Property Slowdown

Recently someone expressed their remorse at having invested in a property. “House price didn’t move, cannot get rental, have to pay loan...” Normally this is when a good Financial Advisor will step in and advise “oh, a property is a good diversification to stocks, building cost usually inflation and increase price, blah blah blah” But …

What is Diversification?

Once, it happened, Ah Tan excitedly announced to his whatsapp group: “ I finally learned what diversification is! I’ve put my money across 10 over cryptocurrencies and only half of them defaulted, the others are safe! Luckily I diversified!” Abu, not to be outdone, announced:” Guys, guys, my diversification works! I’ve put money into 10 …

Does FIRE (Financial Independence, Retire Early) work?

Why FIRE (Financial Independence Early Retirement) works for some people, is because thru the action of cutting spending, these people realise what is most important to them. “I protect that which matters most. “ - Seraph By refraining from the compulsive desire to accumulate, only then can one be freed of financial bondage. Some people …

What if I don’t have a goal, do I still need financial plans?

A plan is a striving towards a goal. A financial plan, we like to say, is striving towards financial freedom. “But what if I don’t have a goal?” Basically it just means we did not find out what financial freedom means for us. Many people work this way, if I increase my salary, if my …

Should I invest in Robo-Advisor?

“Should I invest in Robo-advisor S?” Nowadays technology is increasingly becoming the pill that cures all ills, solves all problem, increases IQ by 10 points and created world peace. So when someone asks me about Robo-Advisors, I know they are asking whether THIS IS IT, this is the answer they’re looking for, the missile they …

Investing as a drama

A lot of investors are freaking out right now from the market drop. Other than the loss of capital, which is very real, the loss of nerve is also due to a misunderstanding of what they have invested in. There’s this drama happening in investor’s mind that investing is a game of betting against the …

How to Invest without Hope?

“Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and your greatest weakness.” - the Architect (Matrix Reloaded) Was reading an article about the experience of a Futures Trader, and it made me think of the problem of Investor Bias. There always exist a bias where the investor is hopeful …

Investor as a boss

Was chitchatting with an investor when he started talking about his boss: “You know management lar, these are the numbers, by hook or by crook you have to deliver it. I don’t care what you do as long as you get the result.” “I can talk to my guys and get their feedback but management …

What’s is a perpetual callable bond and is it worth it?

One of the fascinating aspects of (financial) bond is that there are many flavors of it. A bond is an I.O.U., you lend me money, I will pay you interest and at the end the loan is repaid. So why are there so many flavors of it? I remember reading an opinion somewhere that the …

How the mighty has fallen…

Recently an old client came back to see us after a long hiatus. Gone were the confident high tones of before, now only humility and resignation. His accountant played him out, the tax men got their hooks into him. And thru it all, he got no help and support from his family. But make no …