You should only Dollar-Cost-Average for 12 months?

I was Googling one day about how effective dollar-cost averaging is on a general basis and I came across this very interesting article. Although written in 1997, I find it still relevant to today’s context. It talks about the amount of risk that DCA can mitigate as compared to a lump-sum investment and a study was conducted on how different DCA periods can have very different returns for the investor. The numbers show that DCA best protects your capital (in beating lump sum investments) with an investment period of 6 to 12 months. Continue reading “You should only Dollar-Cost-Average for 12 months?”

How BF and I save more than $3000 per month – Top 5 saving tips for couples

Many of my male friends have made comments about them spending more money after getting a girlfriend. It seems like love and money has an inverse relationship. It is not uncommon to see more and more people choosing to be single, and it may not necessarily be a bad thing, if your main focus is to accumulate as much wealth as you can. Being a couple means having to go out dating, dining at nicer restaurants, buying gifts for one another on monthsaries and anniversaries. It may impede you in reaching your financial goals earlier if your partner does not want the same eventually.

Well, I’m here to tell you that not all relationships are like that. Not for BF and I, at least.

Continue reading “How BF and I save more than $3000 per month – Top 5 saving tips for couples”

Should you invest in gold? Warren Buffett says “No”!

Last week, my driving instructor (yes, I’m learning driving!) asked me if I knew anything about buying gold. He said that he had some spare savings now and wanted to buy some gold since the prices for gold seem to be pretty low now.

Is it? I don’t know. He told me to try and find out more information for him. And so I did.

It brought me back to a few months ago when I saw one of my girlfriends posting on her Facebook wall with a few new gold bracelets that she bought. The description included was that since gold generally appreciates over time, buying now would be a good investment.

Upon more research, I’ve even found out that there are gold ETFs! So interesting. So technically speaking, you don’t have to own physical gold to own gold.

Wah, sounds good! Don’t even need to think of where to store your gold anymore. Use other people’s vaults lah! Hahaha…

Jokes aside, I did more “serious” research and found this on Youtube:

Looks like I won’t be buying and fondling gold anytime soon. Hehe. It also wouldn’t be able to help me build up the “income” part of my portfolio as commodity stocks do not provide any dividends (like duh).

Thanks for reading!

Miss Niao xoxo

3 Questions you should ask your agent before buying insurance

Continuing from my previous blog entry about the Buy Term, Invest the Rest (Access Part 1 and Part 2 here) approach, I realized that many people, my friends included, do not know too much about insurance and what happens to their money. “I don’t know” is a very normal response I receive whenever I ask my friends how much their coverage they have for insurance. Many of them trust that their money is held in safe hands by their insurance agent, and to be frank, I was one of them until I decided to get insurance for myself and did some research. The numbers that the agents provide them are sufficient enough for them to accept the returns so long as they look more promising than the initial capital the long term.

Continue reading “3 Questions you should ask your agent before buying insurance”

My monthly cash flow statement – How I save more than 50% of my take home pay

I have been having a few conversations with my friends lately on how much they save on general every month. It seems like it’s difficult for many of them to save as much as they want to on a monthly basis and they don’t keep track of their expenses. I even have a friend who has an unique ability to spend her entire pay in 3 days after it is credited! On an overall average, they save around 10% to 30% of their take home pay. Very financially savvy ones would be able to save up to 80%, but that also depends because they might be earning a higher income as compared to me.

When I tell some of them that I save more than 50% of my take home pay, I see their facial expressions turn into shock or surprise. Then, the next question would be

“How do you do it?!” Continue reading “My monthly cash flow statement – How I save more than 50% of my take home pay”

Are interest rates of the CPF accounts sustainable? – Reader’s input

I haven’t been doing a blog entry about the CPF system for some time and thought that it would be a good time to add one now. I have received a comment previously from a reader who invoked an inspiration for this blog entry (thanks Wabi, whoever you are!). He has asked a question on whether the interest rates for the individual accounts for OA, MA and SA would be sustainable.

Hmm, sustainable… Maybe the first question we can ask ourselves would be how sustainability can be defined for the CPF system. For the sake of this article, I assume that the CPF system would be considered sustainable if we can obtain full financial reliance on it while serving its purpose, e.g. at retirement.

Let’s go back to the purpose of CPF according to the CPF website:

  1. Retirement savings to meet your basic living expenses in old age
  2. A property that is fully paid-up when you retire
  3. Sufficient savings for future medical expenses as you grow older

Continue reading “Are interest rates of the CPF accounts sustainable? – Reader’s input”

The messy (and financial) affairs of Kenneth

In my daily life, I have several roles that I have to play. Just to name a few, I need to be a daughter, a sister, a girl friend and friend. In recent days, I have added one new role to that list.

That new role is counselor. Huh? Simi counselor?

A counselor is a person whose job is to give advice to people who need it, especially advice on their personal problems.

Confused? Just read on…

This is the story of Kenneth.

Continue reading “The messy (and financial) affairs of Kenneth”