11 Oct 2020
I agree with Pang Zhe Liang - if you are going to invest, you have to and must be willing to bear the risk. If not, you are better off placing your monies in a high interest rate account to hedge your inflation and be comfortable.
As everyone has different risk tolerance, it is extremely important to work with a capable and trusted advisor who has your interest at heart.
You mentioned that you are not a risk taker, then your advisor should not be recommending a product that does not fit your needs. Besides, if you were to go with a robo advisor, you are pretty much on your own as you do not have anyone to seek a third party advice.
There are pros and cons to either options, and it's your advisor's job to assist you in deciding the best possible outcome that fit your lifestyle, objectives, and goals.
Another thing to note is the motivation of your agent. I will not go so far to say that tied agents are bad. However, you might want to work with an independent financial advisor who have multiple products from various financial institutions in order to have a more unbiased opinion on the types of products they are recommending. Having options is key for a tailor financial program that suit your individual needs.
If you need someone to speak about your concerns, do leave me a message.
Pang Zhe Liang
11 Oct 2020
Senior Financial Services Consultant at AIA Singapore Private Limited
If you are not a risk taker, then you shoud not be investing. This is because all investments come with its set of risk and will generate non-guaranteed returns only.
That being said, if you are working with a capable professional who is able to manage your portfolio at your suitable risk level, then it may be worth a consideration.
In this situation, you should only invest money that you can afford to lose. This is because there is no preservation of capital in investment.
For this purpose, you may wish to speak with a professional to do comprehensive financial planning. This is with the intention to understand your risk appetite, and to determine the actual level of risk that you are willing to take at each life stage. Thereafter, it gives you a better insight on whether investment is right for you.
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