Oil investment failed (one company is fighting a losing battle to recover monies), new age wine investment failed and even doubts had been cast on landbanking.  Just look at the number of people who had been conned for wine investment. They thought they bought their wines, but some of the companies did not even buy the wines. They can’t find new buyers for the old sellers. Some of the business owners ran away, leaving their clients and even sales people in the lurch.

There are far too many Ponzi schemes already. The business model is to use your money to pay the first investors. By the time it’s time for you to get your money, it’s time to get out.

Investors need to be more careful with their money. Leaving their money in the bank may turn out to be worse due to inflation. Yes, that is what people tell us, but losing money to inflation is better than losing total capital due to shoddy investments.

If you really want to make money, learn how to pick stocks. If you don’t have the time to monitor constantly, then buy blue chip stocks and earn their dividends. If you have time to monitor and you know what you are doing, then go ahead. But please don’t go and spend thousands of dollars to learn something if you know you will not do. Do you seriously believe in those get rich quick forex trading classes? You need to know that some people are extremely good in selling dreams to you.

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When you do buy an apartment, rent it out. Sometimes it may not cover your entire monthly loan, maintenance, upkeep, and property taxes, but if you had bought it at a low price, and have sufficient money to maintain it, you can definitely make money with it a few years later when the market is booming. However, if you had bought high and at current low interest rates, it is very hard to keep afloat if the interest rates spike, and prices of property falls in a few years’ time.

Keep a contrarian attitude. If your neighbour’s aunt’s cousin want to buy property, and everyone else is talking about, don’t.

Check out new land sales. If you know that the developer had bought it at a high price and hence need to charge a high psf in order to be profitable, you may go and snap up a unit that is very near it, as long as that property has good location and other amenities.

Check out the price difference. For example, a plot near Bishan MRT station need to be sold at at least $1200 to $1400 psf. Clover by the Park , which should get its TOP in 2011, saw its psf increase to $1100 as a result. Before that, it was below $1000 psf. Bishan Loft, which is pretty near the plot saw its prices climb from below $900 psf to $1000 psf after the announcement of the sale.

When people realize that they cannot afford the latest most expensive place that will turn out to be tiny due to its high psf (developers will want the overall selling price to be affordable), they will turn to neighbouring units.

If you check out the mass development units in Yishun such as 8 Courtyards, you would find that demand is high. However, do be aware that mass development projects mean you are competing with a lot of sellers and landlords when the projects TOP. If you plan to rent your investment unit out, make sure that location is king, and there is enough demand. If not, you may have to rent it at a loss.

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Focus on healthcare and senior citizens is one of the popular wishes and proposal Singapore citizens and permanent residents listed on the Budget Wishlist 2011, an online wishlist made available for Singaporeans and PR holders. However, reduction of personal income tax topped the wishlist for the 2011 Budget.

Singapore is lucky to have and maintain a strong currency in the midst of regional inflation. The Ministry of Finance (MOF) through Mr. Tharman stated that it aims to cover more than just one group of Singaporeans.

If this statement very well means that all society classes including the sandwiched class or more formally known as middle class, will be taken into consideration in terms of Budget allocation, then a bigger number of citizens might just take a liking to the Prime Minister’s way of answering to the calls of Singaporeans, supported by the Budget Challenge 2011.

The Budget Challenge 2011 is a formal debate participated by teams from college institutions. It   aims to allow participants to appreciate the cut-and-thrust of debate with exposure to public policy , financing issues, and parliamentary procedures.
The debate is heard at the Parliament House until February 16 for the Final round where 5 teams compete for their proposals to be considered by the MOF.

It makes sense for any government to focus on long-term benefits for the whole of Singapore, rather than short-term which could temporarily benefit just a few.
The vagueness of Mr. Tharman’s statements trigger the growing excitement or rather anxiety of the people toward February 18; the said date when the Budget will finally be delivered.

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2. I will not buy an old HDB flat and be stuck there for more than 5 years. Too many horror stories about weird neighbours, loanshark problems, and other stuff.

3. If after getting your place, your fengshui master tells you that the house is not suitable for you, then you are stuck for the minimum 5 years.

4. If you want your kid to get into a good school, it means you can’t move house to be near the 1km. If your kid can’t get into the school beside your place, it means being stuck there for another few years before you can move, and that means additional money on transport, and getting people to take your child to school.

5. If you have to take on a job at the opposite end of Singapore, it means you can’t sell your place and move there to save on travelling. You try telling those people who are out of work. They would rather go without a job than take public transport to wash toilets and see their meager salary be spent on transport and more expensive food in town.

6. Buying an HDB flat either resale or new come with so many restrictions. That includes not being able to buy property overseas. That means you will never be able to ride a property boom.

7. To upgrade to private property means forking out 30% cash and CPF, which means it’s probably at least $300k. Who has so much cash flow if you had already depleted your CPF account trying to pay for your flat?

8. If you want to avoid getting only a 70% loan, it means you will have to sell your house, buy your private property, and then rent and wait a few years before TOP. That means that buying a place at preview prices is out. That also means you can’t take your pick and choose your favourite unit.

9. If you are applying for a new HDB flat, you would have to wait a longer time before you can consider selling your place. It will also mean you don’t have your own place to live in after getting married. If you happen to break off the marriage agreement, tough luck, happy waiting again.

10. It all goes back to the point, why should we be penalized for wanting to buy a new place?

11. If you sell your private property and want to wait to be eligible for hdb concession loans, it is a good long wait. Where are you going to live?

12. That also means if you were retrenched, you can’t afford your private housing, you will face a lot of problem getting help.

13. If after having children, and you really need to get your parents-in-law or parents to live with you, or you move over to live with them, and your 5 year occupation is not up, then you cannot rent it out. That means paying additional money to your parents, and paying for your housing loan, without having any rental income to offset the cost of bringing up children.

14. If you made less than $3000, and qualified for a 3-room flat, and then later on have so many children or your relatives need to live with you, you are stuck with a small place and cannot upgrade to a bigger place.

15. If you are thinking about divorce, then you would be stuck if you don’t want to lose a roof over your head.

16. They tell us to live within our means, but if we want to make sure that we have enough space, that means forking out more money, which would be extremely taxing on our pockets.

17. If you get an overseas posting, you would need to pay rent over there. However, you can’t rent out your place, which means the place is empty, which becomes a liability.

18. Now that people can’t buy another HDB flat or can’t afford another private apartment to spend their extra money, they will start doing stupid investments that they are unfamiliar with, and then get burnt. So I foresee hearing more stories of people being duped by unscrupulous people.

19. If after buying a private property, you realize that there are so many problems with the place, such as extremely poor workmanship and other defects, you would be penalized for selling it too quickly.

20. Those with enough money to buy a HDB flat for investment may turn to mass market private property for investment, which will still put those who can’t qualify for public housing in a position where they can’t afford a single thing as they would push up the prices.

21. I still have lots more grouses but SM Goh says don’t complain so much.

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When I watched the news last night, one woman admitted that it was greed that led her to put her money there. She was attracted by the 5% interest rate, instead of the less than 1% offered by Singapore fixed deposits. True, many were retirees and some were not highly educated. However, there is no such thing as free lunches in the world. The risks would have been considerably higher if the interest rate was higher.

Of course, it is sad to read about a cobbler in his 70s who had invested his life savings into the funds. I have heard of younger people who invested $100000. The positive thing is the younger professionals still have the ability to earn the amount again.

What DBS, Maybank and Hong Leong are doing now is to look at the profile of the investors, to decide who should get help. Maybank is looking at retirees and those with primary education or less. Hong Leong will look at ‘vulnerable investors’ while DBS is not coming forward with their criteria.

One costly lesson I’ve learnt is that you should know what you are buying into, and not what other people tell you to. You have to take responsibility.

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If you need to entertain your guests or travel frequently, the amount you spend may differ from one month to another. Without spending limits, charge cards will be suitable for those who need to spend large amounts on entertaining their clients. They offer short term loans without penalties if you pay off in full every month. American Express and Diners Cards are such travel and entertainment cards. American Express has other payments options available for you to make your payments over a longer period of time. Due to the different schemes available, some people may use the terms interchangeably, but these two are basically different.

The second type of major cards is the credit card we are familiar with. Visa and Master Card work with banks to issue credit cards to the consumer. The banks will determine the spending limit on your cards based on your income level. Different cards have different terms and conditions. If you only pay the minimum amount for your credit card payment, be prepared to fork out hefty sums that stemmed from your interest payments and new purchases. Due to the nature of unsecured loans, interest rates are considerably higher and over time, they may add up to a lot.

Business Credit Cards are the next type of cards. These cards are meant for those with small businesses, although some banks give them to their customers holding personal credit cards. These cards tend to have lower interest rates and higher spending limits. Cash flow issues can be easily resolved for small business with business credit cards as you can pay the bills over an extended period.

Last but not least, various major companies offer retail store cards. Some are linked to shopping malls or other retail stores or we have fleet cards, for various fuel purchases as well. Due to the numerous retail store cards, the terms and conditions are not alike. Only certain countries accept such cards.

Since various types of credit cards offer different conditions and payment options, you need to decide what cards such as charge cards, credit cards, business credit cards and retail store cards suit you best.

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Gold fell from a high of $1030.80 in March to US$808.05 this week. As for oil, it is currently at US$113.55.

There is a chance that gold may fall further to high – US$700 levels. There is an inverse correlation between the strength of the US dollar and the strength of gold.

The Euro has fallen, as well as the British pound, against the US dollar. This comes amid reports that Germany has suffered a contraction in its economy.

However, with the US economy in bad shape, how long the US dollar will stay strong remains to be seen. Decide what you want to do with your gold investments.

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The last time I went to the tour, I booked a great trip to the various onsens or hot springs in Japan. This time round, I’m looking for great deals for my honeymoon at the end of the year. My friend went to Greece, and some suggested New Zealand. Any suggestions?

Before you decide on the tour package, check for the hidden charges such as fuel surcharges, taxes, and add-on day tours. I went with my friend on a very cheap tour to Chiang Mai before, and we had to pay 500 baht per person to go to each location, such as going to the borders between three countries, and a visit to the Karen hill tribes. So the best deal may not be that great.

In addition, my trip to Korea was filled with lots of visits to shops and stores where the tour guide could earn commission. The photographer with us tried to take photos of us, which he would charge $8 per photo. One family had to pay more than $300 for the photos because they did not know about this.

At the same time, some tours may fail to materialise because not enough customers book them. If you happen to be on such a tour, you may have to change your plans. Check whether there would be any refunds if this happens.

You may also decide whether you want to see a lot of different places, or you want to enjoy each place at your own pace. Do check with the agencies what languages the tour guides would be speaking in. On my last trip to Japan, the local tour guide could barely speak English and Mandarin. It so happened that most of the tourists on my coach came from English-speaking backgrounds, so when the man tried to lapse into Cantonese, he lost almost all of us.

Enjoy your trip! 

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A friend of mine earns more than me, and doesn’t own a car. By right, she should have more savings than me. However, when I told her how much I have, all squirreled away to various insurance plans, savings plans, investments and other accounts, she was shocked. She started thinking of reasons, such as she gives more money to her parents. Well, I do have a lot of fixed expenditure, such as my singing lessons that do not come cheap, and my car that takes up quite a big chunk, and I also give money to my parents. 

Too many women in their 20s or 30s are not saving enough, and when their children come, their purse strings would get even tighter. The best way to make more money is to save more.

Many books expound the virtue of paying-yourself-first, such as putting 10% of your income into a separate savings account, which can be used for investing as well. This is very important. You have to make sure you have met your own needs before you pay other bills.

10% out of a $60000 annual income is a whopping $6000. If you can save this amount every year for a decade, at a conservative interest rate of 3%, it is almost $80000 by then, which means you made $20000.

The other regret of women is they wish they know more about financial tools and other investment plans. Too many rely on their partners without taking control of their financial destiny. You really do not have to spend much time to find out more.

You can read the Sunday Times which has some investment pages, or read my blog to find out more. There are many other blogs where you can find out more. A lot of books in the market cater to those who are interested to find out more and some are written in an easy-to-understand manner.

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