successful or not?
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crap
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if u do not earn an income, u can just be silent. For myself, im also a student, u dun have to be say such things.Originally posted by starblue:crap -
like what a forummer mentioned its more important to have a healthy debt equity ratio.
it does not matter how much u earn or how much u spend. a healthy ratio is usually 60% expense and 40% savings. savings could be in the form of insurance, investments, fd or plain old deposits.
looking at the thread starter friend...with a 4k income and a car and house loan coming up, heres what his breakdown would most likely be like:-
Salary: 3200 (after cpf)
Car Loan: 800
Car Exp: 250
Bills: 150 (HP, Tel, Internet)
House Loan: CPF
Entertainment: 300
Food: 300 (based on $5 per meal over 30 days)
Left:- $1550
He should have slightly more then $1200 per month unless he has more expenses. Which is not too bad, unless he spends money unnecessarily. -
that is if you assume his life is so structured. how boring!!!
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if its more exciting then it means his ability to save and invest will be hampered...Originally posted by dragg:that is if you assume his life is so structured. how boring!!!
$40k in cash will last him the most 2years if he maintains his current lifestyle if he loses his job...how long can most of us last? if we lose our income now -
You didn't add in insurance and other investmentsOriginally posted by Peppermint:if its more exciting then it means his ability to save and invest will be hampered...
$40k in cash will last him the most 2years if he maintains his current lifestyle if he loses his job...how long can most of us last? if we lose our income now
I don't think anyone will just put $1.2k in the bank -
the basic is still how much you spend and not just how much you can make.
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actually i lump insurances under bills. a simple 20 year term life policy with 100k coverage will not set u back more then $25 a month. but maybe i assume too muchOriginally posted by elindra:You didn't add in insurance and other investments
I don't think anyone will just put $1.2k in the bank
personally i feel its better for ppl to put 1.2k in bank then use it to buy unit trusts, mutual funds, speculate (not invest) in stocks where they lose money due to charges and fees.
for myself, i prefer self directed investment ^^ i wouldnt trust anyone with my $$ -
i would further refine it to...spend less then u earn, save/invest more then u spendOriginally posted by dragg:the basic is still how much you spend and not just how much you can make.
not sure if that made sense
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i think that's too extreme. yes, the outflow is important, but the cash inflow is even more important! even if u juz spend $100 per month, u got no inflow, it's still negative balance!Originally posted by dragg:the basic is still how much you spend and not just how much you can make. -
The thing is that for unit trusts, you have to look at the handling fees etc. I made the mistake once before and lost cash but I bought some others which is making now. So you really really have to read the fine print and never ever buy when they are having road shows. Too much hype.Originally posted by Peppermint:actually i lump insurances under bills. a simple 20 year term life policy with 100k coverage will not set u back more then $25 a month. but maybe i assume too much
personally i feel its better for ppl to put 1.2k in bank then use it to buy unit trusts, mutual funds, speculate (not invest) in stocks where they lose money due to charges and fees.
for myself, i prefer self directed investment ^^ i wouldnt trust anyone with my $$
Most ppl don't buy just 100k term life policy la. -
i'm not sure if sg sells it..but if u are into funds, u could try looking at index funds, basically these funds seek to match the performance of a specific index say s&p500. s&p500 iirc has been growing at an annualised rate of 8%.Originally posted by elindra:The thing is that for unit trusts, you have to look at the handling fees etc. I made the mistake once before and lost cash but I bought some others which is making now. So you really really have to read the fine print and never ever buy when they are having road shows. Too much hype.
Most ppl don't buy just 100k term life policy la.
unit trusts fees are high. usually its 5% sales chagr and abt 1-2% managmenet fee total abt 8%. which means your investments have to perform more then 8%, factor in inflation of 1-2%,, you need at least 10% growth to break even. and thats not even guarenteed while the expenes are
what other insurance do they need? besides say another personal accident plan? unless u are talking abt car, house etc -
hmm.. its seems that all these talk about on having $1m for retirement is rather common. Is it really possible for one to save that much for retirement? sigh... right now, me still need to ask parents for monee... sigh..Originally posted by Peppermint:i'm not sure if sg sells it..but if u are into funds, u could try looking at index funds, basically these funds seek to match the performance of a specific index say s&p500. s&p500 iirc has been growing at an annualised rate of 8%.
unit trusts fees are high. usually its 5% sales chagr and abt 1-2% managmenet fee total abt 8%. which means your investments have to perform more then 8%, factor in inflation of 1-2%,, you need at least 10% growth to break even. and thats not even guarenteed while the expenes are
what other insurance do they need? besides say another personal accident plan? unless u are talking abt car, house etc -
Unit Trust is just one thing I have. I have already broken even and is making money.Originally posted by Peppermint:i'm not sure if sg sells it..but if u are into funds, u could try looking at index funds, basically these funds seek to match the performance of a specific index say s&p500. s&p500 iirc has been growing at an annualised rate of 8%.
unit trusts fees are high. usually its 5% sales chagr and abt 1-2% managmenet fee total abt 8%. which means your investments have to perform more then 8%, factor in inflation of 1-2%,, you need at least 10% growth to break even. and thats not even guarenteed while the expenes are
what other insurance do they need? besides say another personal accident plan? unless u are talking abt car, house etc
Anyway, I think alot of ppl cover critical illness and hospitalisation and some do buy the endownment plan for forced savings.
Don't forget, most ppl can't save. Tendancy to spend everything we earn is very high. -
i kinda like this flash...take a look may or may not change your mindset
http://flagship5.vanguard.com/VGApp/hnw/content/SiteWide/FlashPgs/SWFlshPwrOfCompContent.jsp -
What has it got to do with my mindset?Originally posted by Peppermint:i kinda like this flash...take a look may or may not change your mindset
http://flagship5.vanguard.com/VGApp/hnw/content/SiteWide/FlashPgs/SWFlshPwrOfCompContent.jsp
Anyway for Unit Trust it is better for long-term investments.
Or did you mean just leaving the savings in the bank and try to earn on the measly interest.
Btw, I'm not doing short term investment now if that is what you think I am doing. -
simple way to calculate how much u need for retirement isOriginally posted by B_ored:hmm.. its seems that all these talk about on having $1m for retirement is rather common. Is it really possible for one to save that much for retirement? sigh... right now, me still need to ask parents for monee... sigh..
current annual gross salary x years in retirement.
so if i retire at 55 can expect to live till 75. (20 years) and my annual gross is 30k, i would need 600k. -
think i will semi-retire at age 55 and look for a sing nung job to work till 62..Originally posted by Peppermint:simple way to calculate how much u need for retirement is
current annual gross salary x years in retirement.
so if i retire at 55 can expect to live till 75. (20 years) and my annual gross is 30k, i would need 600k. -
sorry when i meant your i actually meant general publicOriginally posted by elindra:What has it got to do with my mindset?
Anyway for Unit Trust it is better for long-term investments.
Or did you mean just leaving the savings in the bank and try to earn on the measly interest.
Btw, I'm not doing short term investment now if that is what you think I am doing.
actually there is nothing wrong with short term investment, but if u are doing long term like say 30years u should explore the more on the equities side if u have not already done so
while its good that you have made money on your unit trust, it still irks me that there are regular expenses that eat into your profits..but thats just me -
There is nothing wrong with short term investments and I have already done so. Just like I like some variation in my portfolio.Originally posted by Peppermint:sorry when i meant your i actually meant general public
actually there is nothing wrong with short term investment, but if u are doing long term like say 30years u should explore the more on the equities side if u have not already done so
while its good that you have made money on your unit trust, it still irks me that there are regular expenses that eat into your profits..but thats just me
Anyways, as long as I don't switch funds they don't charge me anything. -
how are u going to do it? its good to write down an action plan to reinforce your thoughts and actionsOriginally posted by B_ored:think i will semi-retire at age 55 and look for a sing nung job to work till 62..
but expenses do come along and things like
marriage/ wedding ceremony
house
car
child
education
etc
all comes in.
how many normal people in thier 50s can say they can stop working and enjoy life. and who are those that can? learn from the experiences from those who can and cannot. -
no sales charge or annual management fees?Originally posted by elindra:Anyways, as long as I don't switch funds they don't charge me anything. -
Not for this oneOriginally posted by Peppermint:no sales charge or annual management fees?
But the last one yes
They charged me every 3 mths
And I calculated at the rate I'm going I'm going to lose a lot of money so I cut my losses.
Anyway, after that one time, I make sure I find out every single detail and all the costs they don't mention or neglect to mention -
ahh thats interesting...then how do they make money??Originally posted by elindra:Not for this one
But the last one yes
They charged me every 3 mths
And I calculated at the rate I'm going I'm going to lose a lot of money so I cut my losses.
Anyway, after that one time, I make sure I find out every single detail and all the costs they don't mention or neglect to mention
care to share the name of the fund? -
I dunno how they make moneyOriginally posted by Peppermint:ahh thats interesting...then how do they make money??
care to share the name of the fund?
But I have yet to receive any statements with any form of deductions when I don't switch funds.