Take the good with the bad investing in Singapore's economy.

Dear AK, 

How are you, hope you're in good health.

I have 2 questions.
 

1) what do you think of investing in ETFs, eg. SPDR and the 

2) such ETFs' dividend yields compared to buying single stocks.

For retail investors who don't really have very much appetite for volatility and time to do a lot of research. Yet still hope to invest safely. Hope it's not a silly question.

Hope you have a nice day. 

Thanks and regards,

S

Hi S,

Putting money regularly in an STI ETF is good for someone who would like to participate in the growth of Singapore's economy but who has no time nor inclination to research into individual stocks.

There is less risk of a total capital loss but, still, be prepared for volatility as the ETF will track the ups and downs of Singapore's economy.

Best wishes,
AK


Related post:
Risk averse and putting money in STI ETF, REITs or stocks?

Funding your child's university education.

Hello AK,

I've been following your blog closely for up to 3 years now. Your philosophy to investing has helped to influence mine from investing purely for growth to one that invests for income as well. I would like to seek your insights on something that might be beneficial for young parents.

I have an 18 months old daughter and have been considering saving up for her university education. I would like to explore using a monthly savings plan in the STI ETF to achieve this. Using the financial data available, we can calculate the CAGR from its inception in 2009 to 2016 to be approximately 11 percent. But I know that this does not apply for a monthly savings plan. Any idea how I can do that?

Thanks and Best Regards,

R

Source: ASSI

Hi R,

11% is in retrospect. It is unlikely that STI ETF will deliver that kind of performance in future. It is likely to be much lower. Remember that Singapore recovered sharply from a deep recession in 2009.

This option should still do reasonably well and is probably less costly compared to getting an endowment plan from an insurance company.

I don't know how to calculate base on a monthly savings plan but it shouldn't matter. Over a very long term, it is about smoothening performance over time.

Best wishes,
AK

Parents should read this post too:
How to have enough to fund a university education?

Another fantastic buy! Don't say AK bo jio! (Buy potato chips or blue chips when marked down.)

UPDATE (7 SEP 17):
I simply love dark chocolate.

Made in Belgium.

It is super smooth and tastes soooo good.

Price: $1.00 per bar. 

Yup. This makes it taste even better!

Where to get this? 

Scroll to the end of this blog for the address.

Don't say AK bo jio. 




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Many know that I have a weakness for chocolates and ice cream. Without chocolates and ice cream, I think life is not worth living. To me, they are like an essential food group.

There is something else that I like but not to as big a degree. Potato chips. Specifically, Pringles potato chips.

Some might remember how I would eat Pringles potato chips with baked beans, eating them like horderves.

OK, if you must be very French about it, hors d'oeuvre). 

As I have been avoiding beans in my diet in recent months, I eat potato chips with fried eggs or tuna flakes these days. Yup horderves again.

When I went to Japan for vacations, I would buy their Pringles potato chips because they taste better than the ones we have here. The texture is smoother and the taste is less salty.

They are also available here in Isetan, Meidi-ya and some specialty shops but they are pretty pricey, as you can imagine.

Recently, however, I discovered that I could buy them really cheaply somewhere in Singapore and what did I do?

Price?

50 cents per can.  

Really?

Really!

Not joking?

Nope.

Where to buy this?

They are selling fast and I am wondering if I should buy more.

If you want to get some, better be fast hands, fast legs. OK, you better be faster than AK.

What? Where exactly in Bedok?

Er...

OK, I tell you (reluctantly):

Don't say AK bo jio. 




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Update 4 Aug 16, 10.45AM.

Cepat!

Related posts:
1. How AK saved 32.7% + 9% in a supermarket?
2. Cheap cheap chocolates!

Motivations and methods in investing (Part 2).

Hi AK,

I am a 38years old male and have been following your blog since the start of the year.

Firstly, i must say i am truely inspired by your example and most importantly enlightened on the need for passive income for people like us in SG so armed with a little warchest of $50K i have picked up a number of stocks based on your advice on your blog.

Acromec - Entry price : 0.3
Capitaland - Entry price : 2.9
China Aviation oil - Entry price : 0.835
AIMS Amp - Entry price : 1.3
Sheng Siong - Entry price : 0.86
Venture - Entry price : 8.35
Singapore O & G : Entry price : 0.8

My problem is i do not have an exit plan. Based on current situation, should i take profit and sell  off some of the stocks? I do find a few of them overpriced at the moment like O & G.

Hope to hear your advice soon!

Thanks in advance!
 

Cheers
Y

Hi Y,

Alamak. I don't give advice. I am just talking to myself.

So, I say to myself:

"Always question what was your motivation for buying into a certain stock. If it is for income, then, price movements should not matter as long as the fundamentals are intact and it is bringing home the bacon. Of course, if you could find a better income stock than the one you have and if funds are limited, liquidating and moving your funds makes sense. Money should go to where it is treated best.

"If you are investing in something because you feel that it is undervalued and that its price should be higher, then, you probably have an idea of its intrinsic value. You could then sell if you find that your investments are now trading at prices above their intrinsic values."

Best wishes,
AK

Related post:
Motivations and methods in investing.