The rout wiped out about $350 billion of market value in a week on the Shanghai and Shenzhen exchanges. It so traumatized traders that eight years later they still refer to the decline by the date it began: the 5/30 catastrophe.The milestone for the modern Chinese stock market, which began in 1990, started on midnight, May 30, 2007, with Hu Jintao’s government unexpectedly announcing it would triple a tax on stock trading. The plunge sparked by the pronouncement had followed a breathless rally, making it eerily similar to last week’s events.
On Thursday, stocks erased almost $550 billion in value after surging 143 percent on the Shanghai Composite Index over the past year. Traders could be forgiven for a wave of deja vu mixed with a dollop of dread: In 2007, stocks recovered from their May losses only to drop more than 70 percent over the next 12 months from an October peak.
The Shanghai Composite gained 1.9 percent at 10:30 a.m. local time Monday.
Here’s a look at the similarities and differences between China’s markets then and now.
* Timing of declines: Both selloffs followed rallies that sent the benchmark index up more than 100 percent in just months.
Thursday’s tumble in Chinese stocks came after brokerages tightened lending restrictions and the central bank drained cash from the financial system. The Shanghai Composite shed 6.5 percent and fell another 0.2 percent in volatile trading on Friday.
On May 30, 2007, the Shanghai gauge also tumbled 6.5 percent after the government raised the stamp tax to 0.3 percent from 0.1 percent. The measure aimed to cool the stock market after it doubled in about six months and almost quadrupled from the end of 2005.
By June 4, the benchmark had lost 15 percent. The market then started to stabilize and rose another 66 percent to an all-time high in October 2007 before tanking again as the global financial crisis raged.
* Rookie traders: The two stock rallies were fueled by record amounts of new investors, increasing fluctuations.
About 29 million new stock accounts have opened this year through May 22, almost as many as in the previous four years combined, according to the China Securities Depository & Clearing Corp. Margin debt on the Shanghai exchange has soared more than 10-fold in the past two years to a record 1.35 trillion yuan ($220 billion) on Thursday.
In the first five months of 2007, more than 20 million stock accounts opened, four times the amount in all of 2006. Margin trading, or investing with funds borrowed from brokerages, wasn’t allowed then.
* Initial public offerings: In both instances, a flood of new companies came to the market to take advantage of rising share prices. More than 120 newly listed companies have started trading so far this year, almost matching the total for all of 2014.
In 2007, PetroChina Co.’s 67 billion yuan ($11 billion) IPO was “one of the catalysts” pricking the “bubble,” Hao Hong, the chief China strategist at Bocom International Holdings Co. in Hong Kong, wrote in a note on May 28.
* Monetary policy: China’s economy was booming in 2007, prompting the central bank to extend a policy of raising interest rates for a third year. Higher borrowing costs eventually helped cool the market.
This time, policy makers are cutting interest rates as the economy slows, bolstering stocks. The People’s Bank of China lowered its benchmark for the third time in six months to 5.1 percent on May 11. The central bank will further cut it to 4.85 percent by December, according to economists surveyed by Bloomberg.
* Valuation: While stocks have become more expensive, price-to-earnings ratios are still lower than in 2007. Trading at around 18 times forward profit, the Shanghai benchmark is about 60 percent cheaper than at its at peak of 2007, data compiled by Bloomberg show.
* Liquidity: Unlike in 2007 when the Chinese market was largely off-limits to foreign investors, authorities have recently accelerated the accessibility of stock trading, luring more overseas funds.
A link between the Shanghai and Hong Kong exchanges established in November allowed international investors greater access to the local market. A similar program between Shenzhen and Hong Kong is due to start this year. Global funds investing in China added more than $4 billion in the week through May 27, more than double the previous record set in 2008, according to data provider EPFR Global.
* Government support: Policy makers repeatedly warned investors of risks in the stock market in 2007. This time, they’ve voiced their support. As the government tries to lower corporate debt levels, the equity market has become a more important venue for companies to raise funds, according to Andrew Sullivan, head of sales trading at Haitong International Securities Group in Hong Kong.
By moving money away from the “shadow banking” system, it makes investments “more controllable,” Sullivan said on Bloomberg Television.
For the full list of REIT listed in Singapore, do click here, and if you interested in Business Trust listed in Singapore, please click here instead.
3 Important Differences Between A REIT and A Business Trust That Investors Have To Know (From fool.sg)
The Singapore stock market is home to quite a wide selection of real estate investment trusts (REITs) and business trusts. In fact, Singapore’s stock exchange is also one of the few exchanges in the world which allows the listing of business trusts.
Within Singapore’s market benchmark the Straits Times Index (SGX: ^STI), there are already three trusts amongst its 30 constituents. The trusts include Ascendas Real Estate Investment Trust (SGX: A17U), a REIT, and Hutchison Port Holdings Trust (SGX: NS8U), a business trust.
It might be easy to lump a REIT and business trust together and view them similarly. But, there are actually important differences between the two types of securities that investors have to know before they invest in them.
1. Legal structure
Unlike a normal corporation, both business trusts and REITs are managed through a trust deed with the trustee having full legal ownership of the trust’s assets instead of the trust’s unitholders.
The trustee of a business trust is considered the trustee-manager and so it’s the same entity which owns and manages the assets on behalf of the unitholders of the business trust. Meanwhile, a REIT requires a trustee to hold the assets and a separate manager to manage the assets for unitholders. The trustee for a REIT must be a licensed entity approved by the authorities.
Unitholders can also choose to remove the manager of a REIT if there’s a vote on the matter and more than 50% of the votes say “yes” on the move. As for a trustee-manager of a business trust, it can only be removed if 75% of votes from unitholders are in favour of such a move.
2. Differences in leverage
According to the “Code on Collective Investment Schemes,” a REIT is only allowed a limit of 35% for its gearing ratio. A REIT can boost its gearing ratio to 60% if it obtains a credit rating from rating agencies (these credit restrictions might be altered in the future).
Business trusts on the other hand, are not required to subject themselves to any borrowing limit. It is thus important for unitholders to keep an eye on the gearing ratio of a business trust as the level of leverage employed might get out of hand. There have been instances of business trusts overstretching themselves, with the experience of First Ship Lease Trust (SGX: D8DU) being a good example.
In this sense, business trusts might be seen to be riskier entities than a REIT since there’re no hard limits on how much the former group can borrow.
3.The level of distributions
Another key difference between a business trust and a REIT is that the former is is not obligated to distribute any of its income while a REIT must pay out 90% of its “distributable income” under the Income Tax Act. So for investors looking for stable yields, a REIT might be considered a “safer” investment in this sense since a REIT has to pay a distribution.
A collection of real estate might be bundled up as a business trust instead of a REIT – there are no restrictions on the matter. But, an investor has to realise that, there are fundamental differences between the two structures even if they do own the same type of asset. Investors should take note about these key issues before investing in any of the two.
Let’s face it, comparing with the past, we now order more stuffs online when we fancy some gadget or clothing. Review, comparing and book more flights and hotels either online or via our mobile than ever. More readily to share werid incident or voice out our comment/picture on twitter or on Facebook. The world is shrinking right before us as Internet is binding us even closer than before.
The up-rising of Internet play an important role in enabling the ease of wealth creation for the common people out in the street. Opening a retail shop is never easy, the owner need to fork out substantial capital just for rental, renovation and hiring. But with eCommerce players like eBay, Taobao and Weebly, they have create a complete solution platform for anyone to open their virtual shop in a instance! Furthermore this virtual shop run 24 hr a day, 7 days a week!
With the level playing field platforms these eCommerce players bring to the table, and together with other Internet innovations, it just simply spur growth in various sectors like Logistics and create new sector like Online Marketing and Online 3rd Party Travel Agent and more. Wealth creation has long spill from this eCommerce cup into other. Business owner can now have Social Media Audit to review their online presence performance. That was never being done in the past till Internet bring on the series of changes.
Ok, after knowing that Internet have changed our life, what can we do to leverage on it? Now we are in a much better time and position to leverage on these improvement and start our second income using Internet itself. Besides that, considering what will happen after the musical chair game (we referring to the series of money printing action by various economic bodies) end? The world could possible plunge into another recession. Jobs will be lost if that happen. It is time for us to roll up our sleeves, and start to learn a skill or to use your current skill to generate income on Internet.
After starting up your personal blog with sizable followers, you could relied on advertisement as your income. You can using services like Google AdSense, that post advertisement links on your blog. When your blog readers click on those advertisement links, Google AdSense will pay you of the advertisement commission. And with some luck and with your interesting, well-written articles, you could even being approached by companies who want to reach your follower base with graphical advertising in your blog. There are true stories of blogger that able to quit their day jobs and blog full time.
Freelance Your Skill Online
As Internet help to close up the distance between each continent, there are a lot of Project Market places like Guru where people list their project requirement online. It range from programming to content writing. You could easily make your skill that you mastered in your Day Job and become a freelancer.
Sell Your Products Online
First of all, check and review your exiting hobby. You never know one of your hobby could generate product and create income for you. For example, you may love to take picture and that is of commercial value and you can start to sell online. One of my friend whom is very much into Wild Life and her picture is featured on NationalGeoGraphic http://yourshot.nationalgeographic.com/photos/5196177/ and she could easily started to sell it online(https://submit.shutterstock.com/). What could be better than to enjoy your favorite skill/hobby and get paid at the same time!
Besides your hobby, you could also sell product that you are familiar with. Just like one of my friend whom have his own label and sticker products, that is very popular with children and young adults, listed in one of the popular eCommerce platform Qoo10.
Search engine optimization (SEO) is a growing area for Internet-based employment. It is common for businesses to use SEO as a means to improving their results from a search engine as more people turn to search engine like Google to look for both products and services.
Working with Online Marketing Company, you could turn in as a contract SEO reviewer. Such job normally involve evaluation task by judging a user’s intent based on the key word combinations provided and your own knowledge of popular culture in the user’s locale. Then, you use a set of given guidelines to evaluate how particular search results match that user’s intent. As SEO is a ongoing online marketing process, it can offer a steady income for you.
What we mean here, is investment choices in the future and not now. Guess some of you may be puzzled of what i mean by “investment in the future and not now”. Although eCommerce, Logistics, Online Marketing and Online 3rd Party Travel Agent business are blooming, but there are a lot of danger lurking around ready to plunge the world economy into another recession. And it better NOT to invest in such industries now, unless you know what you doing. What you should do, will to be investing in the mentioned industries when we are in the mid of recovery of next recession.
We will love to hear from your guys if you have any another ways to generate income online.
What will be more important is to analyst the influence of Budget2015 over Singapore Stock Market. We need such information to empower us and assist us on the path of wealth creation. So let’s get started!
Key Influences of SGBudget2015
Govt expenditure will continue to increase over the medium to long term, driven by healthcare, public transport & T5.
A new Changi Airport Development Fund will be set up, with an initial injection of $3B
Temasek to be included in Net Investment Returns framework; add. resources to fund govt expenditures
Petrol duty rates for premium and intermediate grade petrol raised by $0.20/litre and $0.15/litre respectively
#SkillsFuture Credit – S’porean aged >= 25 to get initial credit of $500 from 2016 for education & training
As the initial fund for public transportation being locked in, the transport companies SMRT and SBS Transit will be back in spotlight with Lui Tuck Yew announce on the bus asset purchase plans pretty soon. Comfort should also get to be part of the spotlight gang as it not impacted from the come-into-effect increased petrol duty rates, as it uses diesel for its fleet.
As plans for Terminal 5 Airport materializes with an initial injection of $3B new Changi Airport Development Fund, certain construction company and logistic company like Yongnam, CWT and Singpost may have big rally story cocking up and bang up soon.
Scheme Skillsfuture will soon put $500 into education & training account for most of the working Singaporean adults. With this Skillsfuture Fund spill over, Education operators like Raffles Education should enjoy the soak up too.
Previously, Singapore government tap on returns generated on its net assets managed by the Monetary Authority of Singapore (MAS) and GIC, and now Temasek is being listed to served Singapore. Temasek may need to generate safer return, and forcing it to make better investment decision. We can started to consider those companies that Temasek invested in after this NIR framework update. Update Do not chase any stock especially when it has rally, instead look for sign of weak supply or higher low, before enter any long position!
Articles in this blog contained the personal views and opinions of the author and are based solely on his perspectives and/or experiences, except for articles that originated from other sites, shall bear their own disclaimer. They do not represent any form of statements made by any organizations.
The articles are for information only and readers must not misconstrued them as financial advice. The author does not work in the financial industry nor is he a licensed financial adviser authorized to provide financial advisory. And purpose of articles been written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.
Any form of investments carry risk, so readers should engage a licensed financial adviser to assess if they are suitable to invest in such products. The author of this blog will not be liable for any form of damages that may arise from the use of information, products and services directly or indirectly featured or implied in this blog.
When anyone mention this hippy word – Entrepreneur, this image of a he is in his early 20s, sporting some messy hair and probably in blue jeans and with a hoodie will appear in your mind.
One of the best representative of the word will be Mark Zuckerberg-Founder of facebook that probably inspired more youngster to seek out such dream and vision. But the truth is many entrepreneurs don’t even think about starting their own business till into their 30s, 40s, and even 50s, only after many years of work experience.
David Sanders, the founder of Kentucky Fried Chicken’s, held a number of jobs in his early life, such as a fireman, insurance salesman and running filling stations until 1952 where the first “Kentucky Fried Chicken” franchise start in Utah. Meanwhile, Joanne “Jo” Rowling, a British novelist best known as the author of the Harry Potter fantasy series, finish her first novel in the series in 1997 after facing some rough going in her life. And her fortune estimated at £560 million or more.
There’s still time, fret not. And if you worked a while, you probable pick up some real skill about life and business that will be helpful in your latter part of Entrepreneur path. You may start out the Entrepreneur path as part time, probably as your second income, and with you still on your full time job. And who know that you may just hatch the next big thing that come from Singapore?
Start now to think entrepreneur! You should start as part time whiles you still on your full time job.
Every day stock prices change due to the result of market forces in respect to supply and demand. When more people want to buy a stock (demand) than sell it (supply), then the price moves up (Refer to the green box in the diagram below).
On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall(Refer to the red box in the diagram below).
And when you have supply and demand been acted out on bigger time frame, you will be presented the overall trend direction. Is it trending up, down or sideway? Below is the chart for STI since 1980 till now. Within the chart, there were a lot of supply and demand (waves) going on. From the chart, it is easy to say that it’s a trending up chart. Reason been the various higher low. We can say that there more buyers than sellers, or the buying strength is more superior than the selling strength. And you as a trader, it important for you to keep a lookout and analyses the strength of each wave. One simple method will be to lookout for a higher low for up trend or lower low for down trend.
Example, look at the black box as below, you can clearly identified a series of higher low and higher high and it looks like it’s a compressed spring waiting to unleash the stored energy within it. Although the probability for a up trend is higher, but it be safer to get in any long position when there is dip and be sure to lookout for a serious supply wave that bleach the previous low.
This article contained the personal views and opinions of the author and are based solely on his perspectives and/or experiences, except for articles that originated from other sites, shall bear their own disclaimer. They do not represent any form of statements made by any organizations.
This article is for information only and readers must not misconstrued them as financial advice. The author does not work in the financial industry nor is he a licensed financial adviser authorized to provide financial advisory. And purpose of article been written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.
Any form of investments carry risk, so readers should engage a licensed financial adviser to assess if they are suitable to invest in such products. The author of this blog will not be liable for any form of damages that may arise from the use of information, products and services directly or indirectly featured or implied in this blog.
At 55, you can withdraw a portion of your Central Provident Fund (CPF) to buy a property
It rather interesting for me not to notice my poll result for “What is your way to Wealth Creation?“, that a whopping 44% voted on being a as their ideal way to accumulate Wealth. For that i decided to add in more articles on such domain.
Article : Buying a Property – Use up CPF before it vanishes into Retirement Account at 55
For Singaporeans, reaching 55 years old marks a major milestone from the perspective of personal financial planning.
At 55, you can withdraw a portion of your Central Provident Fund (CPF) savings.
Yes, finally after years of waiting, you can use the money locked up at CPF!
But hang on… before you start planning for your next holiday destination or researching for your second property…reaching 55 does not mean you can simply go to the CPF to withdraw any amount you want.
The CPF, Singapore’s pension scheme, has other plans for your funds.
First, you need to make sure that you have enough savings in your Special Account (SA) and Ordinary Account (OA) to make up the Minimum Sum (MS) of $155,000 in your newly set up Retirement Account (RA).
Up to 50% of the Minimum Sum (MS) can be accounted for with your property if you had used CPF savings to pay for your property. However, if you sell your property after 55, any amount drawn down from the CPF previously to purchase the property plus accrued interest will now have to go back to your CPF.
On top of that, there is still the Medisave Account which has a mandated Minimum sum of $43,500 which will have to be topped up before any funds are withdrawn.
This means that the Total Minimum sum is a whopping $198,500. (Minimum Sum (MS) + Medical Minimum Sum (MMS) = $155,000 + $43,500)
CPF Compulsory National Annuity Scheme – A Life Long Plan
Most of the funds in your RA will be for a compulsory national annuity scheme, also known as the CPF Life, that gives you a monthly payout when you reach 65 for as long as you live.
There are two plans:
a) CPF Life Standard Plan, which provides higher monthly payouts and lower bequests; and
b) CPF Life Basic Plan, which provides lower monthly payouts and higher bequests.
Under the CPF Life Standard Plan, the first instalment of your annuity premium of up to $77,500 (or half the MS) will be deducted from your RA.
And before you hit 65, the rest of your money in the RA will go into the second instalment of your annuity premium.
This means that basically all the money in your RA will go towards an annuity scheme under this CPF Life Standard plan, which happens to be the default plan if you do not select one.
Under the other plan – CPF Life Basic Plan, a small portion of about 10% of your RA savings will go into your first instalment and another portion will be made for the second instalment as you approach 65. The amount of annuity premium deducted depends on your age and gender.
Should you Buy a 2nd Property before 55 to protect your CPF money?
Many people have called us to enquire about buying a 2nd property using CPF as they are afraid that the money gets taken away into Retirement account. Also the flip-flops denials and admissions by the government regarding how they have used our CPF funds does nothing to sooth fears and worries about the CPF.
Scenario of Mr. Tan who is currently 54 years old – Evaluating buying a property
Owns a private property. This property can be used as pledge for up to 50% of Minimum Sum if required. However the property pledge is not automatic if you meet the Retirement Account (RA) minimum sum. (Note 10, Appendix 2)
Has the following savings in CPF: –
Ordinary Account = $120,000
Special Account = $55,000
Medisave Account = $23,500
At 55 years old, a retirement account would be created. All the monies will be transferred from the Special Account (SA) into the Retirement account (RA) and top up of Medisave Account (MA). After this transfer his account situation will look like this: –
This scenario is where Property is used as a pledge (of up to 50% of the Minimum sum of $155,000).
Retirement Account = $155,000
($77,500 from property pledge + 55,000 from SA + 22,500 from OA)
Ordinary Account = $0
($120,000 – 22,500 (transferred to OA) – $20,000 to MA) – $77,500 Pay out to CPF member)
Special Account = $0
($55,000 – $55,000 (transferred to RA) )
Medisave Account = $43,500 (No Shortfall)
$23,500 + $20,000 (From OA)
CPF withdrawal amount = $77,500
However if you forgot to pledge your property upon reaching 55 years old, you can do so later (Note 10, Appendix 2). Without property as pledge: –
Retirement Account = $155,000
Ordinary Account = $0
Special Account = $0
Medisave Account = $38,500 (Medisave Minimum Sum is $43,500)
Only $5000 withdrawal is possible. (Note 9, Appendix 1)
With property unpledged, apart from the $5,000 that can be withdrawn at 55 years old. That means that between 55 and 65 years old, there is practically NO MONEY until you pledge your property. If you do pledge your property years later, the minimum sum may yet again rise leading to a decreased withdrawal.
For Mr. Tan who have pledged 1st property and are looking to buy 2nd Property
Many people who are now in their early 50s (before 55) and who has some CPF monies and who have already pledge their 1st property are approaching us to discuss using their CPF Ordinary account to buy another House. If they buy a 2nd house, they only needs to meet 50% of the Minimum Sum, which is $155,000 * 0.5 = $77,500. Anything (the sum of SA + OA) in excess of $77,500 can be used.
Medisave Account = $23,500 (Medisave Minimum Sum is $43,500)
“ C. USE OF CPF TO PURCHASE MULTIPLE PROPERTIES
If you already own a property bought with your CPF and wish to buy another property with CPF, you should take note that you may do so only after you have set aside half of the prevailing Minimum Sum in your Ordinary and Special Accounts. The maximum amount of CPF you and your co-owner(s) may use for your second and subsequent property is capped at its VL.
* The Minimum Sum changes every July. Please refer to the CPF website for information on the prevailing Minimum Sum.”
Mr. Tan, has $120,000 in (OA) and $55,000 in (SA). In other words, since he already has a Private property as pledge towards the Minimum sum of $155,000. He can use any sum of money in excess of $77,500 for his 2nd property purchase, provided that they are in the Ordinary account (OA).
$120,000 + $55,000 – $77,500 = $97,500.
Mr. Tan can use $97,500 for 2nd Property purchase.
If this money is used ahead of him turning 55, it does not go into the Retirement account. However buying a 2nd property has the following implications: –
His 1st Property is used as pledge and upon sale of the property, proceeds from sale will go into topping up CPF account used together with accrued interest.
Reduced Loan-to-value of 50% (i.e. only 50% loan size and 50% downpayment) if 1st residential property has outstanding loan.
Mr. Tan is already 54, hence the loan eligibility is lower as the TDSR criteria is tough. His low loan tenure will be short at 10 to 11 years tenure (max 65 years old for 80% loan). If he earns $10,000 fixed pay a month, he can only pass the TDSR if his loan amount is around $656,000. He will need another borrower to join him if he wants to buy a dearer property.
Issues you should consider
While a monthly payout in your old age sounds good, having a substantial portion of your savings being tied down for this compulsory annuity scheme raises a few issues worth considering.
Am I better off reinvesting the money on my own?
Will I live long enough to be able to use my hard earned money?
What can I do now to better plan for myself financially?
Should I downgrade to a smaller flat since funds received from the sale of property now goes into meeting the MS in my RA?
Should I take the opportunity to buy another property now to use up my funds before all the money goes into my RA when I reach 55?
Should I use my CPF to pay down my existing housing loan (if it is not paid up in full)?
Should I trust the CPF with my money given the lack of transparency and the incessant raise of minimum sum which gives the impression that CPF do not want to return you your money.
Each individual’s needs and aspirations are different. And it helps if you think about these issues so as to prepare yourself for this major milestone.
Buying another residential property at 55 is a major decision, the repayment commitment is heavy given the short loan tenure, apart from that, you still have to do proper research to make sure you are not overpaying.
Kindly note, for any CPF matters, you have to make sure to check with CPF directly. And special thanks and credit goes to the Cpf staff for their quick and professional answers.
Suggestions for the Government
While the government’s plan to make everyone compulsorily save for retirement is legitimate, it is overdone and places undue strain on citizens. Structural income inequalities need to be sorted out. Given that GIC and Temasek may have made more returns ranging from 6 to 15% and then giving only 2.5% returns to Citizens, part of the inadequacy in retirement fund could be due to low returns from CPF. Hence the government could gracefully undertake and underwrite the healthcare shortfall of Singaporeans. This would ensure that Singaporeans live and age gracefully.
References: - 1. CPF, https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/wdl_cal2.asp 2. How is Singapore land supply managed,http://www.icompareloan.com/resources/how-is-singapore-land-supply-managed/ 3. TDSR causes Home loan refinancing hardships,http://www.icompareloan.com/resources/tdsr-causes-home-loan-refinancing-hardships/ 4. Summary of Property Regulations since 14 Sep 2009 till Aug 2013,http://www.icompareloan.com/resources/summary-of-property-regulations-since-14-sep-2009-till-aug-2013/ 5. Summary of property regulations aug 2013 till feb 2014,http://www.icompareloan.com/resources/summary-of-property-regulations-aug-2013-till-feb-2014/ 6. Press Release: A Stable housing market, better homes for all, http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/A656E10CAFBBD81948257C9700243AC0?OpenDocument#searchRedirect 7. Recent 2 Years price transactions of HDBs,https://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp 8. New HDB OTP form,http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatOTP?OpenDocument 9. Appendix 1, Correspondences with CPF board, Is property used as pledge for Medisave account? 10. Appendix 2, Correspondences with CPF board, Is Property pledge Automatic upon reaching 55 years old?
Appendix 1: Correspondences with CPF board, Is property used as pledge for Medisave account?
—————————- Original Message —————————-
Subject: FW: CPF enquires
From: “CPF MEMBER (CPF)” <email@example.com>
Date: Wed, November 19, 2014 11:36 am
I refer to your email of 14 November 2014.
No, member’s property will not be used to pledge for his Medisave Minimum
Sum shortfall in his Medisave Account.
Property can only be used to pledge in lieu of his applicable Minimum Sum
in his Retirement Account.
I would be pleased to help you if you need clarification or further
assistance on CPF matters.
Alternatively, you can call us on 1800-227-1188 from Monday to Friday, 8am
to 5.30pm. Thank you.
Appendix 2: Correspondences with CPF board, Is Property pledge Automatic upon reaching 55 years old?
Thank you for your email of 14 November 2014.
In the case where the CPF member is able to meet the MS from this OA and SA, does that mean that his property is not used as pledge at age 55?
Yes, you are correct.
What if he decides to pledge his property at age 56, and qualifies up to $77,500 (assuming that this is 50% of Minimum sum), does this mean that he/she can then take $77,500 out as cash?
Yes, you are correct.”
“Dear Mr Ho
Thank you for your email of 13 November 2014.
1. The Minimum Sum property pledge is only applicable for members age 55 and above. The property pledge is not automatic unless a member is unable to set aside his Minimum Sum (MS) when he reach age 55. His property which is purchased using his CPF savings, is automatically pledged for the CPF amount that he has used for the property, up to the maximum property pledge amount under the CPF Minimum Sum Scheme.
2. Members need not apply for the property pledge at age 55 and may do so at a later age.
I would be glad to assist if you require further clarification. Alternatively, you can call us on 1800-227 1188 (Monday to Friday 8.00am to 5.30pm).
Customer Correspondence Unit
Central Provident Fund Board”
“From: Paul Ho Sent: Thursday, 13 November, 2014 10:59 AM To: CPF MEMBER (CPF) Cc: Jessica Pek Subject: Pledge of Property towards Minimum Sum (MS) before 55
Dear Sir, Madam,
I would like to check with you the following: –
1. Before 55, is the pledge of the property automatic?
2. If a CPF member did not submit (in case some submission is required) a form to announce his decision to pledge the property for minimum sum after 55. Can he still do so at age 56 or later so as to be able to withdraw those CPF?
Online Advertising is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising.
Growth of Online Nature Business
As i had mentioned in one of my article “Impact of IT Era to each of us” that over the years, Technology advances by leap and bound and become more and more cost effective. It become a stronger enabler for more and more common people in the street, often with no much IT experience, to set up virtual shop like a online shopping portal. With free software like WordPress or Weebly, it help those smaller player with less capital and manpower to compete with those big companies in their own unique way.
“Online advertising, also called online marketing or Internet advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher’s content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.”
Nowadays, it a common sight of people seem to be “glue” to their smartphone as they spend a lot of their time surfing the internet everyday. It could be reading news online, follow up of their idol on Instagram, or simply interacting with their friends on social networking sites. Such high online traffic encourage the deployment of online advertising.
With various powerful search engine available, it become much easier for anyone to search and deploy online advertising on their own. Of course it take time, experience and skill to master the art of online advertising, but there is no doubt, it help to lever the playing field between the small individual and the big companies. Often, only companies with deep pocket can afford to engage Advertising and Marketing Company.
Recently as i was researching on online advertisement to boast up Bigfatpillar’s viewership , i got to know this brilliant Business Owner by the name of Terrence whose business @ Hashmeta that revolve around helping companies or individual to conduct successful online advertising campaign. And I’m impressed by his Business Philosophy of his burning desire of helping his client to grow their business! Maybe you could get some discount when you mention my name, “Fredrick” to Terrence if you will to engage his services.
And it will be better if you could engage some professional and capable online advertising company with that, as online advertising is a very power tool. It can obey as a good servant, but flare up like a bad master! Next, continue to read on for such examples.
Early bird catches the worm. Ringing true to the adage, Starbucks was one of the earliest adapters(since 2011) of Instagram and today, it is on the No.2 spot of the Top 50 Brands on Instagram in terms of the number of account followers and [branded] hashtags according to Totems. They have a staggering 2.8 million followers.
How did they do it? While most brands have come to realize that success on Instagram is directly proportional to the native advertising, why does Starbucks stand out?
In his book ‘Pour Your Heart Into It’ CEO and founder, Howard Schultz, said, “People connect with Starbucks because they relate to what we stand for. It’s more than great coffee. While the typical coffee campaigns paid attention on taste and the caffeine rush, Starbucks focused on people. Soon they integrated seamlessly into their lives, establishing itself as a place and product which connects to people. And news flash, they still do it.
Behind-the-Scenes Content (Starbucks)
With this campaign, Starbucks killed two birds with one sling shot; induce coffee craving and increase consumer loyalty.
The ‘Behind the Scenes’ campaign(2012) stood out from their usual user engagement campaigns as it was a ‘no photo contest’, ‘no fan submission’ one. The goal was to open their innermost doors and let the patrons see how their much beloved coffee is created. By showing the images of their coffee making processes (testing, tasting and preparation), the user trust and brand value increased. Who wouldn’t buy a product from a maker who is keen on being open about its making, right? After all, trust builds loyalty and loyalty is what keeps the customer coming back.
Starbucks, which is a Fortune 500 company, often share photos of their very first store in Seattle for a Starbucks fan “throwback.” While this is not a full blown campaign, it must be lauded for its subtlety and effectiveness in increasing its brand value. This campaign is aimed at showing the customers its modest beginnings and how it has grown over the years. It subtly psychologically makes its patrons root all the more for its success by making them feel as though they have been with it all the way. Everybody loves a good story of how something started ever so humbly and became triumphant in the end. It simply is inspiring.
What Did We Learn From These Campaigns?
There are 3 lessons on brand equity and brand value that every brand and social media marketing company can use on Instagram to help themselves to be successful.
Increase brand value by increasing brand awareness. Starbucks’ ‘Behind the Scenes’ goal was just that and it achieved it beautifully.
Increase the perceived quality of your product by being more open. Share the reasons why and how your product is crafted to make the customers relate to you better.
Increase strong associations with your brand by developing as sense of community; by sharing your history (throwback campaign) and how your customers have been with you every step of the way.
‘Want to go somewhere, but don’t know where?’ MAS says sorry for latest faux pas
A screengrab of Theresa Powell’s tweet yesterday in reply to the poorly-worded MAS tweet on its year-end promotion.KUALA LUMPUR, Nov 28 ― After a second social media gaffe since losing two planes this year, Malaysia Airlines (MAS) has apologised and removed a poorly-worded tweet on its year-end promotion following a slew of criticism.
The national carrier, whose Flight MH370 disappeared in March and which remains missing, yesterday posted the following message on Twitter: “Want to go somewhere, but don’t know where? Our Year-End Specials might just help! #keepflying”.
Users of the site were quick to draw a link between the message and MH370 that disappeared with 227 people on board, prompting MAS to remove the offending message.
“Our tweet was intended to inspire travellers to explore deals offered. We apologize for any offence caused & have removed it!” MAS replied to Twitter user, Theresa Powell, today on its official @MAS account.
Powell had tweeted MAS yesterday using her @tpowellwow account to say, “probably not the best choice of words for an airline that doesn’t know where one of its planes is- just saying #mas370”.
This is the latest promotion by the national carrier that has carried messages indirectly referencing its own deadly disasters that include Flight MH17, which was shot down in eastern Ukraine in July and killing the 289 people on board.
In September, MAS was forced to scrap its “My Ultimate Bucket List” advertising campaign for a competition, following a backlash over the phrase “bucket list” that refers to a list of things to do before dying.
Foreign press like The New Zealand Herald and news.com.au have reported Twitter users criticising the airline over its latest faux pax yesterday.
Malaysian Twitter user Adrian Yeo (@ninoamigo) said on the social networking site that MAS’s tweet was “inappropriate”.
Another user Ahmad Lala (@ahmadlala619) tweeted: “Oh no, Malaysia Airlines has done it again with it’s: ‘Want to go somewhere, but don’t know where’ ad campaign. Cringe. They just can’t win”.
In response to the social media backlash, MAS retweeted Twitter user Jonathan Wong’s @jono_dubs tweet: “Don’t understand all the haters blasting #mas for their promotions? Some people are trying”, and replied “Thanks for your support”.
MAS is currently undergoing a massive turnaround to reverse its billions in losses that were exacerbated by MH370 and MH17.
The national carrier was delisted in August after sovereign wealth fund Khazanah Nasional Bhd offered to buy out its minority share for a total of RM1.38 billion to restructure MAS.
Is it necessary to get a Second Income as your Life Jacket?
During one of my previous job, i got to know this lady colleague whom was working as a Graphic Designer and doubling up as a freelance wedding photographer over the weekend. It sound tough and unwelcome to work over weekend but her passion keep her going and she enjoy it thoroughly.
The twist came when she was unexpectedly retrenched off from her day job. She just extend her wedding photography assignment to included weekday, and that help her to make both end meet until she found another new day job.
Her passion and her photography skill in taking each wedding couples’ heart warming moment, have in return become her Life Jacket. Her story is a good example of have a second income as your life jacket, and if she did not have this Life Jacket, she may become emotionally disturbed and worst of all, falling into depression.
Have you found your Life Jacket?
Do ask yourself this “In this high globalised economy, where there is not much Job Security left. Do i have my own life jacket if i will to be retrenched?” Have this question started to keep you on your toes? If yes, next will be the million dollars golden question is “What and how can i start with or start from?” Let read on!
Ways to create your own Life Jacket.
I will broadly group any potential second income into two areas, namely selling products or by freelancing your services
Create your Crafty handiwork Product
You can start off by creating and sell off your own artwork, jewelry, or other handiwork products. And with the advancement in web technology, there are plenty of free and good online store like weebly.com where you can create online store to market your handiwork products!
Sell Your Creativity
One easy way is to sell your creativity is by designing your own T-shirts and products in print of witty words or funny graphics and sell them. With a creative design and at the right time, it could turn into a success story overnight.
For example, just like the recent HK Protest, one of demonstrator with his T-Shirt “Not Made in China“.
Freelancing Your Services
Market Your Knowledge
Over the year, you may have start and expand your knowledge and developed your reputation as an expert in some field. Example like taking good care of your kid and to shape them into obedient kids. One good way to get started will be to contribute your knowledge in some discussion website that suit your knowledge. Once you establish your command as an expert, you find yourself negotiating a rate with Event Organizer for making presentations or to write paid articles in some popular website.
Have Your Own PartTime/FullTime Service Business
Some of the way which you could market your Service will to think of some of the skills that you best at or skill that is unusual or valuable to other people. Do you know Web Programming well enough to be a Freelancer Programmer, or have a skill like Photography just like my female colleague that doing wedding photographic service? There always some forums that people demand such service, you can post up your services there.
If you’re in a more serious mode and interested in starting up a business, you can do up your business plan and start spreading the word among your friends/relatives to keep it rolling.
Next, Real live story of friend that create their own FullTime Service Business
Much welcome our guest Jerry to be here for this interview. Jerry is of the capable ones among my friends! So, could you share with our readers that what have you been busy with during your free time, besides your current job as a Real Estate Agent?
Currently, I just started a cleaning business specialist in commercial cleaning with one of my army friend. Of course , starting a new business which I am not familiar in, is one of the issues I expected. But for me, every challenge is a learning curve. At the moment , we are a certified cleaning company by NEA. Even thought we are into the 5th months of our business, we have secure a few big contract from big established companies. We expect our small company will be able to compete with the big boys in the industries.
Wow, seem like you have become your own boss! Do you think your current day job or any other previous job or any other interests that enabled you to build up your skillsets/Mindsets needed for this new role? And what will be the top 3.
Well, i will say the top 3 will be stay focus , secondly positive mindset and have a “never give up” attitude.
And thanks bro for your time to share with us of your life story and wishes you all the best. And for more detail, head down to Jerry’s website at www.apluscleansolutions.com for his cleaning services.
Your Life Jacket
So i hope this article provide you with ideas and information to help you to get started to create your second income. It never easy, but with some effort, you will find your second income. So let get started to smell out that second income of your!
The first stock that i traded was “Singlun” and it was back in 2004. It was of an investment mode that i looked at Singlun, which into apparel manufacturing sector. It was a good dividend stock back then, until Vega Co privatised and de-list Sing Lun in 2008.
And this first trade lead me on, where i pursed my ever hungry for different trading methods, from fundamental analysis to technical analysis. Soon, i was into Penny Stock, where i got my fat pot of gold with my first penny trade – JapanLand. I would say my profit was more than my loss, but my day job didnt allow me to continue on, as trading penny require constant monitoring.
With that, it lead me to Options trading where i attained the infamous Dr Clement Chiang’s Options Trading course. I guess some of the reader will know his story, but for those that dont, follow this site.
Within the period from 2004 till now, i have try from Blue Chip to Penny Stock, and from Options to Index trading. Trading during these whiles, i get to know that this Stock Market is as cruel as the food chain hierarchy in animal kingdom! And it is full of manipulation!
Nevertheless, knowing that stock market is manipulative, it helps to improve the way of how i executed my trade.
Index Vs Stock Trading, and the 3 reasons why i like Index Trading are
Less Preparation Work
Firstly, stock trading requires you to be full prepared for your trade, depending you on which school of thought – FA or TA, you in. You will find yourself sourcing over a dozen of websites to get various key information like the NAV, EPS, TrendLine, Support and Resistant Lines, Insider trades, or some TIPS from friends. Some may just keep track from the Top 30, or based on the Top Gainer or losser or Volume Spike to generate a watchlist of stocks that have a high potential of profitable trades. And study the charts over and over again. I have went through it and i know it takes a lot of time and efforts.
On the another hand, Index Trading requires less effort as compare with Stock Trading. I just need to study and revise out the direction of the Index, with in reference of a long and short time view. And i ready to trade.
There are a lot of Stock Markets out there, and since i based in Singapore, naturally i will trade Singapore Stocks. As i have my day job, i definitely will have tasks assigned and i cant juggle with all these day job’s activities with trading. Can you imagine this? That you are presenting to your Head of Department over some proposal and your Stock broker sms that some Stock Operator trying to sell down the stock that you have a “Long” position. That will be a unpleasant situation to be in.
For me, the best time for me to trade will be after work. And there are markets still available for me to carry over Index Trading. Like DAX and DOW. The best part about Index Trading will be, i traded with a Mobile Application during traveling back to my home. No time wasted. More Personal/Family Time
With the 2 points as above, it frees up a lot time, that was previously occupied by either the preparation work or the monitoring portion. With the time make free from chosing Index over Stock Trading, i can have more quality time with my family, friends or with myself! And that definitely sometime which i enjoying at the moment.
My Index Trading Plan
My plan will be simple, with an objective to carry trades with overall profit of 10 dollars, less the losses. (I cant be winning all the times).
I decided to have a smaller objective, as that will allow me to be less greedy and be in a better control of my emotion.
In each month of 20 working days(estimated), my monthly income will be around $200($10 * 20 working days) and that will be another additional source of income.
DAX & DOW
DOW Daily Chart – Watch out for first support at 16532, with second support around 16296.
DAX Daily Chart – Look like Dax is hurt badly, oversold, but need to be nimble.