Self-employed: How do you manage your finances?

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 23:05:10 GMT

sasasea — Tue, 19 May 2015 23:05:10 GMT

thanks for sharing! a great insight!

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 22:55:01 GMT

TheAnswer — Tue, 19 May 2015 22:55:01 GMT

scang:
You can do some self learning for free online.

There is a local SG company, listed in Australia that teaches a 3 day course for $3.5-4k. They are basically a training and holding company that invest in other profitable companies and property development.

It is a basic but free online video course that can be useful and helpful esp. for those just starting out on their financial journey and for beginners and learning how to invest.

Since it is free, so there are many ads to promote on their brand and courses.

https://www.udemy.com/value-investing-code/?dtcode=HqKfg6z2WBfW

PS: I am not related to them in anyway, just sharing since it is free.

Thank you.
Just wondering if you do your own stocks trading?

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 16:46:58 GMT

scang — Tue, 19 May 2015 16:46:58 GMT

You can do some self learning for free online.

There is a local SG company, listed in Australia that teaches a 3 day course for $3.5-4k. They are basically a training and holding company that invest in other profitable companies and property development.

It is a basic but free online video course that can be useful and helpful esp. for those just starting out on their financial journey and for beginners and learning how to invest.

Since it is free, so there are many ads to promote on their brand and courses.

https://www.udemy.com/value-investing-code/?dtcode=HqKfg6z2WBfW

PS: I am not related to them in anyway, just sharing since it is free.

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 15:39:08 GMT

Sarahchew — Tue, 19 May 2015 15:39:08 GMT

Great insight for me!

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 04:04:40 GMT

TheAnswer — Tue, 19 May 2015 04:04:40 GMT

Thanks a lot!

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 04:02:26 GMT

scang — Tue, 19 May 2015 04:02:26 GMT

TheAnswer:
scang:
[quote=\"TheAnswer\"]
How to invest in stocks?
The short or simple answer is invest in your own financial education, and you will know how to invest in stocks or more specifically businesses, since stocks are simply businesses listed publicly.

You don't need to be an accountant to understand balance sheet, P&L, income statement, operating profit, PE, PEG, PB, basically the financial ratios and if the business is profitable to invest in to grow your money.

I understand you. Thanks.
Before that can clarify some terms?
P&L
PE
PEG
PB[/quote]You will know and understand those 'letters' when you understand their importance in evaluating a business.
P&L: profit and loss
PE: price earnings
PEG: price earnings growth
PB: price to book

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 03:52:26 GMT

TheAnswer — Tue, 19 May 2015 03:52:26 GMT

scang:
TheAnswer:
[quote=\"Rejoin\"]Investments are not without risk. I believe this point has been reiterated several times in this post.

If you're financially savvy, the optimum thing to do would be to buy a term insurance and then use the rest of your money to invest (note, I don't mean ILPs or unit trusts). Just pure investment in stocks and bonds.
How to invest in stocks?

The short or simple answer is invest in your own financial education, and you will know how to invest in stocks or more specifically businesses, since stocks are simply businesses listed publicly.

You don't need to be an accountant to understand balance sheet, P&L, income statement, operating profit, PE, PEG, PB, basically the financial ratios and if the business is profitable to invest in to grow your money.[/quote]I understand you. Thanks.
Before that can clarify some terms?
P&L
PE
PEG
PB

Reply to Self-employed: How do you manage your finances? on Tue, 19 May 2015 03:47:50 GMT

scang — Tue, 19 May 2015 03:47:50 GMT

TheAnswer:
Rejoin:
Investments are not without risk. I believe this point has been reiterated several times in this post.

If you're financially savvy, the optimum thing to do would be to buy a term insurance and then use the rest of your money to invest (note, I don't mean ILPs or unit trusts). Just pure investment in stocks and bonds.
How to invest in stocks?

Reply to Self-employed: How do you manage your finances? on Mon, 18 May 2015 21:41:17 GMT

TheAnswer — Mon, 18 May 2015 21:41:17 GMT

starlight1968sg:
I am curious on why must be profitable when one dies.

Insurance is a transfer of risk and is NEVER to make money.
To make money, go for Investments.

If u have dependents, ideally a sum of money should be left for them. We never know when we die. Need to have a will also.

We have insurance for:
1. Early/intermediate/critical illness (covers loss of income) due to short term disability, special illness and many more etc
2. Critical illness, death, Disability
3. Accidental plan
4. Mortgage insurance (still thinking cos no mortgage at the moment, will get one upon purchase of new property)
5. Housing insurance
6. Medical insurance (dollar for dollar at private hospital)

Reply to Self-employed: How do you manage your finances? on Mon, 18 May 2015 21:27:34 GMT

TheAnswer — Mon, 18 May 2015 21:27:34 GMT

Rejoin:
Investments are not without risk. I believe this point has been reiterated several times in this post.

If you're financially savvy, the optimum thing to do would be to buy a term insurance and then use the rest of your money to invest (note, I don't mean ILPs or unit trusts). Just pure investment in stocks and bonds.

How to invest in stocks?

Reply to Self-employed: How do you manage your finances? on Fri, 10 Apr 2015 22:28:55 GMT

Rejoin — Fri, 10 Apr 2015 22:28:55 GMT

Investments are not without risk. I believe this point has been reiterated several times in this post.

If you’re financially savvy, the optimum thing to do would be to buy a term insurance and then use the rest of your money to invest (note, I don’t mean ILPs or unit trusts). Just pure investment in stocks and bonds.

Reply to Self-employed: How do you manage your finances? on Wed, 18 Mar 2015 03:52:32 GMT

scang — Wed, 18 Mar 2015 03:52:32 GMT

Anfield:
scang:

In fact, any form of term insurance is not \"lucrative\" for financial advisers or planners as the commission is very low, so not worth their time to ever recommend.
One criteria is of course, the person buying this form of term insurance is savvy in generating decent or good returns from their own investment.
So some form of financial education should be in place to get consistent and decent returns.
Indeed, the theoretical arguments against getting any kind of whole life plans or ILP are sound, watertight even.

It's the practical behind utilizing the savings from purchasing pure term insurance for investment that's actually the problem for most people. It takes a level of discipline and financial education that many adults don't possess for various reasons.

As a means of forced savings, many adults could do a lot worse than buying whole life or ILPs.

That is also a reason why these days kids, students are taught life skills like financial literacy at a much younger age like 10 years through the schools as part of CCA.

And the earlier they put into practise this form of education and good habits on a regular basis, the more savvy and more financially sound their knowledge will be.

So it is about teaching and learning and practising it as early as possible and getting them to practise it through buying of groceries, food, needs and wants, savings, spending, giving etc in their daily lives.

Reply to Self-employed: How do you manage your finances? on Wed, 18 Mar 2015 03:43:42 GMT

Anfield — Wed, 18 Mar 2015 03:43:42 GMT

scang:

In fact, any form of term insurance is not \"lucrative\" for financial advisers or planners as the commission is very low, so not worth their time to ever recommend.
One criteria is of course, the person buying this form of term insurance is savvy in generating decent or good returns from their own investment.
So some form of financial education should be in place to get consistent and decent returns.

Indeed, the theoretical arguments against getting any kind of whole life plans or ILP are sound, watertight even.

It's the practical behind utilizing the savings from purchasing pure term insurance for investment that's actually the problem for most people. It takes a level of discipline and financial education that many adults don't possess for various reasons.

As a means of forced savings, many adults could do a lot worse than buying whole life or ILPs.

Reply to Self-employed: How do you manage your finances? on Sat, 14 Mar 2015 15:54:50 GMT

scang — Sat, 14 Mar 2015 15:54:50 GMT

starlight1968sg:
scang:
Yes, Prudential and TM Asia.

Yes, CI is needed to be taken care of, but it is a smaller sum needed and up to 60 years.
Hmm... heard that TM Asia has quite a good reputation.
PS: I do not work in any financial or insurance industries.

Neither do I work in any financial or insurance industries.

In fact, any form of term insurance is not \"lucrative\" for financial advisers or planners as the commission is very low, so not worth their time to ever recommend such plan.

The usual plan is whole life, ILP etc. which gives them substantial commission.

One criteria is of course, the person buying this form of term insurance is savvy in generating decent or good returns from their own investment.
So some form of financial education should be in place to get consistent and decent returns.

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 23:26:00 GMT

starlight1968sg — Fri, 13 Mar 2015 23:26:00 GMT

scang:
Yes, Prudential and TM Asia.

Yes, CI is needed to be taken care of, but it is a smaller sum needed and up to 60 years.

Hmm... heard that TM Asia has quite a good reputation.
PS: I do not work in any financial or insurance industries.

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 15:43:16 GMT

scang — Fri, 13 Mar 2015 15:43:16 GMT

Anfield:
scang:

Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).
I am on this plan with Prudential. No idea who the other one is. Strictly death/terminal illness or TPD though. Gotta take care of critical illness from some other plan.

Yes, Prudential and TM Asia.
Yes, CI is needed to be taken care of, but it is a smaller sum needed and up to 60 years.

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 15:41:24 GMT

scang — Fri, 13 Mar 2015 15:41:24 GMT

starlight1968sg:
I am curious on why must be profitable when one dies.

Insurance is a transfer of risk and is NEVER to make money.
To make money, go for Investments.

Insurance can be both a transfer of risk as well as a return on investment, that is why many buys whole life plan which gives a pathetic 2-3% or max 4-5% returns over the entire life of paying for it.

So rather than pay a hefty sum annually for x no. of years with that return upon death or meeting a certain criteria, the same criteria can be met with a much lower premium, and the savings in premium can instead be well invested for a much higher return.

Doesn't this make it a much better \"whole life insurance plan\"?

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 14:28:23 GMT

Anfield — Fri, 13 Mar 2015 14:28:23 GMT

scang:

Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).

I am on this plan with Prudential. No idea who the other one is. Strictly death/terminal illness or TPD though. Gotta take care of critical illness from some other plan.

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 14:19:43 GMT

starlight1968sg — Fri, 13 Mar 2015 14:19:43 GMT

I am curious on why must be profitable when one dies.

Insurance is a transfer of risk and is NEVER to make money.
To make money, go for Investments.

Reply to Self-employed: How do you manage your finances? on Fri, 13 Mar 2015 01:25:53 GMT

ngl2010 — Fri, 13 Mar 2015 01:25:53 GMT

I am interested to know which 2 insurance companies too.

Reply to Self-employed: How do you manage your finances? on Thu, 12 Mar 2015 22:39:58 GMT

nerov — Thu, 12 Mar 2015 22:39:58 GMT

So which two insurance companies are those?

scang:
Rejoin:
You are right. They are different things.

Term insurance has no value at the end of it, whereas CI *might* have (depending on the plan you purchase).

Yes, for health insurance, I am referring to integrated Medishield plan.
Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).

Entry age at 25 years for $2.5k premium = $187.5k total premium paid for lifetime, and payout of $1M, so best term insurance for ROI.

Last entry age to be \"profitable\" is about 50 or early 50+ years old as premium is higher for older ages for the same payout of $1M.

This is probably good for those who are savvy in investing, as they will buy term and invest on their own to get better return than Whole life insurance which gives pretty low returns.

Reply to Self-employed: How do you manage your finances? on Thu, 12 Mar 2015 17:51:42 GMT

scang — Thu, 12 Mar 2015 17:51:42 GMT

Rejoin:
You are right. They are different things.

Term insurance has no value at the end of it, whereas CI *might* have (depending on the plan you purchase).

Yes, for health insurance, I am referring to integrated Medishield plan.

Actually, there are 2 insurance companies that offer term insurance that \"almost guarantee\" you will be profitable when you eventually die, as they cover up to 99 years old (which 99% of people do not live past that age).

Entry age at 25 years for $2.5k premium = $187.5k total premium paid for lifetime, and payout of $1M, so best term insurance for ROI.

Last entry age to be \"profitable\" is about 50 or early 50+ years old as premium is higher for older ages for the same payout of $1M.

This is probably good for those who are savvy in investing, as they will buy term and invest on their own to get better return than Whole life insurance which gives pretty low returns.

Reply to Self-employed: How do you manage your finances? on Sun, 15 Feb 2015 02:08:54 GMT

Mdm Koh — Sun, 15 Feb 2015 02:08:54 GMT

Thanks for your sharing. I never mix health insurance with investments too as I need my investments to be flexible in case of emergencies. I find that many of the investment-linked insurance plans aren’t flexi, such that if one wishes to stop his or her investments, it would affect the other components of the insurance. In addition, as I travelled around a lot, I also purchased an accident plan.