Every now and then someone will ask you for a loan. The problem with helping a "Friend" is that ever so often YOU will end up having to chase the very friend you trusted with your money....FOR YOUR OWN MONEY BACK. This can be a nightmare filled with anxiety. On one hand, there is your friendship to consider but on the other hand you are filled with frustrations knowing that he isn't even treating you fairly as a friend by honoring the loan he promised to repay. Heck! You may not even have charged him a cent of interest!

Here is some simple RULES you can follow to guarantee that any friend who needs a loan will be the one chasing after you in order to REPAY the loan he took.

Always Ask for a Collateral 

A Collateral is an object of equal or greater value which a borrower must hand to the lender in order to secure a loan. This will guarantee that in the event the borrower defaults, the lender has an object of value to liquidate in order to get the cash he loaned back.

You are the innocent party who have always managed your money well and have a small savings saved up to one day buy a home or a car. Its only right that the person who approaches YOU for the loan will incur the full risk of his actions. We personally recommend that you hold an object of value like GOLD, SILVER or any object that can be liquidated almost immediately for CASH.

For Instance, If an the lender hands over a Collateral consisting of Gold Ear Rings worth $300 in Gold value based on market price. We highly recommend lending only a sum of $200 and below. The Safe zone for a loan is always to lend no more than 2/3 the value of the collateral. This will ensure that once the dateline for the agreed payment lapses, the Gold Earrings is now YOURS. If the borrower chooses to buy it back from you it MUST be at the full price of the value of GOLD.

This will guarantee you never have to chase the borrower ever again. In fact the borrower will be under pressure to chase you and repay the loan before the dateline.

Note : Some "Friends" whom you demand a collateral from will whine about how you are not giving him the trust needed. This is a huge warning sign that he will never intend to repay the loan as he does NOT want to incur risk. Note that YOU are trusting him with your hard earned money and its only right that as a sign of goodwill he entrust you back in return with something of value. NO COLLATERAL means NO loans period. 

Always Charge Interest

By lending Money to anyone, YOU are incurring time and risk. You deserve to be rewarded. A pawn shop charges around 2% interest a month. You may as a friend choose to charge an interest of around 1 to 1.5% a month.

For instance, you lend a friend $1000 with an interest of 1% to be paid each month before the 5th of the month. As long as your friend pays the $10 each month he can continue holding the "$1000 loan". It must be clear that once the dateline lapses for any loan installment the collateral is now your property. This is called the "Interest only payment" type of loan. 

Another good method for interest payments is the "Repayment Installment method". For instance a loan of $1000 to a friend for a period of 12 months will have the following calculation method.

Loan = $1000
Tenure = 12 Months
Interest = 1% a Month
Total Interest = 12 X 1 = 12% = $120
Total Sum to be repaid = $1000 + $120 = $1120
Installment to be paid each month on the 5th = $1120 / 12 
                                                                                       = $93.33 Each month

Issue an IOU

Like any legal contract, have two copies of an IOU prepared and signed by both parties. Having two witnesses or more that are unrelated to both parties is always important. This is NOT a compulsory act as you are already holding a collateral. 

When taking over a collateral always ensure both parties understand that although this is understood to be a collateral, in legal terms you are actually "BUYING" his valuables as a used second hand goods. 

When he redeems or pays installments to repay you, he is "BUYING" back the item in question. The item is legally yours the moment money is given to him in exchange for the item and he has every right to choose to repay you and rebuy the item or let you the new owner liquidate the item as you see fit. 

Personal Loans should be fun and non risky

Now that you my dear reader have became more street smart, a new life awaits you. Loans should never be the only way money is earned as this above article is purely to protect those whose friends continuously hound them for loans. The ideas above are to ensure that you walk away the winner every time. 

As with all things in life, there is always risk involved in any transaction no matter how you try to protect yourself. With cash you can deposit it in a bank for interest payments. With collateral the risk is losing the item as unlike cash you cannot hand it to your banker. You are by your own agreement with your friend obliged to hold the item for safekeeping until such time the loan lapses and the item is yours or the item gets redeemed. As time goes by and your number of loans increase to people, so will the number of collateral that you hold. It would be wise to buy a safe to put the items. Some or many of these items will in due time have you as the proud new owner so its always wise to have  the foresight in keeping these items in the best condition possible.

All that being said and before you go off with high ambitions to become your own "AH LONG" please remember to always advocate financial literacy to people as borrowing is never a long term solution but wise money control is a skill for life.

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Wannabe Wealthy or Crazy Rich Asian Wealthy? Let the ones who hold your money decide if YOU are in the gang. These cards separate the Men from the boys and I mean to even qualify for even some of these cards, you must be in the top 1% of the 1%....literally.

1. UOB Infinite Reserve Metal Card
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You can'apply for this one. Its a strictly Invite only card that the Bank offers you only if you are Somebody or Someone in this world. If you do get offered, you are officially in the Elite of the Elite. Word in the circles where bankers meet is that you can get invited if you making at least $500,000 a year.

Gentlemen forget flashy cars and branded clothing which anyone who takes a loan can easily buy, Women will swoon over you because any man who holds this card has officially Made it. Being in this Invited Club is a symbol of your Success and Banks will go all out to woo customers like you.

Here are the Benefits 

- Up to $2,000,000 Dollars in Standby Credit for your use. With a simple wave of this card, you can be the proud owner of an exclusive condominium in most areas of Singapore...theoretically speaking.
- Private Yatch for your Exclusive use and you may party with up to 14 of your Specially Invited Friends who are lucky enough to be in your Inner Circle. Complimentary Champagne is thrown in for you.
- Exclusive travel Deals on a specially tailored for you and your partner will see air miles literally being poured down your throat with 5 miles for each dollar spent.
- Users of this card have seen hotels and resorts upgrading them for free just to woo you for repeat visits.
- Loads of exclusive access to members only clubs like the China Club and the Tower Club of Singapore and some of the most exclusive clubs around the world like the Eight Members Club in the UK

Annual Fee : $3852 (No waivers and No Compromise) but hey look at it this way, there are country clubs that cost even more and this card does give you assess to many exclusive clubs around the globe.


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2. DBS Insignia VISA Infinite Card
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To qualify you need either an annual pay of $500,000 a year or have up to $3 million in Assets with DBS. Not as strictly invite only but normal applicants have been turned down like myself who can't wait to get my greasy hands on that $1 million dollars in Credit limit.

- You get up to $1 million dollars in credit limit so basically its almost limitless.
- $1 to 2 mile for oversea spending and $1 to 1.6 miles for local spending
- 1000 airport exclusive lounges worldwide await your patronage and rightfully so as you are given exclusive access to them.
- Immigration fast track where applicable
​- 100,000 free air miles as a welcome gift.....that is enough to send you on a round ticket to most places on this planet in case you are wondering what 100k of air miles can do...

Annual Fee : $2000
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3. OCBC Elite World Card

Compared to the other cards, the barriers to entry are lowest with an annual Income of $250,000. It will open you to a world of exclusive privileges which OCBC reserves specially for their most treasured customers.

- Exclusive access to their special conceive service which will fulfill any request you may have like sending your business contacts birthday gifts to having a special booking for a dinner reservation made for you and the someone special.
- Be invited to special close door events specially reserved for the elite
- Access to prestigious golf courses which have previously hosted PGA tours.
- Each time you fly you will be met by their "Meet and Greet" agent who will bring you specially to an expedited check in and even carry your bags for you
- Specially for those in the Premier Banking circles only

Annual Fee : $1605


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4. American Express Centurion Black Card
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Not just in Asia but if you hold this card, you are very well one of the most elite on earth. It has been compared to Thor's hammer by some as only the most worthy can wield this card. Certainly a Thor's hammer of the modern man. So exclusive that even the Bank's website says nothing of this.

- As far as it goes, there are NO credit limits
- To qualify you need $250,000 in annual spending
- VIP Access to 600 exclusive travel lounges worldwide
- First Class Flight Upgrades
- Personal Travel Agent
- Host of benefits open to the card holder

Annual Fee : $7490 and you must hit $250,000 in Annual spending to stand the best chance of being Invited.


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5. Citibank Ultima Card
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First to qualify you need to accumulate $5 million dollars worth of Assets and it has to be all managed by Citibank. Once that happens your name may just pop up on their radar before they give you the call and offer you this exclusive card.

- Women who have a guy holding this card don't just have any guy...they have the Ultimate Guy...with the Citi Ultimate.
- You will have a personal relationship manager to serve your every need including source for that rare mink fur which you always wanted to buy your wife or to source for that rare watch used by the British nobility before it went on the market.
​- Private concierge that can book private planes for you or even book you a cruise on a private yacht.
- Tons of prestigious stuff that only the elite have access too.

Annual Fee : $3888 

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Average Uncle Investment - HOW to invest from just $500 a Month

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Latest UPDATE : 10 June, 2019 (Monday)

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You have all seen it....commercials selling "Free" Seminars which will promises how YOU can become the owner of Multiple Properties in Singapore with "Little or NO Money Down". These commercials feature stings of Singaporeans such as yourself telling you that ITS POSSIBLE to own properties with NO MONEY DOWN. Its often so easy to believe what a beautiful looking lady who tells you that in her 20s she is the owner of thirty something properties right here in Singapore.

Are such seminars free? No. What you will be exposed too is a first time "Free" invitation to a LIVE commercial where you will be told of all the benefits of attending the main course. You will be told its your lucky day because just for today, instead of the normal price of $12,888 you can sign up for $2,000.
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As with anything that sounds too good to be true, our first instinct is to disbelieve it as a gimmick. Well here is the truth, IT IS POSSIBLE. However investors should be aware of ALL the pros and pitfalls of such schemes.

Almost NO CASH Down Payment? Heres how...

Lets explore the techniques that some people may employ to "OWN" a property with almost NO down payments. Can a property just appear in your name for free? What are the consequences of such ventures? Always wise to see everything from all angles before embarking on such an adventure.

1. In Singapore its almost Impossible to buy a property without down payments. For residential properties its the LAW for first time buyers to pay at least 25% down payments in Cash and for Commercial Properties banks will finance up to 80% of the cost of the property. Since a down payment is a legal requirement the technique employed is to ask Investors to take an existing loan (Refinance) a property which they presently own. 

Many properties more than 8 years old would have gone up substantially in value and by refinancing their existing home loans an individual can unleash up to 75% of the value of his property in cash. This should be adequate to be enough for down payment for up to three properties of similar value as their home.

This technique is preferred by investors as a home loan is normally the cheapest form of loan as its borrowed against the security of your home.

Eg You Home has a value of $1 Million, you can refinance and get up to $750,000 in cash. This will give you enough down payments for up to three commercial properties of similar value as your home of $1,000,000 assuming each down payment is to the tune of $250,000.

2. An illegal way which may or may not have been employed by some individuals is to collaborate with the property seller to declare a higher amount of the purchase price so that the buyer in turn is able to get a "bigger" loan. The seller will benefit by receiving a few thousand more for his cooperation and thus becomes a win-win situation.

3. A technique taught in some seminars is to use a pool of like minded buyers to pool together and buy a property thus reducing the down payments for everyone. Note that the rental yields will be divided but its yield would remain the same as what you receive will be in proportion of what you pay. The hardest part is finding those like minded individuals and convincing one or more of them years down the road to hold for passive income and NOT to sell. Or vice versa...

4. Register a company and borrow from P2P platforms online. This technique is almost insane as P2P loans come with insane levels of interest will will nullify any rental yields you may have envisioned to receive. Interest can be anything from 5% to 15% per year.

5. Invest in foreign countries which sometimes have zero down payment deals. Its tough to oversee foreign investments and this method is NOT recommended as you incur currency risk on top of every other risk that local property investors are exposed too.

A Sure WIN Strategy? Or?

In order for this strategy to work, these schemes will "Teach" its viewers how to find "Undervalued" companies. By this we will presume that undervalued simply means any property which monthly rentals yields will exceed installment payments to the bank.

Bank Loans in Singapore are generally anything from 2-5% for properties. Assuming a property is found with rental yields of 3% and the investor is able to secure a bank loan of 2%....the investor is thus able to procure a "Passive Income" of 1%.

From a financial standpoint, YOU will be in partnership with the bank. You will incur 100% risk and will reap only 33% of the profits.

For the lady who is in her twenties and owns 30 something properties. This will translate into something to the tune her being in approximately $35 million dollars debt to a local bank/multiple banks and having a "Passive income" of around $30,000 a month. So long as the yields are in her favor she will have a positive cash flow of up to $360,000 a year. Good money for a young person in her twenties.

Now for the risk. We all know that rental yields can go up and down. Bank interest can also rise and fall. At 2% yearly interest a $35 million debt will cost you $700,000 yearly and added to your massive debt. A debt of $35 million at 3% will translate to interest cost of $1,020,000 a year.....every year. Can a passive income of $360,000 a year save an investor under such circumstances? 

Some GURUs will teach you how to MAXIMIZE your rents by carefully sub partitioning one single property into multiple sub units where you can then earn by leasing to multiple tenants. This will raise your yields slightly but still its effect on a monster size loan of tens of millions will be minimal.

Life for such an investor will be an endless game of refinancing and stressing over interest margins. With 35 properties, an investor will be faced with the nightmare of endless phone calls to banking agents and each time a bank sends a letter informing of a rise in rates, it will be heartbreaking.

While such seminar commercials will show you Singaporeans being asked if its "Possible" to own properties with zero or low down payments, it must also be known that its "Highly probable" that no economy can survive 30-40 years without Seeing property markets going through a bad patch. Due to the size of the loans, 30-40 years is a reasonable time frame when making a comparison. Almost every 10 years a market will see its hiccups and wobbles as the market self corrects.

We encourage every investor to make informed decisions and do their homework before committing to beautiful dreams sold by beautiful speakers. A much safer  technique to leverage and make money on properties is to use "Margin" Accounts by local brokerages and investing solely in REITs. That however will be another story for another day.

Invest YOUR money wisely. Discover with us HOW to best achieve Financial Freedom

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You are among many of the Millions of other Singaporeans who work hard day to day to build yourself a nest egg so that YOU can retire happily in the end without having to depend on anyone for support. For decades we tolls, motivated by better quality of life and being able to give our families the best. The one day that everyone looks forward too is the day we can withdraw a portion of the CPF retirement fund which we have spent a lifetime building. ​In this fund is your years of labor. Many thoughts would cross your minds at this point on how best you will spend your money. 

Many working adults on the other hand spend on average $10 to $20 weekly on trying to win that elusive $2000-3000 lottery.

Here is one article which will show you HOW you can very simply win a prize equal to lottery payout AGAIN and AGAIN....forever.

The Elderly CANNOT risk their assets like a younger person

The problem of retirement is that  unlike younger people you will NOT get a second chance if you sit on huge piles of paper losses. Time is a friend of the investor and a young man who is in the middle of a stock market crash will be able to simply wait for months or even years before the stock market will once again reach new highs and allow him chance to sell out.

Safe Investing with MINIMAL or NO risk

There are many safe investment options which protect capital or incurs minimal risk  in order to suit the retiree's investing goals of making as MUCH as POSSIBLE without any chance of LOSING. Even a bank can close down or a meteor can fall from the skies to end our planet. Risk cannot be avoided but can be minimized. Here we will explore some of the available options to generate your windfall.

Lottery Winnings in Singapore

An average player wins around $2000 for each $1 "Big" bet and $3000 for each $1 "Small" bet. There are many who aim for much higher payouts and risk huge sums of money. Toto pays off a million or more but with sensible investing, even this neat sum can be achieved over time.

Fixed Deposits (Ultra Safe)

Fixed deposits can be an INSANELY powerful tool...if you lived in the 1980s....well it still commands considerable power if you are a defensive investor who is totally NON tolerant to any form of risk. Say Mr Apu has worked as a Security Manager all his life and thanks to being a saver have retired with a nest egg of around $300,000 in both cash and CPF lump sum at 55 years old. $300,000 placed in a simple Fixed Deposit at 2% interest yearly will guarantee him $6000 of money yearly, almost risk free. ($500 monthly) We have NOT even taken into account the power of compounding. Say he takes advantage of some wonderful promotion and gets 3%...that will assure him $9000 for the year. ($750 monthly) We have compiled the highest rates offered by ALL Singapore Banks.

Sure beats an uncle who spends $10-20 a week just to score that $2,000 to $3,000 which happens only every 4-5 years if he is really lucky.

Mutual BOND Funds

An extensive research was done on Pimco Income Fund and information is shared by our team here.

The next safest instrument after Fixed Deposits are Bonds. Bonds by themselves carry some risk but bundle them by huge quantities into a fund and you will have a safe stable source of income. Pimco income fund not only grows in capital gains over time but has also paid out dividends on a monthly basis. The current yield stands at approximately 4% per year. An Investor who parks $300,000 into this fund can expect an approximate payout of around $1000 monthly with capital appreciation potential on their overall capital.

Monthly Income Plans (MIP)

MIPs are mutual funds which have better gains as they tend to have a fund basket consisting of 70% bonds and debt securities and 30% invested into blue chips like DBS Bank and Keppel Corporation

One MIP which has been around Singapore for more than 15 years and have delivered consistent returns is the Eastspring Monthly Income plan. This plan at the current market price translate a yield of around 5.6% yearly. A $300,000 investment will give you a monthly paycheck of approximately $1,400 ($16,800) a year. Its better than playing the lottery as the money is generated with the wealth you have build up.

Do note that all monthly payouts calculated in this article is based on a $300,000 capital. In the event you want to remove some capital from your fund in order to say...buy a fishing boat to reward yourself on retirement, you will be pleased to know that mutual funds can be liquidated by selling them. Do take note that once your fund has been sold, the portion of units sold can NO longer earn you any future income. Just like withdrawing money from a bank, the money is gone forever.

Start saving early and if you have $600,000 or even $1,200,000 million at the end of your journey, you can very well see yourself sitting on a fishing yacht worrying about your next catch instead of worrying about where your next paycheck is coming from. We sincerely hope you had fun learning along with us and we look forward to seeing you again for our next article.

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​Investment #1 - Monthly Passive Income with this Stable Unit Trust (Eastspring Monthly Income Plan "MIP")

Before we begin, let me first state that this isn't for everyone. If you have Zero savings and are worth Zilch, then this article isn't really for you. No  harm reading if you want to change your lifestyle and begin saving and investing which is strongly recommended. For this whole system to work lets be clear that YOU will require three things and YOU MUST understand ONE simple point.

Things you need

1. $70,000 to $100,000 in Savings. It must be in CASH which you were intending to spend on a car anyway. If you DO NOT have this sum in cash, it would be ill advised to even consider getting a car as it would become a liability. This system will help you RETAIN your capital and still be able to pay off car.

2. You Need to be working. No (legal) bank anyways would offer you any sort of loan if you do not have a Monthly income. If you are Self employed, you will need to prove to the bank your yearly income assessment to get a loan "Approved".

3. Be Prepared to do some homework as you prepare to do some "Shopping".

Point to UNDERSTAND

A car is a cost. Any car YOU buy will be a liability. By even planning to BUY a car you are prepared to LOSE almost 90% of the entire COST of the car as it depreciates.

What this article will do is suggest ways you can reduce this OVERALL Drain on your asset or even at the end of the day PROTECT your ENTIRE savings of $70,000 - $100,000 which you were prepared to spend on a car in the first place.

The above screenshot shows a local Singaporean site which many car owners need no introduction to. We have removed the car agent's details for this article as only the purpose of the above image is to illustrate the current prices for a Honda Fit as of May, 2019. The price stands at $64,988.

If you have been saving for sometime and have between $50,000 to $100,000 budgeted for a car, this money will come in very handy and will be able to give you the added "OPTION" of paying off this car with almost NO LOSS to your capital.

As of 2019, the lowest Interest rate that a simple search turns up is by Standard Chartered Bank Singapore of 2.68% (Do verify with your banker for the latest rates). The Bank will Provide 70% of the loan with you having to pay off the first 30%.

So for a car of $64,988 you must pay $64,988 X 30% = $19,496

The remaining 70% of the car's cost will require a LOAN. Do not use your savings to pay off the car in CASH as money can be a very hardworking slave for you that will help YOU to repay the full cost of the loan. This would probably go against every advise you ever heard which always taught YOU to repay your loans ASAP. Let us explain further.

At this stage, lets pretend you are NOW in debt of = $45,491.60 which is the remaining 70% you owe the bank. Lets now add in your interest for a 7 Year Loan.

$45.491.60 X (1+(2.68% X 7)) = $54,025.82 is your final balance that the bank will be paid after 7 years of installments. This will mean a monthly repayment of $643.16​.

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Now assuming you have $100,000 in Savings to begin with. After paying down the down-payment for the car, lets assume you have a sum of $80,000 left. Once again do note that if you do NOT have a safety cash blanket, it's highly ill advised to commit to a car. A car is NOT a must in life. A Car should NOT take up 50% of your net-worth. It is absolute financial Madness to spend ALL the money you have on a car with no other savings for opportunities that may come along or for unexpected expenses. For a man in his 30s, a car should constitute no more than 10% and below of your overall net worth. The biggest asset one should own is a home as you can always rent rooms out or  partition rooms for more rental income.

Now prepare to put your money to work. You were prepared to lump the whole sum down on a car so this technique will help you preserve some if not ALL the remaining value.

Now it is time to put our money to work in order to use money to slave and make more money for us to repay the car. For this purpose we have chosen the company First REIT which is a medical REIT. You may have a better idea of a stock which you want to invest in but we will list our reasons for selecting this baby. (Remember the 3rd thing you need to start this journey was  you having to do your own shopping to find an investment that suits you in case you may have a better idea).

We have chosen First REIT for several reasons.

Firstly at the current price, the dividend yield is 8.69% per year. (See the illustration where we circled the dividend yield for 2018).

Check out its past distribution of dividends. It has steadily increased. For this reason it shows stability and has the potential to increase its dividend payouts even further down the line. (illustration above which shows escalating dividends : Source by First REIT Q1, 2019 report).

The Net Asset Value or NAV as seen in the illustration above. Net asset value is an important part of investing as this is the final amount the company owes its shareholders in the event of liquidation. All the company assets added together minus all its liabilities and creditors will give you the NAV. As you can see the NAV is above the trading price of 97 cents a share. This means by spending 97 cents you have $1.02 worth of assets slaving for you.

$80,000 invested will give you returns of $6,952 in cash for this year. This means you will get $579.33 Monthly. Assuming you have an installment of $643.16, you will find that FIRST REIT's dividend will help you cover most of the installment leaving you to pay only $63.83 which will come from your income from your job. 

Now remember the first $20,000 you spent on the car? Time to take the money back! After you use the car for around 7 years, the value of the car would have deteriorated to approximately $28,000 from the Original price of $64,988. A "Loss" of almost $37,000

Well simply put, sell off the car at this point and take back your money. Assuming you are only able to get back $25,000.....this will MORE than cover your original $20,000 outlay of money which was your down payment for the car.

What is your true COST at the end of this whole Journey? Well, you will still be holding your shares in First REIT. Shares are yours as long as you DO NOT sell it. It can be left to your children when you are dead. The dividends from the shares would have enabled you to own the car for just $63.83 a month. After 7 long years the total you have paid for the car from your working income is a mere $63.83 X 7 x 12 = $5,361.

The total you have spent on the on the car was $20,000 + $5,361 = $25,361
The Sum you received for the sale of your car is $25,000 and so the true cost of your car is $361.

TIP - Use $20,000 from the Cash sum you received to use as downpayment for your new car. The remaining $5000 can be used to buy more "Dividend" Generating shares.

Assuming at the end of the Journey, the shares of First REIT have loss 20% of its value. What have you really loss? Nothing. You are still going to be in much better shape than spending the money buying a car and NOT investing. The car would have depreciated with you having NOTHING to show for it.

Dividend stocks are always our preferred form of Investment as they like all other stocks will rise and fall but you the investor will ALWAYS be rewarded with a stream of income.

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Income seekers who love to have a stream of monthly income would be pleased to know that many of these mutual funds we write about have be thoroughly researched by our team. We tend to avoid mutual funds which pays income from its own capital thus eroding the Net Asset Value of the fund as dividends are Paid.  To meet our criteria NOT only must the fund have paid out consistent dividends over time but the fund must have retained or appreciated in value thus giving Investors a safe heaven of Passive income that can last time for decades or a lifetime.

When an Investor discovers a Dividend Gem, its like a man who discovered a magic wallet which gives you a stable income every month for life.

Pimco Income Fund Class E - SGD-H ($10.13 Per Unit as of April 28, 2019)

This fund was started in 2013. For 6 Years running it has paid out consistent Dividends. Based on the current market price, the fund has paid out a consistent dividend of 3.4033 Cents each month without fail. The dividend has NOT changed Since 28 June, 2013. This signals consistence with its performance.

It started trading at $10 a unit back in 2013 and has since appreciated to its current value today.

Dividend yield based on the current price is approximately 4.03%. More yield can be squeezed out of the fund if you choose to reinvest the cash proceeds instead of spending it.

The fund has very low volatility levels and has the lowest price of $9.60 as can be seen above in its historical pricing and a high of $10.50. At the present value, it has potential for more capital gains.

For those concerned with the true yields, as can be seen in the image above, the fund has performed commendably well over the years with the reflected yields. More details about the fund can be found in Fund Super mart where investors can buy unit trust with zero commissions.

Conclusion

Certainly a fund that an investors can choose to use to park a portion of their cash reserve. Do note to always choose to diversify even "Safe" funds such as these. A millionaire who parks $1,000,000 into a fund which pays 4% dividend yield a year receives around $40,000 a year in cash returns. However in the unlikely event that he loses the investment due to whatever reasons, the entire $1,000,000 is gone.

Now a Millionaire who Parks his money by putting $10,000 into 100 different unit trust which he deems "safe" and which assuming ALL pay 4% each in dividend yield a year would still receive $40,000 a year in dividends. Now assuming one or two of the funds fail due to whatever reasons....all he would have lost was $20,000 of his capital. The other 98 funds with $10,000 each would still go on paying him his 4% Yield which means he will receive $980,000 X 4% = $39,200 in dividends. After deducting the loss of $20,000 he would still have $19,200 in cash returns for the year.

Diversification is the investors best friend. Its better to have $1000 in 1000 different instruments than $10,000 in 100 different instruments.

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​#2 - Highest Interest Rates for Singapore Banks (April 2019) Updated Monthly

​Investment #1 - Monthly Passive Income with this Stable Unit Trust (Eastspring Monthly Income Plan "MIP")

Note that Placing Money into a saving account will NOT guarantee inflation free returns and the bulk of your money should always be invested in instruments like Fixed Deposit in order for your money to best reward you for saving it. Here is a comprehensive list of Saving accounts with corresponding interest rates for easy comparison.

Multiplier Account - 1.55% - 2.2% if You Credit Your salary + Insurance + Spend on DBS Credit Card + Invest with DBS Click here

UOB One Account - 1.5 - 1.8% ​ Promotional Rate - 1.7% for 10 Month Fixed Deposit. Minimal Sum $20,000 Click here

360 Account - Up to 1.45-2.45% or more if you Credit Salary + Spend + Increase your monthly balance by $500 more than previous month + Invest + Grow and Boost your account + Invest $20,000 ​ Click here

Save As You Earn Account - Up to 2% Interest Rate. Save Same amount monthly and don't touch for two years. ​Click here

Standard Chartered Bonus $aver Account - 1.1 to 2.13 % Salary credit above $3000 + Bill Payment + Credit Card Spending - Fixed Deposit 1.8% with minimum sum of $25,000 for 12 Months  Click Here

Bank of China Smart Saver Account - Up to 1.45 - 3.4%  Fixed Deposit 1.95% for 12 Months Minimal $20,000 (Online Only) Click Here

Maybank Save UP Programme - 2.94% (Loans + Credit Card Spending etc) Maybank Fixed Deposit Rate - Up to 2.00% for 12 Month Time Deposit. Minimal Deposit amount : $20,000 and must maintain a balance of $2000 in the Savings/Current Account Click Here

3 Months Fixed Deposit - 1.55% Click Here

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​Investment #1 - Monthly Passive Income with this Stable Unit Trust (Eastspring Monthly Income Plan "MIP")

The following write up is NOT an inducement to buy. The following is factually based on research on material which the fund managers have made available to public. All investors are advised to always perform their own research before committing to any investment. All investments which we discuss are approved by the relevant authorities and readers are advised to only invest in instruments which have been granted the legal licence to operate in the region. Investing in non-regulated investments may expose Investors the risk of an unregulated product. No one is allowed by law to solicit investment without relevant permits and licences and any suspicious soliciting of investments online should be treated cautiously. Any investors who have doubts about shady investments should approach their relevant authorities for advice or seek advice from a financially "Trained" person.

Eastspring Monthly Income Plan - SGD is one of those unit trust which has been floating around Singapore since 2005. They have consistently paid out 0.4 Cents a share monthly and 0.6 cents a share each February for a total of 5 Cents a Year in payout since their inception. Not many trust in Singapore can boast such reliable payouts.


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In the fund's fact sheet which can be found at a site like Fund Supermart (FSM) the above screenshot shows the growth you would have enjoyed if you have invested in the above time frames from up to 10 years back to a week ago.


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This image represents the highest price the fund has achieved in Singapore currency and the lowest. Currently as of today the fund trades at $0.879 which has potential to be bought at a discount to its launch price of $1.00 and to achieve new highs in future.

Assuming $10,000 is invested today at the price of $0.879 a unit. This will translate to 11,376 Units of the trust which will be pumping in 5 cents a year and paid monthly. Assuming the fund follows its payout schedule of 0.4 cents a share for 11 months of the year and 0.6 cents a share each Feburary it means you will earn 11,376 X 0.4 cents = $45.50 each month for the full year with you receiving 11,376 X 0.6 cents = $68.26 each February. 

A sum of $100,000 invested will yield you $455 a month.
A sum of $1,000,000 invested will yield you $4550 a month.

This represents a Annual yield of 5.7% in Dividend payouts should Investors choose to take their Dividends in cash.

Investors who choose to Reinvest their dividends and receive Units instead of cash will see annual yield of 6.03% due to compounded interest. Each month new units which is added to your account will immediately start to contribute additional dividends to your existing Trust Holdings.



Pros

- Consistent Dividend Payouts Since 2005 of 5 cents in total a year and paid Monthly. 
- Has the potential to NOT only deliver dividends but also to grow in capital (If bought at the correct entry price).
- Since inception has registered a net yearly growth (Assuming dividends reinvested) while other unit trust have ran red in some of the years.
- Well diversified with asset split across different classes and countries
- Good strong Management
- Has an office here in Singapore
- Approved and registered by the authorities

​

Cons

- Some investors with stronger risk appetites may feel the yield may NOT be the highest on the market. There are some unit trust with yield exceeding 10% or even 12% with monthly dividends.
- Despite it strong track record, There is NO guarantee it will continue paying out dividends in the far future as payouts is from its Net Asset Value and dependent on the fund's performance (Note that all unit trust share this same risk).
- Management Fees

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Conclusion

A fund that we personally feel should be part of a serious investor's portfolio especially for Investors of unit trust. One should NOT put all their eggs into this one fund but this fund would be a good asset to sit alongside other investments.

Some investors as mentioned in the "Cons" may prefer higher yielding unit trust but do note that ALL unit trust pays out dividends from its own net asset value and funds which offer too high a yield may realistically be robbing Peter to pay Paul by giving you back money from your own Capital which you have invested. This fund with it's present yield represents a good consistent and realistic payout structure which has NOT failed in more than a decade.

Personally if we had to place a bet on the markets, We would rather invest in a fund which has strong track record, consistent payouts and a dividend history spanning back 14 years. Investment is like a game of Poker. Much better to go in guns blazing with a Full House than a Pair of Aces. 

We wish everyone successful investing and do support us when we do our next fund/Stock review.
​

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