What is Financial Literacy?

“Financial literacy is the education and understanding of various financial areas.” – Investopedia

This whole entire episode had provided be a space to think and reflect about my financial status and how I can do to improve it.

The few questions that I’ve constantly been asking myself are:

  1. Are my goals truly realistic?
  2. Have I achieve them?
  3. Will I be able to achieve them?
  4. Why do I feel so inpatient?

Lastly, why are these questions being asked over and over again?

Then I realised, that there wasn’t something truly concrete that I’ve drawn up with to be grounded by it… hence the manifestation of uncertainty.

This is my secondary investment plan that I hope to achieve 

Year Monthly Amount Yearly Amount Interest Growth in $ Total Amount
2017 1000 12000 5% 600 12600
2018 1000 24600 5% 1230 25830
2019 1000 37830 5% 1891.5 39721.5
2020 1000 51721.5 5% 2586.075 54307.575
2021 1000 66307.575 5% 3315.37875 69622.95375
2022 1000 81622.95375 5% 4081.147688 85704.10144
2023 1000 97704.10144 5% 4885.205072 102589.3065
2024 1000 114589.3065 5% 5729.465325 120318.7718
2025 1000 132318.7718 5% 6615.938592 138934.7104
2026 1000 150934.7104 5% 7546.735521 158481.4459
2027 1000 170481.4459 5% 8524.072297 179005.5182
2028 1000 191005.5182 5% 9550.275912 200555.7942
2029 1000 212555.7942 5% 10627.78971 223183.5839
2030 1000 235183.5839 5% 11759.17919 246942.7631
2031 1000 258942.7631 5% 12947.13815 271889.9012
2032 1000 283889.9012 5% 14194.49506 298084.3963
2033 1000 310084.3963 5% 15504.21981 325588.6161
2034 1000 337588.6161 5% 16879.4308 354468.0469
2035 1000 366468.0469 5% 18323.40234 384791.4492
2036 1000 396791.4492 5% 19839.57246 416631.0217
2037 1000 428631.0217 5% 21431.55108 450062.5728
2038 1000 462062.5728 5% 23103.12864 485165.7014
2039 1000 497165.7014 5% 24858.28507 522023.9865
2040 1000 534023.9865 5% 26701.19932 560,725.19

 

 

Advertisements

Officially coming back….

It’s been a good 1/2 months hiatus on forcing out content, but imma back!

Really am grateful for the break that has allow me to be back on my spiritual walk with God, a higher level of clarity, a greater sense of how I can reach my goals faster.

 

Bukit Sembawang Estates Limited – What really matters in a Stock?

“Bukit Sembawang Estates Limited, an investment holding company, engages in the property development, investment, and other property-related activities primarily in Singapore. It operates through two segments, Property Development and Investment Holding. The company develops residential properties comprising landed homes, private condominiums, and apartments. It also invests in and manages office buildings. Bukit Sembawang Estates Limited was founded in 1911 and is based in Singapore.” – SGX.com

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.348 (34.8% Above fair value)
  • Price to earning ratio : 23.762 ( Above industry standard – 22.68)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : – not disclosed-
  • Growth Performance : – 16.91%
  • Dividend Yield : 0.73% [ 5 years ]
  • Current Ratio : 10.008
  • Book Value per share : 4.93
  • Cash Flow per share :  0.2804
  • Poor management ability ( Positive dividend growth  | Positive & Strong net profit margin  | overall Positive cashflow within its business –  reducing in alot of financing while incurring alot cost on investing)Screen Shot 2017-08-10 at 3.56.15 pmScreen Shot 2017-08-10 at 3.56.10 pmScreen Shot 2017-08-10 at 3.56.02 pm

3) Technical Analysis

Screen Shot 2017-08-10 at 4.08.23 pm.jpg

Price action on the monthly chart, shows that bullish momentum has only started building up since 2009. Since then, market has seems to have substantial buyers coming in the stock. A current entry will put u in a 1:3.2 RR ratio. Market is currently testing previous key level.

4) Would I be vested into it?

Yes… but not now! Company seems to be financially sound with management maintaining good ratios with high reinvestment of its cash. Technically, price doesn’t make it a justifiable buy for me.

Share with me your thoughts on this stock!

“+1 Knowledge Point”

“+1 Potential PI”

# 16 USDCAD [Updated – letting the market decide my trade ]

Screen Shot 2017-08-10 at 3.32.47 pm.jpg

Previously I shared with many to look out for DollarCad, as market was testing key level and was about to prove a directional movement. Last month, on the Monthly Chart, market close below bullish retracement low. This signifies a high probable bearish breakout on this market pair. Additionally, market channel has obviously shown that candlestick is trading out of the zone.

Screen Shot 2017-08-10 at 3.35.56 pm.jpg

Similarly, Weekly Chart, price action shows that market has already broken off bullish channel with it failing to break weekly key level. The price action on recent DollarCad indicates that market would have a decent profit taking on the retracement. This was what caught my attention.

Screen Shot 2017-08-10 at 3.39.17 pm.jpg

[Daily Chart] In order to be apart of the retracement, I’ve to get a highly probable sign to be entering. Obviously, who would want to trade in the opposite general direction. Last Wed, I noticed price action broke off consolidation range with a strong bullish momentum which encouraged an entry to be made.

Screen Shot 2017-08-10 at 3.42.32 pm.jpg

On the 4 Hour Chart, a complete bullish candlestick hit my limit order with a 1:2.84 RR ratio.

Hopefully everyone caught this piece of price action! 🙂

 

The Hour Glass – What really matters in a Stock

“The Hour Glass Limited, an investment holding company, retails and distributes watches, jewelry, and other luxury products in South East Asia, Australia, and North East Asia. It operates boutiques. The company also invests in properties. The Hour Glass Limited was founded in 1979 and is based in Singapore.” – SGX.com

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.995 (0.005% Below fair value)
  • Price to earning ratio : 9.772 ( Below industry standard – 38.83)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 10.9%
  • Growth Performance : –2.34% (5 Years)
  • Dividend Yield : 3.05%[ 5 years]
  • Current Ratio : 4.32
  • Book Value per share : 0.6787
  • Cash Flow per share : 0.0811
  • Above average management ability ( Positive dividend growth  | Average net profit margin | overall Positive cashflow within its business – high cash reserve : 39.2%)Screen Shot 2017-08-03 at 5.23.50 pmScreen Shot 2017-08-03 at 5.23.45 pmScreen Shot 2017-08-03 at 5.23.39 pm

3) Technical Analysis

Screen Shot 2017-08-03 at 5.32.26 pm.jpg

Price action on the weekly chart showed that the stock is in a bearish downtrend, with recent short-term bull run being unable to break key price level. The stock highest price was $0.92 in 2014 and has since been making lower lows. This might be due to the geopolitical change in purchasing behaviour among consumers. A live market order would result in a 1:0.72 RR.

4) Would I be vested into the company?

Yes & No! The stock fundamentals tends to show that the company is under a good management ; ability to sustain growth in different aspect and to keep gearing ratio low when times are hard for brick n mortar while making money. Being a strong believer in price, it puts me in a tight position for a buy order now. Ill definitely be back for u:)

“+1 Knowledge point”

“+1 P.I”

#15 EURCHF

Screen Shot 2017-08-02 at 9.23.56 pm.jpg

Monthly chart, market pair has been in a bearish trend since 1990 and has been trading with very little buyers. What sparked at interest in me to monitor this chart was the sudden price movement last month, where it broke consolidation pattern since 2014.

Screen Shot 2017-08-02 at 9.27.11 pm.jpg

Price action on the  Weekly Chart proved that market has broke key level with a strong momentum. Additionally, market has a large recover leg space for a huge profit taking.

Screen Shot 2017-08-02 at 9.29.04 pm.jpg

Daily Chart, price action that broke previous bearish candlestick seems to state there isn’t much sellers into this pair as market continues to retrace to key level.

Hope everyone did catch this pair 🙂

CPF – Aged 54 & below

This post is meant to summarised the importance of CPF in your early years before age 55.

  1. Mandatory Interest Rate
    • OA (2.5 – 3%)
    • SA (4 – 5%)
    • MA (4% – 5%)
  2. Things you can do to increase your CPF money
    • CPFIS
    • PROPERTY (buying two or more property for investment purposes)
      • Cap at valuation / purchase price limit
    • LRIS ( In the future)
      • Diversified products
    • Voluntary contribution
  3. CPF is one way to reduce your income tax
    • Voluntary contribution to your own account (capped at $7k relief)
    • Contribute to your relatives (Additional $7k)

Q&A

  1. How to obtain higher interest rate (+1%) in my CPF account?
    • It is included into the mandatory interest rate – Pointed out by bedokian
    • Combined account has to have $60k (OA ; $20k / SA ; $40k)
  2. Should I be investing my CPF money??
    • CPFIS, requires a min sum of $20k before being able to invest.
    • There are limited options for investment
    • Cost is around $2 per quarter for each counter
    • Remember the growth of your investment is not certain but the interest rate is, unless the opportunity for you to invest has far greater value and certainty, I would only recommend you to do so.
  3. Should I use my CPF money to pay for my house or property investment?
    • Ideally you must know the lifestyle you do want to live when you get a home.
      • Are you the type who wants to keep upgrading?
        • Then you need to know that you have to pay accrued interest on your house when you sell them off!
        • Resale levies have to be considered for all BTOS (but if you have taken any Housing Grant you might be subjected to it)
      • As a form of investment into properties?
        • The interest tends to be alot higher and risker than normal investment with CPFIS

 

Read more :

“+1 Knowledge Point”