What Your School Never Taught You About Money

I picked up some key points for easy reference in future when I will deal with these. Honestly, limited knowledge below and I doubt they are the best advice out there but at least starting from somewhere and knowing something.

DEBT

Good debt is any debt where it is possible to earn a return that is higher than the interest on the debt
A housing loan is the cheapest loan anyone can get. Instead of using savings/cash to pay off housing loan asap, channel cash into higher-yielding investments (shares, land banking, traded endowment).
Just for comparison's sake, interest rates on
housing loans are 3-4%
car loans 6%
renovation loans 8%
GE money ezycash 20%
credit cards 24%

INSURANCE

A simple guide to remember is that term plan is for temporary needs. Life plan is for permanent needs.
Term plans provide coverage for a specified time period.
*Having guaranteed renewability in term insurance is important in the event that you can renew it after it expires even if your health condition deterioriates.
- Temporary coverage for loans in the event that you are unable to pay for it in the case of death / total & permanent disability
Whole life insurance provides coverage for life.
- Critical illness
Unlike coverage for total and permanent disability, which only kicks in upon both total and permanent disability, disability income insurance covers all four scenarios:
1. Temporary disability
2. Total and permanent disability
3. Partial and temporary disability
4. Partial but permanent disability
AVIVA & Great Eastern are the only 2 who provide disability income insurance in Singapore.
Insurance for child's education
Endowment or investment-linked plan to build the education fund and to add another "reducing term insurance" and a "waiver of premium rider" to provide the protection needed.
You can easily get 3-4% annual returns on single premium endowment even if you do not know how to invest
Get any single premium price quotation from any insurers in Singapore to verify

GAMBLING VS INVESTING

Make your investment decisions with both open eyes
Diversify money into different stocks, different asset classes such as stocks, gold, silver, property, UK endowment plans and so forth.
Ensure that we comply with Warren Buffett's first rule of investing - not to lose our capital.
Increasing popularity of ETFs
Know the risks of it.
1. Market risk (price fluctuations, but less risky than investing in individual stocks)
2. Forex risk (if quoted currency is different from home currency)
3. Tracking error (usually insignificant though)
How to generate annual returns of more than 4% by investing?
UK traded endowment plans
Land banking investments
Fine wine investing