Investment Tips from the crisis from Dollardex
1. Don't kid yourself about your risk tolerance
We all know to set our risk level before building a portfolio. But do we fool ourselves into believing we have nerves of steel - and take on too much risk? Shares or commodities always look great during a bull run, but it's easy to forget the downside risks are still high - and arguably get higher as markets reach new peaks.
Examine your own situation and your appetite for risk in a very honest and non-macho fashion. There are no prizes for holding the riskiest portfolio but potentially lots of heartache for over-risky portfolios. No investor should have the majority of their assets in shares or equity funds if they are the type of person who gets nervous every time the indexes turn red.
There are ways to lessen market timing risk, such as to regularly invest your money into the market with a monthly plan. Remember too, if your investment timeframe is short you should seriously consider lowering the risk on your portfolio.
2. Don't panic when markets crash
If you do decide to have a risky portfolio, with more than a small proportion in cash, then it can be a double mistake to panic during a crisis. Although markets are not guaranteed to recover, they usually do. If you sell at the point of crisis you will miss out on the recovery phase. A panicky investor tends to buy high, and sell low - just the opposite of a good investment strategy.
Remember that shares earn more than cash (the risk premium) because they are risky. You should expect ups and downs (not just ups). The best investments over the long term are almost always the most volatile. So if you decide to invest in emerging shares, which have grown much faster than shares in developed countries, also expect them to be most prone to large drops.
3. Understand diversification and risk management
Diversification is one way of smoothing risks and returns, and we've all heard the old saying that you must never put all your eggs in one basket. However, as some investors have found out over the last twelve months, during a crisis many supposedly uncorrelated assets do not provide much diversification protection. Stocks and bonds sank together.
Diversification can be misunderstood and too much expected of it. When we think of two assets that are highly uncorrelated we are tempted to think of them both moving in opposite directions during a crisis, hence buffering our portfolio from losses. This may not be true. For example, the returns of the assets in the chart below are almost perfectly uncorrelated, yet the general trend is still in the same direction. You can imagine how these assets might behave in a crash - both would plummet and the "diversified" investor gets no downside protection.
Don't be pressured or lured into making an investment decision. Any investment that sounds too good to be true, probably is. If a product promises or hints it can obtain above average returns then there must be a catch. The catch could be a more volatile return, an obscure risk condition that one day could bite you, or a too favourable reliance on past performance data.
Great Advice from DollarDex for investment.
Showing posts with label budgeting. Show all posts
Showing posts with label budgeting. Show all posts
Thursday, March 11, 2010
Monday, March 8, 2010
Insider Tips to Save Money from Travel Experts!
The inside scoop that others will not tell you. From getting the cheapest deals, to finding the best spots in a country. Here is the stuffs that you can't find in brochures!
1) Travel off-season
If you can be flexible about when to go, then travel during off-peak (no June or December school holidays)! Prices can easily be a few hundreds cheaper and no peak surcharge! The queues at amusement parks (such as Disneyland) will also be shorter!
2) Find the cheapest flights
Don't assume that budget airlines will always be the cheapest. This mantra is only true if you book early. Traditional carriers, with the onslaught of poor economy last year, moderated their airfares downwards. Despite slowly creeping up again this year, there are still tie-ups with credit cards and all-taxes packages worth considering. If your dates are flexible, choosing the right day of the week can also slash your flight costs substantially. Friday (people on a holiday) and Sunday flights (people on business trips) are usually the most expensive! Try midweek flights for the best deals and a good bet for long haul flights to UK or USA!
3) Arrange your own excursions
If you are on a package holiday, the tour representatives will be keen to sell you excursions (of course there is comission to be earned!) You can usually get the same trip more cheaply by booking directly. Do your homework!
4) Get the room you want
If you want a room with a king size bed, make sure the hotel knows. Inform them in advance, instead of lamenting about it at the end of the stay. If you want a high floor, just state it. You never know the extra mile the hotel manager may go. I remember staying in Shangrila and receiving a hand written card from the hotel manager to make sure everything was ok for me.
1) Travel off-season
If you can be flexible about when to go, then travel during off-peak (no June or December school holidays)! Prices can easily be a few hundreds cheaper and no peak surcharge! The queues at amusement parks (such as Disneyland) will also be shorter!
2) Find the cheapest flights
Don't assume that budget airlines will always be the cheapest. This mantra is only true if you book early. Traditional carriers, with the onslaught of poor economy last year, moderated their airfares downwards. Despite slowly creeping up again this year, there are still tie-ups with credit cards and all-taxes packages worth considering. If your dates are flexible, choosing the right day of the week can also slash your flight costs substantially. Friday (people on a holiday) and Sunday flights (people on business trips) are usually the most expensive! Try midweek flights for the best deals and a good bet for long haul flights to UK or USA!
3) Arrange your own excursions
If you are on a package holiday, the tour representatives will be keen to sell you excursions (of course there is comission to be earned!) You can usually get the same trip more cheaply by booking directly. Do your homework!
4) Get the room you want
If you want a room with a king size bed, make sure the hotel knows. Inform them in advance, instead of lamenting about it at the end of the stay. If you want a high floor, just state it. You never know the extra mile the hotel manager may go. I remember staying in Shangrila and receiving a hand written card from the hotel manager to make sure everything was ok for me.
The Face Shop Inspiring Interview
The Face Shop
When we see inspiring stories of women who have it all, we realise it is possible. With that extra grit and strength (women really have the tenacity within us- see how we queue relentlessly when there is a bargain), we will reach our destination.
The Face Shop is ubiquitous in Singapore and many Asian countries. How was it brought into Singapore from Korea?
Here is an interesting interview, with The Face Shop owners, Ms Doreen Kho Ching Kim & Peggy Kho Ching Ling when they first start up.
1. Please describe your business.
Our business is made up of a group of young enthusiastic people who wants to offer our customers excellent service and good quality Korean cosmetics to customers at affordable prices. We hope to encourage Singaporeans to be more adventurous with colours for the face and for Singaporeans to have a wider choice of skincare choices formulated from unique natural ingredients.
2. What made you embark on this venture choice?
Personally, I have always been vain at heart and I have a deep passion for cosmetics. I can spend hours at cosmetic counters and experimenting new products. In particular, Korea's cosmetics have caught my attention as they have one of the best technology for skincare development. The ingredients used are also very unique and since Korea has just opened their markets, it is a good opportunity for Singaporeans to finally discover their secret to great skin.
3. How does your business work?
We import our products from Korea and retail them in our outlets located at Bugis Junction and Plaza Singapura. Currently all our shops are self owned as we are apprehensive about franchising too soon.
4. Did you have the capital to start the business or did you have to borrow from someone to get started?
Our partnership includes me, my sister Peggy, my husband Leslie and 2 sleeping partners. Together, we have enough capital to invest into this venture.
5. Do your parents have their own businesses too? Have they inspired you in one way or another?
No, my parents do not own businesses. My mother passed away when my sister and I were young and my father passed away recently, both from illness. Yes, they have inspired us but in a different kind of way. Both our parents fought their illnesses, patiently and silently. When they are in pain, they hide in their rooms to weep and would never let us see their sufferings as they do not want us to feel sad. Seeing their resilent nature in overcoming adversities has made us stronger people. We learnt never to complain no matter how tired we are so that we will not demoralize the people around us. My grandmother and father had come from very poor families. They had worked very hard to make a living. My father had to study at the corridor because they could not afford the electrical bills. But because of that, he was even more determined to succeed so that he could get out of poverty and he did. He had passed on to us his spirit of determination.
Join our mailing list to read the full interview article!
When we see inspiring stories of women who have it all, we realise it is possible. With that extra grit and strength (women really have the tenacity within us- see how we queue relentlessly when there is a bargain), we will reach our destination.
The Face Shop is ubiquitous in Singapore and many Asian countries. How was it brought into Singapore from Korea?
Here is an interesting interview, with The Face Shop owners, Ms Doreen Kho Ching Kim & Peggy Kho Ching Ling when they first start up.
1. Please describe your business.
Our business is made up of a group of young enthusiastic people who wants to offer our customers excellent service and good quality Korean cosmetics to customers at affordable prices. We hope to encourage Singaporeans to be more adventurous with colours for the face and for Singaporeans to have a wider choice of skincare choices formulated from unique natural ingredients.
2. What made you embark on this venture choice?
Personally, I have always been vain at heart and I have a deep passion for cosmetics. I can spend hours at cosmetic counters and experimenting new products. In particular, Korea's cosmetics have caught my attention as they have one of the best technology for skincare development. The ingredients used are also very unique and since Korea has just opened their markets, it is a good opportunity for Singaporeans to finally discover their secret to great skin.
3. How does your business work?
We import our products from Korea and retail them in our outlets located at Bugis Junction and Plaza Singapura. Currently all our shops are self owned as we are apprehensive about franchising too soon.
4. Did you have the capital to start the business or did you have to borrow from someone to get started?
Our partnership includes me, my sister Peggy, my husband Leslie and 2 sleeping partners. Together, we have enough capital to invest into this venture.
5. Do your parents have their own businesses too? Have they inspired you in one way or another?
No, my parents do not own businesses. My mother passed away when my sister and I were young and my father passed away recently, both from illness. Yes, they have inspired us but in a different kind of way. Both our parents fought their illnesses, patiently and silently. When they are in pain, they hide in their rooms to weep and would never let us see their sufferings as they do not want us to feel sad. Seeing their resilent nature in overcoming adversities has made us stronger people. We learnt never to complain no matter how tired we are so that we will not demoralize the people around us. My grandmother and father had come from very poor families. They had worked very hard to make a living. My father had to study at the corridor because they could not afford the electrical bills. But because of that, he was even more determined to succeed so that he could get out of poverty and he did. He had passed on to us his spirit of determination.
Join our mailing list to read the full interview article!
3 Money Saving Tips In Singapore
Saving Money in Singapore!
(And where/ when to get cheaper movie tickets)
Do you have a habit of compliling your monthly expenses? Each time I tabulate my monthly expenses, the huge proportion of my expenses that goes to food never fail to amaze me. I have to admit a good 30% of my expenses go to food! How do I cut back on my expenditure while enjoying that occassional high teas and nice restaurants? I do want to save, but not live life painfully. This list came about due to my own money saving circumstance.
Let's think creatively of ways to to live decently and learn how to spend wisely! Everyone do chip in! :)
1. Save Money On Food
For a little luxury (try to limit the number of such occassions), scour through the credit card brochures and find 1 for 1 treats! Check out those restaurants and instead of going for the same restaurants, introduce some variety into your chill out spots! You never know when you might find a gem in the making! This gives you the perfect opportunity to try new places.
Another smart move will be to cook at home! The first thing to take into account is where to eat and where to buy your food from in order to save money. The wet markets and supermarkets are definitely cheaper alternatives! (I will look into introducing easy to cook and economical receipes for busy women in Singapore). One of my greatest desire is to cook for my loved ones! Perhaps you may want to whip up a meal at home and invite your friends over for the weekend.
2. Locate Those Warehouse/ Factory Outlet Sales
Check out the Straits Time for the ads (Especially Saturday's paper) and you will find a lot of warehouse sales in Genting lane, some obscure places in Tampines or Jurong! Get your comfortable footware and rush for the great bargains. They can range anything from furniture, to Scholl shoes and more. Just look for advertisements in the newspapers to find out where and when the next warehouse sale will be. You can expect prices with more than 50% discount. Be prepared that it may be last season, but still good value nonetheless!
Other great places to go, if you are travelling to nearby Malaysia, check out the Factory Outlet Stores (FOS)!They used to have an outlet at Le Meridien in Singapore, but I wonder where has it gone to.
3. Take Public Transport
For a long while, I have been pampered and often tout sticking my right arm and hailing a cab one of my capability. That is until I started collating my taxi receipts and getting another rude shock there. My transportation expenses (or well, taxi expense), was draining my piggy. Piggy needs a new breath of life, and that is where I figured- make use of the public transport.
I do occassionally treat myself to that cab hailing exercise, but that sense of awareness has taught me better to keep my hands to myself and use my legs a little more. Oh well, nice shapely calves after taking that brisk walk can't hurt!
P.S- Having a car in Singapore is one of the most expensive things. Not only are car prices about five times higher than the European car prices but the maintenance costs are huge as well. Do I have to mention ERP? If you really need one for a special occassion, maybe think og renting? If not, buy a weekend car (with it's more user- friendly scheme). Or try car pooling with your friends!
Join our money saving mailing list for more great tips! We will let you know where to get the cheapest movie tickets!
Online exclusive Deal: You can also check out OCBC MSA 123 (which is the monthly Savings Account (As Easy as 1-2-3!) and start saving regularly for your dream goal with very attractive rates! Plus, they're giving away free Shaw movie tickets if you sign up now (Online Exclusive!)
(And where/ when to get cheaper movie tickets)
Do you have a habit of compliling your monthly expenses? Each time I tabulate my monthly expenses, the huge proportion of my expenses that goes to food never fail to amaze me. I have to admit a good 30% of my expenses go to food! How do I cut back on my expenditure while enjoying that occassional high teas and nice restaurants? I do want to save, but not live life painfully. This list came about due to my own money saving circumstance.
Let's think creatively of ways to to live decently and learn how to spend wisely! Everyone do chip in! :)
1. Save Money On Food
For a little luxury (try to limit the number of such occassions), scour through the credit card brochures and find 1 for 1 treats! Check out those restaurants and instead of going for the same restaurants, introduce some variety into your chill out spots! You never know when you might find a gem in the making! This gives you the perfect opportunity to try new places.
Another smart move will be to cook at home! The first thing to take into account is where to eat and where to buy your food from in order to save money. The wet markets and supermarkets are definitely cheaper alternatives! (I will look into introducing easy to cook and economical receipes for busy women in Singapore). One of my greatest desire is to cook for my loved ones! Perhaps you may want to whip up a meal at home and invite your friends over for the weekend.
2. Locate Those Warehouse/ Factory Outlet Sales
Check out the Straits Time for the ads (Especially Saturday's paper) and you will find a lot of warehouse sales in Genting lane, some obscure places in Tampines or Jurong! Get your comfortable footware and rush for the great bargains. They can range anything from furniture, to Scholl shoes and more. Just look for advertisements in the newspapers to find out where and when the next warehouse sale will be. You can expect prices with more than 50% discount. Be prepared that it may be last season, but still good value nonetheless!
Other great places to go, if you are travelling to nearby Malaysia, check out the Factory Outlet Stores (FOS)!They used to have an outlet at Le Meridien in Singapore, but I wonder where has it gone to.
3. Take Public Transport
For a long while, I have been pampered and often tout sticking my right arm and hailing a cab one of my capability. That is until I started collating my taxi receipts and getting another rude shock there. My transportation expenses (or well, taxi expense), was draining my piggy. Piggy needs a new breath of life, and that is where I figured- make use of the public transport.
I do occassionally treat myself to that cab hailing exercise, but that sense of awareness has taught me better to keep my hands to myself and use my legs a little more. Oh well, nice shapely calves after taking that brisk walk can't hurt!
P.S- Having a car in Singapore is one of the most expensive things. Not only are car prices about five times higher than the European car prices but the maintenance costs are huge as well. Do I have to mention ERP? If you really need one for a special occassion, maybe think og renting? If not, buy a weekend car (with it's more user- friendly scheme). Or try car pooling with your friends!
Join our money saving mailing list for more great tips! We will let you know where to get the cheapest movie tickets!
Online exclusive Deal: You can also check out OCBC MSA 123 (which is the monthly Savings Account (As Easy as 1-2-3!) and start saving regularly for your dream goal with very attractive rates! Plus, they're giving away free Shaw movie tickets if you sign up now (Online Exclusive!)
Sunday, March 7, 2010
http://womenurock.blogspot.com/p/latest-updates.html
imSaavy has a lot of great articles on financial planning. I tried the quiz and you should too! It'd be interesting to see how much or how little you know about CPF! Instead of searching everywhere for the local bank numbers. Here is a quick listing- Local Phone List for Banks Fixed Deposits
Hope it'll save everyone some time! :)
10 Tips on What to Prepare Financially for Your Upcoming Marriage
If you have finished school, worked for a few years and is attached, your most likely plan next in the agenda is to get married. Marriage is going to be the most significant decision you will make. It will affect you mentally, emotionally and financially. It also happens to be a national interest to pro-create (legally of course)! Here are some tips on financial matters for which you should look out for if you have decided to tie the knot:
Source: http://www.cpf.gov.sg/imsavvy/blog_post.asp?postid=209343995-1-3427659272
1. Determine what kind of residential flat you are going to stay together. This will depend on the property price both of you can afford. You can consider renting or even stay with parents if you feel that both of you are not prepared to make a large property purchase commitment initially. Do not be pressured by your peers. You do not need to follow the crowd to commit a large loan if you are not ready. It is OK to rent when you get married. Personally, I rented a 3 room HDB flat for 1 year after marriage as I couldn’t find a satisfactory place to buy.
2. Loan Scheme- You will need to borrow money if you are going to purchase a property. Make sure you understand the various schemes such as HDB Concessionary Loan vs Bank Loans.
3. If you are going to purchase a place to stay, you need to budget for renovation. If you are buying from the resale market, you will need to pay the Cash-Over-Valuation (COV) in additional to the downpayment amount which you are unable to take a loan on it.
4. You need to budget for the wedding celebration and honeymoon. To avoid misunderstanding, discuss this openly with your parents and ensure clear communication at all times. Asian parents like to have grand dinner wedding while young people prefer a quiet wedding. So you can see the need for good communication.
5. If you are going to hold a wedding dinner, you will have to pay the bill after the dinner has ended. If you are relying on red-packets (ang-paos) given to you by friends & relatives to help pay for the dinner, you may find some issues with it because you have not fully tally all the ang-paos.
You may wish to pay the dinner using credit card. Usually multiple credit cards can be used. You can ask your parents to pay using credit cards first .You might not want to use your own credit card because you’ll need to ensure your credit limit is not breached if you are going for your honeymoon straightaway. Remember to ensure all credit call bills are settled within the one month grace period.
6. All the above require careful budgeting. If you do not have the money, you need to save or borrow or both. If you are going to borrow to pay that renovation, try to borrow from your own parents first (hopefully they can lend you interest free!). Even if your parents charge you interest (which I feel they shouldn’t), it is better to pay interest to your own parents than to the bank!
7. To save, you must ensure you have a high cash flow now. High cash flow can only be achieved either with high income and/or minimal expenditure. Initially in your career, it is not likely you have a high income. So your only way to have a high amount of money to save is to minimize your expenditure. Avoid luxury spending and ad-hoc holidays. Save up for the ultimate honeymoon holiday!
8. Many young people buy useless insurance when they graduate. Often they are approached by their fellow friends who became insurance agents. Perhaps due to lack of experience, the recommendations are often flawed. Make sure you avoid buying useless or junk insurance.
At this stage, you shouldn’t buy saving plans like endowments and anticipated endowments because your immediate need is to save up for your marriage. Insurance is important but only those that are based on necessities. If in doubt, only consult professional financial planners who will not sell you another unnecessary product.
9. You may wish to postpone investments until you have fully satisfied that you have set aside sufficient budget for your marriage.
10. Finally, do spend some amount of money engaging a good professional wedding photographer. Years later, the only way your kids can know about your wedding is through photographs. Make sure you have both hard and softcopies of these photographs.
Have a good wedding! Make that AWESOME!
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