Dear Mr Tan,
What are your views about investing in foreign currency deposits, such as New Zealand dollar?
----------------------
REPLY:
Earlier this year, I wanted to invest in New Zealand deposit, as it offered an attractive interest rate. I spoke to a banker from that part of the world. He told me to be careful, as the NZD had already appreciated a lot.
I decided not to make that investment. Since then, the NZD had appreciated by another 5%. I missed that boat!
Many of the currencies, such as AUD and NZD, are at a historical high level. I have decided to keep my savings in SGD to earn 2.5% to 3%.
Wednesday, June 13, 2007
Imbalance in Global Trade
I saw an interesting remark:
* China has a huge trade surplus
* They invest the surplus in US Government bonds
* If US forces China to revalue the yuan, China may sell the US Government bonds
* But, who will buy these bonds from China?
This remark reflect the state of the imbalance in global trade. It is not good for the global economy.
* China has a huge trade surplus
* They invest the surplus in US Government bonds
* If US forces China to revalue the yuan, China may sell the US Government bonds
* But, who will buy these bonds from China?
This remark reflect the state of the imbalance in global trade. It is not good for the global economy.
Subprime mortgages in America
Subprime mortgages are mortgages given to borrowers of lower credit standings during the boom days of the property market in America. Due to the downturn in property values, many of these borrowers have defaulted. They also have to suffer large financial losses.
There is a debate in America about the role of the regulator (ie the FED or Federal Reserve Board).
Some of the issues being debated are: should the FED have stepped in earlier to ban these mortgages as the borrowers were not aware about the implications of a rise in interest rate? Were there adequate consumer protection?
I find the debate to be important as it has to balance between:
* the need for free markets
* the need for consumer protection
I hope that these issues will lead to a proper balance between these two requirements. It will be relevant to Singapore.
There is a debate in America about the role of the regulator (ie the FED or Federal Reserve Board).
Some of the issues being debated are: should the FED have stepped in earlier to ban these mortgages as the borrowers were not aware about the implications of a rise in interest rate? Were there adequate consumer protection?
I find the debate to be important as it has to balance between:
* the need for free markets
* the need for consumer protection
I hope that these issues will lead to a proper balance between these two requirements. It will be relevant to Singapore.
American Presidential Election, 2008
I am watching the developments on the 2008 election with great interest. It shows the American system of democracy.
I am fascinated by their system of choosing the best candidates to represent the Republican Party and the Democratic Party.
Many candidates come forward to participate in the "primaries" for their party. To win the primaries, the candidates have to give their views on many major issues over the media, especially television. There is great debate on these issues.
The voters express their choice in the primary elections, which are held at all the states.
This helps to pick the best candidate to represent their party in the national election. The final votes will be decided in November 2008.
I am fascinated by their system of choosing the best candidates to represent the Republican Party and the Democratic Party.
Many candidates come forward to participate in the "primaries" for their party. To win the primaries, the candidates have to give their views on many major issues over the media, especially television. There is great debate on these issues.
The voters express their choice in the primary elections, which are held at all the states.
This helps to pick the best candidate to represent their party in the national election. The final votes will be decided in November 2008.
Leadership - by Rudy Guiliani
Rudy Guiliana was the mayor of New York City for many years. He was credited for turning New York City into a safe and attractive city, by overcoming the crime situation in past years.
He is now a leading candidate for the American Presidential election.
I watched an interview with him on Bloomberg TV. He said (something along these lines), "Leadership is doing the right thing, and educating the public about what is right. Too many politicians (in America) are watching the public opinion polls, instead of providing the leadership".
I agree with his views.
Personal note: I like Rudy Guiliana because his family name is GuiLIANi. It includes my name! Ha Ha!
He is now a leading candidate for the American Presidential election.
I watched an interview with him on Bloomberg TV. He said (something along these lines), "Leadership is doing the right thing, and educating the public about what is right. Too many politicians (in America) are watching the public opinion polls, instead of providing the leadership".
I agree with his views.
Personal note: I like Rudy Guiliana because his family name is GuiLIANi. It includes my name! Ha Ha!
Asset allocation of Absolute Return Fund (Pimco)
I heard a news item on Bloomberg TV. It reported the asset allocation of an absolute return fund managed by Pimco, a well known fund manager. The cash component is about 50%.
Under an absolute return fund, the manager is free to move the investments among the various asset classes, ie equity, bond and cash, to achieve the optimum return, considering risk and reward.
This item caught my attention, because about 50% of my personal investments is in the money market fund (ie similar to cash).
Under an absolute return fund, the manager is free to move the investments among the various asset classes, ie equity, bond and cash, to achieve the optimum return, considering risk and reward.
This item caught my attention, because about 50% of my personal investments is in the money market fund (ie similar to cash).
What Chemistry Can Do For You
Dr. Lee Kum Tatt and his former Chemistry colleagues have organiserd the First National Chemistry Week from 16-24 June 2007.
For more information read the article in his blog.
For more information read the article in his blog.
Overcoming the Fear Factor
Everyone of us have some fears of our own. The fear can be traced to threats to our physical, financial or emotional wellbeing.
Dr. Lee Kum Tatt feels that this has something to do with our mind. If we can control our minds we can get rid of these fears.
Read his article on an experience he had on this subject.
Dr. Lee Kum Tatt feels that this has something to do with our mind. If we can control our minds we can get rid of these fears.
Read his article on an experience he had on this subject.
Sufficient savings for retirement
Hi,
I would also like your thoughts on the CPF Minimum Sum changes, as listed on the website: http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_07Jun2007.htm
quote
This increase is in line with the announcements made in August 03 that the CPF MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.
unquote
Do you think that 120,000 would be sufficient for retirement in 2013? I assume this amount will increase after 2013 too.
-------------------
REPLY:
The amount of $120,000 is intended to be the minimum sum that is applicable to every CPF member. It is calculated to be sufficient to meet the basic needs of the retiree.
The retiree can have additional savings to top up the minimum sum. You can read about my views in my FAQ on "financial planning for seniors" and "life annuity, which are posted in my website.
I would also like your thoughts on the CPF Minimum Sum changes, as listed on the website: http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_07Jun2007.htm
quote
This increase is in line with the announcements made in August 03 that the CPF MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.
unquote
Do you think that 120,000 would be sufficient for retirement in 2013? I assume this amount will increase after 2013 too.
-------------------
REPLY:
The amount of $120,000 is intended to be the minimum sum that is applicable to every CPF member. It is calculated to be sufficient to meet the basic needs of the retiree.
The retiree can have additional savings to top up the minimum sum. You can read about my views in my FAQ on "financial planning for seniors" and "life annuity, which are posted in my website.
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