11 Classic Movies That Investors Should Watch

11 Classic Movies That Investors Should Watch

Chinese New Year is coming along the corner. This means it is perfect time to catch up on some movies that you always have been wanting to watch. Here are 11 movies that investors should watch that will keep you occupied during the Chinese New Year.

11 Classic Movies That Investors Should Watch
11 Classic Movies That Investors Should Watch

Trading Places (Rated R)

Trading Places is a hit 1983 comedy, directed by John Landis, featuring Eddie Murphy and Dan Aykroyd. Aykroyd is an investment broker while Murphy hustles to make money on the streets. They end up switching places on a bet. In the end, they team up to use their brain power to make a bundle in investments. It’s an enjoyable escape for any movie viewer that might plant seeds of inspiration.

Stream it on Prime Video, Redbox, Apple TV, and more.

The Wolf of Wall Street (Rated R)

If you’re looking for a true story that is also a cautionary tale, catch The Wolf of Wall Street. Leonardo DiCaprio plays real-life stockbroker Jordan Belfort in this 2013 film directed by Martin Scorsese. It follows his triumphs on Wall Street before his fall into corruption. Beware of where greed can take you when watching this movie that is.

**This is a wealthdojo’s favorite.

11 Classic Movies That Investors Should Watch Wolf Of Wall Street
11 Classic Movies That Investors Should Watch Wolf Of Wall Street

Stream The Wolf of Wall Street on Amazon Prime, DIRECTV STREAM, Showtime, and more.

American Psycho (Rated R)

Christian Bale is best known for his portrayal of the superhero, Batman. However, go back to the year 2000 to catch him in American Psycho, directed by Mary Harron. In this film, Bale is an investment banker by day. At night, he’s secretly a serial killer wreaking havoc on the city. The movie gives viewers a peek at what life is like for people who wheel and deal in investments where the stakes are high.

Stream it on DIRECTV STREAM, HBO Max, and more.

Rogue Trader (Rated R)

Rogue Trader, directed by James Dearden, follows Ewan McGregor on a journey as he portrays Singapore trader, Nick Leeson. He balanced on a tight wire of risk management. In the end, he caused the collapse of Barings Bank, a stellar merchant bank that ranked at the top on a global level.

Watch this 1999 film on Amazon Prime.

Wall Street (Rated R)

When you think about the stock market, you can’t help but relate it to Wall Street in New York City. This has been the heart of the financial district for the United States. The stock exchange dates back to 1792. The 1987 movie Wall Street focuses on the ambitious stockbroker played by Charlie Sheen. Directed by Oliver Stone, it’s educational for anyone who wants an inside look at analysts, brokers, and traders.

Check it out on Hulu + Live TV, Apple TV, Amazon Prime, and more.

The Wizard of Lies (Rated TV-MA)

The Wizard of Lies stars Robert DeNiro as the infamous Bernie Madoff, a businessman who turned out to be a fraud. Director Barry Levinson exposes Madoff for his criminal activity on Wall Street as he took money from investors to increase his own wealth. He ended up going to prison.

Catch this 2017 film on HBO Max, Amazon Prime, Vudu, and more.

Margin Call (Rated R)

If you’re wondering what happens behind the scenes in investment banks on Wall Street, watch Margin Call. Directed by J.C. Chandor and starring Zachary Quinto, it will give you a chance to watch 24 hours on the edge of your seat as a bank approaches the disaster of the financial crisis that struck in 2008.

Stream Margin Call on Netflix, Prime Video, and more.

The Big Short (Rated R)

The Big Short, directed by Adam McKay and starring Ryan Gosling follows a group of investors in the middle of the 2000s who wagered on the housing market before it was ready to crash.

**This is another wealthdojo’s favorite.

11 Classic Movies That Investors Should Watch The Big Short
11 Classic Movies That Investors Should Watch The Big Short

Watch it on Amazon Prime, Disney Plus, and more.

Quicksilver (Rated PG)

Quicksilver is an 80s film starring Kevin Bacon. Directed by Thomas Michael Donnelly, it follows Bacon who is a stock trader who loses it all. He starts over as a bike courier, gets mixed up in frightening intrigue, and makes his way back to the market. It’s a great tale for anyone who needs to have a new beginning.

Watch it on Tubi, Vudu, Apple TV, and more.

Working Girl (Rated R)

Working Girl, directed by Mike Nichols and starring Melanie Griffith, is a film that follows one woman’s journey from secretary to the top of the business ladder. Griffith has a brilliant idea stolen by boss, Sigourney Weaver. Griffith trades places with her for a while and launches her own career. Learn how anyone can succeed in the business world when you watch this flick.

Catch on Apple TV, Amazon Prime, and more.

Glengarry Glen Ross (Rated R)

If you want to see what’s really going on in the real estate world, catch greats like Al Pacino, Jack Lemmon, and Alec Baldwin in Glengarry Glen Ross. This film directed by James Foley paints a picture of corruption.

Watch it on Hulu, Amazon Prime, and more.

Final Thoughts

Let’s brighten the mood this Chinese new year!

These are tough times for financial markets. Everyone has had to tighten their belts and look for ways to spare their wallets. Inflation keeps going up with no end in sight. There’s no better moment to focus on investing to give yourself some peace of mind. If you know how to sock money away or make your current savings grow, it will help you to weather any storm.

Pop some popcorn, pour yourself a drink, and give yourself a day to line up your pick of films that show you what investing is all about. They will either inspire you or tell you what not to do when investing.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

Should I Pay My Property Mortgage Loans Singapore

Should I Pay My Property Mortgage Loans?

Property Mortgage Loans are getting a lot of attention now as the interest rates are increasing. On 15 Nov 2022, DBS, OCBC and UOB raised their fixed home loan interest rates, with rates reaching up to 4.5 per cent. If you are approaching your refinancing period, there is a high chance that you are thinking of paying off your property mortgage loans. Should you do it or not?

Side note, if you are unaware of the latest property cooling measures, click here to read about it.

Should I Pay My Property Mortgage Loans Singapore
Should I Pay My Property Mortgage Loans Singapore

Brief Introduction

Mortgage is a loan that is secured by real property. It is a financial tool that makes the ownership of property possible as not everyone have the luxury of having hundreds of dollars in the bank at once.

The mortgage is made up of Borrower (you), Lender (usually the banks), Loan Amount, Interest Rates, Loan Tenure and Monthly Installment. Using a formula, you will be able to find out your monthly installment for your mortgage.

Should I Pay My Property Mortgage Loans Mortgage Formula
Should I Pay My Property Mortgage Loans Mortgage Formula

The Methodology

Behind every financial model, there is a few key assumptions that we will have follow. I have build an adjustable model to take into account your property mortgage loan value and also the interest rates. Here are the assumptions.

  1. Loan Value: $1,000,000
  2. Interest Rates: 4% and 1.1% (for comparison)
  3. Interest Rates are Annualized
  4. Amount to Pay Off: $100,000
  5. Loan Tenure: 25
  6. If not paying down loans, will be investing $100,000
  7. If paid down loans, will be investing the interest that is saved by paying down loans

The 2 scenarios are whether this person should pay off their loans or not.

The Results

Should I Pay My Property Mortgage Loans Singapore Interest Rate 4%
Should I Pay My Property Mortgage Loans Singapore Interest Rate 4%

In the first case study at interest rate 4%, you can see that it only make sense to pay down your loan if you are unable to find an instrument to invest at >4% (with the actual number closer to 5%). Usually, this means that you might be a balanced or adventurous investing personality.

The are interests in T-Bills and Singapore Saving Bonds (SSB) as these instruments are now offering cut off yield of 4.2% (T Bills on 5th Jan 2023) and 3.47% (SSB on 1st Dec 2022). Very simply, if you invested into T-Bills and SSB at this rate with an existing property loan of 4.5%, you would be worst off.

Should I Pay My Property Mortgage Loans Singapore Interest Rate 1.1%
Should I Pay My Property Mortgage Loans Singapore Interest Rate 1.1%

If we were to rewind the clock and see property mortgage loans to be at 1.1%, it make senses to pay down your loan if you are unable to find an instrument to invest at 2%. Although this number might seem low, it also worth noting that at that period, interest rates for T-Bills and SSB were significantly lower too. The average interest for SSB on 2nd Jan 2022 was 1.76%.

In this scenario, those that were invested in the equity markets would definitely not pay off their loan.

To put these 2 scenarios together, there is a strong case not to pay off the loans in a lower interest environment.

Final Thoughts

That being said, I would advise you to consider that there are many more factors that you should take into consideration.

  1. If you are thinking of paying off the loan, will this reduce your saving significantly? While it is good to reduce the amount of interest you are paying, it is unwise to do it when it affects your liquidity ratio. A period of retrenchment or illness will let you wish you didn’t pay down the loan.
  2. Are you planning to invest into another property? As you pay off the loan, you will be able to get another loan to acquire another property.
  3. Are you someone who considers being debt-free important? Is accrued interest daunting if you are using your CPF-OA?

The above is simply a financial model. You are unique in your own situation. If you would want clarity in your situation (depending on your interest rate, loan tenure etc), feel free to reach out to me so that you can understand your situation using the financial model above.

Mortgage planning is an important element in financial planning. I wish you all the best and happy chinese new year!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

2022 Financial Recaps That Will Affect You In 2023

Financial recaps that will affect you in 2023

Give yourself a pat in the back as 2022 haven’t been an easy year for everybody. I know some who pass away because of COVID. I know some who are retrenched. I definitely know more than one person who had a mental breakdown. I would like to say that you have already done well. Your best will look different everyday.

Your Best Will Look Different Every Day
Your Best Will Look Different Every Day

While 2022 is ending, there are some financial news that are still impacting our lives. I will be updating the 4 most impactful financial recaps that happened in 2022 and will continue to impact us in 2023.

2022 Financial Recaps That Will Affect You In 2023
2022 Financial Recaps That Will Affect You In 2023

#1: Increase in CPF Top Up Tax Reliefs

In 3 Key Changes To CPF Policies From 2022 (if you haven’t read, this is my top article of 2022), I wrote about the change in rules for tax reliefs for Retirement Sum Top Ups (RSTU).

In a nutshell, the amount of tax reliefs structure have been streamlined to be up to $8,000 (instead of $7,000). and this cap will now be shared between Special Account (SA), Retirement Account (RA) and the MediSave Account (MA).

If you are planning to RSTU in 2023, the new limit will be $8,000.

#2: Interest Rates Increasing

I believe the era of low interest rates will be ending and we are moving to a more “reasonable” interest rate ranges. This increase in interest rates have sent some shockwaves to the property market. On the flipside, this means that the interest in your bank account will finally increase.

Frequent readers of my blog will know that I share about the power of the R.E.V. strategy to increase cashflow from your bank accounts. However, as the rules of the banks keep changing, I have refocus my attention on getting more consistent returns elsewhere.

I check if there are changes among the bank multiplier accounts and will only change if the changes are drastic. Best High Interest Saving Account Singapore 2022 will give you a glimpse of what’s available now. I’m willing to bet that there might have already been some new changes already.

In any case, keep things simple and consistent.

#3: Property Rules

Higher interest rates will affect the property market and the local government have already lay down new rules for this. 3 Effects of Property Cooling Measure Singapore.

Loans will have a higher stress test. This will mean that you will get a lower loan amount if you plan to buy a house. If you are purchasing HDB, the loan to value have dropped from 85% to 80%, this mean that you have to increase cash payment by 5%

The one that got the most concern is of the 15 months waiting period for switching from private to HDB. While this has spooked the market. I believe there will be an increase in smaller condo units as a result.

#4: We Are Still in a Bear Market

I will share some statistic to give equity investors a glimpse of hope.

The average length of a bear market for the S&P500 is 289 days. The market begin it’s slide on 3rd January 2022.  This will mean that the bear market will end (on average) on 19 October 2022.

While we have obviously passed that date, this mean that we may be due for a recovery soon. (Disclaimer: this isn’t financial advice and just statistics).

I have written a guide on Bear Market Survival Tips and The Pros And Cons Of Dollar Cost Averaging. This guide has been written as I receive many enquiry on what they should do during this bear market. Please take some time to read them.

 

Final Thoughts

The financial planning industry will evolve every year. While the rules of the game might change, it is vital to keep moving towards your end goal.

You are not alone in this. I suggest that you can consider to work with a trusted financial advisor that evolves with the economy. Otherwise, take time to read and understand the changes so that you can move towards your intended goal.

I wish you all the best. Take care!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

Save on Cable Bills by Streaming Your Favorite Channels

Save on Cable Bills by Streaming Your Favorite Channels Singapore

Are you burnt out or bored with Singtel or StarHub?

Do you wish you had a broader variety of things to watch without paying for extraneous channels?

Are you frustrated with MediaCorp TV?

Do you miss the days of variety from satellite dish entertainment?

If you answered ‘yes’ to any of these questions, you will be well-rewarded for reading the rest of this article. Provided below is a guide to getting digital entertainment for discerning Singaporeans who want to cut the cable (Read More: Purge Your Money Burdens) but still access media on their own schedule and at more negotiable prices.

Save on Cable Bills by Streaming Your Favorite Channels
Save on Cable Bills by Streaming Your Favorite Channels

Determine the Right Video Streaming Service and Plan

Because there are many streaming services out there, you need to understand what each platform offers. While it is best to do your own research, we can assist by providing an overview of the major providers, their pricing and even highlighting which ones have free trials.

Netflix

While the platform that allowed streaming to rise to its current prominence has recently taken several hits, Netflix is still a solid streaming service for original programming. It also features a decent catalog of television and films that is constantly being subjected to updates.

Pricing Structure: Netflix offers three subscription tiers.

  • Basic (S$12.98/month) – This option has a single-screen limit and only offers standard-definition content. Downloads are limited to one device.
  • Standard (S$17.48/month) – This option has a two-screen limit and offers Full HD content. Downloads are limited to two devices.
  • Premium (S$21.98/month) – This option has a four-screen limit and adds Ultra HD to content options. Downloads are limited to four devices.

Free trial – 30 days

Disney+

If you love anything Disney-related or its many subsidiary properties, then this is the streaming service for you.

Pricing Structure: Disney+ subscriptions come in a few plans.

  • Monthly – S$11.98/month
  • Yearly – S$119.98 upfront
  • StarHub Bundles – StarHub features several bundles that include Disney+.

Free trial – Not available

Amazon Prime Video

Prime Video (check review) is full of original series and films, as well as a respectable library of third-party content.

Pricing Structure: Anyone interested in a Prime Video subscription can pay S$2.99 a month. It includes access to Amazon Prime.

Free trial – 30 days

Apple TV+

If you are a fan of all things Apple or curious about shows like “Ted Lasso”, you might consider giving this platform a shot.

Pricing Structure: S$6.98/month.

Free trials – 7 days

HBO GO

HBO GO is an exhaustive compilation of Hollywood films, blockbusters and original series from the various brands of HBO and Cinemax.

Pricing Structure: Anyone interested in an HBO GO subscription without using another service provider can pay either S$13.98/month or S$29.98/three months.

Hayu

Over 200 reality programs are available the same day that Americans see them.

Pricing Structure: S$4.99/month.

Free trial – 7 days

iQiyi

If you love your pan-Asian media, this streaming service is for you. They even offer several original programs.

Pricing Structure: Anyone interested in subscribing to iQiyi has two options:

  • Standard – S$8.98/month with a two-screen limit.
  • Premium – S$12.98/month with a four-screen limit.

Viu

Nicknamed ‘Korean Netflix’, this streaming platform is a reliable spot for binge-worthy Korean dramas.

Pricing Structure: Anyone interested in subscribing to Viu has three options with special pricing available for student subscribers:

  • Basic – This is the ad-supported free tier but comes with only limited access to standard definition programming. Users can access content 72 hours after it becomes available to Premium users and may download one show at a time.
  • Premium – Users have unlimited, ad-free access to Viu’s catalog and are free to download as often as they wish. New shows become available 8 hours after the telecast. While this tier is available for S$7.98/month, that cost is reduced for lengthier subscriptions: 90 days, 180 days or a full year (S$7.58/month, S$7.19/month and S$6.39/month, respectively).
  • Premium (Student) – Students who present a school ID can receive a discounted subscription to Viu Premium that only costs S$3.98 per month.

Free trial – 7 days.

Buy a Video Streaming Device

Once you know which streaming services you like, your next step is acquiring a device to stream those services. In the simplest of terms, this is like a set-top box that connects directly to a TV and allows you to watch your favorite films and shows through that TV; think of it as a replacement for a cable box. While there are dozens of brands on the market, the major names include Amazon Fire TV, Apple TV, Chromecast and Roku.

Final Thoughts

Now that you have a better idea of your options, you now know which services can best suit your tastes in media. You will need a streaming device to enjoy them on a screen bigger than your phone, tablet or monitor (Read More: How To Save On Big Ticket Purchases). You can safely cut that cord and still find plenty of entertainment to consume with friends and family.

(Read more: The Ultimate 4 Quadrants Shopping Guide Especially If You Are 28 and Older)

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

3 Effects of Property Cooling Measure Singapore

3 Effects of Property Cooling Measure Singapore

Singapore is not new to property cooling measures. Do you know that the first property cooling measure was done in September 2009? I believe this was conveniently done after the global financial crisis of 2007 to 2008 to protect the property market in Singapore.

While I believe that cooling measures are introduce to allow Singapore’s property market to achieve slow consistent growth, there will definitely be effects on homeowners, buyers and the renters crowd. I want to share 3 main implications of the new cooling measures done on 30 September 2022.

3 Effects of Property Cooling Measure Singapore
3 Effects of Property Cooling Measure Singapore

Higher Interest Rate To Calculate Loans

For property loans granted by private financial institutions, MAS will raise by 0.5%-point the medium-term interest rate floor used to compute the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).

For residential property purchase loans and mortgage equity withdrawal loans, they will using the  4% per annum (p.a.) floor (up from 3.5% p.a.).

3 Effects of Property Cooling Measure Singapore Maximum Loan Amount
3 Effects of Property Cooling Measure Singapore Maximum Loan Amount

Putting this into numbers, the maximum loan that banks will be able to provide will reduce by the following amount. Personally, I think there will be no major impact from this as the quantum for the properties are in the millions. This will affect buyers who will not be able to stretch (even more) when it comes to bidding for the property.

If asked if the interest rate floor will increase again, I personally don’t think so and likely to hover around the current rates. The MAS-MND-HDB have commented that “They (interest rates) are expected to rise further in 2023 along with US interest rates, before settling at a higher level compared to the lows during the period 2013 to 2021.”

Loan-To-Value from 85% to 80%

This is applicable for HDB housing loans only (Private LTV limit remains at 75%). This means the HDB buyers will have to increase cash downpayment by an extra 5%.

I believe this is aimed at HDB that are bigger in nature namely 5RM, Jumbo, Executive Apartments etc. In particular, this aims to reduce the raise of the million dollar HDB (231 Million Dollar HDB from Jan to Aug 2022). I believe the government intends for HDB to remain affordable and want to reduce the use of HDB to do speculation.

3 Effects of Property Cooling Measure Singapore LTV Effects
3 Effects of Property Cooling Measure Singapore LTV Effects

Personally, I think there may not be major impacts even for the higher quantum levels. You will also be glad to know that first timers or the lower income group will not be affected much by this because of the housing grants (up to $80,000) available for them.

15 Months Wait Out Period For Switching From Private to HDB

This is perhaps the most talked about measure as it will affect people is planning to sell their private property into a resale HDB. Currently, people who have private properties have to sell it within six months of the HDB flat purchase.

Now, there is a wait-out period of 15 months after the disposal of their private properties before they are eligible to buy a non-subsidised resale flat. This means that it will not be easy to move towards HDB. You will be glad to know that this is a temporary measure.

You will also be glad to know that this will not affect those age 55 and above who is choosing to downgrade at that time**.

I believe there will be 4 main effects of this.

#1: There will be an increase in demand for smaller condo units. If people who do not want to wait for 15 months, they may consider to downsize to the smaller condo units. I believe transactions (perhaps price) for 2BR to increase in the months ahead.

#2: There will be an increase in demand for 4BR HDB resale units. For people age 55 and above, the 15 months wait out period will not apply to them** if they shift to a 4BR HDB or smaller.

#3: In general, lower transaction as the buying pool has shrunk. I believe that over the next quarters, the overall transaction might be lower as HDB upgraders will think twice. This reduces the effective buying pool.

#4: In general, rental rates will increase.

Final Thoughts

I believe that the government is planning for a sustainable and gradual growth of property prices. The emergence of million dollar HDB, the increase in property prices and the increase in interest rate calls for prudence for financial planning.

The effectiveness of the cooling measure will be tested as Copen Grand (7 Oct) and Tenent (Mid Nov) hits the market soon.

Property play a big role in our financial planning. It will be prudent to understand your own financial situation before making a decision into the market. It is also important to remember that other asset class (eg: insurance, estate planning, equity investment) should be taken into consideration when planning for your financial future.

I wish you all the best. Take care!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.