial emergencies. An emergency fund gives youContinue reading “Building an Emergency Fund”

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?”

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