Tuesday, 13 January 2015

Investments, Money + Teenage Investor's Q & A




Hello, recently I received emails from new readers of my blog after my post was shared on Facebook. Honestly, I was quite shocked and a little gratified that readers found my blog post interesting and relatable enough to share on their Facebook page. That post alone got me an increase in readership by 30k+.



Today, I will be attempting to answer a few questions that were asked by readers. I noticed many of you have questions about investments, you want to start but not sure where to begin.

Currently, I'm still discussing with an investment company on their seminars and if it will be helpful for readers to attend. Nothing's confirmed yet, but stay tuned for good news hopefully.

Anyway, moving on!

I will try my best to answer all the questions posted to me by BR.

1st Email 



HI, teenage investor, i have recently read your blog posts and come across many interesting articles and i must say that it is very informative and helpful.


Just a short introduction of myself, i am currently 21 years old and currently serving NS and about to ORD in august this year, I recently have became worried about my future and have a feeling that in the future, a degree with a stable income job is not sufficient. I began picking up some books and one of it was the infamous "Rich Dad Poor Dad" in hopes of learning the tricks of the trade.


Realising that books are not enough and that the internet is full of information, i have been reading blog posts/articles about investing and most have said to start early. It seems that you may be younger than me, however, i respect you in a sense that you have the mind to begin earlier and that is what i hope i can do now.


Now just a few questions that i hope you can help me to clear up,


1) Do you have any Regular Savings Plans, such as the OCBC BCIP / POSB Interest saver?


Hi BR. I used to have a RSP. But now, I prefer a more DIY approach.

2) What brokerage are you using and is it ideal to start using SCB now?

I'm currently using SCB. But after the recent chaos, I am planning to use SCB only for international stocks. For local stocks, I'm actively searching for other brokerages. You can use SCB if you wish. It remains the ideal choice for those seeking for low commissions per trade.

3) What are your opinions on STI ETF and do you think that it is 100% profitable?

Nothing is 100% profitable. Investing in ETFs does have its advantages. But there will always be risk present.

4) Are there really any stocks that are 100% profitable, be it big or small yields?

Not as far as I know.

5) How much do you leave aside per month solely for the purpose of investing?
Currently, I set aside $100 every month.

6) I have read about some posts about compounding interests and would like to know in which area of the market can i make this possible and in what way, is it by putting the money in a savings account and gaining interests yearly or is it in buying and holding stocks and hoping for them to grow?
Compounding interests work best if you're in it for the long term. That being said, savings account give a very miserable interest rate. You'd be better off sticking your funds into a time deposit. Eg: $1000 in a 0.7% interest rate would give you $7 every year. Impossible to get even $1 interest yearly from regular savings account. Eg: $0.02/month x 12 = $0.24

Buying stocks and hoping for them to grow is a different strategy. Perhaps you are more interested in investing for income rather than investing for the long term: Retirement.

7) If i buy and hold a stock, how do i get access to the gains that i have made when the stock has grown, would i have to sell the stock?

Yes. Eg: You buy Stock X at $3/share for a board lot of 1000 shares. That's $3000. Assuming the share price increased to $3.50 and you sell it, you would receive $0.50 x 1000= $500 profit.

8) (Personal Question) How much are you making per month from investing?

I'm afraid you're mistaken. I don't invest for income. That's a different segment of investing. Therefore, I don't receive income from my investments. Yes, I receive dividends, but I don't see that as income :)

Summary: I believe you're interested in investing for income or for profits. Eg: Buy Low Sell High.
While that may be the majority of what most people want, I don't practice it. I believe that I'm not at that stage where I can predict the market. It would be very stressful for me to monitor the market constantly.

I invest passively. Time is better spent with family and friends than to monitor the market day in day out. But that's for me. Of course, I purchase shares at a low price if possible, but that's normal.

Hope this answers your question.


2nd Email

Hi TI, i'am 19 this year a international student that has being studying in SG for 13 years since primary school, went to ite for one year finished with a Nitec cert.
Currently still no PR, application always being rejected don't know the reason to that. So basically i'am a Singaporean just without the black and white.


Presently studying in kaplan (dip in Hostility and tourism).


I have read some of your blogpost on life in Singapore and how to achieve goals here so i'am inspired by you, therefore I need your help. i have a few questions for you hope you can help me out.
Recently i have seem to lost my way in life don't really know what i want to do in the future either. I might go back to my country but still no confirmations.
What i need your help on is all the advice you can give like education, work life etc... Basically just all the things that you can guide on a 19 yo dude haha.


This is my email - paseoblossom@hotmail.com
Thanks alot and hoping & looking forward to your reply soon!
Cheers!

Hi Jack! At one point in their life, everyone questions themselves on what they want to do with their life. I don't really know what kind of advice you seek, but I believe a positive mindset and a hardworking attitude is crucial for both education and work life. You have a NITEC Cert and are currently studying for a diploma in Hospitality and Tourism. This industry has many possibilities. You can either further your studies, or proceed to get a full time job. Whether or not you remain in SG or return to your home country, you can always find hospitality jobs or jobs that suit your strengths best.

For us Singaporean Boys, we already have the passage marked out for us from birth. Kindergarten - Primary - Secondary - Polytechnic / JC - Army - University - Full Time Jobs. Whether or not we choose to take this path or take another path is entirely up to us. I wish you luck in your future endeavours.

3rd Email

Hello,


I have stumbled upon your blog recently. I briefly browsed through your posts and you seem to be quite knowledgeable with investments. Also, you seem to be quite young, so I thought it would be good for me to consult you regarding this.


I am also a "young adult", and most likely even younger than you. I am 17 this year and I have been quite interested in personal finance. I hope to be able to dabble into investments from a young age. Hence, I have a few questions:


1) How old are you now? (if you are willing to reveal)

I'm currently 20.
2) How old were you when you started investments?

20 as well :) I have begun looking into investments around mid 2014.

3) I have been looking into investment options with local banks recently, however, most banks require me to be at least 18 years old. At my age (17 this year), do you know of anything that I might be able to make some investments in?

As far as I am aware, you need to be either 18 or 21 to open brokerage accounts or invest with banks. I would recommend getting more knowledge about the various forms of investments before investing. Are you investing passively? Attempting to Value Invest? Investing for income? There are many types and strategies.

4) What did you do to become so knowledgeable with finance matters? Are there any books, or any good reading material regarding finance and investments that you would recommend to me?

You're too kind, I don't see myself as knowledgeable at all. There are many other financial bloggers out there that are far more knowledgable and more advanced than I am. You may refer to Blogs I Read on my webpage to view the different links I have there.

As of now, I have near zero knowledge regarding investments, but I do not wish to let my money just lose value in the bank (I recently switched to a high-interest savings account actually), hence, seeing that you might have started investments at a very young age, I thought that your advice would be very helpful. I hope you would be able to reply my queries.

A high interest savings account is good for now. I use fixed deposits, which means you must leave your money with the bank for a certain period of time. Eg: 1 or 2 years and you can receive a higher interest rate. You can try that for now until you are of legal age.

Thank you and have a nice day!


Best Regards,
Christopher Goh


4th Email


Hello Teenage Investor, I'm currently a Polytechnic student and upon reading your blog, I'm interested to actually do a little investment. I'm currently 18 years old. What would be a good way to start? Low risks preferably. And also, I've read on some forums that it's better to buy blue chips myself rather than through the banks. Any advice would be appreciated. Thank you in advance! Cheers!


Hi YM! If you are looking for low risk investments, I recommend you invest in ETFs. Exchange Traded Funds. Invest in the STI ETF. They are lower risk than the average share. It is better to buy blue chips yourself than purchase from banks if you're able to find brokerage with cheaper commissions. Eg: StanChart 

You can read this post by Lepak Investor. I find it very informative.


Currently, I'm in the midst of withdrawing my funds from SCB and looking for alternative brokers. I need to do more research on both POSB / OCBC and POEMS if it's possible to transfer my shares purchased from the bank to CDP account.

The costs also matter as I believe brokerage commissions are still too high for my appetite. But if it's necessary, then I will do it.

Till next time,
Teenage Investor

Sunday, 11 January 2015

How Much Can A Poly Student Save In A Year?



Today's post is a continuation of my previous post. You can read it here: The Truth About Polytechnic Students

So....knowing that polytechnic students face a higher level of expenses compared to their secondary school days, how much can they really save in a year? Or even a month for that matter?

By the way, I track my expenses with this app. Pocket Expense.

Tracking expenses is important because I can see what the bulk of my expenses are and where I can cut down on.

Moving on, what about the average polytechnic student?

I believe the average student gets around $250 -300. The allowance may be adjusted accordingly depending on their financial status / the need to pay for their own clothes, transport etc.

Alternatively, some students may work part time for their own allowance. But for this post, we shall assume the likely scenario that the average allowance is $300 / month.

Assuming, you set aside 10% of your allowance each month that's $30 a month.

That leaves you $270 to spend. $270/30 days = $9 a day.

Is that sufficient? Usually, $9 a day is enough if you're really the type that don't eat much or have a less active social life. Eg: Those that go home after school etc. But even the least active of us, would have to stay behind in school for project meetings. So...?

But moving on, if you do not have enough it means that you should find alternative sources of income. Eg: Part time jobs

$30/month x 12 = $360.

The average student can save $360 in a year!

I wonder how do others save / spend? Hopefully other students can share as well.

Saturday, 10 January 2015

The Truth About Polytechnic Students



Everyone wants to be rich. Nobody wants to be poor. But can savings alone get you rich?

I've browsed through many posts that talked about their achievement in saving thousands of dollars over a period of time. And I applaud them for being determined and disciplined enough to achieve that.

The problem with our generation is that teenagers prefer to spend first and save later, if even at all.

We think that saving is putting aside money for the latest phone or laptop etc.

How many of you have friends that constantly complain about the sad state of their bank balance?
How many of you actually see your friends doing something about it?
We complain, but we don't want to look for a solution to the problem.

Personally, I had a friend who told me he had a bank balance of $2.80. I was appalled. He's not rich, but he's not poor either. How did he manage to spend so much until he was left with $2.80?

After observing my friends and the people around me, I've come to a conclusion why my friends' bank balances are steadily decreasing.

1. Mentality
Some of us just can't be bothered to save. They live on day to day basis. These are usually people who get a daily allowance from their parents and spend it all because they know they'll receive fresh funds the very next day. However, people who get weekly or monthly allowance may just blow it all away on the very first day of each month and then borrow money for the rest of the month.


2. Shopaholics /Fashionistas /Impulsive Buyers
Admit it, you either know people like that or are one yourself. These are the people who are dressed in the latest fashion or spend the bulk of their allowance on new clothes / makeup / games etc. They are the ones who usually buy new stuff every other day but probably get tired of it after a while or worse still don't even wear it and then buys new stuff again.

3. Trying too hard to fit in.
As a teen, it is normal to want to be like everyone else around you. When the latest trend hits and everyone's either wearing a shirt / jeans / shoes from a particular brand,
YOU HAVE TO HAVE IT TOO. EVEN IF THAT MEANS U STARVE DURING LUNCHTIME.

Examples: Ben Sherman Target Tee, Nudie Jeans, New Balance & Nike Shoes.



Because your friends are all wearing it, you have to get that overpriced branded product. At all costs. Usually at the cost of your own savings.

4. Social Life
Being a polytechnic student isn't easy. It's a constant struggle to juggle three main things.

Enough Sleep - Social Life - Good Grades

When you're in polytechnic, your expenses drastically increase compared to secondary school. We don't get the same transport concession anymore. What about food? Many of us don't want to join the long queues at school, and with longer break/lunch hours compared to secondary school we choose to eat at fast food outlets or cafes spending at least $8 - $20 on average for a single meal. Having a social life to the everyday teenager means going out to catch a movie / eating at cafes / clubbing / drinking / smoking and many more.

What the average 'Teen' might spend in a week.
1 Movie Ticket + Popcorn Combo --> $9.50 + $10 = $19.50
3 Lunches at Cafe $8 x 3= $24
3 Dinner at Fast Food Outlet = $6 x 3 = $18
1 Pack of Cigarettes = $12
Club Entrance Ticket= $30
Alcohol = $20 - $50
Polyclinic MC= $11

They can easily spend up to $100+++ in a week. Scary isn't it? Keep in mind that I have not yet included transportation fees and miscellaneous expenses like clothing or school events.

5. Boy- Girl Relationships
When you're in a relationship, it's natural for your expenses to increase. You go on dates, you bring each other to stay-cations at hotels, you buy expensive anniversary/monthsary gifts for your significant other. A simple Pandora charm can start from around $70++
The average hotel stay-cation starts from $200 - $1000/night from the boutique hotels to the more lavish 5 star hotels. Eg: Lloyd's Inn, Marina Bay Sands, Resorts World Sentosa, M Hotel etc.

It seems that today's generation determines how much you love a person by how much you spend on him or her. And that's sad isn't it? So teens splurge on expensive gifts even if they can't really afford it.

6. Showing off to others.
This is extremely common amongst teens nowadays. Because of Instagram, teenagers are constantly posting about going to the newest cafe, buying the latest branded shoe, staying at an extremely high class hotel and so on. They want to feel good about themselves, it's only human. And if you can afford it, good for you. But what if you can't? Isn't it really superficial to hear people going, "WAH, SO EXPENSIVE AISEH" and only then do you feel good?

Is that what determines happiness to us?


7. Difficulty distinguishing between 'Needs' and 'Wants'

Because we have been so brain-washed by social media and advertisements, we fail to tell the difference between a need or want anymore. You hear kids saying, "I need the latest iPhone!" or "I totally need a new this and that!"

No. You don't need that. You want that.

You need food. You need clothes. You need an education.

Spending on needs should always be a priority. Wants come later.

Till next time,
Teenage Investor

Friday, 9 January 2015

Be prepared to lose all your money in the stock market.



(You can read my post here if you haven't already @ Standard Chartered is closing its' equity business. What a way to start 2015!)

Continuing from the events of yesterday, a sudden thought occurred to me. While I was wondering what would happen to my money that was already invested, a more serious thought came to mind.

Am I Prepared To Lose All My Investments?


This is a thought that should have occurred to everyone some time or the other. As a teenager, I receive emails mainly from teens around my age. They are all interested in investments, but I do wonder if they have thought about the risks that will ultimately be involved.

When Standard Chartered made their announcement yesterday, I was concerned with my investments of course who wouldn't? But it also made me realise something that I thought I was already prepared for. If I had lost all my investments *touch wood* in the event that Standard Chartered did close down because of major reasons, would it cripple me financially?

When I begun my journey, I read through a lot of websites and financial blogs. Perhaps the one most important thing I read was this,

' Invest only with money you can afford to lose. ' 


I hope that those that are planning to invest or have already invested will take this into consideration. When you invest your money, you're NOT saving. You should never invest your savings or emergency fund. In short, don't invest any money you're not prepared to lose.

I'm not saying I won't feel devastated or heartbroken if my investments failed, in fact it's impossible not to. It is my hard-earned money after all. I'm saying that if I had lost my investments today, it wouldn't cripple me financially. Because the money I have invested did not come from my savings nor emergency fund.

It's human to want to invest as much money as possible, hoping for a huge payout. But what if the market crashes the very next day?

Some people view investing as a 'Jackpot' if you will. They hope that in the short term, they can get a lot of cash and make their problems go away. But does it really work that way? 

If you do invest your money, there's a chance you may get a huge payout in one way or another. But is it worth the stress? Can you sleep peacefully at night if you're worrying about the market day in day out because your entire savings are tied up in stocks?


All in all, it boils down to ONE word that people do not know enough about.

RISK.

I think when people invest, they usually do not calculate the risk they take. With NO knowledge or LITTLE knowledge of the chance they are taking, it does not matter what they can afford to lose because it is as good as gambling.

When a person sets aside a sum of money for something, he should think of
1. What is the potential return at this cost?
2. What is the likelihood of success?

These 2 questions are what constitutes wise decision making.

Successful people are willing to put money into things because they can see the success in it. If there is a high enough chance of success, most people are willing to put more then they can afford to lose because the likelihood for success is high enough for them.

Without thinking of the % success rate, we would all be gambling.

Till next time,
Teenage Investor

Thursday, 8 January 2015

Standard Chartered is closing its' equity business. What a way to start 2015!

Today, I was greeted with a rude shock when browsing the news.



This headline caught my attention instantly.

Standard Chartered to close equities business worldwide 'with immediate effect'


With a pounding heart, I clicked on the article. http://www.channelnewsasia.com/news/business/standard-chartered-to/1576052.html


HONG KONG: Standard Chartered Bank will exit the institutional cash equities, equity research and Equities Capital Market (ECM) "with immediate effect", a Singapore-based spokesperson told Channel NewsAsia on Wednesday (Jan 8).

The move will lead to about 200 layoffs in the region - on top of a wider plan that will see about 4,000 cuts, half of which were made in the last three months of last year, with the remainder expected during 2015, the bank said.

"This decision is purely related to our institutional cash and research business, along with ECM, and does not impact our core strategic aim of supporting the international trade, wealth and fixed income, currencies and commodities (FICC) needs of our corporate and affluent retail client base, under the refreshed strategy announced last year," the spokesperson in Singapore said, adding that a transition team will remain to manage the interim period.

"This will impact around 200 jobs, mainly in Hong Kong, Indonesia, Korea, India and Singapore," the spokesperson said, without offering a breakdown of the layoffs by territory. "There is a minimal presence in the UK and US."

4,000 LAYOFFS PLANNED

The bank's main British office on the same day issued a press release stating that the decision is part of a series of actions being taken to deliver at least US$400 million of cost savings targeted for 2015, as communicated to investors last November. The Group is already on track to achieve this aim, the bank said.

In the Retail Clients segment, for example, the Group’s strategy of focusing on key cities and accelerating the switch to digital has resulted in around 2,000 job cuts announced or completed in the last three months. A reduction of a further 2,000 is expected during 2015, primarily to be achieved by not replacing staff when they leave, the bank said.

The bank - which has been struggling with rising bad loans - will close its stock broking, equity research and equity listing desks around the world, and cut more than 200 jobs, Reuters had reported earlier on Wednesday, quoting an internal memo and unnamed sources.

“(Standard Chartered) has not made any money in the last two years,” Reuters quoted a source as saying. The bank had failed to be among the top 10 banks globally for research or trading at the end of 2013, reported Reuters, citing a survey by Greenwich Associates.

The Asia-focused bank will be one of the first global banks to completely exit the equity capital markets business, according to Reuters. London-based Standard Chartered had said it would aim to cut costs by more than US$400 million in a bid to reverse declining profit growth, Reuters added.





The few sentences that caught my eye and had my utmost attention has been bolded. Questions after questions were flowing through my head. What now? What will happen to our investments? Can I still trade in the future? Does this means I have to start all over again?

As the day progressed, I frantically searched other news articles in hope of finding something concrete, a better explanation but I was bitterly disappointed.

You can refer to this article by the Straits Times
http://www.straitstimes.com/news/business/banking/story/standard-chartered-says-singapore-job-cuts-minimal-20150108

SINGAPORE - Standard Chartered told the Straits Times on Thursday (Jan 8) that the impact on its headcount in Singapore from announced job cuts "has been minimal."

"Singapore is one of the 85 high-growth cities which we have identified as strategic, based on market opportunity and growth and we will continue to invest here to better serve our clients," the spokesman said. The bank says it currently employs about 7,000 people in Singapore.

The London-based bank is closing the bulk of its global equities business, resulting in the loss of over 200 jobs. The spokesman did not disclose the number of jobs cut in Singapore, saying: "We won't be giving a breakdown. This will impact around 200 jobs mainly in Hong Kong, Indonesia, Korea, India and Singapore. There is a minimal presence in the Britain and United States."

Standard Chartered also plans to axe 4,000 retail banking jobs worldwide, 2,000 of which have already been announced.

Its spokesman told the Straits Times the further 2,000 reductions in retail banking jobs will be made by end of 2015 and "will primarily be through attrition and by not replacing staff when they leave, across our global network."

Standard Chartered also said that its retail clients will not be affected from the bank's closure of its institutional cash equities, equity research and equities capital market (ECM) business. (??? What does this means for us?)
"The exit of the institutional equities part will not have an impact on the retail clients in terms of executing any trades in equities," its spokesman said. (<-- Please be more clear, sigh.)

The spokesman added that the bank is implementing organisational changes and remapping roles within the retail clients segment globally, including Singapore, "to focus more on affluent clients and move from a product approach to a segment focus".

Exiting the bulk of its loss-making equities business will save the bank about US$100 million in 2016, Standard Chartered said on Thursday, while the retail banking job cuts will deliver another US$200 million in savings.

Reuters reported that some Standard Chartered staff in Singapore in its equity business were escorted from their workplaces when they arrived there on Thursday morning while some in Hong Kong found they were locked out of the office.

"We came in this morning and were told the equity business was being shut down," a woman who identified herself as an ex-employee at the bank's offices in Singapore's business district told Reuters. She said she had worked in research and had been with the bank for three years.



Perhaps the saddest part about this move by Standard Chartered are the huge number of people who lost their jobs overnight. My heart goes out to them. But I'm indignant as a consumer that no information was given prior to this and this was incredibly sudden. I was looking to StanChart to have some changes as the board lot was set to drop, but never in my wildest dream did I expect them to exit the equities business completely.

Refer to article here: http://www.businessweek.com/news/2015-01-07/standard-chartered-said-to-shut-global-equities-business

Standard Chartered Plc (STAN) is shutting its institutional equities business and eliminating about 4,000 jobs at its consumer operations as Chief Executive Officer Peter Sands seeks to restore the U.K. bank’s profit growth.

The bank is “on track” to lower costs by at least $400 million this year after eliminating about 2,000 consumer-banking jobs in the past three months, with plans to cut that many again in 2015, it said in a statement from London today. Shutting the unprofitable cash equities, equity capital market and equity research operations will result in about 200 job losses and save about $100 million in 2016, it said.

Sands, who turns 53 today, has been under pressure to cut costs and stem faltering earnings that sparked the biggest slump in shares last year since the global financial crisis in 2008. Royal Bank of Scotland Group Plc, the U.K.’s largest government-owned bank, has also shut its cash equities and equity capital markets operations as regulators pressure banks to hold more capital versus risks.
VIDEO: Standard Chartered to End Equities Business, Cut Jobs

“The shares are up today on the news but this announcement is not enough to convince the market that the bank is on the road to recovery,” Jim Antos, a Hong Kong-based analyst at Mizuho Securities Asia Ltd. with an underperform rating, said in an e-mail. “What we need is a clear statement from management about the way forward.”

Shares rose 2.4 percent to 984.80 pence at 9:17 a.m. in London, increasing as much as 3.5 percent, the biggest intraday gain since October. The stock plummeted 29 percent in London last year, the worst performance among major U.K. banks.
Retail Cuts

The bank said it’s trimming its consumer business as it focuses on key cities and accelerates a switch to digital banking. It shut 22 branches in the second half of 2014 as part of a previously announced target of 80 to 100 closings, which will help cut costs by about $200 million in 2015.
VIDEO: U.S. Oversight Extended for Standard Chartered

Cash equities is “a small business and a loss-making one so knocking it off for a struggling bank is a good move,” said Chirantan Barua, a London-based analyst at Sanford C. Bernstein, who has an underperform rating on the bank. “$400 million in cost saves are a good start, but doesn’t really solve for structural problems in profitability or capital.”

Standard & Poor’s downgraded the bank in November for the first time in 20 years, after the lender forecast a second year of declining profit. Standard Chartered reported declining revenue, increasing operating expenses and higher loan impairments in the third quarter.
India, Singapore

Most of the jobs cut from the equities withdrawal are in Asia, a spokesman for Standard Chartered said, asking not to be named. Of those, Hong Kong had the largest number, with jobs in Singapore, India, South Korea and Indonesia also affected, he said. The bank will keep convertible bonds and equity derivatives businesses, and economic and fixed-income research.
VIDEO: Traditional Asset Class Returns to Diminish: Brice

The firm will reduce its headcount in Malaysia by 11 percent this quarter, with cuts stretching across areas including marketing and consumer operations, according to a memo obtained by Bloomberg News. Standard Chartered declined to comment on the document or the number of employees involved. More than 900 of Standard Chartered’s more than 1,600 branches are in Asia, according to its website.

Standard Chartered reiterated its plans to exit or restructure “non-core” operations. The remaining $200 million of cost savings targeted this year will come from “other client segments, product groups and global functions,” the bank said, without giving details.
‘Right Direction’

The U.K. bank announced last year the sale or closing of businesses including consumer finance in China, Hong Kong, Germany and South Korea, its retail bank in Lebanon and private banking in Geneva.
VIDEO: Oil Will Be Erratic and Volatile in 1Q: StanChart

“Investors should feel reassured that Standard Chartered is moving forward on its cost-cutting measures,” said Edmond Law, a Hong Kong-based analyst at UOB-Kay Hian (Hong Kong) Ltd. “It’s the right direction to focus on its core business.”

Earnings are under pressure amid falling commodity prices and a faltering economic expansion across Asia, where the bank makes about three-quarters of its profit. Pretax profit fell 16 percent in the third quarter to $1.53 billion as impairments for bad loans almost doubled and regulatory and compliance costs increased.






To be honest, all these articles did nothing to further enlighten me on what would happen to my investments hahaha. How disappointing.

Perhaps the top questions I would like answered are:

1. What will happen to my investments? Will they sell for us or give us a time period to sell?
2. What's next? For small retail investors, which broker can we go to now?
3. Is it possible to keep our shares and have them transferred to CDP account?

All I can do is wait. I expect more news over the next few days.

Till then,
Teenage Investor

Saturday, 3 January 2015

My Goals in 2015



2015 has finally arrived. With every new year, comes new challenges, new obstacles, new friends and above all, New Experiences!

As I consult my 10 Year Plan , I have several things in store for me this year.

First, Graduate from Polytechnic and obtain my diploma.

Second, Enlist into National Service and serve my nation for two years.

For the year 2015, I shall continue to invest SGD$100 every month. Therefore I aim for my portfolio to increase by at least S$1200.

This month, I have purchased 1 lot of SG REIT and 1 lot of US share because I had excess cash lying around.

What's your plan for 2015?

Till next time,
Teenage Investor

Monday, 22 December 2014

What Does Investors Have To Say About This?




Today, I received a short email. Upon reading, I was again struck with the realisation that I am not always the best person to come to for advice. Therefore, I'm putting this out there so that financial bloggers and readers of my blog may give their advice based on their own experience.

We shall refer to him as FR to protect his identity.

Hi there teenage investor. I guess we are on about the same age. I currently doing my final year and currently met with an accident. I really don't know where to start can you help me out cause I'm like having no savings except that I also put aside money through insurance whereby at the age 45 then I can take out the money, which mean for 25 years each month I have to pay a sum. Right now I really want to know what I can do to start investing. Thank you.


Dear FR, I'm very sorry to hear about your accident. Is there any reason why you have no savings yet? For your insurance, I have no idea of the benefits/cons of having that insurance plan for now. But you should start saving a regular portion of your allowance/pay, e.g. maybe 10-20% / month?

You can't invest without any capital after all. Maybe this will help:

Additionally, some posts on my blog as well as fellow bloggers will help you a lot. But all these can't be done without any capital.

All the best FR.

Till next time,
Teenage Investor