CJH Financial Planning

  We are seeing rises in inflation across many major economies. Inflation in the United States hit 5.4% in May, the highest in 13 years. (Source: WSJ) Back home in Singapore, CPI inflation rose 2.1% in April, higher than expected. (Source: ING) Inflation has usually been seen as a bad thing; something that steals money from under our noses, like an invisible thief. However, do you know that inflation can be a good thing too? Just like a gun; inherently, it is neither good nor bad. It all depends on the intention of the user. Law enforcement officers use guns to maintain order. On the other hand, criminals use guns for undesirable activities. Inflation is defined as a general increase in prices. This affects the goods and services that we buy and use on a day-to-day basis. The Consumer Price Index (or 'CPI') tracks a basket of goods and services and compares the changes in price with the previous month/year. If you keep money in the bank, you're probably getting about 0.05% ...

Just came across a thought provoking video on TED about how humans often make illogical financial decisions. Little did we know that we aren't so different from monkeys after all... Check out the video below:

Unit Trusts (UTs) or mutual funds seem like investment vehicles for the layperson with little or no investing experience. So how do they fit into a savvy investor's portfolio? Firstly, let's examine the unique characteristics of UT investing: - UTs pool together investors' money to buy assets such as shares and bonds. This allows investors with small capital (even $100) to start investing. - There are thousands of UTs in the market, covering a variety of asset classes, geographical regions, sectors, and industries. - UTs are professionally managed by a Fund Manager, and relieve the investors of the active monitoring and trading of their investments. - UTs charge annual management fees, usually about 1 to 2 percent of the asset under management (AUM). This fee is taken out from the AUM, which cause the Net Asset Value (NAV) of the fund to go down. Most funds are priced based on their NAV, and therefore annual management fees indirectly causes the value of an inve...

Getting married involves financial commitments, so get them right to ensure a harmonious life journey together. Here are some findings from a survey conducted by the American Institute of CPAs. More than half of couples argue over unexpected expenses More than one-third of couples fight over insufficient savings Couples aged 45 to 54 argue an average of 4 times a month about finances As you can see, money worries can be a strain on a relationship. Hence, sound financial planning and good money management is integral to a successful and harmonious marriage.

(Abstract from T. Harv Eker's Blog - Going After What You Really Want) The purpose for having money is pretty well the most important element in having money. Everyone I know who has become rich did so for a reason as if they needed to become rich. Most of them don’t live all that happily because they needed to become rich in order to prove that they’re okay, or responding to some programming other than an intention that moved them from their inner core. So go for whatever you want. In the end, we’re all going for the same thing. What we’re really seeking is the feeling that the objects of our wants will bring. A new house can give us a sense of comfort. A new car can heighten a feeling of importance. Travel and toys can invoke excitement and stave off boredom. Launching the business dream job can satisfy our need to achieve and be recognized. But we need to be real careful about what it is we want. Sometimes people keep wanting things and getting them, only to find out they ...

Many young people go all out an buy a car soon after they start their first job. In Singapore (where I live), the cost of owning a car is very high. In fact, a mid-range car... Read more: http://thefirstmillion.net/blog/?p=5