HDB Loan or Investment

(01-04-2014, 11:20 PM)yeh Wrote:

(01-04-2014, 10:57 PM)Belg Wrote:

(01-04-2014, 07:04 PM)Art or Science Wrote: Yeah not young le. Started investing late. Can't enjoy the wonders of compound interest as much as others who started early. Now just trying to devour as many books and gain knowledge and experience as I invest 1 lot by 1 lot. Haha. I'm timid lah.

No one is too late to learn and invest with the magic of compounding. I am also really coming back to stocks after the last CAO scandal which I just really follow the crowd to buy.

Frankly I believe the most important thing to achieve before getting into investment is to get a house for own stay and also at least a 6 - 12 months worth of household income for emergency funds set aside. Only then can we really focus fully onto investment and not being forced to sell one of our darling stocks to tide us through the tough period.

I am pro to going long for 5 - 10 yrs for good stocks to reap good profits.

6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by the income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ok Noted. Expenses could be a routine sum and not emergency? Since emergency is out of the blue and it can incur up to big sums. I guess different people has varied mindset on this.

Correct me if I am wrong.

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ya lol!
When you reach the de-accumulation phase you will know you got only expenses and no income (not working for money anymore), you will know it's doubly hard to balance "your cash flow and income generating assets" to invest at the same time. In order not to be caught by surprises of the market or your daily livings.
Now, you (youngman) should know how to do better with still a lot of unspend HC.
When you reach de-accumulation phase you will know how hard it is to protect your nest eggs unless you have acumulated your $millions already.
Shalom.

(02-04-2014, 09:32 AM)Belg Wrote:

(02-04-2014, 09:14 AM)CityFarmer Wrote: Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ok Noted. Expenses could be a routine sum and not emergency? Since emergency is out of the blue and it can incur up to big sums. I guess different people has varied mindset on this.

Correct me if I am wrong.

Well, I always start a discussion with definition What is the definition of the Emergency Fund, not a generic one, but the one used by most financial planner?

It should not be an emergency fund for medical expenses. In fact, no fund of reasonable amount, is sufficient for medical expenses. Wealthier families like Brunei Royal medical bill costed ten of million dollars. So insurance should be the one to cover it.

It is also should not be an emergency fund for ad hoc big ticket items.

The emergency fund should be for lose of income, due to whatever reasons. It should cover the essential expenses during the budgeted emergency period.

(02-04-2014, 09:45 AM)Temperament Wrote:

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ya lol!
When you reach the de-accumulation phase you will know you got only expenses and no income (not working for money anymore), you will know it's doubly hard to balance "your cash flow and income generating assets" to invest at the same time. In order not to be caught by surprises of the market or your daily livings.
Now, you (youngman) should know how to do better with still a lot of unspend HC.
When you reach de-accumulation phase you will know how hard it is to protect your nest eggs unless you have acumulated your $millions already.
Shalom.

Well said, Uncle Temp. From your experience, what would be your advice during accumulation (with lots of HC) and during de-accumulation? I am sure alot of us would want to have a good balance of both cashflow and also investment assets at the same time.

Invest and prosper.

(02-04-2014, 09:56 AM)Belg Wrote:

(02-04-2014, 09:45 AM)Temperament Wrote:

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ya lol!
When you reach the de-accumulation phase you will know you got only expenses and no income (not working for money anymore), you will know it's doubly hard to balance "your cash flow and income generating assets" to invest at the same time. In order not to be caught by surprises of the market or your daily livings.
Now, you (youngman) should know how to do better with still a lot of unspend HC.
When you reach de-accumulation phase you will know how hard it is to protect your nest eggs unless you have acumulated your $millions already.
Shalom.

Well said, Uncle Temp. From your experience, what would be your advice during accumulation (with lots of HC) and during de-accumulation? I am sure alot of us would want to have a good balance of both cashflow and also investment assets at the same time.

Invest and prosper.

From my experience, the most important thing to be able to do is, "You must have the ability to "forget" about your money invested in the stocks or in fact any investments." That's if you can take out the time factor in investing, you should be doing O. K. lah in the long run.

Another words no "spare money" is the best not to invest lol.

(02-04-2014, 10:25 AM)Temperament Wrote:

(02-04-2014, 09:56 AM)Belg Wrote:

(02-04-2014, 09:45 AM)Temperament Wrote:

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote: Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ya lol!
When you reach the de-accumulation phase you will know you got only expenses and no income (not working for money anymore), you will know it's doubly hard to balance "your cash flow and income generating assets" to invest at the same time. In order not to be caught by surprises of the market or your daily livings.
Now, you (youngman) should know how to do better with still a lot of unspend HC.
When you reach de-accumulation phase you will know how hard it is to protect your nest eggs unless you have acumulated your $millions already.
Shalom.

Well said, Uncle Temp. From your experience, what would be your advice during accumulation (with lots of HC) and during de-accumulation? I am sure alot of us would want to have a good balance of both cashflow and also investment assets at the same time.

Invest and prosper.

From my experience, the most important thing to be able to do is, "You must have the ability to "forget" about your money invested in the stocks or in fact any investments." That's if you can take out the time factor in investing, you should be doing O. K. lah in the long run.

Another words no "spare money" is the best not to invest lol.

I.e. accumulate to cut down costs and bring up spare cash. With spare cash then to invest. Lastly, is to let this investment egg grow on its own.

(02-04-2014, 09:32 AM)Belg Wrote:

(02-04-2014, 09:14 AM)CityFarmer Wrote:

(02-04-2014, 09:08 AM)Belg Wrote:

(01-04-2014, 11:20 PM)yeh Wrote: 6-12 mths household income for emergency fund? so much meh?
i thought 6 to 12 mths household expenses?

like that, no need to invest liao.

Well, to each her own. e.g. one will not put a 50k renovation payment into the stock market to invest, knowing jolly well that this payment has to be made in 1 year time etc.

it is just a contingency sum in case of emergency. End of the day, I am suggesting not to withdraw investments in a short term, i.e. 1 - 2 years. As we know Mr Market acts like a voting machine in the short term while it is like weighing machine in the longer term.

Invest and prosper.

Emergency sum should be determined by the expense, rather by income, otherwise it might be overly allocated. It is a cost, and should be kept as low as appropriate and comfortable to each individual.

Ok Noted. Expenses could be a routine sum and not emergency? Since emergency is out of the blue and it can incur up to big sums. I guess different people has varied mindset on this.

Correct me if I am wrong.

for potential big sums emergency, get insurance coverage.

Ok. I learned some today.
Basically the cash I can set aside for invest is mainly my cash+ 1/3 hubby cash.
Hubby is very conservative type. Our FD+ NTUC grow fund able to clear our HDB loan.

Now still wondering whether should clear the loan.
Also, if we decided to clear the housing loan. The cash I decided for investment. Probably will only use half. The remaining half, I will keep as emergency fund.

Now I have FD n growth fund as my emergency fund ( about 12 month household income) .