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As we approach mid-year 2019 (Guest Post)

As we approach mid-year 2019 (Guest Post)

Since the last post, the STI did indeed fell further forming a trough by early June. By this week, the STI regained some of its lost territory, landing at 3214.85.


This post was originally posted here. The writer, Brennen Park is a veteran community member and blogger on InvestingNote, with username known as Brennen Park and 3400+ followers.

Banks are still lagging as the fall out of the US-China trade war began to infiltrate into smaller economies. It is a situation that when giants fight, all the others feel the ripples. For the 1st quarter of 2019, the actual GDP growth of 1.2% fell short against the forecast of 1.9%. Economists are now downgrading Singapore’s yearly growth rate from 2.5% forecast in March 2019 to 2.1% for year 2019. Certainly, the banks stocks are not going to fare well when the state of the economy worsens. Just months ago, it was widely expected that the FED would continue to increase the interest rate well into 2020. This would help mop off the liquidity in the system, resulting in higher net interest margin (NIM) for the banks. Right now, more and more are expecting the FED to lower the interest rate in response to the slowdown due to the on-going trade war. This would inadvertently slacken the interest margin again. Banks, which have been increasing their deposit rates recently, in preparation for higher interest rates may find their efforts come to naught if they are not able to lend them out efficiently.

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Generating Perpetual Passive Income – Contrasting the American and British Way of Measuring Wealth (Guest Post)

Generating Perpetual Passive Income – Contrasting the American and British Way of Measuring Wealth (Guest Post)

There are two ways of measuring wealth.


This post was originally posted here. The writer, Kyith is a veteran community member and blogger on InvestingNote, with username known as Kyith and 700+ followers.

I didn’t realize this explicitly. I did note this implicitly.

The American Method of Measuring Wealth

The first way is the American method. In United States, when they refer to wealth, you tend to hear someone say, “He has a net worth of $1,500,000.”

What she means is that if this person in question sold her assets, settled all her debts and deposited the remainder of her money into a checking account in a particular bank.

This method of measuring wealth grew in popularity during the rise of Rockefeller and Carnegie.

We can call this net worth or net wealth (because people find the link of wealth to worth to be uncomfortable)

And you can compute this using the personal net worth here.

The British Method of Measuring Wealth

The second way is the concept very prevalent in Great Britain a century ago. In London, the financial capital of the world back then, you tend to hear someone say, “He has a private income of $100,000 per annul.”

This is referring to the household income generated by her portfolio of investments.

This income represents the money the owner could spend without touching her principal. According to the experts, this is not similar to the sustainable maximum withdrawal rate, which is the constant inflation adjusting method of withdrawing money.

Household Income Accentuates the Functional Utility of the Wealth Compared to the American Method of Determining Wealth

One draw back of the American method of measuring wealth is that some of the assets can be rather unproductive.

Here are some examples:

1.Richer people can own a piece of land that is valued at a very high price but cannot be easily sold. They might not be willing to sell it as it is a family heirloom, many family members vested interest determining what they should do with the piece of land

2.A landed property in land scarce Singapore is very valuable so the landed property, if liquidated can fetch a lot of money. However, in terms of how much it could rent for, it might not perform as well, in terms of per square foot net rent, compare to other forms of property. Against other form of investments it might not provide the same level of efficiency as well

3.You could own many different assets such as an expensive motorcycle, and cars. You should be able to liquidate them. However, if you lose your high tier job, a person might be caught in a frame of mind that cannot readily liquidate these assets and turn them into cash flow. They might be unwilling as well

The British method focus on the functional utility of your wealth. It allows you to see how the wealth can change your life.

The first thing is how much of your expenses, that you pay with your work income, can this stream of cash flow replace. This stream of cash flow increases your current overall purchasing power.

It allows you to:

1.wear nicer clothes

2.donate more to charity

3.expand your investment holdings

4.send your grand children to university

5.have better food

The savvy people would know what to do with a lump sum of wealth. Unfortunately, not many are that savvy. But if you have an inexhaustible stream of cash flow, it is easier to think how you could spend this money to help the people around you and yourself.

Most importantly, it limits you from making poor decisions with your money.

Based on sunk cost theory, if you wake up, you could always say “I do not care about what I do with the cash flow in the past, let me plan what I would do with the cash flow going forward”. If you have a lump sum and you erroneously spend it in an inappropriate way, it is not going to come back.

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New Launch: DIY Investing To Dividend Stocks Online Course + eBook

New Launch: DIY Investing To Dividend Stocks Online Course + eBook

Introducing an all-new online course that will help you to achieve the steady passive income through quality dividend stocks. And, we’re not even talking about REITs.

This course’s main goal is to equip you with knowledge and the ability to build and manage your dividend portfolio, so that in the future, that portfolio will grow and replace your monthly salary, giving you the time and financial independence you deserve.

Learning at your own pace and own target, we guarantee you’ll walk away with:

✔ A broad knowledge of the fundamentals of dividend investing (with a focus on dividend companies)
✔ The ability to find great dividend-paying companies on your own
✔ The know-how to structure, track, and manage your dividend portfolio 

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New Year Party Event Recap

New Year Party Event Recap

As a give-back to our community of investors and usher in the new year, we threw a party last Friday night!

It was an opportunity to meet up our community, and have other community members meet with other members.


The party attended by professionals, retail investors, financial bloggers and educators, is actually representative of the diversity in our InvestingNote community.

Mingling and networking with the community.


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