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Retirement

Investments

What to do with 50k for my parents?
Hello, this depends on what you perceive as risky. If preserving the principal amount is important to you, then perhaps it would be 'safer' to go for an annuity plan that at least guarantees the principal. With this, you also do not need to worry about how much you should liquidate per month/year, as the private annuity plan will have a fixed payout period set out for you. This would be the more hassle-free option in my opinion. Alternatively, if you want to be in control of how you want to disperse the money, then investing in ETFs that track a broad-based index and in government or quasi-government bonds should be a good option. How much % you want to allocate in each asset depends on you. Either way, you have some in equities for growth, and some in bonds for steady coupon payments, and you have the flexibility to decide how much you want to liquidate per month/year as payouts to your parents.
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In the News

COVID-19

Career

Salary

Do you think the Singapore government has been doing enough during to protect jobs this pandemic? Read a lot of news on grants and supports, but also a lot of stories on retrenchment... Any thoughts?
Support to Help Singaporeans (~$100 billion) 1. Temporary Relief Fund - to help Singapore Citizens and PRs who have lost their jobs, or a substantial portion of their income due to COVID-19 2. COVID-19 Support Grant - help Singapore Citizens and PRs who are presently unemployed 3. The Courage Fund - help lower-income households whose family member(s) have contracted COVID-19, or are on SHN, mandatory LOA, or HQO 4. Self-Employed Person Income Relief Scheme 5. Self-Employed Person Training Support Scheme 6. Workfare Special Payment - payouts for lower-income workers increased 7. Jobs Support Scheme - help firms retain local workers 8. Jobs Growth Incentive - boost hiring of local workers, special focus on older workers 9. SGUnited Jobs - creating jobs, training for first-time job seekers 0. Enterprise Financing Scheme (Working Capital Loan component-enhanced) - help enterprises access working capital more easily 1. Wage Credit Scheme (enhanced) - co-funds wage increases for Singaporean employees 2. Tax rebates - for tourism, aviation sector and qualifying commercial property 3. $77 million support package (transport sector) - drivers to receive a relief each day for three months 4. Rental waivers for hawkers, market stallholders 5. SingapoRediscover Vouchers - to explore local culture and heritage, and help the tourism industry 6. Startup SG Founder programme (enhanced) - provides mentorship and start-up capital grants for first-time entrepreneurs with innovative business ideas 7. ... Overall Unemployment Rate Compared to Other Countries/% 1. Philippines - 10.0 (Jul) 2. USA - 7.9 (Sep) 3. Hong Kong - 6.7 (Sep) 4. Malaysia - 4.7 (Aug) 5. Germany - 4.6 (Aug) 6. UK - 4.5 (Aug) 7. Taiwan - 3.99 (Aug) 8. Singapore - 3.4 (Aug) 4.5 resident unemployment (Oct) 9. Japan - 3.0 Is It Enough There have been many schemes rolled out to help citizens both employees and employers tide through this period. However, there will be some that fall through the gap. Individuals who require more assistance should definitely raise up the issue with the relevant statuary board or organisation.
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Retirement

Savings

I am a 52 male, single, recently retrenched (a much-welcome move - hate the job, and was compensated)> My net worth is currently at 1.49M (liabilities are daily necessities) - can I afford to retire?
Hi Max, I would suggest you take some time off to look at the full picture of your finances first. Whether or not you can retire hinges on many factors. I'll break them down as best as I can but it won't be totally complete; there's only so much I can breakdown based on a single number of $1.49M. But this is essentially a balancing game of cash inflows and cash outflows. You'll want to understand your expenses first. As you mentioned, your daily necessities are your liabilities; then in this case, how much are you spending on a month to month basis? This largely boils down to your lifestyle, which depends on what you expect in retirement. A simple lifestyle with the occasional treat or holiday will almost always mean that your retirement funds can last longer, something more extravagant may mean that you may run the risk of running dry in your final years. Your cash outflows must also include things like your medical insurance premiums, mortgage, etc (if any). Once you have this number, that'll be valid for this year and perhaps the next 2 years, but over the long run, whatever number you have, you'll have to increase it to account for inflation. The next step would be to look at your income generating assets. There's no way anyone can retire if they do not have income (passive or otherwise). Thus a $1million condo doesn't help one retire unless it's monetized (by renting it out), in fact, I would consider it a liability if you have to pay your mortgage and maintainence fees. Look at your net worth, and see what assets you have that generate income. This can come from many sources, such as stocks, bonds, unit trusts, CPF, retirement plans, etc. You'll want to reasonably estimate what kind of income you can get from this, and on top of that, know when the income starts coming in (e.g. CPF LIFE may pay out $2K a month, but it's not much help if it only starts at 65, you need income now or you'll have to draw on your savings) You'll want to build multiple layers of income; consisting of both guaranteed income and non-guaranteed income. Naturally if the entirety of your retirement income can be guaranteed, that is the best as you will have no worries, but it may be impractical to do so. You'll want to then construct a "retirement cashflow timeline" which shows the expected inflows of income year to year and expected outflows, both accounted for inflation. This will then let you visualise if your income can last forever, if not, when do you need to start liquidating your riskier assets to sit on cash? The key risks you will want to cater to includes: 1. Longevity 2. Health Risks 3. Inflation 4. Sequence of returns 5. Market volatility When you retire, look for income that is stable, inflation hedged, and with low volatility. To that end, I would recommend you create a 3-pronged retirement strategy, ensuring that 1. You have a systematic withdrawal plan from your assets 2. Proper segmentation of your assets into various buckets and layers 3. Have a basic retirement income floor with guaranteed income solutions for the essentials. The finer details of the recommendations (e.g. which areas to diversify to, which asset class) have to be tailored to your specific situation, as without sufficient details, I can only provide an overall picture of your financial plan. However, I can say this; you are free from the shackles of your job now. It sounded like you really didn't like it, so congrats (in a way) on moving on to the next stage.
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Lifestyle

Savings

Ultimate Budget-Smart Student Guide

Survive and enjoy your student years with these tips while getting a 5.0 GPA in Personal Finance.

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8 more comments

HC Tang
HC Tang

19h ago

Breakfast = bread-first LOL
Chua Wei Yi
Chua Wei Yi

16h ago

Exactly, I love bread. Everyone should love bread
Post

DBS

DBS Multiplier Account

Investments

S&P 500 Index

How to best optimise DBS multiplier in terms of investments?
From DBS website about the investment category: DBS Invest-Saver (Recognised for the first 12 consecutive months) Valid for new DBS Invest-Saver purchased after opening your Multiplier Account. The monthly contribution amount of Invest-Saver plan for Unit Trusts (UT) or Exchange Traded Funds (ETF) will be recognised for the first 12 consecutive contributions per investment fund. Contribution must be made in cash, not using funds from your CPF or Supplementary Retirement Scheme (SRS) account. Please go to the website to verify too!
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PolicyPal

In the News

Insurance

Lifestyle

Are there any pet insurance to recommend? is it needed?
The purpose of insurance is to hedge yourself against adverse circumstances and to give yourself some peace of mind. So, if you are the sort that will send your pet for treatment and may be worried about the medical cost that follows, a pet insurance policy may help ease your worries. Currently, AIA, MSIG, and Liberty Insurance are the few companies that offer insurance for dogs. Annual premiums cost $80 to more than $200. (Dollars and Sense)
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Loans

Home Loans

HDB Resale

Hi, I need help! Please kindly advise on how to properly calculate a home loan. My family and I are looking at a DBS home loan (cont. in details)?
I have not gotten a loan so I may be wrong: Your problem may be solved if you use a calculator which can also show you the outstanding loan balance after each month. First, punch in the figures for your first loan. Look for the outstanding balance at the end of the 5th year then use that outstanding balance as the new loan amount for your second loan. All the best.
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Endowus

Interest Rates

Robo-Advisors

Investments

Anyone used / using Endowus cash smart? What are your thoughts, pls share your advice and recommendations?
If you have a lot of cash that you want to park for a short while, consider insurance savings such as Singlife, Dash EasyEarn and Gigantiq. I have a small amount of cash and I used CashSmart for it. In the past month, I did not notice any negative trends. But that's all.
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Lifestyle

General

Having a car in Singapore is like a reflection of your social status. Sometimes I feel like I need to get one to not be "looked down upon". If you are financially capable of buying a car, would you?
Hi there, I discussed it once with my partner about a car and we agree that that the money that we can use to buy a status symbol, eg. car can be used to fund our future children's education. It's a matter of priority because money, being a neutral immaterial object, can be used to purchase a legacy for your loved ones. I think that will be more meaningful. Either ways, people can choose to buy a car if they can afford it but some may not be able to. I think we have our value systems regarding why we will want to make certain high-end purchases. Nothing wrong with wanting to impress, to each his own. But if given a choice, shouldn't we re-direct our limited resources (for a large majority of us) to something more tangible and meaningful? My friends won't thank me for impressing them with a car. But my children probably will thank me for astute financial prudence. Financial planning is an integral part of life. You can reach me here to find out more.
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Stocks Discussion

Investments

Savings

Am i overly-diversified for a high risk taker with long horizon?
1. why the 10 yr endowment plan 2. why stashaway 30% and equity 100 3. why reits if you want to go for growth 4. why the rsp if you have stashaway and equity100 (overlap) 5. why tesla even. So much speculation
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