Wealth4Generations

More professionals take up Forex Trading for secondary income

2010-10-26T00:32:00.000+08:00

More professionals and executives are turning to Forex Trading. They want to take care of their career, earn more money and maintain a carefree lifestyle; Forex Trading is seen as a good fit.

According to Terraseeds Market Technician’s chief trainer Ms Binni Ong, “We observed a 50% increase in the number of professionals coming to our Tflow® Course over the last two years. They do not quit their full time jobs, but are able to earn additional
cash through trading.”

She adds, “Professionals such as lawyers, engineers, accountants, chief financial officers choose the Terraseeds Tflow®. This highly sophisticated proprietary trading method predicts future prices and movement. It utilizes Applied Elliott Wave and Advance Fibonacci theories. These are popular techniques used by financial institutions like banks to generate profits. ”

The best feature of the Terraseeds Forex Tflow® System is it allows the trader to “earn money while he or she ‘sleeps’.” A trader typically starts with analysis of the market either during the start of the week or head of the day. Using the analysis, he or she is able to pre-determine entry level, maximum loss and target profit. Once orders are entered into the trading platform, he or she can then leave for work or go to sleep. It is a hands-off style of trading and does not require the individual to be glued to the screen.

When a trader applies this method, he knows the reward to risk proposition clearly. Such a methodology makes traders feel secure with the trade position. It is a boon to professionals who want to focus on their career.

Tara Ng, a former chief financial controller says, “Terraseeds Forex Tflow® System is a blessing to people who are trading. I would describe it as a system that has low and controlled risks. Moreover, it is specially designed for people who don’t have much time to do ‘time-consuming research’.” She added that her success rate is about 60-70% More professionals take up Forex Trading for secondary income since she first started 3 months ago and return is about 3 times of risk.

Ms Ong agrees with the assessment, “We have a doctor who works in a polyclinic making consistent profits of about 500 to 1000 pips in a month. He particularly likes the ‘earn while you sleep (EWUS)’ strategy because it allows him to place his trade before leaving for work.” She adds, “He tells us that this was really a stress-free way of making second income without having to sacrifice family, friends, or work.”

We have a doctor who works in a polyclinic making consistent profits of about 500 to 1000 pips in a month.

There are several reasons why forex trading is a top choice among professionals or executives:

The Forex market trades 24 a day so trades could be done at anytime of the day
A low capital outlay is required because of the use of leverage; trading can be done with deposits as little as USD250
Traders can choose from an increasing number of established brokers operating in Singapore
Position size for trades are scalable; it can be as little as USD 200 to a few hundred thousands so each individual can trade according to his means
There is plenty of price movement everyday so there are many opportunities to make money
Brokers’ trading platforms offer controlled risk trading with pre-established maximum loss

Ms Ong also observed that a well-regulated environment by the Monetary Authority of Singapore has very much contributed to the flourish of currency trading in Singapore. Education plays a part too. Schools like TerraSeeds runs regular free introductory sessions on Forex trading for professional and executives to get acquainted with the currency market as an alternative source of income.

Flat owners required to register tenant details from Feb 1

2010-01-13T13:48:00.001+08:00

Flat owners required to register tenant details from Feb 1
By Channelnewsasia.com | Posted: 12 January 2010 1751 hrs

Singapore: Owners of HDB flats who sub-let rooms will have to register with HDB within 7 days of doing so.

The rule, taking effect from February 1, also requires owners to notify HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants' particulars.

The Housing and Development Board (HDB) said the new requirement will support the Ministry of Home Affairs's efforts to eradicate loan-shark activities and better protect HDB residents.

Currently, some people use their old addresses to borrow from loansharks
while they rent a room in another HDB flat.

By moving their place of residence without updating addresses in their NRICs, new occupants of the flat end up being harassed by loan sharks while the borrowers are untraceable.

Through this new rule, the HDB will be able to capture the particulars of sub-tenants, while the MHA will be able to trace the movements of borrowers.

The new rule will apply to all new and existing cases of room sub-lets.

For those with existing sub-letting tenancies that commenced before February 1, owners have a 6-month grace period to register.

Those who flout the rule face a penalty of up to S$3,000 and may have their flat compulsorily acquired by the HDB if they repeatedly fail to comply with the new requirement.

The registration - which includes details of the tenant, duration and rental fees as well as family structure - can be done online or at the Branch Office, where HDB staff will be on hand to help. - CNA/sf

Flat owners required to register tenant details from Feb 1

2010-01-13T13:48:00.000+08:00

Does this mean that loansharks can check HDB database to know where borrowers have moved? Lol :O

Flat owners required to register tenant details from Feb 1
By Channelnewsasia.com | Posted: 12 January 2010 1751 hrs

Singapore: Owners of HDB flats who sub-let rooms will have to register with HDB within 7 days of doing so.

The rule, taking effect from February 1, also requires owners to notify HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants' particulars.

The Housing and Development Board (HDB) said the new requirement will support the Ministry of Home Affairs's efforts to eradicate loan-shark activities and better protect HDB residents.

Currently, some people use their old addresses to borrow from loansharks
while they rent a room in another HDB flat.

By moving their place of residence without updating addresses in their NRICs, new occupants of the flat end up being harassed by loan sharks while the borrowers are untraceable.

Through this new rule, the HDB will be able to capture the particulars of sub-tenants, while the MHA will be able to trace the movements of borrowers.

The new rule will apply to all new and existing cases of room sub-lets.

For those with existing sub-letting tenancies that commenced before February 1, owners have a 6-month grace period to register.

Those who flout the rule face a penalty of up to S$3,000 and may have their flat compulsorily acquired by the HDB if they repeatedly fail to comply with the new requirement.

The registration - which includes details of the tenant, duration and rental fees as well as family structure - can be done online or at the Branch Office, where HDB staff will be on hand to help. - CNA/sf

What is Islamic Finance and all the hype?

2010-01-03T23:07:00.002+08:00

It is interesting to hear or read of developments in Islamic Finance without knowing what it really is.

Here are some resources that I found but before that I think the summary is this (readers who know more about this please help to elaborate further - thank you):

Interest is not accepted; a slightly complex arrangement is put in place to
There is risk sharing
Gambling (game of chance) is not allowed so certain insurance and derivative trading falls into gray area
Devout muslims in non-muslim countries without access to Islamic banking can use non-Islamic banking but once the former is available, they must use those Islamic banking services exclusively
Many issues are still unclear and being debated

http://en.wikipedia.org/wiki/Islamic_banking

Guidelines on the Application of Banking Regulations to Islamic Banking

Islamic Finance: Growth and Prospects in Singapore

What Makes Prices Move? | Bradley Gareiss | FX360®

2009-12-21T17:31:00.000+08:00

What Makes Prices Move? | Bradley Gareiss | FX360®

One–Year Extension of 4% Floor Rate for all SMA and RA Monies

2009-12-14T17:54:00.002+08:00

Got this in my email.

Dear Sir/Mdm,
One–Year Extension of 4% Floor Rate for all SMA and RA Monies
To help members cope with the current economic climate, the Government will maintain the 4% floor rate for interest earned on all Special and Medisave Accounts (SMA) monies and Retirement Account (RA) monies for another year until 31 December 2010. After 31 December 2010, the 2.5% floor rate will apply for all CPF accounts.

An additional 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If the member is above 55 years old and participates in the LIFE scheme, the additional 1% interest will also apply to his annuity premium, less annuity payouts already made. The additional interest earned on the member’s LIFE annuity monies will be paid into his RA.

Click here for more information.

Yours faithfully
CPF Board

For more information, do visit our website at www.cpf.gov.sg. Please login to My Alerts if you wish to unsubscribe or modify your subscription. If you have further enquiries, please contact us. We will be glad to assist you.

This is an automated message. Please do not reply.

MoneySENSE plans to set up financial literacy institute

2009-12-06T17:50:00.002+08:00

Channel NewsAsia - Sunday, November 29

SINGAPORE: More financial education will be available for Singaporeans soon. National financial education programme MoneySENSE plans to partner a university or polytechnic to jointly set up a financial literacy institute.

The Monetary Authority of Singapore (MAS) said at the Mind Your Money seminar on Saturday that even though there are many financial education programmes now, more needs to be done.

Heng Swee Keat, managing director of MAS, said: "Building on the work of MoneySENSE, the institute will identify core financial literacy competencies at each stage of our life and develop and conduct programmes that enable us to learn those skills."

Experts said this is timely, with recent green shoots being threatened by the dark clouds of Dubai’s debt crisis.

Shockwaves emerged in global markets after the Dubai government’s investment firm Dubai World asked on Wednesday for a half—year delay in repaying a major portion of its US$80 billion debt.

However, experts said more time is needed to assess the real extent of the damage.

David Gerald, president and CEO, Securities Investors Association of Singapore, said: "We do not know the extent of the involvement of the banks in the loans and in this particular episode. Until the information comes out, you must not assume that things are going to be bad.

"I would want to wait for correct information and just because there are other jurisdictions where the markets have reacted, doesn’t mean we need to react the same way."

While the air of uncertainty lingers on, more than 350 people attended the Mind Your Money seminar, which was presented by MoneySENSE and MediaCorp.

Lucas Chow, CEO of MediaCorp, said: "MediaCorp has always kept our pulse on the financial heartbeat for the benefit of our audience. Apart from the nightly financial reports on Singapore as well as on Asia Business Tonight, our channels produce current affairs programmes that give viewers the insight on how to manage their own investments."

Asia Business Tonight is aired Mondays to Fridays at 10.30pm on Channel NewsAsia.

Besides getting information on investing, those who came for the seminar were also treated to special appearances by local celebrities, some of whom shared their own investment experience with the crowd.

— CNA/so

Opening Remarks by Mr Heng Swee Keat, MD, MAS

Invest in Gold in Singapore

2007-10-17T18:03:00.000+08:00

Now that gold prices are near 28 year highs driven by depreciation in the US dollar, economic uncertainty and actual demand by growing economies India and China, folks may be interested to invest in gold. Here are some of the ways:

1. Exchange Traded Fund or ETF of gold - Street Tracks Gold Fund (Stock code on Singapore stock exchange is 087 and the End of Day price as of 16 October is S$75.60. Alternatively folks who have US brokerage accounts like InteractiveBrokers can buy 'GLD' which is the stock code of the same fund listed in NYSE.

2. Unit trusts of gold mining companies and proxies - These may not be good proxies of gold price because there are many factors to consider including sale of fund commission, management fees, fundamentals of the component stocks in the fund etc. Unit trusts can be bought from Fundsupermart or asset management companies like UOB Asset Management.

3. Gold savings - many banks offer gold saving accounts. Its quite cute because you get literally a savings booklet that has a shiny gold cover. You can buy gold in grams and the amount you own will be recorded. There are monthly holding fees though.

4. Gold bullion - Gold bullion offers good alternatives because you own the physical stuff. They are better deal than gold jewellery because the latter's price usually includes worksmanship fee and its not pure. Gold bullion can be bought at local banks but only at the head offices. For example, there is a special counter at UOB main bank at Battery Road where you can buy bullion. Some things to note:

Bring your IC because the bank will keep a record

The gold they sell you may not be freshly minted (they are afterall tradeable and therefore could be 'secondhand') so you need to make sure they are not chipped or scratched

Keep the receipt for the purchase because you can sell the bullion back to the bank but they will ask for the receipt and the bullion must be in good condition

All of us cannot resist taking the bullion out to touch but for goodness sake don't drop it on the floor. That's because pure gold is very soft and will get scratched or dented. The bank may not accept back.

If you really need to sell your bullion but the bank does not accept, then try another bank or go to a goldsmith.

Let us have a choice

2007-08-23T10:55:00.000+08:00

I say NO to compulsory annuities.

Star Wars Parody

2007-08-16T23:05:00.000+08:00

What are annuities?

2007-08-15T17:53:00.000+08:00

"A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. "

A definition of annuities is provided in Investopedia.com.

http://www.investopedia.com/terms/a/annuity.asp

Look also at Life Annuity which is an annuity with a particular set of terms and conditions.

http://en.wikipedia.org/wiki/Life_annuity

Government may make buying annuity compulsory: Lim Boon Heng

2007-08-15T17:45:00.000+08:00

By Julia Ng, Channel NewsAsia Posted: 14 August 2007 1745 hrs

SINGAPORE : The government may make buying annuity compulsory, said Mr Lim Boon Heng, Minister-in-Charge of ageing issues.

Speaking to reporters after a National Day Observance ceremony at the Mitsuboshi Overseas Headquarters on Tuesday, Mr Lim said the government is looking to build the annuity component into Singapore's plan for the ageing population.

With longer life expectancy, Singaporeans will have to work longer, beyond the present retirement age of 62.

The government is considering a law on re-employment, to get employers to guarantee their employees a job once they reach 62.

But it may not necessarily be the same job or the same salary.

Mr Lim urged employers and employees to start preparing for the re-employment law as soon as possible.

This is because the law would provide only a framework and not spell out how re-employment should be done.

Besides working longer, another way to prepare for old age is to have a form of insurance that caters to a longer lifespan.

And one way to do this is by buying an annuity.

Said Mr Lim: "If you have a full minimum sum in CPF, when you withdraw the CPF, CPF will pay you $700 over a month. But it's for 20 years. At the end of 20 years, you'll have nothing to withdraw.

"If you buy an annuity, the insurance company will pay you less - $500 a month. But the insurance company will have to pay you for as long as you live. And if you live to 100 (years old), they'll have to continue paying you till you're 100. Therefore it's a lesser monthly sum but you're insured a little longer.

"We may have to make it compulsory for everyone, but I think for now, we should explain to people what annuities are and how people can benefit, to get people to understand it." - CNA /ls

REIT data for SGX and Bursa Malaysia listed reits

2007-06-19T16:35:00.000+08:00

I am very interested to have found this extremely useful resource.

Most helpful with a glance at yield and gearing information.
SGX and Bursa-listed reits as well as high yield stock information by KK.

Profit from a trending market.

2007-06-19T10:02:00.000+08:00

Wills and testament; Estate Planning

2007-06-05T01:12:00.000+08:00

Here's a website where information on estate planning, writing wills and testaments.
It's a Malaysian company.

http://www.mywill.com.my/index.asp

An excellent monthly mortgage calculator and amortization table

2007-06-04T21:46:00.000+08:00

http://mortgages.interest.com/content/calculators/monthly-payment.asp

Playing poker and trading the market

2007-05-23T12:22:00.000+08:00

I have always been amazed at the similarities between playing poker and investing in the markets. Here I share some observations which I hope stock market newbies will realize.

From pokerlistings.com, I found an article about key poker skills and I post a few of them here:

"Discipline

In order to win steadily at poker, the most important skill to master is discipline - in fact, all other skills are dependent on discipline. You must have the discipline to wait for a good hand, a good game, the right opportunity, etc. Discipline means you do not play in games where you lack edge; you refrain from playing hands that will get you into trouble; you manage your money expertly; and you learn from your mistakes. "

This is an aspect that stock market newbies lack when they have just entered the market.

They over trade and do discern their odds of winning. They take trades even if the risk are high and rewards low.
They chase stock prices and end up buying high even in situations when prices are over-extended for example, move too far away from the base.

"Money Management

If you are unable to manage your money it is impossible to be a steady winner no matter how good you are. Money management means only playing in games you can afford and knowing how much you are expected to win in the long run. The reason that so many skilled players go broke is that they constantly play at limits that are not supported by their bankroll. There will be times when you are just plain unlucky for a longer period of time though you are playing well. You must have a bankroll large enough to handle these expected swings in poker."

Many stock market players become 'specu-vestors' or overuse credit:

They originally want to speculate on share prices but once price turns against them, rather than take loss they decide to keep their shares. People who do this end up having a portfolio of losing stocks.
Some take a step further by converting their bad stocks into collateral for financing. This will give them 'more fuel to throw into the fire'.
Ultimately, specu-vestors will go bust. They end up holding bad stocks. They also have tremendous opportunity cost because when good stocks are moving, the specu-vestors may have run out of cash to bet.

From pokertips.org, I found some 'Common Beginners' Mistakes' too:

"Mistake #1: Playing too many hands

When people sit down in a game, they want to play. Often, this means they even will play hands like J, 4. This is a cardinal mistake. Hopefully, the articles on this site will help improve your starting hand selection."

Newbies do not realize that in an activity like investing/trading, longevity is more important than participation in every game. This is because if you have no more money, you can't bet. Newbies want to play every game because of greed. The adrenaline goes into their body system and they get a tremendous emotional 'kick'. Perhaps traders like this are getting what they want i.e. the 'kick' but winning becomes secondary.

"Mistake #2: Playing above your bankroll

This goes without saying. Sometimes the gambling and money aspect of poker gets to people too much. They become greedy and play in games they cannot afford or games where the competition is simply too stiff.At first, stick to a consistent, low limit. Learn how to play and beat the game before you play in higher-stakes games."

I hear newbies losing their pants through margin calls and forced sells. Playing excessively is a sign of a newbie. Stock market veterans know that there is no sure win and therefore making calculated bets with small amounts of capital per trade over long is a disciplined way of collecting consistent profits and compounding the whole basket. On the other hand, newbies focus on how much they want to win every time. They don't realize that sure they can win alot but also lose alot. In the end, the outcome becomes very volatile.

"Mistake #3: Becoming too emotional at the table

Bad beats will happen. Losing sessions will happen. Annoying opponents will happen. Live with it and do not let your emotions sway your judgment at the table."

What's more to say? These are forces of the dark side: greed, fear. People ruled by these emotions do silly things.

"Mistake #7: Imitating other players

A lot of people learn how to play poker by playing in a fashion similar to other people. They may just imitate others at the table, or they may try to play like a professional they saw on television. This is the wrong way to go about playing poker.Many people who play poker are simply bad at it. Imitating a poor player means copying a lot of their bad habits. Furthermore, trying to imitate what one saw on television is also a recipe for disaster. What is shown on television is almost always a tournament, and their hands are highly situational. The reasons for the professional's decision probably has little applicability to your own game.It is important to understand how to make decisions at poker. Succeeding at poker is not done through imitation; rather, it is done through understanding the complexities of the game."

In my opinion, folks who show this sign shouts 'sucker' and 'loser' all over. Blindly following others subjects oneself to manipulation, misguidance, fraud etc.

When newbies pick up stock picks/tips, advice from 'gurus' in stock market forums, they must ask themselves the following questions:

What is the agenda of this guy? Why is he giving me a free tip? Does he want me to buy so that he can sell out of his losing position?
Can I follow this guy's advice? Is he making a qualified recommendation? How can I verify?
Even if he was right, is my risk tolerance the same as his? Can I afford the same position as his? How long does he intend to hold?

Advertorial: Profit From Shorting With A Simple & High Probability Method

2007-05-21T22:40:00.000+08:00

Downtrend - Stock prices get lower and lower

Market can move in three ways – up, down or sideway.

Investors profit from one way – buying.

Avid investors can profit from three ways – going long, going short, or playing range (scalping by buying low, selling high).

How can you profit from go short (i.e. selling first)?

Profit from Shorting

Let’s examine the charts of GemsTV.

Scene 1: Price gapped down from previous day close of $1.64 to close at $1.52 with HIGH VOLUME. From simple technical analysis theory, selling interest is high. We noted that 52 weeks low was $1.17.

Scene 2: Volume remained high for the next few days. Prices stabilized in the yellow rectangle, while volume is low. From simple technical analysis theory, buying interest is weak. At the red arrow, volume is again high with falling prices.At this level, a high probability trade setup formed. This high probability setup allows going short. This high probability trade utilizes a combination of price, volume and indicator and is a proprietary system by Terraseeds Market Technician P/L (http://www.terraseeds.com/).

Scene 3: The short sell trade went well. Price moved down sharply with high volume. From simple technical analysis theory, selling interest was high again.

Scene 4: We observed that price moved below 52 weeks low. From simple technical analysis theory, this is a bad sign. Selling interest will remain high.

Scene 5: GemsTV remains weak and price continues to move down. Selling Volume remains high. The MACD high probability trade setup is a complete trading system that provides a trade setup where risk is known before executing the trade.

9th Intake of Paper And Pencil Series: MACD High Probability Setups

TerraSeeds Market Technician Pte Ltd is running the 9th intake of its Paper And Pencil Series: MACD High Probability Setups on 26 May 2007 (Saturday).

In this 9-hr course, you will be empowered with a full system on using MACD for high probability trade setups. You will be given clear, concise step-by-step explanations on construction of the MACD and MACD Histogram and its setup for entry and exit. The MACD high probability setups are used by traders and investors for swing trading and trend investing.

These 6 high probability setups on MACD will take guesswork out of your investment analysis, putting the probabilities greatly in favor of you. Our traders will also share with you their experiences of finding a trade via real time screening illustration. You are not left on your own upon completing the program.

Visit Terraseeds Support forum (http://www.bull-fish.com/) to see MACD High Probability Setups as the market moves.

See also how our students are using MACD High Probability for their everyday trades.

Why wait when our students have written to us on their successful trades. See their testimonials here: (http://www.terraseeds.com/home/content/view/23/54/)

For more information on PnP MACD High Probability Setups, please visit http://www.terraseeds.com/ or contact Tiong Hum at 6492 3196 or email:
paperandpencil@terraseeds.com

The negative (FuNnY?) side of public discussion (stock market forum)?

2007-05-16T12:19:00.000+08:00

These observations were made in the past 3 years when I ran a stock market forum.

Please look at my observations in an open minded and candid manner.

To generalise:

Lack of participation

Stock market forums are a great platform for discussion and discovery (price discovery, learning). But statistically:

Out of 1000 users, less than 100 made 1 post in over 18 months (less than 10%)
Less than fifty have made more than 10 posts (less than 5%)
Less than 15 make regular postings i.e. at least 1 post per week (less than 1.5%)
Of all those who made at least 1 post but are not considered regulars, nearly 100% of such posts are questions, not contributions to discussion

Here I make several conjectures why people do not post:

They are not technically savvy i.e. "where do I type?" and "click on where?" types
They are shy
They have no idea
They are like sponges i.e. just suck, do not release

I got people who has never made any posting write to me: "your forum is so quiet".

Naiveness

Not many people fall into this category I believe but it is so sad to encounter these folks at all.

I would not call Singaporeans selfish or paranoid but I tend to think that we (myself included) are aloof and have some mistrust to strangers but visitors at stock market forums are willing to accept all the 'news' (rumours) provided by strangers (with unknown agenda). (They lose their common sense or what?)
Newbies call strangers guru and shifu and worship their words of wisdom. (Unbelievable.)
One lady wrote to me: "someone stole my user id... he is using the same user id as the one I have in another forum?" (Haha, well, sue him.)

Again my conjectures why they are naive:

Somehow people lose their common sense when they become greedy. Many stock market newbies who lose money even in a bull market are those who do not do their own homework. Instead they become motivated by online 'koyok' sellers who tell them this and this stock can reach what price (hmm, just like old folks who fall to magic stone peddlars).
Well some gurus are really good and some gurus are 'half-past six'. But come on, where the stock market is concerned I believe the only person you can trust is yourself. (And come on, do you guys think you can really meet Soros or Buffett type gurus in a free forum? This is stupidity in extreme.)
The lady who wrote to me must have so much faith in our rule of law. First by god-given right, she believes that the user-id belongs to her and therefore the other guy must be a thief or fraud. Then she goes on to believe that as webmaster I have to do justice for her by throwing the other guy out.

Sigh.

Spirit of Enterprise Awards 2007 Nominee

2007-05-15T23:23:00.000+08:00

My colleague has been nominated for the Spirit of Enterprise Awards 2007.

---

Chief Trainer Ms Binni Ong (M. Bus., B.Bus, Dip.WM) has been nominated for the 2007 Spirit of Enterprise Awards.

The Spirit of Enterprise Award is an annual award that recognizes the entrepreneurial spirit in Singapore by honouring local self-reliant entrepreneurs operating small and medium businesses. From over 200 nominees, only 42 will be selected this year. The 42 selected represent the cream of the crop of entrepreneurs who have shown resilience and tenacity in building up their respective business. An award dinner in September, to be attended by a Guest-of-Honor from the government will formally recognize the winning entrepreneurs.

Her work

Ms Binni Ong has been nominated for the Spirit of Enterprise Awards 2007 for her work in TerraSeeds Market Technician Pte Ltd.

Besides being a day trader and investor, Ms Binni Ong has been recognized for her effort to make high quality technical analysis education affordable to retail investors.

Driven by her passion for investing and managing risk, Binni puts in long hours of work each day to immerse in the field she loves. This includes doing her own analysis and trading as well as
designing effective educational programs and methods of instruction for TA learning.

She truly hopes all investors and traders who aspire to trade for a living can achieve their dreams.

Her profile:

Ms. Binni Ong (M. Bus., B.Bus, Dip.WM)
Chief Trainer

Day trader and investor
Trades in Singapore-listed stocks, Hang Seng- and US-index futures
Trades in US stocks and options
Applies her own formulated system for stock and futures trading
Spirit of Enterprise Nominee 2007

For more information, please contact Soh Tiong Hum at +65 6492 3196 or email paperandpencil@terraseeds.com

Credit Theft and Fraud

2006-02-20T13:31:00.000+08:00

Got this from an email.

CASE 1. This is a new one. People sure stay busy trying to cheat us, don't they??

A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open, and thought to himself, "Funny, I thought I locked the locker.

Hmmmmm." He dressed and just flipped the wallet to make sure all was in order. Everything looked okay - all cards were in place.

A few weeks later his credit card bill came - a whooping bill of $14,000!

He called the credit card company and started yelling at them, saying that he did not make the transactions. Customer care personnel verified that there was no mistake in the system and asked if his card had been stolen.

"No," he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made. An expired similar credit card from the same bank was in the wallet. The thief broke into his locker at the gym and switched cards.

Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them. How much did he have to pay for items he did not buy? $9,000! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a "warning bell" with some credit card companies. It just so happens that all the small amounts added up to big one!

CASE 2. A man at a local restaurant paid for his meal with his credit card.

The bill for the meal came, he signed it, and the waitress folded the receipt and passed the credit card along. Usually, he would just take it and place it in his wallet or pocket. Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person. He called the waitress and she looked perplexed. She took it back, apologized, and hurried back to the counter under the watchful eye of the man. All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card. No exchange of words --- nothing! She took it and came back to the man with an apology.

Verdict: Make sure the credit cards in your wallet are yours. Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time. Many people just take back the credit card without even looking at it, "assuming" that it has to be theirs.

FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A
TRANSACTION!

CASE 3: Yesterday I went into a pizza restaurant to pick up an order that I had called in.

I paid by using my Visa Check Card which, of course, is linked directly to my checking account.

The young man behind the counter took my card, swiped it, then laid it on the counter as he waited for the approval, which is pretty standard procedure. While he
waited, he picked up his cell phone and started dialing.

I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary. Then I heard a click that sounded like my phone sounds when I take a picture. He then gave me back my card but kept the phone in his hand as if he was still pressing buttons. Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on. It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing.

He set his phone on the counter, leaving it open. About five seconds later, I heard the chime that tells you that the picture has been saved.

Now I'm standing there struggling with the fact that this boy just took a picture of my credit card. Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened. Needless to say, I immediately canceled that card as I was walking out of the pizza parlor.

All I am saying is, be aware of your surroundings at all times. Whenever you are using your credit cards, take caution and don't be careless. Notice who is standing near you and what they are doing when you use your card. Be aware of phones because many have a camera phone these days.

When you are in a restaurant and the waiter/waitress brings your card and receipt for you to sign, make sure you scratch the number off. Some restaurants are using only the last four digits, but a lot of them are still putting the whole thing on there. I have already been a victim of credit card fraud and, believe me, it is not fun. The truth is that they can get you even when you are careful, but don't make it easy for them.

Job Vacancy to Unemployed Person Ratio

2006-02-17T10:54:00.000+08:00

There has been some controversy regarding the changes to the way our unemployment is calculated (for information: foreign labour is now included to the net effect of reducing unemployment figures). Someone from another forum has taken the effort to look for further infomation. Appears that our economy where jobs are concerned is not as rosy if we look at the ratio of job vacancies to unemployed persons.

Statistics on MOM website

According to the footnotes: "Job Vacancy to Unemployed Person Ratio is calculated by taking the ratio of the estimate of the number of job vacancies for the whole economy to the total number of unemployed persons. The estimate of total job vacancies are derived by adding job vacancies in both the private and public sectors. The former is obtained by assuming that all private sector establishments have the same vacancy rate as that obtained from the Labour Market Survey on private sector establishments each with at least 25 employees. Job vacancies for the public sector are obtained from the Public Sector Job Vacancies Survey. Estimates on the total number of unemployed persons are obtained from the Labour Force Survey. "

To interpret the ratio based on the September 2005 (3rd quarter) ratio of 0.42, there are only 0.42 job vacancies available for every unemployed person or for every job vacany, there are the equivalent of 2.38 unemployed persons. In addition, the ratio also does not measure the value of the job vacancy.

WILLS AND ESTATES

2006-02-15T12:28:00.000+08:00

Critical information about our wills and estate regarding CPF monies and the status of wills after marriage:

If you have made a nomination under the CPF Act, your nominee shall be entitled to the funds in your CPF account regardless of what is stated in your Will. If you have not made a nomination, your funds will be distributed under the law in accordance with the Intestate Succession Act, as explained below in the paragraph If you do not make a Will.

If you marry or remarry, your Will is nullified or cancelled unless the Will was made in contemplation of your marriage.

More...

Click to link

Life Insurance Industry’s Approach to Beneficiary Nominations - FAQ

2006-02-15T12:06:00.000+08:00

Part A: Background of section 73 Conveyancing and Law of Property Act (“CLPA”)

1. How does section 73 of the CLPA apply to a life insurance policy?

When you buy a policy on your own life and your spouse and/or child is nominated as beneficiary under the policy, it is deemed to be a trust made in favour of your spouse and/or child under section 73 of the CLPA.

When a policy is subjected to a trust under section 73 of the CLPA, upon your death, if the Estate Duty Commissioner determines that you never had an interest in the policy, it forms a separate estate for estate duty purposes. In addition, the policy is protected from your creditors.

A trustee (above 21 years old) may be appointed when a trust is created. If no trustee is appointed, you will be the trustee by default.

When a policy is subjected to a trust under section 73 of the CLPA, you will no longer have any rights over that policy. Any changes to the policy by the trustee must be for the benefit of the named beneficiary. More...

Click to download

Review of Framework for Nomination of Beneficiaries

2006-02-15T11:57:00.000+08:00

CONSULTATION PAPER
P013 - 2005
December 2005
MAS

Presently, there are no provisions in the Insurance Act to govern the nomination of beneficiaries to the proceeds from insurance policies. However, a nomination by the policyholder of his spouse and/or children on his life insurance policy will be governed by section 73 of the Conveyancing and Law of Property Act (CLPA) which automatically creates a statutory trust in favour of the nominees. Some insurers and policyholders have expressed concern over the apparent ambiguities in the application and effect of section 73 of the CLPA. MAS is therefore proposing to amend the Insurance Act to bring under its purview the issue of nomination of beneficiaries to the proceeds from insurance policies. Section 73 of the CLPA will consequently be repealed. More...

Click to download

MAS, ABS should support industry-wide move to help debtors

2006-01-04T14:41:00.000+08:00

Jan 4, 2006
The Straits Times Interactive

We refer to Ms Josephine Tan Si Min's letter to the ST Online Forum on 24 December 2005. We thank her for the encouraging words and her concern about the needs of Credit Counselling Singapore (CCS).

Ms Tan is correct in pointing out that CCS helps the debtor to regain a normal life by encouraging credit education, providing information and advice to individuals.

It also facilitates rescheduling of debts between the debtor and his creditors by counselling the debtor and proposing a Debt Management Programme (DMP) that takes into consideration the debtor's financial ability to pay after reviewing his income, basic living needs and debts.

Without the CCS, it would be difficult if not impossible for most individuals to deal with their creditors. Through DMP, debtors are given a chance to pay over time and the banks can reduce their bad debts and recovery costs.

The CCS prides itself on its professionalism in credit counselling and evaluating the individual's suitability for debt rescheduling.

Only when the assessment confirms that the individual meets the necessary criteria (which are in principle agreed by the banks) and approved by CCS's internal DMP Review Committee will CCS put up a DMP at the individual's request.

For the past two years, CCS has been operating on seed funding from Singapore Pools (S) Pte Ltd, National Council of Social Service, Social Enterprise Fund (now known as ComCare Enterprise Fund) under the Ministry of Community Development, Youth and Sports and the Lien Foundation.

Financial support for education, counselling and DMP fee subsidies also come from South West Community Development Council and Credit Bureau Singapore.

The CCS has not received financial contributions from any of the bank creditors for the services it has provided so far. It has been running on a deficit since operations started in 2004.

Funding for the CCS's operations is critical as its seed funding is running low and it will be forced to cease operations if this is not resolved within the next few months.

The CCS's experience is that most creditors offer a reduction in their interest and penalty charges. However, the DMP is a voluntary programme with the banks reserving the right to review debt repayments on a case by case basis.

It is not unusual for some creditors to demand a higher repayment amount than what is offered and impose other conditions such as the payment of all arrears and legal charges before agreeing to the rescheduling and waiver of penalty charges.

Our experience shows that for most DMPs, there will always be one or more banks which demand upfront payment and/or higher monthly installment.

This has made the life of the debtor and the job of the CCS more difficult as the debtor would have already gone through a thorough evaluation process and the proposal is the best offer that the debtor can afford.

Unfortunately, each bank has its own criteria and policies regarding debt rescheduling. These generally ignore the debtor's overall ability to make feasible monthly repayments.

In short, CCS experiences more problems with some banks which are less accommodating than others. There is also inconsistency with regard to the creditor's acceptance of the DMP proposal since every case is evaluated and has to be individually negotiated with the banks that are more demanding.

The root of the problem is that there is a lack of industry consensus and formal endorsement for the CCS's operations and debt rescheduling activities as this is up to the individual banks to decide.

The CCS feels that there is room for improvement in the debt rescheduling arrangement. About 50 per cent of the people counselled qualify and opt for DMP.

They want to settle their debts in full but they require some understanding and patience from the creditors. The CCS believes that DMP is a win-win solution for both the debtor and creditor.

The end result is a new beginning for the individual to become debt-free again and the repayment of a loan which would otherwise have been written off by the creditor.

Unless various parties come together to support and endorse the CCS's activities with an industry-wide agreement on debt rescheduling, the CCS and distressed debtors will continue to struggle.

There will always be a few creditors who are more demanding and this causes a ripple effect on the more accommodating banks which are not prepared to give the demanding banks a free ride on their generosity and patience.

We call on the relevant authorities such as the Monetary Authority of Singapore and The Association of Banks in Singapore to support an industry-wide initiative for debt rescheduling for distressed debtors.

This will ensure consistency instead of leaving the matter to the individual banks.

Kuo How Nam
President, Credit Counselling Singapore

TECHNICAL TALK

2005-12-22T10:30:00.000+08:00

An investment enthusiast introduces the local technical analysis scene
Singapore Business Visitor
December 2005
Soh Tiong Hum

If you're an investor with a financial interest in Singapore, you'd generally have little difficulty gathering your market information. The local stock exchange provides very comprehensive and up-to-date data, and if one wanted to investigate an investment prospect further, there are many brokerages and fund managers who would be happy to assist. It is a slightly different matter, however, if you are specifically looking for reports on the local market based on technical analysis, as this approach is only just coming to the attention of retail investors here.

For those who might not be familiar with this term, technical analysis is basically one of two main methods used to analyse stock performance; the other being fundamental analysis. Fundamental analysis focusses on the evaluation of a stock’s value based on everything from the overall economy to the management and financial condition of a company. Those who practice technical analysis, on the other hand, look specifically at a stock's price history, for recurring patterns such as trends, peaks, bottoms and other factors, and plan their trades based on these patterns.

If you would like to have a technical view of a particular stock on the local market, without having to do the actual charting yourself, an affordable research portal to start with would be the one run by SIAS Research. This is an independent research company, and a wholly-owned subsidiary of the Securities Investors Association (Singapore), which is a non-profit organisation focussed on protecting investors' rights. The daily newsletter from SIAS Research is distributed via email, and contains their updates on corporate and market action of the day. Further information on SIAS Research Pte. Ltd. can be found on its website (www.siasresearch.com), while information on the Securities Investors Association (Singapore) can be found on (www.sias.org.sg).

A number of brokerage houses in Singapore have also started providing charting tools and other educational information on their websites. This is because as Internet trading becomes more common, traders and investors find themselves having to do more homework on their own, instead of relying on their brokers’ calls, as they previously did. One major brokerage house who has moved in this direction is UOB-Kay Hian Holdings, which offers useful features such as annotation tools and a list of popular indicators, all accessible through its website (www.uobkayhian.com.sg).

For those who might wish to work more closely with charts themselves, one useful software to look into is ChartNexus. This has many user-friendly charting and stock screening features that will appeal to both novice and intermediate users of charting software. Some full-time traders, though, might not find this so useful, because it is not designed to support intraday trading. On the other hand, one attractive feature here is that end-of-day data is provided at no charge, even in its free community edition. Full product details, as well as screenshots of the various chart views, can be found at www.chartnexus.com.

Finally, those who follow local market news closely might have noticed the work of TerraSeeds Market Technician Pte. Ltd, a new company focussing on developing online financial tools. This company's technical analysis reports and charts have been cited by the likes of SIAS Research and Dow Jones Newswire. You can visit their website at www.terraseeds.com.

"How do analysts arrive at a BUY or a SELL recommendation?"

2005-10-21T17:07:00.000+08:00

Terraseeds Market Technician has organised a case study analysis on FA and TA:

This case study will be divided into 2 sections : FA and TA and each of the section will be conducted by the respective trainers. The trainers will

Dissect and analyze companies thoroughly using concepts of fundamental analysis
Illustration with charts the application of technical indicators in the hard-disk sector to determine the best time of entry and exit
The instructors will illustrate applications of fundamental and technical analysis using examples from the hard-disk sector. Ultimately, you will identify the fundamental and technical qualities in a stock that make it outperform or underperform the sector.

During this session, the instructors will answer the following question:

"How do analysts arrive at a BUY or a SELL recommendation?"

Click on http://www.terraseeds.com for more information. Contact us at (65) 9068 0501/ 90680502 or (65) 64550223 for reservation.

Plan for your retirement...Or run out of cash

2005-09-13T13:35:00.000+08:00

By Tan Hwee Heng
September 13, 2005 Print Ready Email Article

IT may sound crazy to many people, but the next generation of Singaporeans may need $1 million if they plan to live comfortably after their retirement.
Click to see larger image

Despite all the talk about planning for retirement, many people are pretty clueless on how much they actually need.

In the US, one of the greatest fear American women have is to become a 'trolley lady' (women who carry all their belongings in grocery trolley) when they are old?

So how do you determine the size of your nest egg?

There are a few factors to consider when you are doing the sums so that your savings will last throughout your 20 to 30 years of retirement.

These factors are:

1) Your monthly expenses;
2) Longevity (how long you expect to live);
3) Inflation;
4) Rate of return of your retirement funds (how hard your money is working).

MONTHLY EXPENSES

If you are wondering what constitutes a basic retirement lifestyle, some recent surveys have given several indications.

One of them is from AXA Life Insurance Singapore, which released the findings of its worldwide survey last November.

It found that the average monthly amount that Singaporean retirees spend on household expenses is $1,592.

That works out to about $20,000 a year.

The bulk of the expense for the retirees would be on food, transportation, medical and health care.

Medical and health care refers to the money that will be spent on visits to the doctor or health supplements.

It could also be the extra nursing care that retirees may need in later years.

LONGEVITY

As in most developed countries, you can see more healthy retirees who are aged 70 years and above in Singapore today.

If you have a healthy lifestyle today, you will probably live even longer.

Ironically, a large factor which diminishes the quality of life of retirees today is the concern that they will live for a long time and that their savings will be depleted.

This creates a lot of tension and stress in the family.

Therefore, it is important for people to plan so that they have enough savings to last them through their retirement.

Since different people have different lifespans, you can use your family history to gauge how long you would live.

That is if your grandparents or parents live past the age of 80, you should be looking at a lifespan of 80 or beyond for yourself.

Then you add another five to 10 years when computing your retirement financial plan.

INFLATION

Prices can only go up.

For example, a plate of chicken rice used to cost $1.20 years ago. Now that same plate of rice costs about $3.

That is an inflation rate of 5.6 per cent.

The recently announced hike in transport fares is another sign of inflation.

Assuming a 3 per cent inflation rate, in 25 years, the same amount of food, transportation, and daily necessities that cost $1,592 a month today may cost $3,900 in 2030.

HARDWORKING FUND

We work hard to earn our money today. For our retirement, we need our money to work hard for us.

After accounting for inflation, you can compare the amount you require to retire at two different rates of return for your savings.

The higher the interest rates or returns we can get, the less we will need to start off with.

Let's study the case of Mr Sim, who retires at 55. If he can get a 4 per cent per annum return for his money instead of 1 per cent, he will only need $440,000 instead of $640,000.

So it's never too early to start planning for your retirement.

# The writer is a wealth manager from Frontier Wealth Management.

Retirement plan hit by sharp drop in maturity value

2005-09-08T00:26:00.000+08:00

Sept 7, 2005
Retirement plan hit by sharp drop in maturity value

Like Madam Dorothy Ballard (ST Aug 9), my father bought a 25-year pure endowment policy from Prudential in September 1981.

It was converted into a with-profits policy in September 1992. The policy is due to mature in September next year.

It was bought as part of my father's retirement fund and university education fund for myself and my brother.

About three years before the policy's maturity, it began to show a significant drop in projected maturity value.

In May this year, the drop was as much as $30,357.00.

Why this big drop in projected maturity value when the policy has been in place for many years with bonuses declared and accumulated?

It is all too easy for insurers to attribute the big drop in value to the Asian financial crisis and other economic situations, but the financial crisis was in 1997, long before the recent drop in value.

My mother's situation could not have been better. She too bought a 10-year endowment with bonus policy from AIA.

The sum assured is $80,000 and the annual premium is $8,954.40. That would be $89,544 of total premium after 10 years against a projected return of $113,016 when she bought the policy.

The plan was also bought as part of my mother's retirement plan. Much to my mum's surprise and disappointment, a check with AIA on the projected sum when her policy matures next year shows it to be $93,341.

This works out to an average return of only 0.92% compounded annually.

It is frustrating to have to wait for 10 years and then be told that your retirement plan would be affected as the projected return of $113,016 when policy was first bought would not be achieved.

It is disconcerting to note that a financial giant like AIA could have managed their investments so badly by achieving 0.92 per cent annual returns only and doing not much better than ordinary fixed deposits in banks.

Why is it that a smaller local company like Asia Life had achieved consistently good investment returns without having to resort to bonus cuts while financial giants like AIA and Prudential could not?

I hope this letter serves to remind the public that your retirement plan may best be left in your own hands, not insurance companies.

Endowment plans may not be wise. Buy term plans and invest the savings yourself.

At least, you know what is going on with your investments, unlike insurance companies which simply attribute poor investment returns to financial crises when things go wrong.

Cai Qing Yuan (Miss)

Singapore Statutes Online

2005-08-22T11:41:00.000+08:00

Singapore Government Statutes can be found here:

http://statutes.agc.gov.sg/

No more expensive dinners, no more shopping sprees

2005-08-09T17:48:00.000+08:00

The Straits Times (Singapore)
August 7, 2005 Sunday
Invest
No more expensive dinners, no more shopping sprees

WITH a tinge of regret, 30-something Jane (not her real name) reflects
on how she once lived in a spacious terrace house and drove a 'nice
continental car'.

She had to sell them both recently, and move into her parents' Housing
Board flat.

Aside from shelter and comfort, her parents also give her some
much-needed cash ever so often.

She earns $4,000 in gross pay a month as a manager - but she has a
$170,000 debt to repay to eight creditor banks.

She borrowed $200,000 to renovate her home a few years ago.

At that time, her husband's business was doing well. Taking home
$20,000 a month was the norm.

Then his business faltered. 'We didn't have any reserves, and had to
borrow more and more to help him stay afloat,' she says.

By April this year, the debt had snowballed until she could not repay
the monthly bills in full, so she sought the help of Credit
Counselling Singapore (CCS).

Under a repayment plan devised by CCS and accepted by her creditors,
she agreed to repay $2,400 a month over seven years.

It was a painfully huge chunk of her $2,800 take-home pay, which was
why she had to move back to her parents' home.

'My relatives, friends and colleagues are not aware of my situation.
I'd rather die than let them know,' she says.

'It was difficult to adapt initially to the total change in lifestyle.

'I have to think through carefully about every dollar of purchase. No
more dining in expensive restaurants, no more shopping sprees,' she
adds.

Another debtor, James (not his real name), is experiencing the same
wrenching change in lifestyle, but is positive about it: 'I will
emerge from this stronger.'

His woes began when he borrowed $30,000 to renovate his HDB flat just
before he got married.

The debt surged to nearly $90,000 when his parents insisted on paying
for new custom-made dresses for family and relatives, and organised a
wedding reception held over two weekends. The guest list numbered
2,000.

When the bills came, he was in a daze.

He exhausted his savings to pay up, and borrowed from 10 credit cards
and credit lines.

Sometimes money was so tight that right after he paid the minimum
monthly bill on a card, he would withdraw the same amount from the
same card.

His in-laws paid off about $20,000 of the debt.

'I have my in-laws to thank. They are supportive of me, and make sure
our fridge is well stocked,' he says.

Recently, he sought help from CCS and is expected to begin paying back
$1,200 a month over the next five years.

He is hoping that Lady Luck will smile, at least a little, on him.

'Every weekend I buy 4-D hoping to strike a few thousand dollars. It
would only be temporary happiness because I would use it to pay off my
debt rather than spend on myself.'

Credit Counselling Help

2005-08-08T16:43:00.000+08:00

Aug 7, 2005
Dig your way out of debt
Since its launch 10 months ago, Credit Counselling Singapore has devised repayment plans for 388 debtors, helping them on the long road to being debt-free

By Leong Chan Teik

TAXI driver Jerry (not his real name) was on the late shift one night when his passenger got worried.

Jerry was evidently struggling to stay awake: He yawned frequently and nodded off.

The passenger struck up a conversation with Jerry to try to keep him awake, and slipped in this friendly advice: 'Don't work long hours. Get some rest.'

For a year, Jerry drove the taxi part-time on weekends, and during that period, several of his passengers had similarly anxious rides.

Says Jerry, who is in his 40s: 'Now when I look back, I realise the danger I was putting my passengers and myself in.'

His taxi driving was confined to weekends because after office hours during the week, Jerry, a polytechnic graduate, would hit the books for a degree through a distance-learning programme.

He badly needed the money from taxi driving - about $800 a month after expenses - to supplement the $4,500 gross income that he earned in his regular job as a manager.

He was weighed down by a debt of $200,000 that he had chalked up over several years on his credit cards and credit facilities. 'It was so easy to get cards and to spend. I had 10 gold cards, with a $10,000 credit limit on each one,' he says.

More easy money came his way when the value of his condominium rose sharply in the last property boom, and he remortgaged his home in order to obtain $120,000 cash.

He overspent on holidays and on items such as furnishings when he moved into a condominium.

He invested in shares by borrowing money through a margin account. When his shares plunged, he withdrew cash loans using his credit cards to settle his losses.

The financial pain soon hit home.

'The interest charge was as high as 24 per cent a year, and the charges snowballed. Suddenly, I realised I didn't have enough to pay my minimum monthly bill.'

He tried to negotiate with the 10 banks he owed money to. He faced the possibility of being made a bankrupt.

Eventually, he contacted the Association of Banks in Singapore, which referred him to Credit Counselling Singapore (CCS), a voluntary organisation which was in its infancy then.

A CCS counsellor analysed his debt and cash flows, and came up with a plan for Jerry to pay back the banks.

He would repay $3,700 in total every month, and all his credit cards would be cancelled.

After some negotiation, this was agreed upon by all parties, and Jerry heaved a sigh of relief even though he knew it would be a painful experience digging his way out of his debt hole.

To help him meet his repayment target, his homemaker wife took up a job as a factory hand while he drove a taxi on weekends.

'I would say my wife has taken it well. She wasn't the one who overspent. In fact, she had been worried about my spending,' says Jerry.

Two years have passed since he began his repayments, and he is shaping up as a beacon of hope and success for the hundreds of debtors who have knocked on CCS' doors, seeking its help in mediating with the banks.

CCS assistant director Tan Huey Min says of Jerry: 'He seems sincere and determined to make repayment, which explains why he started driving a taxi.'

The non-profit CCS was officially launched 10 months ago, and is supported by various bodies such as the Subordinate Courts, Singapore Pools and the Ministry of Community Development, Youth and Sports.

As at the end of June, the CCS has helped devise repayment plans for 388 debtors, averting bankruptcy action against them. These 388 owed an average of $73,000.

Given their average take-home pay of $2,639 a month, it is an arduous road lasting many years to pay back every cent they owe.

Jerry knows the sacrifices and the discipline required not only to set aside money to repay his debts, but also to adjust to a basic lifestyle.

'There are months when I don't have enough to repay some banks. I make up for it later.

'My family does not go out much to eat or shop - there's no money for new clothes. I spend most of my free time studying at home. Going for a swim is what I do for leisure.

'My colleagues used to ask me to go out with them, but I would say I was busy with my studies.'

He still lives in a condominium whose mortgage instalment is paid entirely from his mandatory contributions every month to his Central Provident Fund account.

'My relatives don't know I have debt. Colleagues don't know either. Some people think I'm rich but very stingy.'

Why not tell them?

'In the past, some said sorry, they can't lend me money, and then they tell other people that I tried to borrow money from them. Their words hurt.'

His teenage son knows. 'He is thrifty and saves a lot of his pocket money. Sometimes, I need to borrow money from him,' says Jerry.

Things improved after Jerry secured his degree last year and landed a new job with a $6,000 gross pay, or a take-home sum of about $5,000.

'I don't have to drive a cab any more but money is still tight. Still, I know that in two or three years' time, I would have finished paying off my credit card debt.'

Then the most difficult part will be over. As for the debt which arose from the remortgaging of his home, that will take another 22 years to repay, but it is at a leisurely $600 in cash a month.

Recently, cheered by his better career prospects after obtaining a degree, Jerry embarked on a master's degree through a distance-learning programme, paying just $2,000 a year in fees by opting out of tutorials.

He hopes to complete the course next year and, once again, move on to a higher-paying job - another step closer to paying off his debt.

He says: 'At least now I can see the light at the end of the tunnel. One day again, every dollar I earn will be mine. I've learnt a good lesson. I have to be very careful with my money.'

The CCS website is www.ccs.org.sg and its telephone number is 1800-225-5227. When calling, do not omit the 1800-prefix, or the call will reach an unrelated company.

Choosing the right Reit

2005-07-30T13:50:00.000+08:00

I attended a recent seminar on Reits as an high yield asset for pensioners. While it appears that one can consider purchasing a reit based on its yield, certain issues need to be considered.

Resilience - A pensioner should consider not only yield but how well a reit will cope in an economic downturn. Although we are familiar with retail reits and their resilience, we should be mindful when we encounter new classes of such investments e.g. logistics, hospitality, healthcare etc.

Yield - As it is inversely related to price, it means that if you buy a reit whose yield is low, you may be overpaying and you have alternatives like government bonds.

Risk - Whereas government bonds are relatively risk-free, reits are afterall still a stock and therefore prices are subject to market sentiment. If you are looking forward to both yield and capital appreciation, market entry and exit timing should not be ignored.

Growth strategy of reit manager - Asset return is very important as is the growth strategy. To an extent that asset enhancement can increase yield, investors should also consider the manager's ability to acquire sound properties and make good return on equity.

Cost of financing - A reit is usually highly geared (akin to a property investor borrowing in order to buy an apartment for rental income) and has to bear financing costs. Therefore it suffers in a high interest rate environment.

DBS, Stanchart, HSBC raise mortgage rates

2005-07-27T13:35:00.000+08:00

Business Times.
By SIOW LI SEN

(SINGAPORE) Customers of DBS Bank, HSBC and Standard Chartered Bank have begun receiving letters saying they will pay more for their home loans. And talk is rife that other banks will follow suit.

But there is no industry-wide strategy - for the moment, at least - to apply the higher interest rates to new borrowers. So prospective buyers who packed showflats at the weekend, encouraged by the easing of finance rules, may not be put off.

DBS, the largest mortgage player here, has told customers it will revise its Special Mortgage Rate (SMR) to 4.5 per cent from 4.25 per cent. This is the second increase of 25 basis points by DBS this year. Its Singapore mortgage portfolio, estimated at $16 billion, gives it a market share of some 26 per cent of the total industry's $60.5 billion.

An analyst who cheered the hike because it will increase the bank's earnings estimates that it will affect some 80 per cent of DBS's existing borrowers. Sam Chin of Deutsche Bank also said 'the increase is slower than I expected'.

Review cash for last third of 30-year loan

2005-07-26T13:05:00.000+08:00

Business Times - 26 Jul 2005
Review cash for last third of 30-year loan

I REFER to the report, '90% financing costs 40% more in first 3 years: DBS' (BT, July 21).

Further to my letter, 'Review policy on cap of CPF funds usage' (BT, July 21), and with banks raising the interest rate to 5 per cent from the third year for 90 per cent housing loans, the 120 per cent valuation limit for the use of CPF will be reached after only 19 years and 11 months for a 30-year loan.

How many Singaporeans will be able to service their housing loans entirely in cash for the last one-third of a 30-year loan?

Home buyers may like to consider carefully before buying under the new property rules.

Leong Sze Hian Singapore

CapitaMall Trust CEO sounds warning on Reits

2005-07-26T13:00:00.000+08:00

Business Times - 26 Jul 2005
CapitaMall Trust CEO sounds warning on Reits
Underperforming trusts risk flight of foreign money within 18 months
By KALPANA RASHIWALA

(SINGAPORE) The party in the Singapore's Real Estate Investment Trusts (Reits) market could end within 18 months, if these trusts are not able to produce the sort of returns foreign institutional investors are looking for, warns a pioneer in the sector.

'My view is that within 18 months, whichever Reit is not able to produce results will disappoint the investors, and you will see a flight of investor capital,' says Pua Seck Guan, CEO of Singapore's first Reit, CapitaMall Trust (CMT).

First to flee will be the foreign institutions, or the smart money. 'They will have no patience to enjoy just the 4 to 5 per cent distribution yields at which Reits are currently trading,' says Mr Pua.

Reits like CMT and Ascendas Reit have generated total returns to investors of more than 100 per cent since their listing three years ago. The bulk of this has come in the form of capital appreciation rather than distribution payments, driven chiefly by yield compression as investors accept lower yields.

When CMT was first listed in July 2002, its initial offer price range worked out to a distribution yield of 7 per cent. Today, it is trading closer to 4 per cent.

The lower yields follow rule changes whereby individual investors, regardless of nationality, are no longer taxed on distributions they receive from Reits. Withholding tax for foreign institutions has halved to 10 per cent.

Investors increasingly view Reits as less risky - another factor making them willing to accept a lower yield.

When CMT was listed in 2002, its 7 per cent yield reflected a 320-basis-point premium over the prevailing risk-free rate as measured by the 10-year Singapore government bond yield. Today, Singapore Reits are trading at distribution yields of just 4 to 5 per cent, as little as 140 basis points above the risk-free rate. Mr Pua believes that there is now much less scope for yield compression to drive capital appreciation. This means that future gains in Reit unit prices would have to be achieved by improvements in distribution payouts, powered by rental income gains from asset enhancements and property acquisitions at prices that leave room for substantial income accretion to the Reit.

Based on Mr Pua's discussions with foreign institutions, who make up 30 per cent of CMT's unit holders, he believes that most of them are looking for total returns - yields plus capital appreciation - of about 7 to 12 per cent.

Given the 4 to 5 per cent distribution yield at which S-Reits are trading, that implies a minimum capital appreciation of 2 per cent.

But the danger now is that far from seeing a modest capital appreciation in unit prices, they could see a capital loss. 'There is no guarantee that every time you invest in a Reit you will make money. You have to look at each Reit to study what sort of risk it is exposed to, and whether the particular Reit is able to sustain the distribution payouts, and therefore able to at least preserve the unit price,' Mr Pua says.

He points to financial engineeering as a danger signal for potential capital loss for investors. 'If the Reit has bought properties on some form of deferred payment or income support, and if the income support is withdrawn or the outstanding payment kicks in, resulting in more units being issued, you have to ask yourself whether the Reit is able to generate similar distributions.

'If you artificially prop up the distribution per unit figure through income support or deferred payment, one day it will return to haunt you. Because at the end of the day, the result must be delivered from the real estate. When the income support ends, you have to deliver revenue above income support.

'Now some Reit managers are just riding on and saying they have an acquisition pipeline, and if this particular piece of their income stream disappears, never mind, they'll still have something to rescue it. But one day the music will stop. And who will suffer? The investor.'

Mr Pua believes these Reit managers engage in financial engineering simply because they have overpaid for assets. As a big fund manager investing in Reits told Mr Pua recently: 'Why should I overpay for the Reit when I can go and buy physical real estate at a better return?'

If Singapore Reit managers continue to overpay for assets and engage in financial engineering, foreign institutions will conclude that there is no more growth in the market, Mr Pua says. That is when smart money will exit the Singapore Reit market.

Acknowledging that Reit managers are overpaying because of competition for properties in Singapore, Mr Pua suggests that one solution would be for Singapore-based Reits to turn overseas to buy properties.

'But again, we have to bring in quality assets from overseas, to provide alternatives to satisfy the investor demand,' he says.

'It's in the interest of those involved in the S-Reit market to ensure that we always create a quality and sustainable product so that we can continue to attract investors.'

If you have money unclaimed from the Government...

2005-07-21T09:36:00.000+08:00

Go to www.unclaimedmonies.gov.sg

All about using CPF savings to buy a home

2005-07-04T10:51:00.000+08:00

Business Times

Business Times - 18 May 2005

All about using CPF savings to buy a home

MOST people would have to use CPF savings to help pay off a home loan. But with all the recent rule changes, do you really know how much you can tap? You don't want to end up footing most of your mortgage with cash, or own a beautiful home with little money left over for the luxuries of life. We take you through the nitty-gritty, whether you are buying an HDB flat or a private home.

If you are taking an HDB housing loan for a new flat bought directly from the Housing Board, you can use up to 100 per cent of your CPF Ordinary Account savings to pay the initial 20 per cent deposit as well as the balance of the purchase. But the HDB requires you to exhaust your CPF Ordinary Account savings before granting you any housing loan.

If you are taking a bank loan to finance your new HDB flat, you can use your Ordinary Account savings and the future monthly CPF contributions in your Ordinary Account to buy the flat and pay the monthly instalments up to 100 per cent of the valuation limit.

Currently, you pay 4 per cent of the deposit in cash, and can tap your CPF savings for the remaining 16 per cent. The cash component will increase every year until it hits 10 per cent by 2008. This rule was introduced by HDB to align deposit payments with the practice in the private sector.

The valuation limit is the lower of the purchase price or the value of the property at the time of purchase. If your housing loan is still outstanding when the valuation limit is reached, you may further utilise up to 150 per cent of the valuation limit, subject to sufficient available housing withdrawal limit imposed by CPF Board. Note that the valuation limit would be brought down to 120 per cent from 2008.

Private property: Note that CPF money can only be used to help pay for private property built on freehold or leasehold land with a remaining lease of at least 60 years. You can withdraw up to 80 per cent of your gross CPF savings less the Minimum Sum or the available Ordinary Account balance after setting aside the Minimum Sum cash component, whichever is lower.

Gross CPF savings refer to the total savings in your Ordinary and Special Accounts, including any money you have taken out for education, housing and investments. Ten per cent of the downpayment has to be paid in cash but CPF funds can be used to pay the other 10 per cent.

Lower salary ceiling: From this year, the salary ceiling of CPF members has dropped to $5,000 a month, and will be cut to $4,500 in 2006. The ceiling used to be $6,000. The limit on voluntary contributions by CPF members into their accounts was also lowered last year, from $28,800 to $23,760 a year.

With smaller contributions to CPF accounts, homeowners will have less to tap for loan repayments. Those who have taken a big loan may even face a shortfall in the later stages.

Homeowners should avoid channelling the bulk of their CPF monthly contributions towards repaying home loans or they may find little left over for retirement or to pay off the home loan when money is tight.

To gauge your ability to pay, as a rule of thumb, your monthly loan repayments should not be more than 35 per cent of your income.

Reduced housing withdrawal limit: The total amount a homeowner can withdraw from a CPF account to pay for a house is the valuation limit. This is the price of the property or its valuation by a bank, whichever is lower. For example, if someone buys a flat at $200,000 for $210,000, the valuation limit for the house is $200,000.

The cap on the CPF withdrawal limit was reduced from 150 per cent to 144 per cent in 2004. For example, a homeowner's house with a valuation limit of $200,000 would have his CPF withdrawal cap set at $288,000. The cap will be reduced by 6 per cent each year to reach 120 per cent by Jan 1, 2008.

Once the homeowner withdraws up to the valuation limit, further withdrawals are allowed only if his CPF account has the required Minimum Sum. And the latter is set to rise gradually from $84,500 in 2004 to $120,000 by 2013. This means that more people are expected to repay more of their home loans in cash.

First charge: Under new rules introduced in 2002 for home financing using CPF funds, banks are given first charge and the CPF Board second charge for properties bought on or after Sept 1, 2002.

This means that if you cannot pay off your home loan, and your property is sold, the bank has the first claim to the sale proceeds. The CPF Board is paid if there is money left over. While this helps you get more competitive home loan packages from banks, you could also lose all the CPF money you invested in that home if you default on your loan.

In Singapore, banks typically offer home loans with fixed interest rates in the first two to three years and variable interest rates thereafter, or other combinations of fixed and variable rates (eg, having a part of your loan under fixed rate and another part under variable rate).

With a fixed-rate loan, you know exactly how much you'd have to pay every month. Your payments won't be reduced if interest rates fall but neither will they rise if rates go up.

In contrast, a variable rate loan is typically pegged at a fixed 'spread' (certain percentage points) below the bank's prevailing board rate. The board rate is typically below the bank's prime rate (which is the rate the bank charges its most creditworthy customers). If interest rates go up, so do your monthly mortgage payments. If interest rates drop, you save money with lower payments.

There are differences in the way banks calculate interest rates, which can impact your total loan payment.

# Monthly rest (also known as monthly reducing): When you pay an instalment, the amount comprises a payment for the interest charge and a payment towards the principal (the loan amount). Monthly rest means that the principal amount on which you pay interest reduces each month as you pay off the loan. Interest for the forthcoming month is thus computed on the principal outstanding at the end of the previous month.

# Annual rest (or annual reducing): Annual rest means that the total principal repaid by the end of the year is deducted when calculating the interest rate for the next year. Interest is thus computed on the principal outstanding at the start of each year. In general, the interest charge will be lower for monthly rest than that for annual rest. A useful rule of thumb: the more frequently the interest is computed, the better.

Other costs: The price of a property and the home loan are not the only costs involved in getting a new home. For instance, there is stamp duty to be paid, which is based on the purchase price. It is calculated in this manner: one per cent for the first $180,000; 2 per cent for the second $180,000; and 3 per cent for the remaining amount.

Legal fee is another expense that buyers must set aside money for. You will need a lawyer to act for the purchaser, mortgagor and the CPF Board (if CPF money is utilised). Legal fees will amount to about 0.6-0.8 per cent of the purchase price or less. Then there are valuation fees, but this cost is usually absorbed by the bank from which you are taking a loan. Banks would also require you to take up a fire insurance policy.

This article is contributed by OCBC Bank. It is written for general information only and is not intended to provide legal, financial or professional advice.

Homeowners may have to top up CPF if selling price is below market value

2005-06-25T17:54:00.000+08:00

Date : 24 June 2005 2037 hrs (SST)
ChannelNewsAasia

SINGAPORE : The property market may be on the mend - but prices are still depressed.

And it is not unusual for owners to be selling their properties below market value.

But analysts warn that if the transaction price is too far below the market value, the home sellers may have to top up their CPF with cash.

More than 90 percent of home buyers use their CPF to purchase properties.

For those who made their purchases between 1994 and 1998 - when prices were at their peak - they would be seeing steep losses.

They could minimise the loss by trying to refinance their loans at a lower interest rate.

Donald Han, Managing Director, Cushman & Wakefield, said, "I think for owners like this, there is an option for them. That is to go and refinance their property with a bank and try to restructure their loan and in that sense, under the new refinancing structure, the bank would have a first lien onto the property itself, as opposed to the CPF having the first lien."

There are others who may choose to sell their properties instead.

If they let go at prices that are more than 20 percent below what they had paid, this would have eroded their initial cash top-up and eaten into the CPF amount used for the purchase.

And in this case, they might have to top up their CPF with cash.

If the property is sold way below the market value, the CPF Board has the right to insist for a cash top-up.

Property analysts estimate that about 20 percent below market value is still acceptable.

But beyond that, it will be prudent for owners to check with the CPF Board before they make the transactions.

Analysts do not expect home owners to suffer huge losses, as the property market is now picking up.

Home prices have been inching up over the last 12 months - with the URA price index up by about 2 percent.

Some market-watchers say it will be a good time to buy and sell properties within this year.

Mohamed Ismail, Chief Executive Officer, PropNex, said, "Things are moving a bit more stable and even in our own side, we have seen more interest and transaction for private property, those below S$1.5 million. Therefore, there's no reason to wait.

"As far as public housing is concerned, the new rule of the 6 percent will take place from 1 Jan next year and will go to 8 and 10 percent, so any serious consumer who intends to buy and sell, this will be a better year. There will be more challenges ahead."

Some owners may take the opportunity to buy a bigger property at current market value - even if it means booking a loss on the unit they had bought at high prices. - CNA/ms

Avoiding stock fiascos

2005-06-24T12:10:00.000+08:00

Stock investors who lost money in the stock market fiasco involving ACCS (Accord Customer Care Solutions) should wise up. But I refer to those who were still caught after they entered the market following the pullout by potential investor SingPost.

Similar to China Aviation Oil and Citiraya, ACCS's rapid fall from grace involved some form of misconduct as well as erroneous management accounting. This would not have been known or predicted except for the most diligent or informed investors. All said, my sympathies lie with the poor folk who lost their hard-earned money.

On the other hand, some investors bought ACCS stock after it fell to the 30-cents region and again after it fell to the 20-cents region despite the fog surrounding the company. Whether this was based on diligent investigation or hardheaded speculation, they should have predicted that loss was imminent. For those who are redeemable, there are some tips which they could follow to avoid losing money.

Chapter 3 of the book 'Fire Your Stock Analyst' by Harry Domash discusses screening techniques. In this chapter, 5 'bullet proof qualifications' were offered:

1. Positive operating cashflow
2. Positive net income
3. Sales of at least 50 million
4. Current ratio of 1.5 or higher
5. Total D/E ratio less than 0.4

According to Domash, the first two points would theoretically eliminate companies that burn cash whereas a company with sales of not less than 50 million would ensure that it has a minimum scale.

Current and D/E ratios are not commonly entered and I think offer an interesting way of evaluating stocks. The current ratio compares current assets, inventories and accounts receivables to short term debt.

D/E refers to debt-to-equity ratio - I must admit that I cannot fully comprehend this and my interpretation is that there would be positive book value.

Incorporating these qualification measures into your existing stock selection criteria may not help you avoid unpleasant experiences especially if fraudulent activities were carried out within a company but it would be a start.

The book retails at S$40.95 (including GST) at Kinokuniya. You can also read up reviews and buy from Amazon Bookstore.

Book Review: Trading for a Living: Psychology, Trading Tactics, Money Management by Dr Alexander Elder

2005-06-21T21:09:00.000+08:00

New investors often do not realise that stock investing isn't only just about picking and buying the right stock. Many other factors will ultimately influence one's fortune and success.

It is essentially a mind game, like playing poker: controlling and disciplining one's excitement and fear, understanding the collective psychology of all the players in the market.

It is also about strategising one's overall trading as well as practicing buying and selling tactics. Last but not least, it is about managing your own money.

The book by Dr Elder is an easy read for any investor to start. It is not cheap and should not be bought on impulse. Still it provides many clues and should be a platform to build a long and fruitful life of investing.

Click on the link to go to Amazon Bookstore and read the review of others who bought.

Elderly more anxious about future

2005-06-21T09:51:00.000+08:00

Latest HDB survey also shows half of those polled had no retirement plans
Tuesday • June 21, 2005
Loh Chee Kong
cheekong@newstoday.com.sg

SINGAPORE'S growing elderly population is feeling less well-off and less optimistic about their future, according to the latest survey by the Housing and Development Board (HDB).

Carried out in 2003, the Sample Household Survey covered 7,300 households across all HDB towns and estates. In the survey, which is conducted every five years, "household" refers to a group of persons who may or may not be related, living together in a unit.

The proportion of "elderly households" — or households headed by someone who is 65 years and above — in HDB estates has increased from 9.2 per cent in 1998 to 10.7 per cent in 2003, with more elderly living in older towns and estates like Bukit Merah, Queenstown and Bedok.

More elderly persons — from 14.7 per cent in 1998 to 21.1 per cent in the latest study — were also living alone.

While they were generally satisfied with their life, they were also less optimistic about the near future. Only 15.2 per cent felt that their lives would be better five years down the road, compared to 29.7 per cent in the survey done five years before.

Among the various aspects of life they had to rate, they were least satisfied with their health, their household income, medical services and the cost of living — all factors that they also rated as being important to them.

What was worrying, though, is that despite their apparent concerns about financial matters, half of the elderly surveyed had not planned for their retirement. Many in this group said that they were jobless and were more concerned with day-to-day living.

Significantly, while nine in 10 households across Singapore classified themselves as middle class, elderly households seem to have a poorer perception of themselves. In fact, one in five elderly households saw themselves in the lower class of society.

Commenting on the sense of pessimism among his peers from various income groups, 72-year-old Dr P N Avabhani, who lives in a 5-room HDB flat with his mother and wife, said that they might have grown more pessimistic because of the rising cost of living and longer life expectancy.

"Many retirees' lifestyles are based on their income before retirement. In reality, there is always room for pessimism but one has to adjust to circumstances," he said.

Dr Yap Mui Teng, a senior research fellow at the Institute of Policy Studies, who specialises in poverty alleviation policies and issues relating to the elderly, said that this pessimism "may be a reflection of the situation of family members on whom the current generation of Singaporean elderly is highly dependent".

"The economic downturn may affect them indirectly through their family members, even if the elderly themselves are not in the labour market," she said.

"If this is true, then the economic situation — particularly regarding employment — of the working population supporting the elderly needs to be worked on."

Book Review: The New Market Wizards

2005-06-18T00:10:00.000+08:00

A continuation to 'the market wizards', this new version has similar format as the previous book. However, according to Schwager, this book is written for traders and new investors. There are explanations to key concepts and terms used by the interviewees and interviewers. Will be a good motivational reading to investors as the first few pages detail the mindset and psychology of investors. So true and real. Worth to read, retailing at S$20.90 at Kinokuniya. If you have the membership card, it's a 20% discount.

Similarly you can a copy from Amazon Bookstore.

Wealth certainly does not come from employment

2005-06-15T17:38:00.000+08:00

SINGAPORE, June 15 (Reuters) - Singapore's unemployment rate climbed to 3.9 percent in the March quarter, as the economy contracted, marking the highest tally since the June quarter last year, data showed on Wednesday.
But the government said firms were upbeat about the employment outlook in the second quarter.

Unemployment climbed to a seasonally adjusted 3.9 percent from 3.7 percent in the fourth quarter of last year -- nearly double the 1.9 percent rate seen before Asia's 1997/98 financial crisis.

The latest rate was also down from a 17-year high of 5.7 percent in the September quarter of 2003 when the economy was battered by the deadly SARS outbreak.

Although the jobless rate rose in the first quarter, the ministry said more firms in the manufacturing and services sector expected to hire in the second quarter of 2005 as the economic outlook improves compared with the previous quarter.

"A net balance of 12 percent of the commerce and services firms expect to increase employment in the second quarter 2005, up from 8 percent in the preceding quarter," the manpower ministry said in a statement, citing the results of a survey conducted in May.

Local media said this week that Seagate Technology , the world's largest hard-disk maker, would hire 1,500 people with high-tech skills in Singapore over the next two years, while it continues to shift its low-cost production to China.

The number of job losses dropped by 32 percent in the first quarter compared with the fourth quarter and re-employment of retrenched workers rose, the Ministry of Manpower said in its first-quarter labour market report.

The number of workers laid off between January and March fell to 2,168 from 3,207 in the last quarter, with the bulk of retrenchment in the manufacturing sector.

Within manufacturing, the electronics cluster laid off the largest number of workers -- accounting for almost a quarter of total retrenchment.

Overall employment rose by 16,900 jobs in the January to March period, higher than an earlier government estimate of 11,600 jobs, and mostly in services and construction sectors.

After four quarters of robust expansion in 2004, Singapore's trade-dependent economy shrank at an annualised 5.5 percent in the first quarter, its weakest performance in nearly two years, as soaring oil prices and softening global demand hurt output.

But the government has said a contraction in the second quarter was unlikely and it expects the economy to pick up in the second half of the year on the back of a recovery in the global tech sector.

The feeble first-quarter performance prompted the government to trim its growth forecast for 2005 by half a percentage point to a range of 2.5 percent to 4.5 percent from 3 percent to 5 percent.

Singapore reports unemployment on a quarterly basis.

About unit trust - some of my experience:

2005-06-11T17:22:00.000+08:00

If you doubt your financial advisor, ask others as well and then evaluate. But truly my personal evaluation is that they are lousy. Investing is a science but doing it well is like art. Financial advisors are trained in the science but how many develop the art of doing well (there may be many artists but how many become a master)?

A. Do not buy small funds (anything below S$50 million is small) as their expenses would become relatively big.

B. Small funds also run a risk - that if they continue to shrink, the fund manager may consider to liquidate and return you the money - most unfortunate if it happens when you bought high.

C. Read as much as possible - for example business times, magazines and forums such as those by fundsuperart. Sometimes these articles carry interviews of the fund managers. Fund managers are usually publicized as a team although there is usually a 'lead' manager. Knowing this person is important as his personality and experience plays an important role in the whole team. You should find out as much about the person rather than the team - thats because the 'team' philosphy usually sounds the same for every fund!

D. Save as much from slippage - slippage is the sales and management cost. Every percent count and if the performance of 2 funds are similar, then my experience is to choose the cheaper one if they give promise you the same return anyway.

E. Look at the underlying currency as well as if there are motherfunds. The former carries forex risk if your investment is not in SGD and the latter may equate to high expenses.

F. Study the news and make up your own mind on global trends. Let your own understanding lead you. Financial advisors might typically push you to buy funds that have had a good run because it definitely looks attractive - but good things don't last forever and what had a good 30% run in the past 1 year may have reached the top already - which means you are buying it late, at expensive levels and from here it may be downhill. On the other hand be open minded if certain funds performedly badly - it may mean that they have bottomed. As I said its hard to decide whether it is bottoming or merely if the fund manager is screwed-up. You decide.

G. Last beware principal guaranteed funds. They may promise you the principal but did they mention that it is after deducting the sales charge?

Singapore Bonds in Summary

2005-06-06T22:00:00.000+08:00

Bonds are a relatively low risk investment. One type of bond is the SGS Bond or Singapore Government Securities. These are bonds, which are issued by the Singapore government. They pay interest every half a year in the form of a coupon payment. For example, if an SGS bond is paying out 4% every year for every $1,000 face value, then the investor will get $40 each year in the form of 2 coupon payments of $20 every 6 months until the SGS bond matures.

SGS Bonds have a few advantages that bond funds and other investment instruments like structured deposits and guaranteed funds do not have. The biggest advantage that SGS Bonds have over these instruments is that the returns you can expect to get if you hold the SGS bond to its maturity are crystal clear. In the example above, if you hold the SGS bond to maturity, you will get $40 or 4% of face value each year. When the SGS bond matures, you are also guaranteed to get the face value of the bond (in this case $1,000).
All this is not dependent on stock market performance, or on the exchange rates, or even on the health of the Singapore economy. The only way you are not going to get your 4% each year is when the Singapore government defaults on interest payments. So, the return you can get from SGS bonds is essentially guaranteed and the safety of the money you will receive upon maturity is even greater than fixed deposits.

What about liquidity? You can sell your SGS bond at any time if you need to before they mature.

When investing in bonds however, you have to familiarise yourself with the concept of "yield". Yield is the most accurate way to measure the returns an investor can expect to get from his bonds. It is even more accurate than just looking at the coupon rate of the bond. Why is this so? This is because if you wish to buy one of the SGS bonds, you may not necessarily be paying $1,000 for a bond with a face value of $1,000. You might be paying a higher or lower price. The "yield" of the bond is the annualised return of the bond that takes into account the price which you are going to pay for the bond, the coupon payments you will get each year and the amount you will receive upon maturity.

In our previous example, we bought a SGS bond with $1,000 face value for $1,000. But what if we buy that same bond with $1,000 face value for $1,050? We are now still getting 4% of $1,000 (face value) each year, or $40. But since we paid $1,050 for the bond, we are no longer actually getting 4% of our investment amount.

Furthermore, we will lose $50 when the SGS bond matures because we are only getting back $1,000, not $1,050. Bear in mind that we are actually not going to lose money on this investment as we will be getting $40 each year, so that will more than offset our $50 loss. However, the result is that the return, or yield that we will get for buying this bond if we hold it to maturity will not be what is shown on the coupon. It will be lower than the 4% as seen from the coupon in this example. Thus, one important thing that all SGS bond investors should bear in mind is that they should not be misled into looking at the coupon rate to see what they can get from the bond. So, the most important and accurate number that SGS bond investors should look at should be the yield, and not the coupon rate.

What about time frame? Shorter term years to maturity will lead to lower return (yield) while longer term years to maturity will lead to higher return (yield).

What about price? The important thing to understand is that the yield already takes into account the market price you will be paying for the bond. Hence, your return has already been calculated for you. So if the yield is acceptable to you, you will be willing to pay that market price at which the bond is currently traded.

There are many conservative investors who typically hold the majority of their money in fixed deposits or even worse, savings accounts. These investors currently get on average 0.7% or less per year (for fixed deposits) but they hold the same amount, or even add to that amount year after year. They could end up keeping thousands and thousands of dollars in fixed deposits for many years and receiving very low returns for it.

SGS bonds should be seen as a viable alternative for such investors. They are useful when you have money lying around that you absolutely cannot risk in higher risk investments. In such a case, a typical investor will leave the money in fixed deposits or savings accounts. However, if you can get a higher return from putting that same amount in an SGS bond that matures in the same time, then why should you short-change yourself?

Besides, if there was really some drastic emergency that requires you to sell your SGS bond before it matures, you can easily do so as well. You may be exposed to price fluctuations but that uncertainty is the price you pay if you decide to sell before the bond matures. In any case, there is always the chance that the price will have moved higher. The other risks of SGS bonds can be found at this link. However, the main risk - that you may end up losing money on the SGS bond in the short term applies only if you sell it before it matures.

Note:
Closest comparison of bonds = fixed deposits
Some relatively high risk and high return investments = equity unit trusts, emerging market bond funds, stocks, futures and etc.

Inspirational Quotes

2005-06-03T09:53:00.000+08:00

Saw this signature in the bull-fish forum by forummer BlownAway.
~YoU CaNnOt DiScOvEr NeW OcEaNsUnLeSs YoU HaVe ThE CoUrAgE To LoSe SiGhT Of ThE ShOrE~

Singapore entrepreneurs turn to online auction sites to start businesses

2005-06-02T11:59:00.000+08:00

01 June 2005 2223 hrs (SST)
ChannelNewsAsia

SINGAPORE : An increasing number of budding entrepreneurs have been turning to online auction sites to help them start their own business.

Some are cashing in on the freebies offered by these sites as a means to reduce their start-up costs.

Web auction sites often have the backing of big-spending advertisers, so the options for entrepreneurs are plenty.

Adrian Low is using an online auction platform to complement his existing business.

University student Ruby Liu is auctioning items part-time but is thinking of making it a full-time enterprise.

They are just two of the growing number of Singaporeans who are using this platform as tools for their businesses or start-ups.

And they see many benefits for doing so.

Said Mr Low, "You sell at bigger quantity, you get to know a lot of wholesale buyers; whereas for websites you only get to know single buyers, individual buyers and not wholesale."

Ms Liu said, "It seems to have a lot of potential that I'm now looking for wholesalers maybe in cosmetics or branded items so I can make it into a mini business."

Online auction companies, like eBay, are keen to provide the infrastructure to entrepreneurs for free in hopes of getting more people to use their site so that advertisers can reach out to them.

Said Frederic de Bure, managing director of eBay Singapore, "We expect to grow through marketing partnerships that we put in place in the local markets, especially here in Singapore, Hong Kong, Malaysia, and the Philippines."

In a small market like Singapore, competition for market share is tough.

But the players believe there is room to grow, as the various uses of the platform are still untapped, especially by those who are self-employed, stay-at-home mothers, and small-to-medium enterprises.

Yahoo Auctions Singapore, established in late1999, has seen a 45 percent growth rate from 2003 to 2004 and leads the local market.

Ebay Singapore, which only started a year ago, declined to give their figures but says they have outpaced their set targets for the year.

For Mr Low and Ms Liu, the free marketing, IT support and the customer access make online auction sites one of the cheapest ways to grow or start a business. - CNA /ct

Singapore new bankruptcies hit 11-mth high in Apr

2005-06-02T10:46:00.000+08:00

Tuesday May 31, 6:58 PM

SINGAPORE, May 31 (Reuters) - The number of new bankruptcies in Singapore rose to an eleven-month high in April, government figures showed on Tuesday, reflecting a slowing economy and higher unemployment in the city state.
Latest figures from the Ministry of Law showed the number of bankruptcy orders -- including companies and individuals -- rose to 378 in April, the highest tally since April last year.

The total number of undischarged bankrupts as of April 31 stood at 22,079, the ministry's website showed.

Analysts say bankruptcies are a lagging indicator of economic activity, and will continue to rise if the job market and wage levels continue to worsen.

Singapore's trade-dependent economy shrank at an annualised 5.5 percent rate in the first quarter -- the weakest performance in nearly two years -- hit by record high oil prices and softening global demand.

The sluggish first-quarter performance prompted the government to trim its growth forecast for this year to 2.5-4.5 percent from 3-5 percent.

Singapore's unemployment rate climbed to 3.9 percent at the end of March, up from 3.7 percent at the end of December.

The slowing jobs market has also led to banks increasing provisions for bad credit and charge card debts in April.

Under Singapore law, a person can be made a bankrupt by the High Court for debts of S$10,000 ($6,024) ($6,053) or more. ($1=1.660 Singapore Dollar)

4 questions a bankrupt may ask and the answers

2005-06-01T15:12:00.000+08:00

Q1.) How long can I stay overseas the first time I leave Singapore as a bankrupt?
Ans.) No time limit although you do have to write in for a permit. They would likely grant an approval for 3 months although subsequently the time frame may be lengthened.

Q2.) If creditors don't file proof of debt on the date line stated in the newspaper ad, does that mean the creditors cannot file anymore after the expiry?
Ans.) Not really because you have to pay dividends some time on and again creditors will be asked to submit proof of claims..

Q3.) Do you have to increase yr monthly contributions each time you apply for travel to qualify for one year travel permit?
Ans.) No, though they will ask why you need to travel.

Q4.) Can we apply for supplementary credit card for emergency purpose?
Ans.) Depends on individual bank and what is their policy because banks only chase the principal card holder in case of non-repayment.

Value-consciousness at business

2005-05-31T23:32:00.000+08:00

I received a letter from DP Bureau Pte Ltd regarding my business license.

The letter from the Bureau Manager introduced the company as an ACRA appointed service bureau for BizFiling services and then reminded me to renew my business license which was going to expire mid-August. In a very bureaucratic manner, the manager reminded me to transact the renewal online or to either visit the company personally or send a crossed cheque to them. On inspection by my very sharp-eyed partner, we realized that DP Bureau Pte Ltd will charge us S$18 service fees on top of the S$20 gazette fee if we proceed with the transaction through them.

Subsequently, we checked online at the ACRA website and found that the online transaction will cost us the usual S$20 gazette fee only.

Something to highlight from this incident:

- Be value-conscious and question additional charges even when you are paying for an essential service

- If you are absent-minded like me, have someone who has the above trait (value-consciousness) or habit on your side

- Do not believe anyone who asks you to pay even if they use very official tones or are backed up by equally bureaucratic credentials; DP Bureau Pte Ltd in this case failed to highlight that they were charging a hefty S$18 to service the transaction (equal to 90% of the gazette fee)

Despite this S$18 dollars is an insignificant amount of my total annual business costs, every dollar can make a difference to the profitability of a business and in rough times, could make a difference to survival. Start by making a habit of looking for value in small things. Even without conscious effort, the habit will serve you in the long run and will come to the fore when you are handling large amounts of money.

Seven Biggest Money Mistakes

2005-05-31T11:42:00.000+08:00

My note: This article sums it all. Despite the American examples, the principles remain the same whether you live in Hong Kong or in Bangkok.

Seven Biggest Money Mistakes
From Deborah Fowles,Your Guide to Financial Planning.
url

Most Common Roadblocks on the Road to Building Wealth
Many Americans will never reach their dreams of building wealth, being financially secure, and being able to retire in comfort. The reason is most often a combination of these seven biggest money mistakes.

Having a Thirty-year Mortgage
Where do you find the money to build wealth? Try looking at your mortgage. Millions of Americans think nothing of paying for their home over 30 years, even though the average homeowner ends up paying two-and-a-half times the purchase price of the home by stretching the payments out this long. Having a 15-year mortgage instead of a 30-year mortgage can save you large sums of money and help you build wealth. See page two of this article for examples of how you may be able to save over $100,000 over the life of your mortgage.

Giving Control of Your Money to Someone Else
If you're not involved in your day-to-day family finances, you're putting yourself at risk. If you're married and you let your spouse handle all the financial matters, you're at risk if your spouse dies or becomes seriously ill or if you divorce. Know the details of your family's finances, investments, debts, retirement savings, etc. Don't turn your investments and financial affairs over to a broker or financial consultant without keeping abreast of what is being done with your money and being involved in investment decisions. Never give control of your money to someone else.

Not Controlling Spending Leaks
The reason so many people in America are in so much debt is because they dribble their money away in small, barely noticeable amounts. Like drops of water dribbling through the hole in the dike, the loss is barely noticeable, but over time the hole in the dike gets bigger and bigger. By the time the water is gushing through, the damage is done. The same is true with spending leaks. It's a lot easier to plug a small hole than to ignore the drips and look over your shoulder later and see a huge tidal wave of water coming your way in the form of unmanageable debt. If you're ever going to accumulate wealth, you must control spending leaks.

Not Setting Goals
If you don't know where you're headed and how you plan to get there, you'll probably never arrive. To accumulate wealth, you need a plan. To be motivated to save money, you need something specific to save for. To succeed in accumulating wealth, write your goals down and visualize them, whether they're a relaxing retirement, a mortgage-free home, or an unforgettable vacation.

Incurring Too Much Debt
If you're spending all your money paying interest on credit cards and installment debt, you won't have enough left for savings. When you buy on credit and don't pay the balance off at the end of the month, you end up paying much more for your purchases. A $1200 big-screen TV can end up costing you $2500, but you'll never know it because the true cost is hidden in your credit card payments. Pay cash and stay away from credit card debt if you want to accumulate wealth.

Not Saving Enough for Retirement or Starting Too Late
When you're in your 20s and 30s, it's easy to think you have all the time in the world to accumulate wealth and save for retirement. The truth is, you'll have to save a lot less if you start now and give your earnings time to compound. If you're over 40 and you're behind on your retirement savings, you'll have to save much larger sums to ever catch up to where you should be. Start saving early, and save at least 10 to 15% of your income, and you'll be well on your way to accumulating wealth.

Cashing Out Retirement Funds
Half of all Americans end up cashing out their 401(k) balances when they change jobs. Still others take out loans against their 401(k) balances, permanently reducing the amount of earnings they would have accumulated. If you want to accumulate wealth, tax-deferred retirement plans like 401(k) plans are a great way to do it, but resist the urge to tap those funds before retirement.

Avoid these seven money mistakes and increase your chances of successfully accumulating wealth.

Examples of Saving Big Money On Your MortgageExamples of money savings on 15-year vs 30-year mortgages or making a $100 extra principal payment monthly. For simplicity, these examples do not factor in the tax savings of deductible interest expense, but keep in mind that paying one dollar in interest so you can deduct 25 cents from your taxes still costs you 75 cents.

For a more detailed analysis of what you'd save, including the tax benefits, use an online mortgage calculator like those at www.bankrate.com.

Example #1: 30-Year $250,000 Mortgage vs 15-year $250,000 Mortgage
$250,000 mortgage at 7% for 30 years = $1,663 monthly paymentTotal interest you pay over 30 years = $348,772Total amount paid = $598,772 (interest plus principal)
$250,000 mortgage at 7% for 15 years = $2,247 monthly payment ($584/month more)Total interest you pay over 15 years = $154,473Interest savings on a 15-year versus 30-year mortgage = $194,299

Example #2: 30-year $250,000 Mortgage With $100 Per Month Extra Principal Payment
$250,000 mortgage at 7% for 30 years = $1,663 monthly payment$100 extra per month reduces mortgage term by almost five years Total interest you pay over 30 years = $291,992Total amount paid = $541,992 (interest plus principal)Interest savings on a 30-year mortgage with a $100 per month additional principal payment = $56,780

Example #3: 30-year $150,000 Mortgage vs 15-year $150,000 Mortgage
$150,000 mortgage at 7% for 30 years = $997 monthly paymentTotal interest you pay over 30 years - $359,263Total amount paid - $509,263 (interest plus principal)
$150,000 mortgage at 7% for 15 years = $1,348 monthly paymentTotal interest you pay over 15 years = $242,683 Total amount paid = $392,683 (interest plus principal)Interest savings on a 15-year versus 30-year mortgage = $116,580

Example #4: 30-year $150,000 Mortgage With $100 Per Month Extra Principal Payment
$150,000 mortgage at 7% for 30 years = $997 monthly payment$100 extra per month reduces mortgage term by 7 years and 1 monthTotal interest you pay over 30 years = $209,263Total amount paid = $359,263 (interest and principal) Interest savings on a 30-year mortgage with a $100 per month additional principal payment = $58,320

Where else will you ever be able to generate this much money towards building the wealth that you dream of?

Foreword

2005-05-31T10:29:00.000+08:00

Financial savviness is an aspect of of life that should not be ignored. Many people however either do not possess the skills to manage their personal finances, lack the awareness or are simply being complacent. I hope that this blog will help to make an improvement to the financial well-being of other folks.

Financial Management Professionals please read here
At the same time, I do hope that professionals in financial management and related fields would come in to contribute to the discussion. Please refrain from any advertising.