Praxis Collective Advisory

21/11/2022

Leads, more leads, and more leads, please.

This is what insurance agents & financial advisers are most concern about.

A lack of database to make appointments to meet potential clients is also the main reason why most financial practitioners fail to make it their life-long career.

To me, it is a chicken & egg situation.

Don’t get me wrong. I am not against roadshows, cold calling, telemarketing, and other leads generation methods. They do work for some agents. A few even do very well by achieving Top of the Table.

My usual question to them is: “How long are you able to work like this?” Will it not be tiring in the long run?

I have been in the financial sales & advisory business for more than 35 years.

Is there a secret to not tire out?
My answer is in the table below.

If you like to find out how this is even possible, ping me or register for the “Business Opportunity with Financial Alliance” webinar happening in 2 days time.

Please scan QR code in comments section to register. Scan now .👇

https://lnkd.in/gqqFDXzt

31/10/2022

What went wrong China’s new leadership lineup?

https://asiatimes.com/2022/10/markets-have-chinas-new-leadership-all-wrong/?fbclid=IwAR2VBdu_4DvLyLO_9-3HElbdoTopRIqnrOAtZEHkXQT-FgFi8B0pFAVDpug

This past Monday (October 24), the Hong Kong China 50 Index, which includes the top 50 Chinese companies listed in Hong Kong, Shanghai, and Shenzhen, dropped nearly 6% on heavy volume. Stocks with …

20/10/2022

Data analyzed by Bespoke Investment Group shows that stocks’ current bear market may need to take another leg lower before rebounding.

The S&P 500′s decline over the past six months is “tame” compared to the final six months of previous market downturns, according to Bespoke’s analysis of the nine prior times since 1928 that the S&P dropped more than 25% from an all-time high.

That spells bad news for investors hoping the current bear market has hit a bottom, as the general rule of thumb is the final six months of a bear market before a bounce should be particularly painful. In other words, it’s always darkest before the dawn – but the data indicates it isn’t as dark now as it has been before.

“Looking at how those returns compare to the current period shows that the magnitude of the declines over the six-, three- and one month leading up to the recent Oct. 12 low rank on the mild side,” Bespoke said in a Tuesday note.

The S&P 500 declined 18.7% over the six months leading up to the low last week, which is the second best performance of all the bear markets analyzed. That’s a softer fall than the median decline of 26.3% among these periods – and even further from the declines seen in the six months leading up to bear markets catalyzed by the 2008 recession and the Sept. 11, 2001 terrorist attacks.

‘Trying to catch a falling knife’

Bespoke recommends investors hold tight amid the fluctuations.

“When it comes to investing during a bear market, you’ll often hear the advice that investors should wait on the sidelines until the market shows signs of meaningful stabilization,” the firm said. “You can lose a hand (or your retirement) trying to catch a falling knife, so for most investors, aggressively buying into a decline is not advisable since steep losses can quickly cascade into something a lot worse. However, just as going ‘all-in’ when faced with a steep decline may be considered reckless, getting ‘all-out’ until things ‘settle down’ is probably just as unwise.”

However, Bespoke recognized the upside investors can see when they get in at the true low, noting median gains of 15.2%, 19.4% and 30.9% over the first one-, three- and six months, respectively, following the historical bottoms studied. That means the bounce-back was usually the same size or bigger than the preceding drop, according to Bespoke.

But it becomes harder to gauge a bottom when the index closes near the low, which can confuse investors as to when a bottom was truly hit. The S&P 500 closed within 5% of the true low a median of 10 times during previous bear markets.

If Oct. 12 was the true low, the index would have hovered around that bottom a lot more than in the past. In just the six months before Oct. 12, the S&P 500 closed within 5% on 20 trading days.

Other firms have shared the sentiment that there is more pain to come.

In a note to clients Monday, Barclays said equities were “not at the bottom yet.”

“Positioning remains cautious but investors haven’t capitulated,” head of U.S. equity strategy Venu Krishna said. “Investors have lightened up on risk exposure, and options data like rising call open interest and flat skew suggests that the pain trade may be to the upside.”

Wolfe Research said in a Monday note that the economic bubble hasn’t popped yet, despite the Federal Reserve continuing to raise interest rates in a bid to temper inflation.

“Unfortunately, while much of the air has come out, we see more downside ahead as the Fed now reverses course in the opposite direction” of its previous lax policy, chief investment strategist Chris Senyek said.

Source: Mr Sani Hamid, Investment Director of Financial Alliance Pte Ltd

11/10/2022

Tonight’s Sept non farm payroll will be closely watched because the market is looking for that last shoe(s) to drop i.e. the main economy is already softening judging from coincident & leading data. It’s only the lagging data which include CPI and employment related data (yes both of which are those watched by the Fed), that have yet to fully turn.

But with proxy data such as lower freight rates & commodity prices (for inflation) and declining Small Business Employment data, are already suggesting that these two final shoes will also have to drop sooner rather than later.

So watch out for a below consensus (265k) print tonight that will ignite the market to resume its strong October “bear rally” rebound. *Note that we do not believe the Fed will pivot in 2023 even with softening employment and inflation data, unless the recession is very deep.

10/08/2022

Continuing from my previous post, part 2, LEARNING POINTS.

PHASE 1, was the longest ride of 57 km, but the most enjoyable. Cold, yes, cold breeze along Neo Tiew.

LEARNING POINT 1: Your first half of MDRT, 2xMDRT or COT within the year will be the easiest. But you got to complete it while you are still fresh. Do this stretch fast but don't burn out. In cycling terms go, "b**g".

PHASE 2, from Maxwell food center to Changi Village of 36 km, the morning sun started to beat down on me. I was struggling a bit, but still bearable. When the going got tough, I maintain constant pace. And DON'T STOP.

LEARNING POINT 2: After completing HALF of your first MDRT, 2xMDRT or COT or TOT, you will start to feel the "sun" 🥵 beating down on you. You will start to struggle a bit. When the going is getting tough, maintain constant pace. And DON'T STOP.

PHASE 3, from Changi Village to Sembawang 463 was the toughest, even though it was just 29 km more. I started to feel my legs and arms aching and muscles cramping up. Every red traffic light was a welcome relief. But at every red traffic also means enduring the burning sun. 🥵11:00 am was the toughest. I saw my team leader squeezing water on his arms and neck. I had to fight the thought of giving up. But the thought of having come this far, I just cannot, yes, should not, allow myself to give up! I pushed on; enduring the pain of each pedaling.

I reached sweet victory point! 122 km. 🎊 Yes, I completed my very 1st RTI I was dreaming of for the last few months! 🤩

LEARNING POINT 3:

Your last quarter of your first MDRT, 2xMDRT or COT, will be the toughest even though it seems within reach. You will start feeling extreme fatigue and perhaps even mood swings setting in 🤬. You will start to entertain the thought of giving up.... 😩
When you have such thoughts, try to think of my thoughts above, "I just cannot, yes, should not, allow myself to give up! I pushed on; enduring the pain of each pedaling."
I reached sweet victory point! 🎊 122 km. Yes, I completed my very 1st RTI I was dreaming of for the last few months! 🤩

Yes, DON'T GIVE UP!
As Winston Churchhill said: Never, never, never give up!

You will complete your first MDRT, 2xMDRT & COT & yes TOT this year.

Just remember to buy me a coffee when you do.

10/08/2022

How do you do your FIRST MDRT, 2XMDART or COT?
Don't get me wrong...
I am not a strong advocate of MDRT as a label of prestige within the financial advisory industry. I view MDRT as a benchmark to an adviser's career in financial advisory. It is more to benchmark one's career progression.

How are you tracking your progress?
Besides tracking month-to-month progress, is there something good advice to reach your very 1st MDRT, 2xMDRT or COT?

From yesterdays' RTI ride, I learned there are 3 phases to achieving your first MDRT, first double MDRT & COT.

Just to relate what happened in yesterday's ride.
I started riding with my buddies from Woodlands, while it was still pitch dark, 5:00 am
Phase 1, Completed 57km and break at Maxwell food center to REFUEL & REHYDRATE.
Phase 2, Continued to Tana Merah Coast Road, another 36 km, break at Changi Village food center to REFUEL & REHYDRATE.
Phase 3, From CV to home at Sembawang, 463 coffee shop, completed mileage OF 122 km. REHYDRATE.

Many season bikers can do this easily. But what I am sharing here are the LEARNING POINTS that can BE APPLIED to your achieving your very first MDRT, 2xMDRT & COT or even TOT.

End of part 1, part 2 to be continued with my next post as I exceeded the word count.

24/06/2022

Would you like to find out more about how CPF Life works? Or are you or your loved ones approaching the age of 55 soon?

If yes, you have to make a choice between Basic Retirement Sum (BRS), Full Retirement Sum (FRS) and Enhanced Retirement Sum (ERS).

Any one of the retirement sum schemes serves to fund the premium of your CPF Life plan - a lifelong annuity that only commences at age 65.

Which retirement sum scheme is the most suitable for you? Is it possible to enjoy an immediate regular income stream BEFORE age 65?

Please join us at our webinar if you are keen to plan your retirement sensibly.

Topic: How CPF Life works and how to enhance Retirement Income with Cash
Date: 28 June 2022 (Tuesday)
Time: 8.00pm – 9.30pm

Registration: https://bit.ly/3ahxZBL

Speaker: Mr Francis Hoan (Financial Advisory Director Financial Alliance Pte Ltd)

15/06/2022

FEAR is spooking investors as market volatility, downside risk and recession fears increases daily without any sign of abating. S&P 500 is currently said to be technically in the bear territory.

Would you liquidate your investments now?
Doing so, you will perhaps realize your loss.
Or would you hold on to your investments?
Doing so, you may suffer more losses.
Whichever decision you make seem to be a lose-lose situation.

If you are in this situation today, perhaps it is good to take a step back and review the 2 S&P 500 charts below.
1. March 2020, S&P 500 suffered a sharp drop when Covid-19 started to spread globally.
2. S&P 500 has since picked up from March 2020 and have trended higher till quarter 3 of 2021.
3. S&P 500 trended lower since late 2021.
4. Since late 2021, S&P 500 dropped sharply with increased volatility.
5. From the one year chart, S&P 500 now is lower than one year ago.
6. However, S&P 500 today is much higher than March 2020.
7. Question remains, how to move on from here?

For me, the current market now is like a cancer patient undergoing chemotherapy. The US Federal Reserve is like the Oncologist administering chemotherapy to the US economy to tame inflation as demand outstrip supply. It will take some months before the chemotherapy is completed. In the meantime, there are side effects which is recession risk. The day will come when, like a cancer patient going into remission, the Federal Reserve will complete its iinterest raising cycle and market will then stabilise and go into remission, so to speak.

For more market views to assist in your deciding how to move forward from here, do come and hear for yourself our in-house economist's views.
Click the link below to register.
https://lnkd.in/dhniDJ_y

(Please indicate invited by: Francis Hoan)

Additionally, you can connect with me by clicking the link below.
https://lnkd.in/g5EP6amF

11/06/2022

Why post half eaten food???
Because I like to share something so, so, so goooood.

Don’t judge the book by its cover.
You have heard this saying umpteen times, I guess.

This pyramid looking Chinese dumplimg may not look good, especially after its half consumed. But it taste out of this world! 🚀

I have recently heard from friends that one of these was sold for $6? Or $8. But this, homemade dumpling, I would easily part $8 for it, especially pairing it with the good old kopi O kosong. 😍

So, what’s the point here?
The point is, what keeps you happy that keeps you going?

Delicious food? 🍲
A successful career? 🤵‍♂️
A happy family? 👨‍👩‍👧‍👦
Loads of nice friends? 👩‍👧‍👧👩‍👧‍👧👩‍👧‍👧
Personal growth? 🕺🏻

Whatever it is, it doesn’t really matter as long as it makes you happy & keeps you going. Agree?

However, the priority is important.

My priority is:
🥇Happy family that I can come home to.
🥈A successful & yet meaningful career & business.
🥉Loads of nice friends.

Oh no! I missed out delicious food!
By the way, how yummy can delicious food taste with no loved ones or good friends to share with?

My greatest worry about dying is not the dying itself. After all, death ends all human suffering. What is more important is how will I be remembered by my loved ones & close friends? Agree?

So, what are the theee things in life that you think makes you really happy?

Please share yours below.

Last but not least, remember that in life, you may not always win. Wanting to win every time & at all cost may cause you many opportunities for real friendship & a happy life.

Step up to the real life! 🥳

Food 🥘 for thought LI friends for this weekend!

Ping me if you like to have a coffee session. ☕️
https://lnkd.in/g5EP6amF

31/05/2022

So as we discussed, in 18 years' time, with inflation, the cost of a degree would potentially rise to $79,000 to $90,000 for Business or Accounting and much more for Medicine(not including living expenses such as hostel accommodation, study materials and more).

So how do I save $79,000 – $90,000 for Business, Accounting or Engineering and more than $400,000 for Medicine?
Here are some options:
1. Save in the bank: $500 a month per child, 18 years,
receive ~$108,460 (0.05% savings account rate)- enough for Business/Accountancy Degree

2. Save in a children’s education plan: $500 a month per child for 18 years,
Receive~ $141,612 (2.95% returns)- enough for Law Degree

Or for Medicine:
1. Save in the bank: $2000 a month per child, 18 years,
receive $433,841 (0.05% savings account rate)
2. Save in a children’s education plan: $1550 a month per child for 18 years,
receive~ $433,549 (2.95% returns)
3. Save in an investment plan: $1300 a month per child, at 18 years get potentially $438,865 (~5.00% returns)

The Pros & Cons of Saving in the Bank, in an Insurance type Education plan and Investment Plan are in this table.

Some are deterred from saving in an education type savings plan or investment plan due to the fixed commitment period.

However, would you not agree that high commitment = high chance of reaching your goal?

The low commitment and high flexibility of saving in the bank often means we do not achieve our goals because it is all too easy to skip saving a month, two months… and then stop.

If you definitely want to see your children through to University, then you need a definite savings plan drawn up too.

What would be the most suitable plan for you? It could be one of the options mentioned above or even a combination.

DM us for more info or any queries!