The Edge: Consult The Experts

In this column Ian offers advice to a law graduate by the name of Donnie on how to achieve his financial goals and answers his questions regarding personal loan and investment. 

Ian strongly discourages him from taking a personal loan as it is one of the worst financial instruments to take up. He would end up paying a lot more than his original loan amount, as shown in the brief calculations presented in the article. Ian suggested that he get an interest-free loan from his parents if possible, and reminded him that it is better to always spend within his means. 

Investment-wise, Ian states that exchange-traded funds (ETFs) are relatively safe and hassle-free as long as the right ones are chosen. Ian recommends investing money consistently each month to mitigate risks via dollar cost averaging, which also eliminates the issue of needing to “time the market”. 

For Donnie’s property purchase goal, Ian cautions him to be aware of the hidden costs and lists out some common ones. Ian also notes that the costs of renovation and furnishing need to be factored in as well, and prepares a table depicting how long it would take to save for each goal. 

To optimise his finances, Ian commented that he needs to get medical insurance and save and invest monthly. Ian reminds him that consistency will play a big part in achieving his goals.

This article can be found online here.