How to make money work for me pdf

The price of a bond rises when interest rates fall, and there is thus the possibility of a capital gain from a favourable movement in rates. You may want to set some rules. Finance, Personal. These GDP gures are not static of course.

2. Develop streams of passive income

There’s no simple answer — or a single way to do it. In fact, almost everyone can find at least one way to put their money to work. Read More : We asked financial planners for their favorite high-yield savings account, and almost everyone said the same thing. These accounts are usually available at online banks, which keep costs down by forgoing brick and mortar locations. Passive income is the term colloquially used to define any money earned with little to no effort expended, according to Investopedia.

Invest in a Rich Life

Tel: 65 , fax: 65 E-mail: genref sg. Website: www. Singapore : Marshall Cavendish Business, c ISBN : 1.

How to make your money work for you — The 6 best tips

Tel: 65fax: 65 E-mail: genref sg. Website: www. Singapore : Marshall Cavendish Business, c ISBN : 1. Finance, Personal. Finance, Personal Singapore. Investments Singapore. Fok, Ben, II. HG Keon To my wife, Sharon, For the encouragement, and to my children, Jeryn and Samuel, for the love and laughter. We belong to the sandwich generation. Our children depend on us, as do our parents. For our children, we are seeing the price of a higher education rising faster than the rate of ination.

For our parents, we are possibly looking at hundreds of thousands of dollars in costs for treating major illnesses they run the risk of contracting. The sandwich generation is being chewed on at both ends. We are struggling to support ageing parents and pay university tuition fees for our children. And this is probably the worst situation you can nd yourself in when you have to depend on others to support you in your retirement years. In the future, you will either have enough money or you will not.

If you dont, chances are that your neighbour living next door to you. People living in Singapore and in Asia overall are getting wealthier and wealthier. In the yearSingapore saw the highest growth in millionaire households, up 35 per cent, followed by 33 per cent for Malaysia, 32 per cent for Slovakia, and 31 per cent for China Global Wealth Report by The Boston Consulting Group.

Singapore now has the highest concentration of millionaire households in the world. And Asia-Pacic, excluding Japan, is expected to generate millionaires at nearly twice the global rate.

It is horrible to retire when you dont have enough money, and even worse if everyone around you has enough and you cant even get by. That is why learning how to invest is so important. For many people, it could make the dierence between a blissful retirement and a painful one. The investment environment has become very diverse in the last few years. We are seeing a rise in derivatives and currency trading by the public, commodity prices far outpacing stocks and bonds, hundreds of structured products being made available at any one time and challenging market conditions with ination, lower real returns and a subprime crisis that is taking years to clean up.

This is why for this third edition, we have added two. To succeed at investing, you need to keep two things in mind. First, you need to keep abreast of what is happening in the investment markets. Once you are armed with the basic knowledge of investing which we hope you will gain from this bookknowing what is happening in the markets will become not only less strenuous but also an enjoyable pastime. Second, if you have never invested before, you need to take the plunge.

There is nothing like direct experience. Only when you handle your own money will you be able to appreciate and understand fully the complexities surrounding the money markets. Finally, and most importantly, investing is your responsibility, not anyone elses. It is neither the governments responsibility, nor that of your remisier or nancial advisers. And when you do succeed, you will probably want to spare a thought for the less fortunate. Social enterprise and socially responsible investing are taking root in Singapore and around the world and not a moment too soon as income how to make money work for me pdf around Asia have become particularly worrying.

Singapores Ambassador, Tommy Koh, described social inequity as one of Asias three biggest challenges, along with corruption and the environment. Despite headline hogging news about Asias booming economies, vast pockets of paralysing poverty remain. In India, three-quarters of the population more than million people survive each day on less than the cost of a Starbucks latte.

All told, 60 per cent of all Asians still live in poverty. There are many exciting things you can do today to make sure that you will have enough and better still be able then to spare time and money to help.

While there are many reasons for investing, retirement is by far the most important one. In this section, we will look at the main types of investment assets and discuss whether they are appropriate for you.

We will show how investment risks and returns are calculated so you can assess the performance of your investments. Finally, we find out how crises affect investment performance. The findings may surprise you. But here is a reality check. Your son, Brian, will be going to the U. Your mum is 78 and healthy. Your dad is 82 and has lung cancer. Your million-dollar retirement now looks a lot less attractive. This story may not reect your situation completely, but the underlying facts are real.

We are marrying later, and consequently, by the time we near our retirement, our children may still be nancially dependent on us, as may our parents. But let us not allow such grim facts to get us. There are ways to get around our various commitments, and prudent investing is one of. Being strapped for cash when we are past our peak earning years is not going to be fun.

How much money would you need to accumulate in your retirement fund? Assuming these funds are invested at a modest rate of return of 2. That is a huge sum of money! At higher and higher rates of return, your burden starts to look lighter and lighter. That is the whole idea behind investing to reach your nancial objectives with the least amount of eort and time possible. TABLE 1. However, the number 80 is somewhat misleading. Its not a gure cast in stone. For example, a woman who has reached 65 years of age can reasonably expect to live on till 85 years.

While we should plan for our nancial needs based on So give yourself more leeway when making your investment plans. Myth 2: I Will Be Spending Less During Retirement After subjecting your mind and body to 40 years of hard labour, you probably want the best vacations, the best doctors and the best foods. No doubt you could spend less by downgrading your lifestyle, but this is surely not something you want. Dont fall into this self-fullling trap. If you plan to spend less during retirement, you will end up with.

Expect to spend more, plan for it and you will end up with. Historically, some have given higher returns than. Choosing the right instruments that provide the best returns can make all the dierence to your retirement. You can invest in two main investment categories: nancial assets and real assets. Real assets such as real estate, jewellery or art are tangible; you can touch and take physical possession of.

One drawback of owning real assets is that they are generally harder to buy and sell. For example, selling a house takes time because it is a big-ticket item and potential buyers need time to evaluate. Or if you wanted to buy an antique fountain pen or a rare painting, you may have to go to a specialised auction house such as Sothebys. Financial assets such as stocks, bonds and unit trusts are nancial claims on assets. Rather than taking physical possession of the asset, your ownership is documented by a legal document.

So when you invest in a stock, you receive a certicate that acknowledges your claim as a shareholder of the company. As you can probably sense, the scope of investment opportunities is too huge to cover in this book. For this reason, our primary focus is on nancial assets. Since the Ordinary Account earns 2. Not bad. You can retire a millionaire! You would retire a multimillionaire! Given the wide disparity of possible results, we ought to nd out which of these investment returns are realistic and which are not.

Based on the history of nancial markets, all three return possibilities can actually be achieved. Such plans are commonly found in other countries.

In the U. Our decision making would then be a simple process of choosing the investments with the highest returns. But we have yet to talk about risk. Risk is the possibility of losing money on our investments.

Fiverr Tutorial 1 — Earn Money Easily — Data Entry, Typing, Copy Pasting & PDF to Word or Excel

1. Open a high-yield savings account

Crises will continue to take place today and in the future. Singapore now has how to make money work for me pdf highest concentration of millionaire households in the world. The next step is to nd out the type of equity and xed income funds to invest in. Suppose investment ABC had total returns of 5 per cent, 20 per cent and 35 per cent over the last three years. International equity funds are of several types: Global Equity Funds invest in promising companies anywhere in the world. Your bank ocer has one. TABLE 4. The type of security we put our money into matters. TABLE 5. Note that stock A has an historical PER of between 15 and 20 times in the last 10 years. To do this, you need just one hour today to set everything up so your paycheck is divided into four major buckets as soon as it arrives in your checking account. During the next six months, the portfolio shifts to equity-bonds because equity prices have fallen and bond prices have risen. In this chapter, we will introduce the dierent types of investments that are commonly bought and sold by investors stocks, bonds, derivatives and unit trusts. Should You Invest in New Funds?