Study Plan For CFA Level 1

I have registered for the CFA Level 1 exam scheduled on 7 December and the much anticipated books arrived last week. I was quite astonished as I didn't expect level 1 to have as many as 6 books. On the first few pages of Volume 1, there is a part in the "Designing Your Personal Study Program" section which says:

"Successful candidates report an average of over 300 hours preparing for each exam. Your preparation time will vary based on your education and experience. For each level of the curriculum, there are 18 study sessions, so a good plan is to devote 15 to 20 hours per week, for 18 weeks, to studying the material."

The recommended plan requires me to study 15-20 hours per week, translating to 2-3 hours a day. As I will be working full time during that period, I don't think the recommended study plan stated in the book is feasible. 1.5 hours per day will sound more reasonable. However, by studying just 1.5 hours a day, I will need about 28 weeks in order to clock the recommended 300 hours. This means I have to start preparing for the CFA exam 28 weeks (7 months) in advance, which is at the start of May 2013.

The last paper for my university final exam is at the end of April and I have to start studying for CFA at the start of May. Moreover, I will be starting work full time in June 2013.

2013 is going to be a really hectic year!

Self Development Idea (16): Individual Destiny Enrichment (IDE) Program

Few weeks ago, I had a Chinese New Year gathering session with some old colleagues and friends, and we were talking about the GOOD OLD TIME... of Motorola.

There were many programs and cultures that were great, and I particularly like the Individual Dignity Entitlement (IDE) Program. 

The frist time I saw the six questions (as shown in the following picture) on a notice board while I was a young engineer travelled to Boynton Beach Factory in Florida about 20 years ago.  I got a strange feeling after reading through these questione carefully.  I didn't know if the feeling was FEAR or EXCITEMENT for the heart beat raised while thinking about the answers! 

For the fear part, I thought: What if I were to answer "NO" to some of these questions, then why AM I here with the company?  Would I get fire for that?  And, If I were to answer "Yes" to all the questions, I must be fooling myself or not thinking hard enough.

For the excitement part, I felt that there must be something I can learn and benefit from it as these questions ask something that I'd never seriously thought about.

Yes!  Under the Ex-CEO, Chris Galvin, the IDE program was launched world-wide, including new factories in China down to the operator level.

Of course, this program did not exist in the company for long time already, but the profound impact to many individual still exsit.

Be still, and think.
Why would we need to have an immediate boss to has a dialogue with us every three months in order to discover our very own problems and opportunities for improvement?

Why Not change only a few word*, as shown in the below diagram, and make it a very personal IDE (Individual Destiny Enrichment) Program and do personal review?

The good culture should continue to stay with the individual regardless the company continue to exist or not.

 

"If you don't put in effort to control your own destiny,

someone else will most willingly do it for you."

- unknown

By the way...
I read about some articles long time ago, mainly from WSJ, commented Chris Galvin was not living in a realistic world and took this program as an example.
And, I don't think so.  It must had taken extremely great courage for him to launch and roll out this program world-wide.  For many companies which only main goal is profits, the management would be ashamed to read through the original questions.

And, only until the people are tired of all those scandals, from big financial scandals to the milk powder scandals, and recent horse meat scandals...world-wide, people will eventually realize the vision of such profound program.





-----------------------------------------  Added on 28 Feb 2013  --------------------------------------------

[From the Harvard's Famous Success Principle]
The difference between the success and failure of a person is based on how he uses his after working hours. And his destiny is decided by how he use the time between 8.00pm to 10.00pm.

Every night, take 2 hours to read, study, think or involve in meaningful discussion or debate. You will discover that your life starting to change. Continue to persist this for years..... And Success will wave it's hand to you.













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Personal Finance for Teens Unleashed
A Financial Literacy Blog

I started Personal Finance for Teens Unleashed in 2013 – a great year for new beginnings.  I added Unleashed to the name because this blog explains personal finance so anyone can understand it, especially teens.   It is all about teaching financial literacy and money management skills to teens.  It is set up to be a helpful resource for teachers of personal finance, business and economics.  It offers links to fun, hands-on money management lessons that you can’t find in any book.  They are tried and true time savers for teachers and designed with middle school and high school students in mind.  The key word to making these lessons different is DISCOVER!  They are set up so students DISCOVER the answers to their money questions via resources on the Internet.  After a lesson on purchasing a car, no one will need to tell them if they can afford the car of their dreams – they will discover the answer for themselves – Oh so empowering! And the only reason I needed to start this blog. 

Free Lesson on Setting Financial Goals

If you teach high school or middle school and are looking for a great hands-on lesson for setting financial goals check out Wonderful life, a FREE lesson, at Teachers pay Teachers, an open marketplace for educators where teachers buy, sell and share original teaching resources.

Wonderful Life is a great lesson for any Personal Finance class. It is fun, interactive and gives students a chance to get to know each other while setting goals and sharpening communication skills.

The assignment addresses national standards for personal finance and includes four pages of teacher notes, eight pages of detailed student instructions with graphics, a completed sample project, and a grading sheet ALL for FREE at TPT!
 

If you are looking for ways to get students talking about money management check out...

The Personal Finance Conversations Starters, Money Talks, are designed to get students talking about personal finance and money management and can be found at TPT.

The conversation starters are 160 question cards on a wide range of personal finance topics including saving, spending, investing, ambitions and goals, career choices, college, starting a business, charities, retirement, wills, job loss, the cost of health care, and bankruptcy. There are no right or wrong answers to the questions, only honest answers. To be successful students need only explain the reasoning behind their answers.

 

How Do I Choose Between a Fixed and a Floating (Variable) Rate Home Loan?

The following is a guest post by Property Buyer

People are almost always caught up with the decision of which Singapore home loanis best for them - within themselves, there is always the constant debate of whether one is better than the other. Will choosing a mortgage type depend on the person’s intelligence, instinct, bookkeeping skills, or attitude on sound money management? How does a buyer’s situation affect his or her decision to use either a fixed or a floating home loan?

Fixed-rate mortgage

Mortgage packages offering a fixed home loan rate provide a specific constant rate for a certain period of the loan.

For example, if you are buying a house now with a fixed rate home loan at 2.3% per annum, then the 2.3% per annum would be the interest rate for the fixed period which could vary between 3 to 5 years, depending on your package and its terms.

After the fixed period ends, the interest will convert to a 1) variable loan package rate, or 2) rate pegged at a discount below the bank's board rate.

The following illustrates an example of the rate structure for a fixed rate package.

Bank Y Fixed-rate Loan

Period	Interest Rate (p.a.)
First Year	1.15%
Second Year	1.35%
Third Year	1.45%
Fourth Year Onwards	0.50 % below the Board Rate

During this fixed period, if there are changes in the interest rate environment to a lower rate, the borrower will have a higher opportunity cost as he may be able to enjoy lower loan rates with a variable rate loan instead.

Floating (variable) rate mortgage

The interest rate for this loan type is dependent on the base rate and the spread or margin being used by the bank or lender. Borrowers who are savvy about interest rate movements often choose the floating home loan rate to obtain cost savings, especially those who are financially secure and in total control of their wealth as they will be able to afford the higher interest payments shall rates suddenly soar.

Most of the floating (variable) rate mortgages use a interest rate that is benchmarked against SOR (Singapore Swap Offer Rate) or SIBOR (Singapore Inter-bank Offered Rate), which is the variable component of the interest rate.

The bank will add a spread or margin to SIBOR or SOR. Together, the two will form the interest rate. For instance, the rate could be 3-Month SIBOR + 1% , where the 1% is the spread.
The spread is usually adjusted upwards after the first few years of the loan. An example of an interest rate structure for a floating rate loan follows.

Bank X SIBOR Loan

Period	Interest Rate (p.a.)
First Year	0.75% + 1-Month SIBOR
Second Year	0.75% + 1-Month SIBOR
Third Year	0.75% + 1-Month SIBOR
Fourth Year	1.00% + 1-Month SIBOR
Thereafter	1.25% + 1-Month SIBOR

What are the factors you should consider when deciding which loan type to use?

1. Understands market interest rate trend

Accuracy is very important in forecasting and tracking interest rate trend. If you are able to do so, you can derive significant interest payment savings from a floating (variable) rate loan during a low interest rate environment.

2. Financial and health uncertainties

If you are unsure about your financial capacity and health a few years from now, then the fixed home loan rate is best for you. You can lock in and secure the rate for the fixed duration.

3. Cash repayments

Paying your loan in cash every month with a fixed home loan rate makes financial planning easier. Use iCompareLoan home loan comparison system to learn the rates for the different loan packages to help you find the ideal mortgage package.

4. Tolerance for risk

Each type of home loan rate has its own benefits. The question is how far can you tolerate a higher rate?

Of course, no one will be sad to accept a lower rate, but, considering your financial capacity, can you afford  paying a higher rate for a certain period of time? If yes, you can consider a variable rate loan because with it you can have reduced interest payment when interest rates are low, but you will have to incur greater payment if rates climb.

Given the many factors you have to take into account when deciding between the two types of loans, you may prefer some professional help. Turn to the friendly and experienced mortgage brokers at www.iCompareLoan.comtoday.

---

For more related articles, please visit the following websites:
www.PropertyBuyer.com.sg/articles
www.SingaporeHomeLoan.net
www.iCompareLoan.com

About Property Buyer
http://www.PropertyBuyer.com.sg/mortgage
We are a research-focused Singapore mortgage consultancy which helps you compare Singapore home loans either for new loans or refinancing. We use loan reports from Singapore's best loan analysis system (exclusive to us) at http://www.icompareloan.com/consultant/to serve our customers.
Our services are completely FREE to you as the banks pay us a referral fee upon loan disbursement.
SMS: (65) 9782 8606
Email: loans@PropertyBuyer.com.sg

4 tips from PNoy on avoiding pyramid scams

4 tips from PNoy on avoiding pyramid scams 

Below are some of President Aquino's advice to investors on how to detect money scams: 

1) You can't explain how the interest is earned.

Avoid Investment Scams

Aquino said he understands why people are enticed to invest especially when the promised returns are high. Aman allegedly lured investors with promises of up to 40% returns in just 20 or 30 days.

The President said that if you cannot explain how a company is able to afford such high interest rate, it is best to step back. "Para mabayaran ka ng ganito kalaking interes, paano niya babayaran ito? At ‘pag hindi mo masagot nang maayos ‘yon, malabo siguro itong pinapasukan mo," he said. 

(For the company to be able to pay you such high interest, how can the company afford that? And if you can understand that question clearly, then what you are engaging in is probably unsafe). 

The company said profits were produced by a Malaysian brokerage firm Okachi (Malaysia) Sdn. Bhd. -- with whom it had a customer agreement -- and which engages in trading commodities such as oil, manganese, palm oil and nickel. 

2) It seems 'too good to be true' 

Comparing companies that promise investments to legitimate banks is another way to detect a sketchy proposition. Aquino pointed out that when you deposit money in a bank, savings interests are only about one per cent per annum or less. 

Companies that offer exponentially higher rates are suspicious, he said. 

He offered advice he received from his parents as a child. "So ‘nung bata ako sinabi sa akin ng mga magulang ko, 'If it sounds too good to be true, it probably is not true'," he said. "Sana makatulong na talagang (kapag) ang ganda-ganda (ng) inaalok, malamang hindi totoo." 

He said he hopes Filpinos would take this to heart to avoid temptation. 

Read the full article here..

The Magic of Time

TrulyRichClub Updates...

The Magic of Time 

Magic Time

Do you know of a young person who ISN’T investing? Pick a heavy-duty megaphone and position it near the young person’s ear. And then shout to the top of your voice, “You’re wasting the most important thing that can make you rich!” 

As your young friend is lying on the floor, wondering what comet hit him, you kneel in front of him, and still using your megaphone, shout again, “I’m talking about your TIME!” Here’s the wealth winning formula that has been proven beyond any doubt: Small amounts of money PLUS big amounts of time will make you very rich. 

How? Through compounding interest. The “Magic of Compounding” has been called by many fancy names: It’s the “eighth wonder of the world”; “the most powerful force in the world”; “the royal road to riches”; and the “greatest mathematical discovery in human history”. 

Because the stock market is very exciting today, a lot of people think that THIS is what will make them rich. Nope, it won’t. What will make you rich is the long boring season when the stock market is doing poorly for an extended period of time, and YOU KEEP INVESTING EVERY MONTH while others are shying away… Ahh! Those seasons will make you a multimillionaire in 10 to 20 years. 

So as everyone is excited at these crazy times, I’m just waiting for “better” times. Because at the end of the day, only time and compounding interest will make you very wealthy.

May your dreams come true, 

Bo Sanchez 

P.S1. TrulyRichClub members ask me if we have new stocks to recommend, since most in the SAM have gone beyond our “Buy-Below-Price.” My Answer: Nope, none yet. We’re still studying. In the meantime, invest in the one or two companies that we still can invest in, and sit on your remaining cash! 

PS2. By the way, the TrulyRichClub isn’t just all about the Stock Market. It’s also about having an abundance mindset. Why? Believe me, all the technical stuff I’ll teach about The Stock Market WON’T WORK if you don’t have an abundance mindset. So in the Club, you’ll also receive a lot of Audio Talks and eReports from me about having an abundance mindset. To take charge of your financial future, click here now.

Avoid Cash Top-Up For HDB Monthly Mortgage Instalment

According to HDB's website, 

"Buyers must use all the available savings in their CPF Ordinary Accounts for the purchase of or taking over the flat before any housing loan is granted by HDB."

This means that you have to deplete your CPF Ordinary Account (CPF OA) before a HDB loan can be granted. Your subsequent monthly CPF contribution will then be used to service the HDB monthly mortgage instalment. If your monthly contribution to the CPF ordinary account (23% of gross income) is insufficient to cover the monthly mortgage instalment, you have to top up the shortfall in cash. 

Assuming you bought a HDB BTO flat for $400,000, the 10% down payment, stamp fees and other fees will to approximately $50,000. You and your partner have accumulated $70,000 in your CPF OAs. According to HDB regulation, you have to deplete this $70,000 before any housing loan is granted by HDB.  However, the required amount you have to pay is only $50,000. This excess $20,000 is used to offset the purchase price, thereby reducing the loan you need. This sounds like a good idea but in the event that either you or partner gets retrenched, a substantial amount of cash-top up will be needed every month and this can put a huge strain on your finances. What you need is a buffer in your CPF OA for any unexpected circumstances. 

So how do you build a buffer when HDB requires you to deplete your CPF OA before a loan can be granted? With reference to the example above, all you need to do is to transfer the excess $20,000 into a CPF Investment Account by buying some investment products before you pay the down payment. After the HDB loan is granted, you can liquidate the investments and transfer the money back to your CPF OA. This excess $20,000 should be enough to cover at least a few months of mortgage instalments. Also, if your monthly contribution to the CPF OA is insufficient to cover the mortgage instalment, the $20,000 buffer can cover the shortfall and no cash top-ups will be needed. However, do note that the first $20,000 in your CPF OA cannot be used for investments in the CPF Investment Scheme. 

While paying a higher down payment can reduce the amount of the mortgage loan and monthly instalment, a buffer in the CPF OA provides more security and acts as an insurance to safeguard your finances against any unforeseen circumstances. At the end of the day, it all boils down to personal preference and balancing the trade-offs.

Social Security System (SSS) loans benefits

Social Security System (SSS) loans benefits 

Many readers of this site asking information about Social Security System (SSS) like benefits, loans, contributions etc..

In order to address some concern of my readers. I find a video from you tube while searching. In this video, President & CEO Emilio De Quiros explaining about SSS programs and other important detail such as loan, contribution, etc... And I think it is worth to share here my site.

Please do watch the video below...