I recently attended a Singapore Investment Week seminar which included a talk on investing using Robo-Advisors. Their argument is a compelling one. Why use fund managers who are shown to underperform (over the long term), yet when they do poorly, you still pay them a fee regardless? Stocks go up and you pay their fee. They go down, and you also pay. And their fee can be very high. Robo-Advisors also have fees, but they’re typically about one-quarter of the fees for a mutual fund/unit trust. But there is another option that could be even better, one in which I personally use.
The first thing I ever bought at an auction was not property or a car. Nor was it jewellry, watches, or artwork. It was two giant bags of clothing that weighed at least 5kg each. But this spontaneous purchase, as it turned out, was one of the smartest buys and lessons in arbitrage. (more…)
When most people hear the word “auction”, they think “distressed sale”. In many other parts of the world, this is mostly true. Although I own a few things from distressed sales and have bid in quite a few auctions, I’m definitely still a novice when it comes to auctions in Singapore, particularly property auctions. They’re an entirely different animal. And here’s why.
Personal finance and financial planning both focus on a set of numbers to gauge your financial health. If you ask people what is the most important number, many would say “their target sum for retirement”. This number is usually around $1 million or more. A few might mention their investment rate of return, their net worth, or their anticipated life expectancy. But there are more important (yet often overlooked) numbers you should really be concerned with.
Everyone wants high returns, and yet, every single conference or seminar I’ve been to neglects to mention the one investment that is the most lucrative and high-yielding investment out there. It is the foundation that Warren Buffett, Amancio Ortega, Ng Teng Fong (Singapore’s once richest man), and other billionaires use which is almost NEVER talked about. Yet without it, they definitely would not be rich; instead, they would be among the high-earners who ended up broke or bankrupt. So what is their secret? (more…)