👋 Hey expats, this is Dexter. Welcome to a new edition of Money Abroad, my weekly newsletter where I bring you fresh tips on building wealth while living abroad.

Today in 10 minutes or less, you’ll learn:

• 🇸🇬 How to invest in Singapore as an expat (part 2)

• 💎 Tips & hacks on ESOPs, alternative assets (PE/VC/Angel), crypto

• 🧠 Best (and worst) performing private assets in the last 15 years

🇸🇬How to invest in Singapore as an expat (part 2)

Second post of a two-part series: first post covered stocks, bonds, and real estate

💎 How to invest, plus tips & tricks, by asset class

🚀 Company Equity

Company Equity = stock options, shares, RSUs that you receive from a company you worked for or started.

How to invest:

• Work for a company. Receive equity as a part of your comp. Public companies may offer employees the option to purchase stock at 5-15% discount. 

• Start a company. Bootstrap the business to own 100% of your equity. Or raise funds from family, friends, angel investors, and/or VCs to trade long-term equity for short-term cash.

Tips:

• View equity through a risk-reward lens. I received equity at 3 startups over 9 years with varying outcomes: 1 IPO payout, 1 in-progress, 1 acquisition where my exercised stock went to zero (fortunately, I didn’t pay much to exercise). There’s a wide range of possible outcomes.

• Use a scenario planner. Here’s two US-based examples: SecFi’s Exercise Planner and Compound’s Equity Planner. (DM me if you know of similar global tools)

• Watch out for foreign taxes on your equity. If the entity issuing your equity is based in a different country, you might be subject to that country’s taxes. Check with your employer & tax professionals.

• Prepare budget for deemed exercise rule. When you cease employment in Singapore as a foreigner, you may still be required to pay an “exit tax” on unvested ESOPs, unexercised ESOPs, and ESOPs where selling restrictions yet to be lifted (IRAS details).

🐳 Alternative Assets (Private Equity/VC/Angel)