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6 days ago
The US Federal Reserve has raised interest rates, prompting questions about what higher borrowing costs could mean for Singapore households and whether spare ca…
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Why a Chinese or Singaporean news company is making videos that concern another foreign country that isn't their own.<br>Stay in your box, let them deal with their problems.<br>Like we always say, stop preying into other people business.
Its a good interview. But i would like to point out that in borrowings, you need to take into account the cost of the debt that a person will take overtime. Example a mortgage debt of $1M over 20 years, the cost of the interest paid in total is $160k for a 1.5% rate! And car loans of 7 years another example, taking note that car loans are usually flat rate interest paying which is actually higher relative to the loan amount. These costs add up very high over the whole tenure and are usually the highest incurred for the debt. Mathematically, it is very difficult to "arbitrage" the cost of debt over a long period of time for a normal investor, due to emotions at play. I would prefer to advice for any investor to set a goal to play down all debt before you do further risky investments, whether its good or bad. It removes all cost of debt giving the investor a complete peace of mind to do further investments.
