TLDR: 2024 hard times, but govt will make sure we spend wisely!
Singapore government is working on their budget for 2024! In fact, it’s a pretty big deal at the moment.
Here’s what we know so far:
Delivery Date: Deputy Prime Minister and Minister for Finance Lawrence Wong (also future Prime Minister, if PAP wins the next election) will deliver the Budget Statement on Friday, February 16, 2024, in Parliament. Can watch it here.
Public Feedback: The government is currently gathering public feedback on the budget until Friday, January 26, 2024. You can share your views online through REACH’s Budget 2024 microsite or attend physical engagement sessions.
Key Priorities: While the specific details of the budget haven’t been released yet, some experts anticipate that it will prioritize sustaining economic competitiveness, easing the cost of living, and driving innovation. The 30th anniversary of GST and potential international tax reforms are also likely to be influential factors.
Recently uncle read this book, “The Bogleheads’ Guide to Investing. It’s like me la, your wise uncle giving you long winded (loh soh) advice, but for investing.
It tells you how to grow your money slowly but surely, without acting like a crazy stock market cowboy. All about smart saving, smart investing, and staying cool. Uncle share this quickly with you.
Part 1: The Bogleheads’ Guide to Investing – Simplifying Your Financial Future
Feeling overwhelmed by the world of investing? Don’t worry, you’re not alone! The Bogleheads’ Guide to Investing offers a straightforward and practical approach to building wealth, perfect for young professionals like you.
Here are the key principles to remember:
Focus on long-term investing: Don’t get caught up in short-term market fluctuations. Invest for the long term (10+ years) and avoid chasing “hot stocks.”
Keep costs low: Minimize fees and expenses by choosing low-cost index funds. These passively track the market and offer excellent returns without the high costs of actively managed funds.
Diversify your portfolio: Don’t put all your eggs in one basket. Spread your investments across different asset classes, like stocks, bonds, and real estate, to minimize risk.
Rebalance regularly: Over time, the market will cause your portfolio’s allocation to drift. Rebalancing ensures your investments remain in line with your risk tolerance.
Stay disciplined: Avoid impulsive decisions and stick to your plan. Remember, investing is a marathon, not a sprint.
These principles may seem simple, but they’re the foundation of successful long-term investing. By following the Bogleheads’ guide, you can confidently navigate the financial markets and achieve your financial goals.
Part 2: Building Wealth with Just Three Funds
Investing doesn’t have to be complicated. The Bogleheads’ guide recommends a simple three-fund portfolio for most investors. This portfolio provides diversification, low costs, and the flexibility to adjust for your individual needs.
Here’s the breakdown:
Total Stock Market Index Fund (70%): This fund tracks the entire US stock market, offering broad exposure to various sectors and companies.
Total International Stock Market Index Fund (20%): This fund invests in stocks from developed and emerging markets, diversifying your portfolio beyond the US.
Total Bond Market Index Fund (10%): This fund provides stability and income through investments in government and corporate bonds.
Remember, this is just a starting point. You can adjust the allocation based on your age, risk tolerance, and financial goals.
Part 3: Resources and Next Steps
Ready to start your investing journey? Here are some resources to help you get started:
The Bogleheads’ Guide to Investing: This book is the cornerstone of the Bogleheads’ philosophy and provides comprehensive information on investing strategies and principles.
The Bogleheads’ website: This website offers a wealth of free information and resources, including articles, forums, and calculators.
Online investment platforms: Many online platforms offer low-cost index funds and fractional shares, making it easier than ever to invest.Like this or this or this and this.
Investing is a powerful tool for building wealth and achieving your financial goals. By following the Bogleheads’ principles and starting early, you can set yourself up for a secure and fulfilling financial future.
Remember, the key is to be patient, disciplined, and stay informed. With the right approach, you can unlock the power of investing and achieve your financial dreams.
Singapore Post (S08) has been a household name in Singapore for over 160 years, delivering mail and packages across the island and the globe. However, in recent years, the company’s share price performance has been less than stellar. Despite the lackluster stock performance, SingPost has consistently paid out attractive dividends. So, what’s the story behind this seemingly contradictory situation?
The Good:
Solid dividend track record: SingPost boasts a consistent history of paying dividends, with a current yield of 1.29%. This makes it an attractive option for income-seeking investors.
Strong financial position: SingPost has a healthy balance sheet with low debt and ample cash reserves.
Investment in e-commerce: The company has invested heavily in e-commerce fulfillment and logistics, positioning itself for a growing market.
Strategic partnerships: SingPost has formed partnerships with major e-commerce players like Lazada and Shopee, expanding its reach and capabilities.
The Not-So-Good:
Declining mail volume: Traditional mail volume continues to decline, impacting SingPost’s core revenue stream.
Intense competition: The delivery market is facing fierce competition from established players and new entrants, putting pressure on margins.
Rising operating costs: Labor costs and other operational expenses are increasing, further squeezing profitability.
Uncertainty in the future of the delivery industry: The rapid evolution of technology and changing consumer preferences create uncertainty for the long-term outlook of traditional delivery services.
The Verdict:
While Singapore Post is facing headwinds, it is actively adapting to the changing landscape. The company’s strong financial position, investments in e-commerce, and strategic partnerships provide a foundation for future growth. However, the declining mail volume and intense competition remain significant challenges.
For young professionals looking for a stable income stream with potential for growth, SingPost can be a compelling option. However, it’s crucial to be aware of the risks and uncertainties surrounding the company and the industry as a whole.
Data centers are the backbone of the digital world, humming away 24/7 to store and process our ever-growing online footprint. And Keppel DC REIT, owns data centers across Asia-Pacific and Europe. They own colocation, full-fitted, and shell and core facilities. ️ Most of their colocation centers are in 🇸🇬 🇮🇪 contributing to 2/3 of their rental income.
(In case if you didn’t realise, this is not an actual image of Keppel’s Data Center. Please hor, but this picture quite nice.)
But is Keppel DC REIT a buy? Let’s dive into the analysis:
The Good:
Strong fundamentals: Keppel DC REIT boasts a diversified portfolio of high-quality data centers across Asia Pacific and Europe, with a long weighted average lease expiry (WALE) of 7.5 years.
Resilient performance: Despite the pandemic, Keppel DC REIT has maintained positive income growth, with its distribution per unit (DPU) increasing by 2.4% in FY2023.
High dividend yield: Currently offering a 5.8% dividend yield, Keppel DC REIT is a compelling option for income-seeking investors.
Positive industry outlook: The global data center market is expected to grow at a CAGR of 11% over the next five years, driven by factors such as cloud computing, artificial intelligence, and the Internet of Things (IoT).
The Not-So-Good:
Rising interest rates: A potential increase in interest rates could put pressure on Keppel DC REIT’s margins, as a significant portion of its debt is at floating rates.
Competition: The data center market is becoming increasingly competitive, with new entrants and established players vying for market share.
Potential global economic slowdown: A recession could lead to decreased demand for data center services, impacting Keppel DC REIT’s performance.
The Verdict:
Keppel DC REIT is a solid investment option for investors seeking stable income and exposure to the growing data center industry. However, it’s important to be aware of the risks associated with rising interest rates and potential economic downturns.
For young professionals, Keppel DC REIT presents an opportunity to invest in a future-proof industry with a strong track record. However, it’s essential to do your own research and consider your individual risk tolerance before making any investment decisions.
Remember, investing involves risks, and past performance is not indicative of future results. Always consult with a financial professional before making any investment decisions.
Disclaimer: Uncle Huat owns Keppel DC REIT as part of his long term investment portfolio.
🇸🇬 #SgFinance: T-Bills vs Savings Bonds – Interest Rate Showdown!
Sick of your savings just chilling? Tired of earning peanuts on your hard-earned cash?
It’s time to level up your short-term savings game with Singapore’s T-Bills and Savings Bonds!
Here’s the latest on interest rates (as of 6 December 2023):
T-Bills:
6-month: 4.00%
1-year: 3.98%
Savings Bonds:
Year 1: 0.85%
Year 2: 1.20%
Year 3: 1.45%
Year 4: 1.70%
Year 5: 1.95%
Year 6: 2.20%
Year 7: 2.45%
Year 8: 2.70%
Year 9: 2.95%
Year 10: 3.20%
So, which one wins the interest rate battle?
It’s a close call!
T-Bills offer a higher initial return, especially for the short term. But if you’re looking for long-term growth and the flexibility to access your money anytime, Savings Bonds might be a better bet.
Ultimately, the best option depends on your individual financial goals and risk tolerance.
Here’s a quick cheat sheet:
T-Bills:
Pros: Super short-term, discount savings, flexible.
