Showing posts from October, 2023

Developing a Sound Retirement Plan as an Average Joe

Recently, my friend and I had a discussion about retirement planning. We are both approaching our 40s and have a young toddler. The scary part was that we will probably be in our 60s when our daughter start to have a stable job. Image taken from Investopedia One topic we discussed was estate taxes on custodial accounts for non-U.S. citizens. It is important to be aware that there is a 40% estate tax on foreign nationals with over $60,000 in U.S. assets. This tax could potentially deplete any gains we accumulate over time. Therefore, we understood the need to devise a sound plan to ensure we maintain our wealth in retirement.  While long-term investing generally has positive outcomes, I believe it will be necessary to withdraw funds from those accounts at a certain stage. However, after withdrawing those funds, where else should the money be directed? The next destination should meet three criteria: (1) be suitable for average joe, (2) provide future cash flow for retirement needs, and

GHY's Strategy for Profitable Drama Financing

I've previously analyzed GHY Culture and Media (GHY)(SGX: XJB) given their close ties to renowned artist Jay Chou. As the production house behind many of Jay's highly lucrative concerts, GHY has demonstrated expertise in large-scale live entertainment events. However, I was also curious about their business model in production of Chinese dramas, which tend to involve substantial financial risks compared to concerts. The heavy costs associated with drama production led me to question how GHY could turn a profit in this competitive industry. Fortunately, further research provided useful insights into China's drama financing models. A detailed write up explained that most projects nowadays are co-produced or already purchased with major streaming platforms from the very beginning.  As quoted from the website: “…The majority of dramas now are either co-produced by one of the major streaming platforms or are purchased by the streaming platform before filming even starts, meani

Don't FOMO into Netflix

Netflix (NFLX) reported strong third quarter results that saw its share price increase significantly. Prior to the earnings announcement, I had planned to initiate a position in Netflix but was anticipating weaker performance given recent headwinds facing the company. Unfortunately, as often happens, the market surprised me and I missed an opportunity to invest. And to make matters worse, on the same day I decided to sell put option on Tesla, which in hindsight proved poorly timed. It seems my market intuition left much to be desired. Regardless of missing this particular opportunity, I think it's prudent not to hastily FOMO into Netflix merely due to recent share price momentum. There are ongoing labor disputes that meaningfully will impact Netflix's cost structure in 2023 and 2024.  Specifically, the Writers Guild of America strike from May 2023 to September 2023. Significant changes have taken place in the realm of High Budget Subscription Video on Demand where there has

Making Your Money Work Harder For You

With fixed deposit rates currently ranging from 2.7% to over 3.6% , there are smarter strategies for passive investors to generate higher returns.  One approach is to sell cash-secured put options against your fixed deposits. Cash Secure Put Option Selling put options requires the cash be held in reserve in case the stock price falls below the option's strike price at expiration. However, by treating your fixed deposit cash as collateral, you can generate additional income from option premiums while keeping your principal aside earning an extra yield as well. Some key considerations for this strategy: Thoroughly understand options and their risk-reward mechanics before trading. Options derive value from expected stock price movements based on a company's fundamentals. Only write put options on companies you wouldn't mind owning long-term if assigned the shares. Carefully research businesses to ensure solid fundamentals and prospects. Target options with minimum 6 month expi

TUB Path to 100% - Oct 2023

It has been a turbulent year so far. I have not followed through on my May resolution to restart regular blogging. Instead, my blogging endeavors have been sporadic and far from the original plan. The demands of my startup job, often keeping me at work past 7pm exhausted, have delayed my writing plans. Still, I've tried to keep providing updates through other platforms like X , my Telegram group and to a lesser extent, Facebook and InvestingNote. Though my full-time work schedule is hectic, I've contributed articles to an intriguing new platform called Fundflicks . I managed to produce a minimum of two articles per month in August and September. These articles primarily revolve around companies in which I have ownership, either through equity or options. This site, currently in beta testing, allows me to share research on specific companies. Check it out and register for free if you're interested. With limited time, I've had to prioritize. For now, I've halted my p

Optimizing Credit Card Rewards Through Strategic Card Usage Consolidation

For many credit card holders like myself, it can be challenging to keep track of multiple cards offering a variety of rewards programs. Frequent flyer miles, cash back, rewards – the landscape of credit card perks is vast and ever-changing. In the past, I found myself holding onto cards long past their usefulness simply due to their rewards program. However, as I took time to analyze my recent card usage patterns, I realized a more strategic approach was needed. Rather than accumulating a disorganized collection of cards with modest, scattered rewards, I decided to consolidate my spending onto a single card optimized for my regular expenses. This would allow me to maximize the rewards I earn in a way that provides tangible value. Previously, accumulating rewards slowly through small cash back amounts or occasional bonus categories didn't give me a strong sense of return on investment. I wanted rewards that could be redeemed for experiential goals, like overseas travel. SCB Journey