Hard assets, such as art, antiques & collectibles, as a form of investment alternative?
Well, perhaps these could be the following reasons.
Assets of such, often retain their value as inflation rises, and they can also provide balance to other asset classes that suffer more from rising costs.
Collectibles include everything from high-priced antiques, gems, works of art and many others.
1) What makes collectibles valuable?
Some collectibles are valuable because they are creations born of talent, skill and workmanship.
For instance, Chinese Porcelains. Each item is inherently unique, and its value may be specific to that individual item. These types of collectibles tend to hold their value over time, generally keeping pace with inflation. Many also have the potential to appreciate in value. The value of these types of collectibles depends on many factors as well. The age of the item, rarity, craftmanship and its current popularity among collectors may all be factors in determining its value.
2) Why invest in Antiques & Collectibles?
Some but not all, increases in value, though they tend to appreciate slowly over a number of years. Another attributing factor, “The new high will always be higher”, which is why we oftenly see these items setting new records high with auction houses around the world. Collectibles, however, can act as a hedge against inflation too. This is why many investors are sometimes tempted to add them to their portfolios.
3) Upsides
As an investment, There are a number of unique upsides which you cannot replicate with anything else.
Tangible assets:
Collectibles are not influenced by inflation or interest rate headwinds.
Low-correlation to the stock market:
Collectible markets rarely move in tandem with the economy.
Growing rarity:
It is all about supply and demand.
And over time, A good piece of work, become scarce when that particular item is no longer trading in an open market.
Personal control:
You hold on to the assets; you don’t have to worry about anything like an investment bank run, or being scrutinized into a virtual world with no physical ability to control and manage. And If you’re one lucky collector with ability to capitalize on arbitrage situations, you’re against all odds.
With the Internet’s power to create different debates and to fuel the flames of negativity, it is essential to shed a light on positive stories. Stories that focus on human acts of random kindness can make your warm your hearts.
These positive stories are guaranteed to make you feel hopeful about our growing species. Who knows? It may even inspire you to do good yourself. On that note, here are some random acts of kindness that will make your hearts warm!
#1: GOOD FINANCIAL DEED AS AN EMPLOYER
2015 was a good year for Crystal Jade employees. You see, their former boss gave bonuses of up to S$40,000 to current and former Crystal Jade employees in Singapore. I am referring to the Hong Konger and the Singapore permanent resident – Mr. Ip Yiu Tung.
Mr. Ip Yiu Tung is the former boss of Crystal Jade, a restaurant known for its delicious and juicy xiao long baos. He sold his stake and remained as the adviser and brand ambassador of the company. Upon earning a significant amount of money from his financial move, he decided to share his blessings. In an interview, he was quoted saying:
Image Credits: pixabay.com
“I am not greedy. I don’t need more money to make me happy. I was already happy. I need a meaningful life, not just money.”
#2: GOOD FINANCIAL DEED AS AN EMPLOYEE
Did you know that a mover in Singapore recently returned S$50,000 inside cabinet that customer had forgotten was there? You read that right!
Honesty seems like a rare gem these days. When it comes to the moving business where you are entrusted with handling the clients’ precious items such as furniture and other valuables, honesty becomes integral. This is what Prestige Moving Services has proven.
This is Mr Jake. One of our best man. We would like to express our gratitude to him for his honesty which not many…
One of their employees, Mr. Jake, found S$50,000 wrapped up in a plastic bag at a corner of the client’s cabinet. The money was believed to be forgotten by their client. Mr. Jake made the best decision to return the money right away.
He gained much praise in the eyes of the Netizens, especially because his looks can be deceiving. Many were quick to point out that he was a trustworthy person despite appearing to be a muscular man covered with tattoos. This story goes to show that you must not judge a person’s character based on his or her looks alone!
#3: GOOD FINANCIAL DEED AS A STUDENT
How can you help someone financially if you have little to offer? Well, you may start by helping someone win the lottery! That was what Bryan Lee, a Nanyang Polytechnic student, did last year.
Let us begin the story. A couple supposedly won S$2,500 in 4D after dreaming of the lucky number. However, said couple lost the ticket. Storekeeper Neo Hock Wah said that his wife had used S$10 to buy a 4D ticket. Unfortunately, his wife dropped this ticket from her wallet while alighting from a bus.
Neo’s wife had taken a picture of the ticket. However, you cannot redeem the prize money with this method alone. To the Singapore Pools’ defense, anyone can digitally edit a “ticket” nowadays.
The couple decided to seek help from the Netizens. Fortunately for them, a student by the name of Bryan Lee picked up the ticket from the same bus the wife had taken.
Seeing that the ticket was in good condition, Bryan realized that someone might have lost it by accident. He contacted the worried couple via Wanbao.
Image Credits: pixabay.com
In Bryan’s humble words, he said: “My priority was to find the owner. Just because I can collect the lottery money does not mean that was the right thing to do.”
In Southeast Asia, P2P lending has witnessed significant growth in recent years, led predominantly by Singapore. To date, around 60 platforms are currently operating in the online lending and crowdfunding space, which have become an increasingly popular alternative investment option.
If you’re wondering how you can take part in investing with P2P lending, Funding Societies would be a great place to explore. As of January 2019, Funding Societies has onboarded more than 85,000 investors across Singapore, Indonesia and Malaysia and provided more than S$350 million worth of investment opportunities in crowdfunded loans.
Here are four things you can expect when investing in P2P lending through Funding Societies.
1 / Investments with short tenors
Funding Societies offers three investment products: Business Term Loan, Invoice Financing, and Property-Backed Secured Loan. Business Term Loan allows you to make investments by financing SME loans with tenors ranging from 1-12 months. In return, you will receive monthly repayments of principal and interests. You can maximize your returns by reinvesting your repayments to new loans.
Meanwhile, with Invoice Financing, SMEs would be able to cash out by pledging their invoices to Funding Societies. Invoice Financing has a shorter tenor, which generally lasts for only 30-120 days with a one-time repayment of principal and interest at the end of the tenor.
With Property-Backed Secured Loan, investments are secured by a property (residential, industrial, or commercial). Different from the other products, Property-backed Secured Loans offer security in the form of property as a collateral, and is a good option to add diversification to your investment portfolio.
2 / Potential returns up to 14% p.a.
As an investor, the returns you get from your P2P lending investments come in the form of interests paid by SMEs.
Given that P2P loans are generally more flexible in its tenor and SMEs that get financing from Funding Societies have shorter or imperfect operational track records, interest rates are determined accordingly based on risk, in the range of 8-18% p.a.. Higher risks typically come with higher returns, so investors should invest based on their appetite for risk.
3 / Regular updates from the platform
Expect to get regular updates from Funding Societies as an investor on the platform! With every important event or update, the platform sends alerts via email or in-app notifications so that investors are constantly kept up to date with us.
For instance, whenever there is an upcoming loan for crowdfunding, investors will receive an email notification. In the event of late repayment or if there’s an update for specific loans, Funding Societies will also communicate in the quickest and most transparent way. So make sure you switch on your app notifications for any important alerts!
If you need any further clarifications, Miyu, Funding Societies’ very own chatbot, and our customer experience (CX) team will be happy to answer all of your questions via live chat. Or call us at 62210958 to have a quick chat with our team.
4 / Well-designed User Interface (UI)
Invest with Funding Societies – User Interface
Funding Societies Mobile App – Dashboard
Investors should be able to review their portfolios easily. That’s why Funding Societies has improved its website and mobile app to provide details of your investment portfolio in a clear and concise manner.
As an investor, you can review your portfolio, change your auto-invest settings, crowdfund a loan, and even use the live chat feature — all in one mobile app! It’s so simple, convenient and efficient, which is why 80% of Funding Societies’ investors are investing on the go.
Got more questions? Ask Funding Societies on 24 January 2019!
Funding Societies is hosting an investor event on 24 January 2019 evening to share more details and insights of how P2P lending works on its platform. You’ll also be able to meet the team and get to ask them all the questions.
Date: 24 January 2019, Thursday
Time: 6.30pm – 9pm
Venue: Lowercase Cafe @ 1 McNally Street (Rochor MRT)
This article is adapted from this article which first appeared on Funding Societies’ blog.
Disclaimers:
This article is contributed by Funding Societies.
It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.
Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.
One of the pastimes that my father has passed on to us was betting on the lottery. Whether you are an avid fan of the 4D or TOTO, many people believe that winning these can give them a shot to be a crazy rich Asian overnight.
Reality check! That is not the case for many of us. In fact, a recent Facebook post showed that you can earn a significant amount of money by saving your “lottery funds”. Eilin Tan from Malaysia shared how her father saved up all the money he would normally spend on buying 4D. He started last January 2018. A year later, he found that the total savings was equivalent to the top prize. Both were shocked! Netizens estimate that the money could be worth RM6,000 to RM15,000 (about S$1,900 to S$4,900).
Image Credits:pixabay.com
Much like Eilin’s father, you can commit to simple changes in your life to improve your finances. Start with these aspects:
#1: ASSIGN A FINANCIAL DATE
Much like designating a day for your beloved, you must assign a day to assess your finances. The first step towards saving money is to look at your current spending habits. Which categories can you cut down on? Find specific areas in your expenses which you can reduce without compromising your lifestyle.
Image Credits:pixabay.com
Afterwards, you must track your progress in relation to your financial goals. Spend time with your money to improve your financial life.
#2: WAIT BEFORE YOU CHECK OUT
When it comes to saving money, make delayed gratification your best friend!
These days, you can get anything you want with a quick click or tap of a button. There is an instant gratification for almost anything you can think of. To combat impulse buying brought by said convenience, you may find a buffer. Employ a self-imposed waiting time. Wait a day or two before spending your money on things that cost more than S$60. When you practice this on a regular basis, you will realize that most of your purchases are triggered by wants rather than your needs. Moreover, you will be able to save more money and work towards mindful spending.
#3: CHOOSE QUALITY OVER QUANTITY
Minimalism is one of the latest trends that I subscribe to. It encourages consumers to choose quality over quantity. This can be applied to clothes, gadgets, food, home decorations, bags, and so on.
Yes! It may be tempting to purchase cheaper alternatives on a regular basis. However, you must remember that your small purchases add up! Choosing quality products will help you save money in the long run.
Image Credits:pixabay.com
What is the best that you can afford now? Use the cost-per-wear philosophy when it comes to clothing, accessories, and shoes. Stick to classic silhouettes, which you can use for a long time.
One of the most significant transitions in your life is about to begin. In a blink of an eye, you have reached your 60s. Retirement may not be a pressing concern for most of your working life, but it is surely happening soon.
The sense of urgency stimulates your awareness. You will begin to pay close attention to insurance commercials and to the company’s retirement benefits. You will go through your CPF savings and analyze whether it is enough. How about your investments? Is your money invested on an aggressive portfolio or not? More importantly, do you have a last will and testament?
Many of us consider retirement as a vague and seemingly distant concept rather than something happening in the near future. With this mindset, you may not be able to prepare well it. Use the last five years to examine your financial situation. Make the appropriate moves to substantially improve your life during retirement.
CLOCK: FIVE YEARS BEFORE RETIREMENT
There is no doubt in the saying: “the first cut is the deepest”. You can call it a rude awakening, but this initial step will dictate your future actions. Examine your overall financial situation.
Be honest with yourself. How much have you saved up while you were working? Do you have other streams of income that can generate enough cash to cover your fixed expenses in retirement? How much can your CPF cover?
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I understand the brewing worries tied up to these numbers. It is time to face your fears! Know that there is still time to change your investment strategies, to eliminate unnecessary expenses, and to re-frame your retirement expectations. Seek the help of a qualified financial adviser who specializes in retirement planning. He or she can sort out all your concerns including the making of you last will and testament.
CLOCK: THREE YEARS BEFORE RETIREMENT
While work can be stressful, it can also give a sense of accomplishment. What will happen once it is taken from you?
Aside from organizing your financial plans during retirement, you must determine how you will occupy your time. Many of us forget this aspect of aging. It is important to contemplate on how you will occupy yourself in retirement. Consider the Psychological or emotional impact of not having a steady job or not having a routinely “purpose”. Your feelings may be similar to undergoing loss.
Yesterday, my grandfather told us that he is planning to travel overseas. He wants to dedicate this time of solitude on searching for peace and happiness. This may sound cliché to some, but he never had the time to travel on his own. You may want to spend your retirement touring the world. Like my grandfather, consider what will bring you happiness.
Do not be afraid to explore hobbies or join social group within your neighborhood. These things will keep engaged once you are retired.
CLOCK: A YEAR BEFORE RETIREMENT
During this time, your primary goal is to cut down your debts and spending. This is where your retirement budget comes in handy!
You will probably experience a considerable drop in income once your paychecks go away. Following this logic, your retirement expenses should not necessarily mirror your current expenses. You need to adjust your lifestyle following a monthly budget that will include costs like healthcare and leisure activities. Know how much you can realistically afford with the help of your financial adviser.
Lastly, you must take a look at your investment portfolio. If your savings appear to deliver the income you need in retirement, some experts recommend to pull back on your stocks. Use this money to invest on short-term investments or other conservative asset classes. I am not saying that you should suddenly become a risk-averse investor. Instead, you need to make more calculated moves. Growing your portfolio over the next couple of decades entails exposure to stocks.
Image Credits: pixabay.com
Ultimately, preparing for retirement will support the remaining years of your life.
