This is not a typical click-bait title that you may see on YouTube or Facebook. This is one of my own trades and it is my wish to teach you everything I know to help you achieve it too.
For friends who are familiar with options trading, this explanation may make some sense to you. On 30th June this year, I bought an AMD LEAP option contract when the price was relatively cheap. Then, in the space of 15 days, AMD announced a phenomenal earnings quarter and the share price shot up. And because LEAPS option has the ability to multiple gains, it helped me achieved a 100% return when I sold the option contract on 21 July.
If the above sounds like rocket science to you, don’t worry as there are still many other simple ways to invest and get more out of what you invest.
Many people are aware of fixed deposit which generally gives 1~2% return on your capital, depending on how many years you are willing to lock your money with the bank. In Nov 2018, I bought SGS Bonds which gave an average return of 2.57% over 10 years, which means if I use $10,000 to buy the bond, I will get $257 every year for 10 years. The good thing about bonds is that your capital is safe and you can withdraw your capital any time you wish.
Do you also know that if you top up CPF for your loved ones (capped $7k) or for yourself (capped $7k), you can get a tax rebate, which means your total income for the year is taxed lesser and you pay lesser tax every month? If you earn more than 80k per year of taxable income, it makes sense to help your loved ones, e.g. your parents, top-up their SA/ RA account to earn 4% returns if they are close to withdrawing their CPF soon. And the same thing, you can tax less on the next tier of your taxable income.
What about using credit cards? The late charge fee penalty is scary and some people borrow more than they can pay up and accumulate a huge debt. But I have been using credit cards to pay most of my expenses for the past 10 years and have not been charged any fees, not even annual fees. And every month, I earn rebates that are free money to add to my savings.
There is so much I can share with you on good money habits, personal finance, value-for-money deals, investment guides and the fundamentals of options trading.
The pandemic brings disruption, jobs are lost and people are confined at home. But it also brings opportunities to learn new skills and knowledge that can help you for the rest of your life. And the pandemic also taught us to expect the unexpected. You may be in your comfort zone with a well-paid job but that can change overnight. Building other streams of income will ease your insecurities and safeguard your finances.
If you are keen to learn more, I promise to share with you everything I know. If you don’t take the opportunities to learn as much as you can now, then when are you going to start? Wait another half a year where the world settles into endemic living? By then, your boss will want you to report back to the office every day and you will again be overwhelmed with work and your commitments, like what you were going through before 2020. Then, you will be stuck in the rat race until age 65 or older. By then, when you look back, you realise you have not really done many things that you really like because most of the time was spent on work and trying to make ends meet. When you look forward, maybe there isn’t much time left to make the wrongs right.
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Learning Investment With Jason Cai 