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.

Best High Interest Saving Account Singapore 2022

Best High Interest Saving Account Singapore 2022

I never thought there will be a day the banks will adjust their interest rates upwards again(DBS, UOB, OCBC). In 2018 period, the local banks came out with a great marketing program to give higher interest. It was heavily discussed. However, it was short lived as the banks slowly reduced the amount of interest.

Learning from the past lessons, I view that this interest increase as temporary in nature and you shouldn’t base your long term planning (insurance or investment) to increase your interest in your bank account.

In this article, I will take on several assumptions to decide which bank account is the best for you in 2022.

Best High Interest Saving Account Singapore 2022
Best High Interest Saving Account Singapore 2022

Assumptions Taken

Marketing Message From The Banks

This is the current marketing message from the banks.

Based on the marketing message, OCBC sounds the best. It is also good to know that OCBC changed their program 1 month after DBS and UOB have made changes.

First Elimination

With our assumptions, we feel that DBS multiplier is the worst out of the 3.

DBS Multiplier Account Working
DBS Multiplier Account Working
DBS Multiplier Account Interest Tiers
DBS Multiplier Account Interest Tiers

Based on our assumptions, we will only hit 1 category in DBS multiplier. I feel that we shouldn’t increase our transaction categories just for the sake of the higher interest.

Effectively, there will be a higher interest on the first $25,000. Your interest of 1% will give you $250 annually.

Best Fuss Free Bank Account: OCBC 360 Account

OCBC is rank the best fuss free bank account in my opinion as they follow a very simple interest tier model.

OCBC 360 Account Interest Tiers
OCBC 360 Account Interest Tiers

Following our assumptions for using only salary crediting and spending on credit card, the effective interest rates (EIR) 1.5% resulting in an annual interest of $1500.

However, I like this more as this is fuss free. If you don’t want to hit the credit card spending of $500 monthly, the salary option will have an EIR of 1.1% resulting in an annual interest of $1100. This is great for people who do not want to keep track of their spending for the sake of the extra interset

Best Higher Interest Bank Account: UOB One

UOB and OCBC comes up very close but UOB wins because of the ease of understanding of their UOB one card.

UOB One Account Interest Tiers
UOB One Account Interest Tiers

The emphasis of UOB is the credit card spend. If you do not hit the minimum of $500/month, then the interest be affected. Hence, this will only work if you are certain to be able to hit the monthly eligible credit card spend of $500.

The total annual interest (inclusive of cash rebates) from UOB One account and UOB One Card is $1,700 making this the best higher interest bank account for now.

 

Final Thoughts

There you have it. Personally, I’m went with the OCB 360 account because of the ease of use.

I believe that choosing your bank account is one of the first steps to plan for your finances. At the same time, I will avoid buying products just to get that extra bit of interest as the interest might change in future again.

That being said, you should always have a long term perspective when it comes to planning. I will recommend you to use the retirement calculator to have an idea how much you need for retirement.

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.

What will happen after 2022

What will happen after 2022?

I don’t think I have to repeat how bizarre is the world is right now. After contracting COVID19, I sat down (actually slept down most of the time) and thought long and hard about how financial events are shaping our economy now.

There are events in the world and many are definitely out of our control. However, some of the effects will be trickled down to be felt by us. I will be talking about my thought of the 3 most important financial events that will affect us, inflation, interest rates and wages.

Disclaimers: All thoughts are mine alone. Though I would love to hear yours in the comments section below.

What will happen after 2022
What will happen after 2022

Inflation

This is Singapore’s annual inflation rate over the past 25 years. As Singapore is only independent for 57 years, this data is what Singapore has been facing half the time. You can see for majority of the time, inflation was “well behaved” at 2%. The exception would be spike in 2008 (Financial Crisis) and for a period between 2011 to 2013.

Interestingly, inflation in 2011 to 2013 was cause by largely on account of sharp increases in car and house prices amid scarce supply.


Table 1: Inflation. Source: tradingeconomics.com

While headline inflation is forecast to come in at between 4.5 per cent and 5.5 per cent, while core inflation is projected to average between 2.5 per cent and 3.5 per cent. I will be concerned about core inflation which you can see on the chart below that it went up beyond 4% in 2008. We are definitely feeling the heat with food, electricity and gas prices have been increasing.

Singapore Core Inflation
Singapore Core Inflation

I predict (mainly because of the lack of data and research) that we will be having a inflation > 2% for at least another 2 years before it gets back the usual range. I don’t think prices will fall when inflation becomes lower. Hence, make it a point to preserve the value of your money. This is especially important if you are nearly retirement or at retirement.

Interest Rates

Singapore Housing Loan VS Fixed Deposit Trend
Graph 1: Singapore Housing Loan VS Fixed Deposit Trend

Interest rates affects various financial instruments and in the graph above. I’m hearing a lot of chatter on 4 things on the ground.

Housing Loan

When interest rates raise, housing loan rates also raises. As you can see above, the last 10 years we were living in a low interest rate environment. In the last few months, home loans are starting to move upwards to 3% (fixed rate). The implication of this is a cashflow drain.

Imagine you are servicing a 30 years housing loan of $800,000 at an interest of 1.1% previously. Your monthly mortgage works out to be $2610.

At 2%, your monthly mortgage is $2957. This is an increase of $347 monthly or $4164 annually.

At 3%, your monthly mortgage is $3373. This is an increase of $763 monthly or $9,156 annually.

Can you see why people are worried when rates increases to 3% now?

If you are looking into floating rates, Singapore is using SORA now. SORA is 0.8089% p.a. (as at 4 July 2022). A typical spread of banks would be between 0.8% to 1.2% depending on your relationship with them. I would expect the floating rates (including spread) will be between 2% to 4% in the next 2 years.

Fixed Deposits

Hurray to those of you who are cash rich. Guaranteed rates never look better. We are seeing fixed deposit rates increasing with UOB giving 2% for a 2 year lock in. Other banks are also stepping up their interest rates too.

Disclaimer: This is by no means a buy/sell recommendation

UOB Fixed Deposit July 2022
UOB Fixed Deposit July 2022

Even the Singapore Saving Bonds are giving average 3% returns in July 2022.

Singapore Saving Bonds July 2022
Singapore Saving Bonds July 2022

Looking at data, I’m concerned as the Housing Loans (15 Years) and Fixed Deposit (1 Year) are highly correlated (see graph 1). The average difference between housing loan and fixed deposit over the years is 3.3%. This means that if Fixed Deposit is 1%, there is a chance that the housing loan could go to 4.1%.

Insurance Participating Policies

Just a year ago, people were terribly concerned about insurance companies’ ability to fulfill their participating policies (think endowment policies) illustrated rates. (Read More: Participating Funds Singapore Moving Forward ; Should You Be Concerned About Dropping Illustrated Rates)

The industry has realigned expectations in July 2021. The upper illustration rate will be capped at 4.25 per cent a year, down from 4.75 per cent, and the lower illustration rate will be capped at 3 per cent a year, down from 3.25 per cent.

The previous rate change was in was in 2013, when the upper illustration rate cap was reduced from 5.25 per cent to 4.75 per cent a year. The lower illustration rate was reduced from 3.75 per cent to 3.25 per cent.

The main reason was because of the low interest decade that we were living in.

Now that interest rates are moving up, will insurance companies increase the rates in the participating policy again?

CPF Interest Rates

In a low interest environment, our CPF interest rates looks like an attractive place to reap guaranteed interest (we are leaving context aside for this statement).

Imagine if fixed deposit rates are nearing 3.5% or even 4%, I think it is very important to pause and think if people who continue contributing to their CPF (putting context aside for now) if the rates are near parity.

CPF may lose attractiveness (for a while). That being said, the CPF may change interest rates from time to time. Personally, I doubt that will happen. I am already very appreciative that CPF has kept rates the same despite the prolonged low interest environment.

 

Wages Inflation

Isn’t this something to be celebrated? Local wages grow by 7.8% in Q1, outpacing inflation. I believe that this is because there is a shortage of labor with travel restrictions. If you are looking for an opportunity, this is one of the best timing to seek a higher paying job.

 

Final Thoughts

Like I said from the start, these are some thoughts that I have jotted down and my own personal predictions for the future. I would love to hear your thoughts in the comments below.

Last but not least, do consider your own context before making your decision. Do reach out if you wish to discuss with me.

 

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.

My SRS Portfolio June 2022

My SRS Portfolio and Thoughts [June 2022]

My SRS Portfolio June 2022
My SRS Portfolio June 2022

I’m writing this in the middle of June as I’ll be busy preparing for reservist during month end. In addition to the perfect long storm, inflation has been coming up in all areas. We are also officially in the bear market [Read More: Bear Market Survival Guide]. I have also finally added my position using dollar cost averaging which I will be covering more below.

If you are new to Supplementary Retirement Sum (SRS), please start here.

Disclaimer: This article is not and should not be taken as a buy/sell/hold recommendation.

My Thoughts and Consideration

My SRS Portfolio and Thoughts June 2022
My SRS Portfolio and Thoughts June 2022

Other than the new pie chart, I have added more into SGX: HST. The new addition is a very simple dollar cost averaging move. In China, Chinese banks cut a key interest rate for long-term loans. This can be seen as a bullish move as this will boost loan demand. However, China still struggles with lock-down from time to time if COVID cases were to arise. Let’s see how it turns out.

Meanwhile in SGX: BTOU, William David Gantt is appointed as the new CEO. Gantt wants to build a higher proportion of growth tenants, and this will be done through capital recycling, not acquisitions, for now. Their new focus will be on building quality income instead of growth. We probably will be looking at a new tenant mix in the quarters to come. I believe that the US office space is having an identity crisis now as working from home is a choice for employees now. If every company start to behave like Tesla (remote work privilege to end), we will see a higher occupational rates in the quarters to come.

I probably will be looking at a few Singapore companies in the quartiers to come.

Final Thoughts

I reemphasize again that this is not and should not be taken as a buy/sell recommendation. Wishing you all the best!

 

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.