Tag Archives: compound interest

Singapore Savings Bonds – A Good Alternative to Fixed Deposits

The Singapore Savings Bonds (SSBs) will be launched in the second half of 2015. These are new government bonds sold only to individual retail investors. Features of SSBs: Issued once a month Interest (coupons) is paid every 6 months Principal guaranteed Maximum term of 10 years Minimum investment of $500 in a single lump sum,… Read More »

9 Ways to Tackle Inflation

According to the Statistics of Singapore, the inflation rate in Singapore was recorded at -0.30 percent in November of 2014. Inflation rate in Singapore, however, is an average of 2.80 percent from 1962 until 2014. In Singapore, the most important categories in the consumer price index are housing and food. So, how does this affect… Read More »

Compound Interest

Albert Einstein once said “the most powerful force in the universe is compound interest”. Simply put, it is earning interest on not just the principle amount but also on the accumulated interest. For example, with simple interest of 10% per annum, $100 would grow to: Year 1: $110 Year 2: $120 Year 3: $130 Whereas… Read More »

Mathematics of Financial Planning

Financial Planning involves the following calculations: A sum of the assets as well as liabilities of the client. The difference is the net worth of the client. A sum of the income less expenses of the client on an annual basis. This figure gives us the potential savings the client can make. Time value of… Read More »