Personal Finance

Search Fund? Here’s What You Should Know

by

Last week, I caught up with an old friend over coffee. He runs a mid-sized manufacturing company – been at it for over 20 years. Somewhere between our talk about the current global political environment and how crazy the tariff imposed by the US, he said, “I got this email from a young entrepreneur asking if I’d consider selling. Said he’s running a ‘search fund.’ Should I take it seriously?”

If you’ve never heard of a search fund, you’re not alone. But if you’re a business owner, especially in Southeast Asia, this might be something worth paying attention to.

Let’s break it down.

What is a Search Fund, Really?

Think of it as a different kind of startup – not one building a new app or product, but one where the goal is to find a great business, buy it, and run it for the long haul.

Typically, someone or a group of people (usually an ivy-league MBA graduate or seasoned operator with solid experience) raises some money from investors to fund a “search” for a good, stable business to acquire. Once they find the right one, they raise more money from the same backers (and maybe a few new ones) to buy the company and step in as CEO.

It’s not about flipping the company. It’s not about making drastic changes. It’s about long-term value, responsible ownership, and continuity.

And in 2025, Southeast Asia has quietly become one of the most exciting regions for this model. The timing makes sense as many business owners are thinking about succession. Retirement is on the horizon, but legacy still matters.

What Are These Search Funds Looking For?

Let me walk you through what they’re typically evaluating, based on conversations I’ve had with several searchers, investors, and former sellers:

1. A Profitable, Predictable Business

Searchers are drawn to businesses with stable, recurring revenue and healthy margins. They’re not chasing hypergrowth or the next big tech disruption. They want something steady. Ideally, you’ve been EBITDA-positive for a few years, and the numbers make sense even in a slower economy.

It’s the kind of business that might fly under the radar, quietly successful, built on relationships, and delivering consistent value.

2. A Defensible Position in the Market

In a layman way, this means your business has something that’s hard to replicate. Maybe it’s long-term contracts or good relationships with long term suppliers/customers. Maybe it’s a niche product or regulatory licenses that others can’t easily get. Maybe it’s a rock-solid reputation built over decades.

They’re not necessarily looking for cutting-edge innovation. They’d rather have a strong moat than a shiny new toy.

3. Clean Financials and Transparent Operations

This is the non-negotiable. Investors backing these funds are serious people – they want clean books, clear records, and no unpleasant surprises. You don’t need to have a Big Four audit, but your numbers should hold up under scrutiny.

Think of it like selling your house. It doesn’t need marble floors, but the plumbing/piping better work.

4. Room to Grow.

Search funds love businesses that are already solid but have clear, achievable paths for improvement. Maybe your marketing has been old-school, or you have not been streamlining your processes with technology or you haven’t fully tapped into regional markets. That’s the exact key points these Search Funds are looking for. What they don’t want is a turnaround project with toxic culture, debt issues, or broken systems.

A good foundation with room to scale, that’s the sweet spot.

Why Southeast Asia? Why Now?

In 2025, there’s a strong tailwind. Especially with the uncertainty in Trump’s Tariff move, SEA market is large enough to self-sustain. 

While many SME founders are nearing retirement and succession is a growing concern. Meanwhile, a new wave of entrepreneurial talent is returning from global business schools, eager to lead. Investors are also warming up to search funds as a viable alternative asset class.

Combine these forces, and you get a region ripe for this kind of ownership transition.

Should you consider a Search Fund Buyer?

If you’re a business owner who:

  • Is profitable but getting tired of day-to-day operations.
  • Wants to preserve the legacy of what you’ve built.
  • Is open to transitioning leadership over time

…then yes, it’s worth having the conversation. Not every inquiry will be the right fit, and not every searcher will be ready. But the right match can be a win-win.

I’ve seen it happen—a friend sold his logistics company to a search fund operator two years ago. Today, he sits on the board, the new CEO is growing the business, and he finally got to spend more time with his family without worrying about payroll. Plus, if the company becomes large enough and goes to IPO/acquired, he still made a very handsome return.

Peace Over Profit? Rebuilding After the Rift

by

Series: Bloodlines and Bottom Lines – The Untold Stories of Family Business.

You know what no one tells you about family business fallouts?

It’s not just the court cases, the legal bills, or the company registrar changes.
It’s the silence at reunion dinners (in extreme cases, no dinner at all). The siblings who used to go for breakfast together every Saturday… now don’t even reply in the family group chat.

We’ve followed the Tan brothers’ journey—from shared dreams and unspoken assumptions to full-blown litigation. But what happens after the court doors close?

Can families ever come back from a business fallout?

The answer—thankfully—is yes.
But not without some honest reflection, real conversations, and sometimes, the courage to choose peace over profit.

💔 The Aftermath: Broken Bonds, Heavy Hearts

After the Tan brothers settled their case, the legal issues were resolved. But the emotional damage? That lingers.

Ah Tong told a friend, “I didn’t want to fight. I just didn’t want to be erased.”

And that’s the thing. Most family business disputes aren’t about greed. They’re about dignity.
About wanting to be seen, acknowledged, included.

The courtroom can settle ownership. But reconciliation? That takes a different kind of work.

🕊️ The Path to Healing (Yes, It’s Possible)

Let’s talk about what it takes to rebuild, based on what I’ve seen from families who’ve managed to do it—and those who couldn’t.

1. 🤫 Accept that some things may never be said.

Not everyone will apologise. Not every wound gets a neat explanation.

Families who reconcile often stop expecting the “perfect closure” and start building new trust, from today onwards.

✅ Focus on the future. Don’t get stuck relitigating the past.

2. 🗣️ Talk—but with boundaries.

Sometimes, the best thing you can do is bring in a neutral third party: a coach, therapist, mediator, or trusted elder.

These aren’t “soft skills”—they’re survival tools. When emotions run deep, you need structure and safety for the conversation to be productive.

✅ Create structured spaces to talk. Not every dinner is the right time.

3. 🧠 Get clear on values before vision.

Before talking about “next steps,” talk about what matters most. What does the family really value?

Is it legacy? Harmony? Growth? Freedom?

If your values diverge, that’s okay. It might even point to a healthy decision to separate business and family without bitterness.

✅ Start with shared values. Vision comes after.

4. ✋ Know when to walk away—with grace.

Some wounds are too deep. And sometimes, the healthiest thing you can do is let go of the business to save the family.

This doesn’t mean you “lost.” It means you’re wise enough to know that not all capital is financial.

✅ Peace is a return on investment too.

🪙 Peace Over Profit… Or Both?

Here’s a story I’ll never forget.

A client of mine, a second-gen founder named Andrew once told his dad, “I don’t want the company if it means losing my siblings.”

That moment changed everything.

Instead of pushing for titles and control, they brought in an external CEO, wrote down the family values in a charter, and focused on harmony.

Today, the siblings still own the business—but they’re not in each other’s way. And during Chinese New Year, they can still sit at the same table and laugh over fish skin crackers and childhood stories.

That, my friend, is real wealth.

💬 Questions to Reflect On (or Discuss Over Dinner):

  • What’s more important to me—being right, or maintaining the family relationship?
  • Have I ever assumed someone knew what I expected… without saying it?
  • If this business ended tomorrow, what would I want to remain?

🧭 The Big Takeaway: Build with both Head and Heart

Family businesses are sacred. They carry our hopes, our hustle, our history.

But they’re also fragile—held together not just by contracts and KPIs, but by trust, memory, and shared meaning.

If we want to build something that lasts beyond our generation, we need:

  • Structure and softness
  • Governance and grace
  • Logic and love

That’s a Wrap 🎉

Thanks for joining me on this journey through the world of family business. From messy beginnings to tough conversations and hopeful rebuilds, I hope you saw a bit of your story—and found something useful for the road ahead.

👉 What resonated most with you from this series?
👉 Have you been through something similar in your own family business?

Drop a comment, send a DM, or share this with someone who needs to read it.

And if you’re looking to start your own “family alignment” process—I’ve got tools, templates, and plenty of real life case studies/stories to help.

💌 Let’s Keep the Conversation Going:

👉 What resonated most with you from this series?
👉 Have you been through something similar in your own family business?

Drop uncle an email (TalkTo@unclehuat.com) , or share this with someone who needs to read it.

And if you’re looking to start your own “family alignment” process—I’ve got tools, templates, and plenty of real-life stories to help.

What We Can Learn from the Blow-Up when family goes to Court

by

Series: Bloodlines and Bottom Lines – The Untold Stories of Family Business

Remember the Tan brothers? The family who went from “we share everything” to “see you in court”?

Today, we’re going deep into what actually happened when things got messy. And spoiler alert: it didn’t start in the courtroom—it started in silence.

Because the biggest risks in family business aren’t bad markets or bad products.
They’re bad assumptions.

Let’s break it down.

🧨 The Build-Up: Years of Unspoken Expectations

The Tan brothers (based loosely on a real case, with names changed to protect privacy) had all worked together since the early days. Some chipped in money, some managed projects, some did more “behind the scenes” work. There was this unspoken agreement that the business belonged to all of them.

But here’s the catch:
Only the two eldest brothers—Ah Fong and Ah Kheng—were listed as shareholders of their main company, Holdings One Pte Ltd

The others? They trusted that their “sweat equity” would eventually be recognised.

Fast forward 20 years. Millions in property assets. And suddenly, in 2019, the younger brothers—Ah Tong, Ah Teng, and Edwin—checked ACRA… and saw their names had been quietly removed from the shareholder list.

Their blood ran cold.

⚖️ The Court Case: When Family Becomes Litigants

After several ignored demands and awkward family meetings, the brothers did something no one wants to do—they filed a lawsuit.

What followed was a full-blown trial:

  • Each side lawyered up (well, some represented themselves—never a good idea).
  • Old emails and WhatsApp messages were dug up.
  • Contributions were disputed: “You didn’t help!” vs. “I mortgaged my house!”
  • A handwritten “Company Resolution” from 2012 showed they once agreed to divide the shares equally—but it wasn’t executed properly.
  • One brother claimed the shares were meant to be sold (and not given) but payment was never made.

At the heart of it all? Trust… broken.

🔍 The Judge’s Take: Intent Matters, But So Does Proof

The court ruled that there was an express trust in place—based on years of consistent behavior, verbal assurances, and that 2012 document.

In short, the younger brothers had a claim.
But it didn’t come easy. It took:

  • Years of litigation
  • Personal attacks in open court
  • Legal fees (think: six figures)
  • And the total breakdown of sibling relationships

No CNY reunion dinner was going to fix that.

🧠 Lessons From the Tan Brothers’ Breakdown

Let’s not waste their pain. Here are 5 takeaways every family business should note:

1. 🧾 If you’re not on ACRA, you’re not a shareholder.

It doesn’t matter what was said, promised, or WhatsApp-ed 10 years ago. In the eyes of the law, if your name isn’t on the company records, you don’t own squat—unless you can prove a trust (which is not easy and never pretty).

✅ Action: Check your ACRA listing today. Better to be disappointed now than blindsided later.

2. 🤝 Good intentions don’t replace proper documentation.

The 2012 agreement would’ve saved everyone… if they had followed through with legal share transfers. But they didn’t.

✅ Action: Don’t stop at a handshake or internal memo. File the documents. Update ACRA. Get signatures. Treat it like a business, not a birthday party.

3. 🧮 Contributions must be visible, valued, and recorded.

One brother claimed he loaned money. Another said he mortgaged his home. But without documentation or agreed valuation, it was all just he-said-she-said.

✅ Action: Keep records. If you’re contributing capital or property, make sure it’s tracked—and agreed upon by all.

4. 👨‍⚖️ Litigation is a last resort. And it’s rarely worth it.

Even when you “win,” you lose—time, money, and relationships. The Tan brothers may have resolved the shareholding issue legally, but they lost their bond as siblings. And no amount of dividends can buy that back.

✅ Action: Explore mediation early. It’s faster, cheaper, and often leads to a more dignified outcome.

5. 🧭 Unclear succession = guaranteed chaos

The eldest brothers made decisions on behalf of everyone. But when there was no roadmap for leadership, ownership, or handover… mistrust festered.

✅ Action: Start succession planning early. It’s not just about who takes over. It’s about building shared understanding, trust, and governance.

🎙️ One Brother’s Words Still Haunt Me…

“I never wanted the money. I just wanted to know my contribution mattered.”

That hit hard. Because that’s the heart of many family business disputes—it’s not greed.
It’s the hurt of feeling unseen.

Next Up in Part 5:

“Peace Over Profit? Rebuilding After the Rift”
 We’ll explore how some families have managed to reconcile, rebuild trust, and even come back stronger—plus, when it’s better to walk away for the sake of love.

💬 Have you seen a family business fall apart—or survive a rough patch? What helped or hurt the most? Drop uncle an email please (TalkTo@unclehuat.com)

Let’s help more families build legacies without losing each other in the process.

Singapore Budget 2025: What It Means for You (time for huat)

by

Image source: PM Lawrence Wong’s facebook

Picture this: you’re sitting across from me at our favourite kopitiam, you are drinking kopi siew dai and I am drinking kopi o kosong (as we are conscious about taking less sugar as advised by minister Ong Yee Kung, yea we followed him on TikTok). We’re catching up, and naturally, the topic of Budget 2025 comes up. “Ugh, another budget speech,” you groan. “Just tell me—what’s in it for me?”

Alright, let’s break it down—no finance-speak, just the stuff that actually matters to you.

1. Tackling Cost Pressures

Prices have been creeping up, and the government knows it. To help, every household is getting $800 in CDC Vouchers—$500 in May and $300 in January next year. Half can be spent at supermarkets, and the other half at hawkers and heartland shops.

If you live in an HDB flat, you’ll also see extra U-Save rebates—up to $760 this year, which should help with utilities. Plus, families with kids get a $500 LifeSG credit per child under 12, which can be used for everyday expenses.

And here’s a little birthday gift for everyone—Singapore is turning 60, and all Singaporeans aged 21 and above will receive $600 in SG60 Vouchers. Seniors aged 60 and above get an extra $200, bringing their total to $800. These work just like CDC Vouchers, helping to ease daily expenses.

2. Helping Workers and Businesses Stay Competitive

The job market is evolving fast, and Singapore is doubling down on SkillsFuture. If you’re 40 or older, you already get $4,000 in SkillsFuture Credit. Now, there’s also a training allowance of up to $3,000 per month if you take selected full-time courses. Working while studying? You’ll get $300 a month to help with expenses.

For businesses, the Enterprise Compute Initiative ($150 million) will make AI tools more accessible. Plus, a 50% Corporate Income Tax rebate (capped at $40,000) will ease some financial strain for SMEs.

3. Investing in Sustainability and Innovation

Singapore isn’t just thinking short-term—it’s betting big on clean energy and tech. A $5 billion Future Energy Fund will help secure sustainable power sources, including potential nuclear energy research (yes, really!).

The government is also setting aside $1 billion for R&D, focusing on biotech and semiconductors. If you’re in these industries, expect more support and funding opportunities.

4. CPF Changes for Seniors

If you or your parents are 55 and older, CPF contribution rates are increasing:

  • 55 to 60-year-olds: 34% total CPF rate
  • 60 to 65-year-olds: 25% total CPF rate

To help businesses adjust, there’s a CPF Transition Offset, where the government covers 50% of the employer’s increase for one year.

5. Transport and Housing Updates

Got an electric heavy vehicle or bus? Road tax changes are coming, with a phased-in Additional Flat Component starting in 2026.

Housing-wise, more shorter-wait BTO flats (less than three years) are being launched, and resale cooling measures will continue to stabilize prices. If you’re in the market for a home, this could make things a little easier.

Final Thoughts

Budget 2025 is all about helping Singaporeans manage rising costs, future-proofing jobs, and investing in sustainability. Between the SG60 Vouchers, CDC Vouchers, tax rebates, and SkillsFuture boosts, there’s something for nearly everyone.

No-Nonsense Guide: Using Your CPF to Invest in Treasury Bills (T-bills)

by

This is one out of two series where you can level up your CFP money.

Uncle’s Guide: How to Use Your CPF to Buy T-Bills in Singapore

Ah, investing with CPF money. Not as complicated as you might think, so let Uncle break it down for you. If you’re wondering how to use your CPF to buy Treasury Bills (T-bills), follow these steps, ok? Don’t worry, it’s not rocket science, but you must follow properly or else, headache later.

(yes, uncle know how to use AI for this)

Step 1: Are You Eligible?

First things first, are you Singaporean or Permanent Resident? Good, that’s sorted. Now, check your CPF Ordinary Account (OA) – you need to have at least $20,000 inside after this investment. Don’t go using all your CPF, need to leave some buffer. Ok, still good? Let’s go.

Step 2: Open CPF Investment Account (If You Haven’t)

Next, you need a CPF Investment Account. No account, no talk. Go and open one with any of the CPFIS-approved banks: DBS/POSB, OCBC, or UOB. This is where your T-bills will sit quietly after you buy them.

Step 3: Make Sure You Have Enough Funds

Quick check – do you have enough cash in your CPF OA to make this investment? Go and log in to CPF and see how much you can use for investments (there’s this option called “Amount available from Ordinary Account for professionally managed products”). Got enough? Ok, we move on.

Step 4: Pick Your T-bill

Now it’s time to choose which T-bill you want to buy. There are usually two types: the 6-month T-bill and the 1-year T-bill. You decide which one fits you better, lah. Both are issued by the government, so it’s pretty safe.

Step 5: Submit Your Application

Here’s the fun part, submitting your application. Just like ordering online, but for investments. So, this is how you do it:

  • Log in to your bank’s internet banking (either DBS/POSB, OCBC, or UOB).

  • Go to the investment section and look for “SGS” or “T-Bills.”

  • Choose the issuance code for the T-bill you want.

  • Now, you decide if you want to place a competitive or non-competitive bid.

If you’re the kind who likes things simple, just go for the non-competitive bid lah. Put your investment amount (in multiples of S$1,000), confirm everything looks good, and hit submit. Cannot anyhow make mistake here because once you submit, no take-backs.

Step 6: After the Application

Now you just wait for the auction results. The results will be out either one or two days before the auction date. You can check on the MAS website or log into your bank’s platform to see how you did.

  • If successful: Congrats! Your CPF OA will automatically be debited, and your T-bills will be credited to your investment account three days after the auction.

  • If not: No worries, the money will be refunded to your CPF OA in one or two days.

Step 7: When T-bills Mature

Fast forward six months or one year, and your T-bills will mature. Time to collect your money, but be quick lah. Transfer the proceeds back to your CPF OA as soon as possible – if you leave it hanging, no interest will be paid on that money. You can do this online, so it’s pretty easy.

Also, don’t forget to monitor your investments. Check your statements and the CPFIS dashboard once in a while to see what’s happening with your T-bill holdings.

There you go, simple right? Just follow these steps, and you’ll be able to make use of your CPF money to buy T-bills easily. Good luck, and remember, slow and steady wins the race!

Uncle's Simple Guide: How to Open a CPF Investment Account in Singapore

by

This is the 2/2 part of the series – where you can level up your CFP money. Ready to invest like a pro? Let’s go!

Uncle’s Simple Guide: How to Open a CPF Investment Account in Singapore

Alright, young one, today Uncle’s going to teach you how to open a CPF Investment Account (CPFIA) with the big boys: DBS, OCBC, or UOB. It’s not as hard as you think, just follow Uncle’s steps and you’ll be done in no time. Let’s go!

Opening a CPF Investment Account with DBS

First, let’s talk about DBS. If you already got a DBS/POSB account, you’re halfway there. But before anything else, you need to make sure you’re ready for this.

  1. Check Your Eligibility: You must be at least 18 years old and have more than S$20,000 in your CPF Ordinary Account (OA). No $20k? Sorry, cannot play.

  2. Complete the Self-Awareness Questionnaire (SAQ): Go to the CPF website and take this quiz to check if you know what you’re doing. Uncle says it’s better to know before you start.

  3. Log into DBS Internet Banking:

    • Already a DBS customer? Good. Log in to your DBS internet banking account.

    • Go to the “Investment” section and look for “Open CPF Investment Account.”

  4. Fill Out the Application: You just need to provide your details, nothing too difficult.

  5. Submit Your Application: Once you’ve reviewed everything, hit submit. Wait for SMS or a letter in the mail—usually takes 3-5 working days.

  6. Get Your Account Number: After your application is approved, DBS will send you your CPFIA account number. Now you can start investing like a pro.

Opening a CPF Investment Account with OCBC

Next up, OCBC. Same process, but a bit different flavour.

  1. Eligibility Check: Make sure you’ve got the age and at least S$20,000 in your CPF OA. You know the drill.

  2. Complete the SAQ: Don’t skip this. Go to the CPF website and take the test to make sure you’re ready for investing.

  3. Log into OCBC Internet Banking:

    • Got an OCBC account already? Perfect. Log in to your online banking.

    • Find the “Investment” section and click on “Open CPF Investment Account.”

  4. Fill Out the Application Form: Fill in all the details OCBC asks for.

  5. Submit Your Application: After double-checking your info, submit it.

  6. Account Confirmation: OCBC will notify you in a few days. Once approved, they’ll send you your CPFIA account number. You’re now ready to invest.

Opening a CPF Investment Account with UOB

Last one, UOB. Pretty much the same, but let Uncle guide you step-by-step.

  1. Eligibility Check: You know the rules—18 years old and at least S$20,000 in your CPF OA.

  2. Complete the SAQ: Same process. Go to the CPF website, take the questionnaire, and show that you understand what you’re getting into.

  3. Log into UOB Internet Banking or Visit a Branch:

    • Got a UOB account? Log into their online banking.

    • If not, no worries. You can visit any UOB branch to open your CPFIA in person.

  4. Fill Out the Application Form: Same as the others, fill in all the necessary details.

  5. Submit Your Application: Review everything, submit either online or at the branch.

  6. Receive Confirmation: UOB will notify you once your account is ready, and you’ll get your CPFIA account number. Easy peasy!

Important Things to Remember

  • You can only have one CPF Investment Account, so don’t go opening one with each bank, ah.

  • Double-check your information during the application. If you mess up, you might get rejected—then troublesome!

  • Once your CPFIA is open, you can start investing with your CPF OA funds according to CPF guidelines. Remember, don’t anyhow gamble lah, invest wisely!

There you go. Easy steps to open your CPF Investment Account with DBS, OCBC, or UOB. Now you’re all set to grow your CPF savings with smart investments. Happy investing!

The ABC of Investing and Finance

by

Uncle want to share knowledge

This is the first series of the jargon and terminology used in investing. Will link other list at the bottom of the post for future reference.

A

Asset Allocation: Like chicken rice, your portfolio shouldn’t just be rice and chicken! You will need a little bit of vegetable, chili and dark soy sauce. Diversify your investments across asset classes (stocks, bonds, cash) to balance risk and potential returns.

Appreciation: Think of your investments like a vintage jacket – their value increases over time, making them worth more when you sell.

Annual Percentage Rate (APR): The true cost of borrowing, expressed as a yearly percentage. It’s like reading the ingredients on a candy bar, but for loans.

Ask Price: The minimum amount a seller is willing to accept for an asset. Just like haggling with your durian seller, in the investing world, a good negotiator gets the juiciest deals.

Asset Class: Groups of similar investments. Think of it like sorting your clothes: shirts with shirts, pants with pants, and stocks with stocks (unless you’re feeling very rebellious).

Amortization: Spreading the cost of an asset over its useful life. Imagine paying for a new phone in tiny installments instead of one big chunk.

Accumulation Phase: The exciting years when you’re actively growing your wealth, like watering a tiny seed until it blossoms into a money tree.

Alpha: The elusive “secret sauce” in investing. It’s the extra return you achieve beyond the market average, like scoring a perfect soufflé while everyone else’s falls flat.

Average Annual Return: The historical average gain (or loss) of an investment over a specific period. It’s like looking at a restaurant’s average rating before deciding to dine there.

Ask Bid Spread: The gap between the highest price someone is willing to pay (ask) and the lowest price a seller will accept (bid). Think of it as the haggling space at a pasar malam, the wider the spread, the more room to negotiate.

B is for Building Your Financial Fortress

Bear Market: When the stock market takes a long nap and values hibernate. Don’t panic, grab a good book, it’ll wake up eventually. Means everything is low, many people will lose money if they sell.

Beta: in short, the difference between the value of your investment against the market movement. This is the chart that you see in those stock markets movie. High beta wiggles like a disco queen, low beta sways like a gentle waltz.

Broker: Starts with the word broke, their job is to help you buy and sell assets. With the the current day and age, they are your online brokerage (think: Moomoo, Tiger Trade and etc).

Bid Price: The maximum someone is willing to pay for an asset. Think of it as offering your highest price for a juicy durian at the market.

Blue-Chip Stocks: The tried-and-true giants of the financial world, like reliable sneakers that never go out of style. (Nike Cortez?)

Bond: An IOU from a government or company, promising to pay you back with interest.

Bull Market: When the stock market throws a wild party and prices are on the rise. Enjoy the champagne, but remember, every party eventually ends.

Budget: Your financial roadmap, charting your income and expenses. Treat it like a GPS, it helps you navigate towards your financial goals.

Balance Sheet: A snapshot of a company’s financial health, revealing what they own and owe.

Benchmark: Your investment performance yardstick. Compare yourself to similar assets or indexes to see how you’re stacking up, but remember, sometimes focusing on your own race is wiser.

C is for Cultivating Your Financial Garden.

Capital: The seeds of your financial harvest. It’s the money you use to invest and build wealth, like fertile soil for your financial plants.

Capital Gain: The sweet sunshine that warms your investment returns. It’s the profit you make when you sell an asset for more than you paid.

Capital Loss: The occasional cloud passing over your financial sky. It’s the money you lose when you sell an asset for less than you paid.

Compound Interest: Your financial magic beanstalk! Reinvested earnings snowball over time, making your money grow exponentially, like watering a tiny sprout that becomes a towering money tree.

Cash Flow: The lifeblood of your financial kingdom. It’s the money coming in and going out, like the gentle ebb and flow of a healthy river.

Collateral: The security deposit for your financial adventure. It’s an asset pledged to secure a loan, like leaving your bike with the pizza guy until you pay for your extra-large pie.

Call Option: The right, but not the obligation, to buy an asset at a set price by a certain date. Think of it as chope-ing a table at a restaurant, with the option to cancel if something better comes up, but you need to pay to buy the option.

Covered Call: Renting out your reserved table at the restaurant that you paid earlier! You sell a call option on an asset you already own, collecting a premium but giving up the potential for higher gains if the price soars.

Correlation: How two asset prices dance together. Some tango in perfect harmony, while others do the awkward shuffle, understanding their relationship helps diversify your portfolio.

Cost Average: Smoothing out the bumpy investment roller coaster. You buy smaller amounts of an asset at regular intervals, averaging out the price over time.

🇸🇬💰🇸🇬💰🇸🇬💰 – 2024

by

Before you spend your money, you gotta plan how to spend.

🇸🇬💰💰💰

https://instagram.com/p/C1YSLfhSac0/

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.

You can also follow Ministry of Finance’s Telegram channel here

No brainer guides to investing.

by

Get rich slowly but never die trying to get rich.

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.

“Because nobody want to get rich slowly” – Warren Buffett

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.

Steven Lim's favourite company

by

Unfortunately Uncle Huat may not be as stonks as Steven Lim kor kor

Singapore Post Ltd: Delivering Dividends, But Can It Deliver Shareholder Returns?

Steven Lim’s stonks story

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.

Further Resources:

Note: Uncle Huat does not own Singpost shares, please exercise your own risk analysis before investing. This is not an investment advice.