Finance Kaya Toast

Happy 2025! All right good people, I'm gonna skip the generic suggestions, as one can probably chat GPT 'financial new year resolutions' and get pointers such as build an emergency fund, pay down one's debts, start investing etc. Rather given that this blog acts as sort of a personal financial diary for myself, I'm gonna spin some suggestions to myself on what I aim to achieve financially in 2025. Hence, the disclaimer that none of this should be taken as financial advise, as I'm literally 'writing to myself.' 1. Yes boring works. For 2025, I'll Aim to maintain an 80:20 equity-bond portfolio. Critics will either argue that I'm taking too much risk (As the more conservative proponents will argue that my age should be the proportion I hold in bonds. Hence, 33 years old = 33% in bonds) or that I'm taking too little risk, given the relatively long run-way of about 3 decades I have till retirement (assuming I choose the traditional retire age of 6...

Hi good people, yes I am back as teachers get some respite during this year end season. Hooray, we have made it to the end of another tedious and grindy year. A recent conversation with a friend went along the line of "Hey bro, DBS shares recently went up to above $40. I'm thinking of whether I should buy now?" Knowing that this friend of mine has all his investments in ultra safe assets like T-bills and Singapore Savings Bonds (SSB), I replied "Why do you want to buy DBS shares when it has rallied to an all time high since 2005?" He replied eagerly "DBS confirm won't die one. Besides, it has risen to above $40 and the momentum in its share rally seems strong. I think it will continue to go up. Its seems like a sure win, as the people around me seem to keep talking about DBS and everyone seem to be super excited over the juicy dividend and capital gain leh." Sighing, I replied "Bro, here's a few things to take note of before you FOMO. Pers...

A recent conversation with a fellow colleague in the staff pantry inspired this article. "Hey bro, I'm telling you bond index funds are the worst instrument to hold. I am down more than 10% even though I'm on a monthly regular savings plan (RSP) to purchase a local bond index fund with one of our local banks!" he lamented. Nodding on, I replied, "Hmmm, don't worry, when interest rates eventually start to come down, the price of your index fund will rise back up. But for now, you would do well sticking it out if the fundamentals of your bond index fund is doing all right." He look back at me blankly and asked "What do you mean? Bond index funds have fundamentals too?" Sighing, I gave him a pat on his back, "Yes bro, let me take you through this and also how one can achieve a reliable annualised returns from a seemingly low risk instrument like a bond index fund." So yes, the title of my latest article isn't clickbait. Neither is it...

A recent conversation with a friend gave me a nudging urge to pen this article. It went something like this. "SHIT bro, I am a loser. It seems that everybody around me have easily hit 100k by age 30 in their portfolio. Meanwhile, I recently crossed the age of 30 and am just at the half-way mark of 50k." In response, I chirped "Hey, relax bro. You need to chill-out a little and take this financial milestone with A PINCH OF SALT." He loosened up a little and asked "Wah, how can you be so chill about this?" Giving my friend a pat on his shoulders, I sheepishly said "Well, let me give you the brief context and my thoughts on this 100k by age 30 milestone all right. Hopefully this would give you some perspective to financial milestones." Below would be a few of my honest thoughts, so here goes nothing. 1. Understand how this 100k by Age 30 came about in the very first place To give due credit, the Woke Salaryman can be safely credited with bring this ...

"Just get the market returns. Don't be a smart-Alec and try to beat the market. You can't!" This phrase certainly brought back memories of my polytechnic lecturer who taught me a few modules from my Banking and Financial Services diploma days. Yes, the balding, middle-aged bespectacled gentleman who liked to chide us for being insensible brats certainly spoke words of wisdom.  Ok, just to be clear, when my lecturer spoke of "market returns," he was referring to exchange traded funds (ETFs) that track an underlying index, such as the Standard and Poor's 500 (S&P500). In this case, the S&P500 tracks the performance of the top 500 companies listed in the USA. Hence, an ETF which tracks this index would aim to simply replicate its performance, which means that while you may not get astronomical returns, you are more or less guaranteed to get markets returns (minus some tracking error, but lets not go into detail on this). But mind you, the market re...

Okies everyone, the time of the year to dish out those big fat red packets ( Hong Bao ) during Chinese New Year is upon us! (If you're a green advocate who prefer to give E-Hong Bao , that's fine too) A chance encounter with a friend who's also newly married inspired this article. Our conversation went something along the line of him lamenting "WAH BRO! This is damn shag. Giving Hong Bao  to my in-law side who has like a gazillion little kids made me consider going to JB to avoid the new year gathering!" Nodding away, I replied "Yea bro, I feel you man. Hmmm, I have a few thoughts that inform not just the amount that goes into the Hong Bao, but also how to make you feel better in the act of giving away those monies. Wanna hear me out?" He shrugged and sighed "Sure thing man, go ahead." Given that we're both in the same boat of giving Hong Bao for the first time in our lives, rather than receiving it, I thought I'll just give my two-cen...

Well, I can't believe its 2024. All the video-gaming, munching and meet-ups in December certainly transformed me into a SERIAL PROCRASTINATOR. Nevertheless, a late reflection on the financial nuggets learned from 2023 is better than none I guess. Off the couch playing virtual football matches and onto the laptop I come. 2023 has certainly been a rollercoaster ride for many investors. Inflation seem like an untamable beast, resulting in the Federal Reserve Board (FED) raising interest rates to a multi-decade high of 5.25% to 5.5% by the end of the year. You know inflation is a real concern when even Channel News Asia does a documentary titled "Why is my Economic Rice so Expensive? How can I Save Money?" back in November 2023. Meanwhile on the global front, Israel's retaliation against Hamas in October threatened to turn the conflict in the Gaza Strip into a potentially regional one. Meanwhile constant mumbling of a recession kept retail investors on their toes and the ...