Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Thursday 31 December 2020

Books I Read In 2020

These are the list of books that I have read this year.

They span from economics & politics to business & investment.

This is probably not a lot to some people, but it's quite a number for me (particularly cause I'm a slow reader).


How did I find the time to read these books?

Well, between my full-time work and blogging, I sacrifice sleep.

Yup, there's no secret "time hack" or "productivity hack", I just sacrificed sleep and forced myself to read about 1 chapter a day, and more if I can on the weekends.


So, let's start looking at what I've read and my reviews.


Investment


1. The Deals of Warren Buffett

Type: Non-Fiction, Investing

I self-proclaim myself as a Buffettologist (a follower of Warren Buffett's investing style).

This book goes through the deals the Warren Buffett made in his early days and how he analysed the various businesses before he invests in them.

Definitely a good refresh for someone like me who had read a lot of books on Buffett, and definitely a good start for someone who wants to learn how to invest like Warren Buffett himself.


2. Value.able

Type: Non-Fiction, Investing

This book was written by an Australian fund manager who specialises in value investing.

If you frequently attend ShareInvestor's annual INVEST fair, you would probably have seen him around a couple of times.

It covers both the mathematical (how to calculate fair value, which uses a table that I've never seen before) and non-mathematical (what characteristics to look out for) parts of value investing.

If you want to add another methodology/calculation formula to your value investing arsenal, this is one book you can read.


3. Beat The Crowd

Type: Non-Fiction, Investing

I'm a huge fan of everything Ken Fisher writes.

What he writes is quite different from what is usually written in investment, economics, or finance books.

In this book, he focuses a lot less on the tactics (read his book 'Debunkery', which has a lot of great investment tips), and more on the mindset of how an investor should have and how to think.

I'll probably rate this in the top 3 among all the books he has written. 

My personal favourite/top is still his 'Debunkery'.


4. Why Moats Matter

Type: Non-Fiction, Investing

A pretty good book, one that had me taking down a lot of notes because it was all about the tips and things to look out for when finding moats in businesses.

The first half of the book was spent explaining moats while the second half delved into the moat-characteristics to look out for in each specific industry.

Pretty useful if you are looking at certain companies to invest in and want to have a checklist to verify if it is a good company to invest in.


5. The Greatest Trades Of All Time

Type: Non-Fiction, Investing

A book that walks you through the history of the stock market, specifically on the top traders that made a lot of money in the financial markets.

The book introduces you to the top 10 famous traders who made a huge return in the financial markets, and how they did it.

Kind of like reading a summary of the various books that explained how each trader (people like George Soros) made their killing in the financial markets during the various different moments in time.


6. Charlie Munger The Complete Investor

Type: Non-Fiction, Investing

I have to admit, this book is quite dry, it became quite a struggle to finish it towards the middle of the book.

Basically, this is a no-math guide to value investing.

It talks about all the soft aspect of a good company and a lot about the mentality an investor should have.



Business


7. The Amazon Management System

Type: Non-Fiction, Business

This is one of the books that I'll probably re-read some time again in the future because everything inside is GOLD!

It's probably the best book I've read this year.

It talks a lot about what makes Amazon a successfully company, and how other companies can model themselves against one of the largest companies in the world.

Whether you're an employee, a small business owner, or a large company executive, this book is definitely a recommended read!


8. The Upstarts

Type: Non-Fiction, Entrepreneurship, Business

A book on Uber and Airbnb, how they got started, and how they became the giant they are today.

It's a really interesting read; it brings you into the companies and into the respective founders' heads.

It really explains the whole "do first, ask for forgiveness later" mentality, and maybe, just maybe, that should really be the way to go in the future?


9. Why I Left Goldman

Type: Non-Fiction, Banking, Business

Based on a true story (or at least that's what the author says), this book will show you the cultural change that took place in Goldman Sachs before the Great Recession of 2008. 

Of course, this is based on 1 man's narrative of the whole situation, and culture is something that impacts everyone differently.

But it is still an interesting read nonetheless (I have a friend that read this several times already 🤷‍♂️).


10. Hit Makers

Type: Non-Fiction, Marketing, Business

This is probably a recommended-read for those in business and in marketing. 

It explains a lot about how something can go viral, become iconic, or become a legend; while others languish, crash, or go unnoticed.

Master marketing and business will flourish, or at least that's what I got out of this book. 

This is another book that successfully made it into my "will read again in the future" list 👍.


11. Hit Refresh

Type: Non-Fiction, Business

The book by Microsoft CEO, Satya Nadella, on how he took over the role of CEO and successfully changed the culture of Microsoft to become what it is today.

Inside, he wrote about his early years, his time at Microsoft, and what problems he faced when he took over as CEO.

It's quite a light read, nothing technical; mostly about the man's life and the road he sees ahead for the company and the tech industry.


12. Reed Hastings Building Netflix

Type: Non-Fiction, Business

The story of Netflix, how it started, who started it, how it grew, and where is it going.

All answered in this shor≤200 book.

A pretty nice read, kind of like a biography of both the founder and of the company.



Economics


13. Confession of an Economic Hitman

Type: Non-Fiction, Economics

This will probably be a pretty interesting read if I had not read Dan Brown's Origin before starting on this book.

After reading a fiction novel, it makes this book feels like a fiction novel too.

Not to mention it felt like a book that consists of many conspiracy theories all wrapped up into one.

Could be true, could be false, but you pretty much can't tell because it is almost like a one-man narrative of what's happening around the world.

If you want to read a non-fiction fiction story, I guess this is the book to go? 🤷‍♂️🤣


14. The Undercover Economist Strikes Back

Type: Non-Fiction, Economics

Do you believe that the free market is the best way to rescue an economy or believe that Government intervention is the best way to rescue an economy?

This book will tell you why both are a viable way of rescuing an economy, along with many other lessons about economics, like sticking prices etc.

And, I'm actually quite interested to read the previous book the author wrote before this book.


15. Big Debt Crises

Type: Non-Fiction, Economics

A book by Ray Dalio that can be finished in 1 afternoon.

Recommend that you read the appendix first before the book. The appendix is more useful than the bulk of the book. 

The appendix explains the principles while the whole book is just examples of economic crises faced by countries over the years - it gets quite repetitive after a few examples actually.


16. Saving Capitalism

Type: Non-Fiction, Economics

This is a book by Robert Reich, former Secretary of Labour under Ex-US President Bill Clinton. 

If the above title doesn't ring a bell, maybe this might: he was recently called a "modern day moron" on Twitter by Tesla CEO, Elon Musk 😉.

I spent quite some time reading this book, and it's not because it's a tough read. 

Rather, it is because I disagree with the book so much, I had to spend time making notes of what this book was trying to say, and time to joint down points I disagree with and why.

In fact, I might publish the list of points that I disagree with in this book, maybe in another post in the future. 

This is probably one of the books that I had the most number of disagreement with 🤣.

Source: TECH TIMES



Politics


17. Third World To First

Type: Non-Fiction, Politics

This is the X number of books I have read on or by The Man himself. 

It is an interesting book on Lee Kuan Yew's view on Singapore and the world during the time 1965 to 2000. 

A lot of him recounting the things that happened, how he assessed the situations and did what he did.

It's a man's view on history, and if you like history, then probably this book would interest you.


Fiction


18. Origin

Type: Fiction

The latest book by Dan Brown (although it is still several years old already).

Bookmarked for the longest time, so it was probably time to finish this up.

Doesn't disappoint!


Conclusion

As 2020 come to a close, did you learn or grow as a person?


Recommended Read: Get Free $8+ By Signing Up For Google Pay
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Monday 21 December 2020

Monthly Housing Installment: Use CPF or Use Cash?



"Should I pay my monthly property installment using CPF or cash?"

This is probably a very common question people who just bought their house think of.

Which should you choose?

Let's find out!

Scenario 1: Use cash to pay for mortgage, CPF money remains in CPF

This is the least common way Singaporeans tend to pay for their property. 

1. You are earning interest (2.5% + 1%), by keeping your money in CPF OA.
2. No accrued interest incurred from using cash to pay for housing loan.
3. You will have less cash on hand, thus it is not recommended to do this UNLESS you have quite a sum of cash or income to sustain your monthly mortgage.

Usually, those people that I know do this tend to 
a) have sufficient cash/salary to pay for their mortgage, and 
b) are keeping their money in CPF to earn the high interest because there is no where else that pays 2.5% (or 4% if you transfer to SA).


Scenario 2: Use CPF to pay for mortgage. 

This is the most commonly used method to pay for most property purchase in Singapore.

Because the idea is: my money is locked away in CPF. I cannot touch it until age 65, might as well use it to pay for my property.

1. You won't be able to earn CPF interest because the money has been used to pay for your property.
2. You will incur accrued interest, which you would need to return back to your CPF account when you sell your house in the future.*
3. You get to keep cash in your hands! There's a lot of things you can do with cash that's in your hands, like investing! 😉

Conclusion

Depending on your own circumstance, decide which is the right path for you to take.

There is no right or wrong option; just whether it suits you or not.


Recommended Read: Get Free $8+ By Signing Up For Google Pay
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Saturday 19 December 2020

Free $8+ With Google Pay

Sign up for Google Pay today and get $8 cashback when you make your first $10 transfer.

Here is a guide to finding your promo code to share with your friends.

The first part of the guide is to get you signed up and get your first $8.

The second part of the guide is to get you familiar with how to share your promo code with your friends so that you can get your subsequent $8.

Get them to download Google Pay so that both of you can get $8 from Google!

You don't have to use the app, we just want you to get that free $8 first 😉.



Part 1: Getting My First $8

Step 1: Click on the link here: https://g.co/payinvite/h12c70z

*Use your mobile phone to access the link.

**Just a disclosure, if you successfully earned your first $8 via the link above, we'll also earn an $8 reward 😉. Thank you for supporting our operations with this small gesture.


Step 2: Sign up for Google Pay and download the app

Step 3: Sign in with your Google Account, and link it to any of your bank accounts.


Step 4: Click on 'New Payment' and make a payment.


There are a few ways to do this.

Step 4A: You can send $10 to any of your friends via their PayNow, and get $8 in cashback from Google. Then ask your friends to send you back the $10 👍.

Step 4B: You can pay for something that cost $10 (or more) via Google Pay, and get the free $8 in cashback from Google.


Step 5: View your rewards

Scroll down and click on 'Rewards'. 

That will show you all the cashback you have earned.

So far, all the cashbacks have been credited back to my PayNow account.


Ta-da! So Simple! 😉



Part 2: Getting My Subsequent $8
Now that you've got your account set up, time to get the next $8.

Step 1: Find your Promo Code

Scroll to the bottom and click on the 'Invite' button.


Step 2: Share your Promo Code with your friends

Yup, share the code with your friends and get them to sign up for Google Pay (let them follow Part 1, send them this website 😊).


Step 3: Ask them to transfer you $10

Yes! Ask them to transfer you $10 via Google Pay; that will earn them their first $8 cashback from Google.

And that will also earn you that $8 referral fee.

Then, of course, you should transfer the $10 back to them if you still want to keep that friendship 🤣.

You can repeat this with up to 80 friends!



*Bonus Part 3: Getting Random Cashbacks

While you use Google Pay to make these transfers to your friends or to pay for goods and services, Google is currently also paying you a little cash back.

After every purchase/transfer, go to your 'Rewards' section.

There will be a scratch card reward that you can scratch to get a random amount of cash back from your transaction.


Conclusion

Our motto is 'Free Money Just Take'!

Good things must share, so we are telling you this offer now!

And you better act fast, because the offer ends 31st December 2020!



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Wednesday 4 November 2020

History Predicts Who Will Win The US Presidency



"History does not repeat itself, but it does rhyme".

This is a quote that aids in quite a fair bit of my decision making.

History rarely repeats in an exact way, but often in similar ways.


In my view, there are 2 ways how history "repeats" itself

  1. Same-Same-But-Different
    Think of it as stock market cycles: there's bull, there's bear, and there are corrections in between. Same pattern, just different themes: technology bubble, oil crisis, etc, and duration.

  2. Different Audience
    Those who lived through the WWI/II, the oil embargo, housing crisis, etc, would have a different mindset than those who didn't live through it. And often those who had not lived through such events are the ones who repeat history.


Who Will Win The Presidency?

This is generally under the 'Same-Same-But-Different' category.

We might think people are choosing based on ideology, based on their beliefs, based on their religion, their liking, or whatever you can name. 

But more often than not (and not completely explainable), Presidents are elected based on certain historical patterns.


Presidency History Trend 1
US Presidents tend to be re-elected for the position

Since 1933, almost every US President won their re-election.
Unless you're Jimmy Carter or George H. W. Bush.

Since 1933, 9/11 (nine-out-of-eleven. Pun intended) sitting Presidents won their re-elections.
That's a very high percentage of re-election. 

If you asked me to bet what's the likely outcome of a US election and there's a sitting President standing for the election, I am going to side with history on this one.


Presidency History Trend 2
Democrat candidates win during recessions

Very specifically since 1933, if the month of voting (which is always November) happens to be in the period of a US recession, 100% of the time the Democratic candidate wins the Presidency. 

Recession PeriodElection DatePresident
Aug 1929 - Mar 1933November 1932Franklin D. Roosevelt (Democrat)
Apr 1960 - Feb 1961November 1960John F. Kennedy (Democrat)
Dec 2007 - Jun 2009November 2008Barack Obama (Democrat)
Feb 2020 - NowNovember 2020??? 😉

There were no instances of a Republican candidate winning when the election date falls between a US recession.

That's not to say that a Democrat candidate can only win during a recession.
There are instances where Democrat candidates who have won the Presidency when the election date is not between a recession.

But, in cases where the election date does fall within a recession, Democrat candidates seem to always win.

My guess on why Democrats win during recessions:
This is purely hypothetical, but my guess is Democrat candidates are more welfare-based: free/cheap education, healthcare, subsidies, financial aids etc.
These are policies that tend to matter more to people when times are bad (aka recession), hence it aids in Democrat winning the election.

Presidency History Trend 2A
Recession in the election year flips the Presidency

As a follow-up to Trend 2, this trend evaluates when a recession happens in the year of the election.

Recession PeriodElection DateSitting PresidentNext President
Aug 1929 - Mar 1933November 1932Herbert Hoover (Republican)Franklin D. Roosevelt (Democrat)
Apr 1960 - Feb 1961November 1960Dwight D. Eisenhower
(Republican)
John F. Kennedy
(Democrat)
Jan 1980 - Jul 1980November 1980Jimmy Carter
(Democrat)
Ronald Reagan
(Republican)
Dec 2007 - Jun 2009November 2008George W. Bush
(Republican)
Barack Obama 
(Democrat)
Feb 2020 - NowNovember 2020Donald J. Trump
(Republican)
???
(Democrat?)

As we can see, if a recession occurs in the election year, tables can turn to the other team even if it ends before the election date.


Conclusion

This time around, we are seeing 2 contrasting historical trends batting out.

Honestly, even I'm excited to know what's the result even though it does not really affect me.

Do you think Trend 1 or Trend 2 will win?

Who do you think will win the US Presidency?



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Monday 19 October 2020

Dumb Sh!t My Property Agent Said - Part 2

This is part 2 of "Dumb Sh!t My Property Agent Said", where I list down the dumb stuff my property agent said to my family.

If you missed the first part, please click on the link below to read about it.

Dumb Sh!t My Property Agent Said - Part 1


Quick Recap

My family recently went shopping for a new house. 

After we visited one of the homes, we had a conversation with the seller-side property agent.


The agent was explaining how to earn money in Singapore's property market.

Needless to say, I thought half of what the agent said was completely crazy or stupid.


To quote Uncle Roger, "Different people have different opinions, just some people are wrong".


Dumb Thing the Agent Said

"99-years properties has risen much more than 999-years and freehold property over the last decade. The trend is there. So I tell my buyers that buying 99-years property can give better returns than 999-years or freehold properties if done right"

Not the agent's exact words, but that's the gist of it.


Recommended Read: Cannot Withdraw CPF Money If Never Hit CPF Retirement Sum?


My Inner Thoughts

The salvage point of the whole statement the Agent gave, was that ending of "if done right".

Otherwise, the whole statement is just a logical fallacy. 


"99-year properties have risen more in value (or price) than 999-years or freehold properties over the last decade."

This statement is true - refer to 99.co research.

But it is a bad idea to presume what happened in the past will continue forward, especially for the following reasons.

A: the Government announced in 2017 that all 99-years properties will be worth $0 at the end of its lease. 

Would you still push prices up knowing that it'll be worthless after 99 years? 


B: assuming that 99-years higher growth rates will continue indefinitely into the future.

The price will probably peak at where the price matches those of freehold status. 

People are not that dumb to spend equal or more money to buy a 99-years property when that same amount can be used to buy a freehold. 

So that growth rate will reach a cap and eventually the 99-years will grow at the same rate as the freehold.


Personal Take

Personally, I'm not a huge fan of property investments because of several reasons.

1. Govt always has a stake in ensuring property prices/rentals are not too high.

If prices are too high, people will complain, and Govt will lose votes.

Which is why we have tools like ABSD, etc.

All these policies are putting a cap on my returns.


2. Too many fees involved.

Commissions to agents for buying/selling/renting.

Then there's maintenance, conservancy, property tax, etc.

With stocks, I pay no capital gains tax, no dividend tax, & I don't even need to manage anything.


Of course, this is just my point of view.

You can have your point of view on why properties are such great investment. 


Conclusion

A great property agent is not a great financial or investment adviser.

If the Agent can get your house sold easily, GREAT!

But financial or investment advice from them, take it with a pinch of salt.


There are more to come as a slowly breakdown crazy stuff the property agent said.

Subscribe to us so you will be notified once we published it 😉.


Recommended Read: Complicated Steps To Pay $10 DBS Stock Brokerage Commission

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Monday 12 October 2020

Dumb Sh!t My Property Agent Said - Part 1


My family recently went shopping for a new house. 

After we visited one of the homes, we had a conversation with the seller-side property agent.


The agent was explaining how to earn money in Singapore's property market.

Needless to say, I thought half of what the agent said was completely crazy or stupid.


To quote Uncle Roger, "Different people have different opinions, just some people are wrong".


Dumb Thing the Agent Said

"We should make our money work for us. That's why I recommend my clients if they have the chance to sell their 2 homes and upgrade to a landed."

Not the agent's exact words, but that's the gist of it.


Recommended Read: Cannot Withdraw CPF Money If Never Hit CPF Retirement Sum?


My Inner Thoughts

If you have 2 houses, you can stay in one, rent out the other one, and essentially live off rental income for the rest of your life - if it is sufficient.

That's the real "making money work for you".


If you sold the 2 houses to buy 1 landed and stayed in that landed.

Where you going to get your monthly (rental) income if you don't work?

You basically cannot retire or live off your rental income.

You going to break that landed into different segments and rent it out to different families while your own family stays in it?


To me, that was just the Agent making a sales pitch.

The commission from selling 2 houses and then buying a landed is HUGE!


Not a good investment or property advise.


Conclusion

A great property agent is not a great financial or investment adviser.

If the Agent can get your house sold easily, GREAT!

But financial or investment advice from them, take it with a pinch of salt.


There are more to come as a slowly breakdown crazy stuff the property agent said.

Subscribe to us so you will be notified once we published it 😉.


Recommended Read: Complicated Steps To Pay $10 DBS Stock Brokerage Commission

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Thursday 1 October 2020

Complicated Steps To Pay $10 DBS Stock Brokerage Commission

I signed up for DBS Vickers trading account recently after I saw the minimum $10* trading fee.

The standard fee is $25++ so naturally, it made sense to switch over to DBS Vickers from my current broker.


In addition, investing via DBS Vickers qualifies as 1 of the eligible transactions to earn higher interest for our savings in the DBS Multiplier account.

It is one of the things that we wrote about in the previous article: 3 Tips To Earn More Interest With DBS Multiplier.


But, it is not as straight forward as it seems.

I tried to trade with the $10 fee, and I ended up paying the $25 standard trading fee.

And so this article is to help you not have to go through what I went through 👍. 



Applying for Cash Upfront Trading

There's a ton of guides online on how to set it up.

Go read them.

Or, read this one from DBS 😉.



Logging Into Vickers 

If you want to pay the $10* rate, DON'T LOGIN TO VICKERS!

Yes, DON'T!

You won't see the 'Cash Upfront' payment option, you will only see the 'Cash' option in 'Settlement Mode', which is not the same as 'Cash Upfront'.



Recommended Read: Cannot Withdraw CPF Money If Never Hit CPF Retirement Sum?


Paying the $10* Rate

After you have got the cash upfront account set up, now it is time to select that option when making your investment purchase.

NO! 
It is not as simple as logging in to your DBS Vickers account and simply click 'Buy'.
You can't do that even though it should be that intuitive.
There are steps involved 🤷‍♂️.

If you just logged in straight to DBS Vickers to make your purchase, you are going to be charged for $25++ standard trading fees, just like how I got charged that much for my trade.

To get the $10 rate, these are the following steps:

1. Log in to your DBS/POSB Internet Banking

2. Go to 'Invest' > 'DBS Vickers Online Trading Services'

3. Go to 'Trade' > 'Place Order'

4. Under 'Settlement Mode', choose 'Cash Upfront'

And that's how you get the $10 trading fee.


Side Note

Make sure you have previously linked your DBS eMulti-Currency Account or Multiplier Account.
Make sure you also have sufficient funds of the currency inside to pay for your trade.
Ie; if you are buying stocks paid in USD, make sure you have USD in your account.


Actual Cost of Trade

The minimum cost of a trade is $10, or 0.12% of the whole trade, whichever is higher.

Source: DBS

To view the actual cost of trade via Cash Upfront, click HERE.


Conclusion

So hard to save money on trade commission.

We hope you don't have to make this mistake that we did.


Recommended Read: Why You Should Max Your CPF Retirement Sum Early

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