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3 Ways Fatherhood Changed My Relationship With Money

I became a dad recently. Aside from the lifestyle changes it catalysed, it made me think deeper and broader about $$$.

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Early 60+ years old. Able to leave it untouched for 3-5 years? What is the best place to park about $120k for low-risk tolerance parent?
Hi there, You can opt for endowments and saving plans. Both are similar in that they are capital guaranteed usually (some plans from some companies are not so do read the BI table) And gives an interest with it. Some even gives a guaranteed interest too eg. AIA Smart Wealth Builder. Endowments however have a locked in so liquidity is Low while saving plans are typically higher in liquidity. If you opt for a saving plan, it guarantees your capital while allowing you partial withdrawals at the same time. They typically also give a maturity bonus as well And you can decide for the length of time you're saving up. This may be an option for you if capital guaranteed is something you're looking at. If you fancy some level of upside returns, you can opt for an investment plan. If you do so, your allocation then should be 70% on fixed income and 30% on equities since you lie on the risk averse side of spectrum. You should theoretically be able to get at least 2-5% annualised return and not be heavily exposed to the systemic risk of the market. The fixed income allocation guarantees your capital while you have a small portion for upside returns. The next mode for you to consider are roboadvisors. They typically craft out your portfolio through the use of algorithm depending on your risk appetite. They have portfolios that Are catered to your risk appetite too so that is an option for you. For most people, it shouldn't be an either-or but you can have multiple platforms to diversify out. Ultimately, do seek out a licensed financial advisor to explore your options since the information online can be overwhelming. All the best. Financial planning is an integral part of life. You can reach me here to find out more.

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What can I do if my parents refuse to take ownership of their finances?
I guess this question is pretty hard to answer. But I'm gonna preface this by saying that I don't claim to know everything and I'm probably not the right person to answer this (seeing as I'm just a dude in my 20s). But I'm gonna just share my thoughts anyways. The hard truth is you can't force their hand. If they don't wish to take responsibility for their finances, you can't make them. After all, you can't sign any policies for them and you can't plan for them if you don't have any idea about their finances. I think what's important here is that you understand how much you're willing to help out when things go south. What I mean is that you need to make your boundaries clear to your parents as to how much you can help them and what you can't do because you will have your own financial issues to care for as well. If they are unwilling to do some sort of stocktake with you despite this, then at least you know you've tried your best. Do also discuss with your partner (if any), regarding this and possibly consider the possible impacts to your finances in the future. It is important for the both of you to understand the situation that you're in and how to best support each other in it. If your salary (or household income) is reasonably high, you can consider setting aside some money as a sort of emergency fund for them in the future to help out so that you don't derail any of your own financial planning if anything were to happen. Hope this helped, all the best, you got this!

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Is it feasible to be a housewife in this day and age?
I believe there’s a lot of limitations if you were to be a housewife. If you want kids, you gotta spend below your means and also not expect a holiday every year. Eating out would also be a luxury and not the norm. (Ofc unless the husband really rich at lmao) But that said, as a child, I really liked my mom as a housewife as I got a very good upbringing. Life is all about opportunity costs. You give one you take one. You cannot take everything.

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Currently earning $1720 after CPF, with $905 going to family of six. What are some other ways for me to increase my savings?
Hi there. I am sorry to hear about your father. I only have respect to you for having this courage to share your situation. You even recover fast to seek solutions for your tight situation. Let's work with what you have to avoid unhealthy pressure on your life. Before answering what you can do as an individual to increase saving, I feel that this is a situation that has to take into account all family members for all to pull through this situation 1. Seek government help - https://www.msf.gov.sg/dfcs/sso/ Head down to social service office to consult . Do not fear or embarrassed about asking for the social safety nets that are provided to all Singaporeans who are truly in need of financial help. This is what you earned for contributing to Singapore. Also, apply for financial aid for younger siblings seeking education 2. Teach your younger siblings to save https://www.youtube.com/watch?v=bmyzRf3bV3k - start early Let your siblings be involved by teaching them to save. Teach them to spend on necessities over luxury A dollar less spent is a dollar more. This is especially helpful for using the money to seek higher education with a better paying job 3. Suggestion I am unsure how you can possibly sort out the finance but you can compile these savings from your younger siblings and put them into POSB SAYE ACCOUNT ( additional 2% interest with lock-in of 2 years) under your name "family saving funds" = Example, Have a collective practice of dropping just a dollar a day or a week before you start your day. After Age 16, it is legal for younger siblings to start working part time (most job). In fact, Mcdonald hires at a minimum age of 14. Encourage them to work during school holidays. Of course, don't neglect studies. About your question, I understand that you are concern about your future . You don't have enough for your future expenses, or comfort. Start small. Form the habits of managing your money well. Save well. Gradually, you will find that there are a lot of things truly not worth spending. Example, when I am in NS, I have an average monthly spending of $200 for an expense (including necessity and reading books). But still, I manage to save a minimum of $400 monthly If you are living a minimalistic lifestyle and food is your main expenses, Assume you eat cai peng everyday which cost $4 for 3 meals. Each month is 30 days Total monthly food expense = $ 360 Sim only plan: Giga or Gomo = $20 Others necessity expenses = $35 Total expenses: $415 What you have before expense: $815 Potential savings: $400 (There are room to manage your money, Example: $100 - Rewards for self $100 - investing for financial freedom $200 - savings for rainy day etc.) In conclusion, other than the "intentional spending" mentioned by Musyaffaq, You can force yourself to save. start with saving $1. The habit of saving is very important. The remaining is your spending power for the month. What you can do now modernly, is to put your saving in another saving account of high interest(like SAYE or Stashaway simple) Main message behind increasing your saving: FORM THE HABIT TO START SAVING I strongly encourage everyone to adopt this system and method: https://www.harveker.com/blog/6-step-money-managing-system/ (template) After forming a good habit of saving and responsible spending. You can move to level 2: Invest in your future self (financial freedom). You can now do it easily by putting $10 monthly in StashAway Tell yourself you are doing great and you will continue to be better Know there is always a light at the end of the tunnel. Please stay healthy and stay strong JIAYOU!

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What are the different insurances I should buy for my mum? She is 53yrs old, on LTVP here in Singapore (so no CPF cover). She is a homemaker.?
Hello anon, Here are my thoughts: - Health insurance - definitely needed & i think you already understand why too so I'll not go into details here - Disability - Since your mother is a homemaker, & so I'm assuming she does not have income, then in my opinion you can save on the disability income insurance. Go for total & permanent disability (TPD) protection instead, this usually comes as a benefit with Life Plans - CI - for the more comprehensive CI plans, at her age, it's going to be quite costly. Taking budget into consideration, alternatives are to 1) get CI riders together with a life plan, OR 2) other standalone plans that covers specific CIs only - for e.g. covers multi-stages Major Cancers. (here, not all CIs are included, but at least your mom will still be protected for the more common and "likely-to-happen" CIs like Cancers) - Life - Following from above 2 points & if your mom wants protection for both TPD & CI, getting a life plan would be appropriate here since it will cover death/TPD + CI - P.A. - not exactly the highest priority for a homemaker; but I'll still say it's good to have so she can claim for accidental medical reimbursements esp at her age where she could be prone to accidents (falls/sprains, kitchen cuts/burns). And it's not that costly. Unlike hospital plans, PA also does not require one to be hospitalised to claim for certain treatments. so in summary, no need for disability income, i would say go for health insurance, a life plan (with CI & TPD riders), and PA. & yes, as mentioned by C Tan previously, pre-existing conditions are usually either not covered, or they impose loading (so premiums are higher) due to increased risk that they are taking on. Kinda long answer, but hope this helps!

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Hi, if I were to put my money into my mom’s CPF OA at 2.5% interest, when my mom is at the retirement age, can she withdraw the money with no cap?
Can only withdraw the remaining monies after FRS (it's FRS right?) gets transferred to RA. So if her balance is less than FRS, everything will go to RA at age (55?) and it's a one-way trip. Personally, I don't use my parents' CPF for my own finances as it gets messy and troublesome (need their SingPass).

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