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Eric Chia

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Eric Chia

Senior Financial Consultant at Prudential

42Upvotes

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⭐ Be inspired ⭐

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Senior Financial Consultant at Prudential

Eric Chia

Senior Financial Consultant at Prudential

42Upvotes
  • Answers (81)
  • Questions (1)
  • Reviews (2)

Investments

Stocks

As far as I know, yes, you'll have to perform a trade to use the dividends on getting more shares. So the dividends may be better off putting in another company shares which the price is discounted, or you can accumulate dividends and put back into the same company share when the price is lower.

Savings

Family

Lifestyle

Retirement

Hello, are you healthy at 55? If you are, 1) please check that you have medical insurance 2) calculate how much you need for retirement (based on the lifestyle you want) 3) calculate how much you're getting from your current assets and cpf 4) take the difference between 2) and 3) to identify the shortfall/ surplus If there's no shortfall, congrats! If there is then you can either adjust your expectations for retirement or to decide on doing some investments or earn some side income. If you're not healthy, you can skip step 1 above. If you like an example for me to illustrate what I've shared, please let me know in the comments! :)

Investments

Hi there, if starting university affects your passive income, it matters. That being said, what you're currently doing is ok. However, if starting university does not affect your passive income, then you have a lot of thinking and planning to do. You have $300 in ETF and investing in this and robo advisors are kind of like the same category (in my honest opinion). The balance of money should be diversified with the following considerations: 1) risk appetite: lower risk stuff from bank deposits (1%p.a. onwards) and insurance savings (3%p.a. to 4%p.a.) to higher risk stuff from shares (which gives passive income in the form of dividends) to speculative trading (sky's the limit but you need time and skill) 2) time horizon: how many years are you able to lock up your money when they are left in investments? I hope you do know that investing in ETFs will need about 5 years to see significant returns. Bank deposits and savings have short time horizon (a few months or almost instant liquidity), shares and etc have mid term horizon (people may hold positions for weeks to months, up to a year in trading, or for longer periods if they're keeping it for passive returns). Insurance savings have longest time horizon, 10 years onwards. 3) what are your goals - you don't only have one goal so you should split the pot strategically to reach your goals. Some goals need more time and are more important and will need something more stable. Other goals may have shorter deadlines but you can be more aggressive 4) is there a way to increase your side income? If you took little effort to get $1k monthly, is it scalable? If it's scalable why not use your side income to generate more side income? Lastly, as for the $15k savings, I'd suggest leaving it alone for emergency use. If you already have emergency fund set aside, perhaps putting the money into any one or more of the above mentioned instruments can be done.

Investments

Savings

Note: Since this is a conditional question, I'll answer it conditional manner I consider myself a highest risk profile person, and savvy in investments but the only savings I have is this $30k in my bank account and extra $1k that I'll set aside every month from now on until I retire. I spend $2k every month, single but attached, planning to get married next year and my wife to be and myself love children. We're planning to have 3. Because I have short term goals coming up (getting married and planning to have children), the $30k I'll leave it in my UOB One Account. Also I spend $500 monthly on credit cards, so UOB One is a perfect fit, no need to stretch my spending to earn the interest. $30k isn't enough to get married and have kids, so the balance $1k I have every month I'll put half of it back into my UOB One account. Because I already have my insurance in place, I do not need to worry about losing this money in the event I get into an accident or fall sick seriously. Being high risk doesn't mean you should take unnecessary risks. Since I'm of the highest risk profile, savvy in investments and enjoy trading, the balance of money I'll split 80% into FOREX and 20% into a decent insurance savings plan. This is because I still want to outsource the risk of investing and have some guarantees on my wealth building plans. Being high risk doesn't mean you have to be foolish. Gains that I take from FOREX will be channelled into long term value investing in shares on an annual basis. This is to lock up my profits from FOREX and generate some side income as I leave money in shares to work for me. Being high risk now doesn't mean you'll stay so forever. We'll all grow old and want to have guarantees on our wealth the older we become.

Career

Just wondering are you more interested in applied science or future proofing your career? There's difference between the 2 when you make your decision. If you were to further your studies, would you prefer to do it full time or part time? Some of my friends do part time with consideration that they want the income as they study. Others felt that they want to switch industry and have stopped work altogether to engage in their studies. But the reason for further studies isn't exactly future proofing, but rather for the love of their work and/or to get better paying jobs. Future proofing your career isn't only about furthering your studies. Having an additional paper qualification doesn't mean that you'll be any less vulnerable to retrenchment. Because retrenchment doesn't select people, it selects industries. To future proof your career, you need to have 2 rights and a must: 1) right mindset to adjust and adapt to salary vs work expectations in down times 2) right attitude towards work, performing your best and always learning new things (not referring to further studies here) 3) must have confidence in yourself that you are relevant in the workforce. Employers look at your confidence to do work when they hire you, not your school results or past work experience. Do not be afraid or discouraged when the door closes. In order to future proof your career, you must enjoy your work. I hope this advice inspires you and gives you some direction!

Savings

Investments

Stocks Discussion

Family

Roboadvisors have lower costs, but returns wise can't say which one is better. Stashaway puts money in US market, so you'll be exposed to exchange rate risks. STI ETF is locally and more comfortable if you want an investment in tune with your living environment. Although for children's education I won't risk my money in investments where the capital isn't guaranteed - just my 3 cents' worth of thoughts.

REITs

Investments

Hi there, before giving any advice and suggestions, can understand what you mean by covering the shortfall?

Investments

Savings

Retirement

Hi Liam, I'm assuming that you have emergency funds already set aside and you're going to be working for the next 10+ years. Honestly for long term planning people don't set aside a lump sum for it at the start. Long term planning (more than 10 years) can be imagined as a project that you like to have later on, e.g. retirement, business set up, family planning, that you can progressively achieve. Thus is this where insurance savings comes in. For your budget and age, you can consider 3 things, (1) whether you need the $25k in the next 5 to 10 and/or 10+ years, (2) how much you want this pot of money to grow, and (3) how much risk you're willing to take. If you do not have any general direction, just want to grow your money, and if you're confident that you do not need the money in the next 10+ years, then it's good time (for your age) to use this money more aggressively in a progressive manner, e.g. if you have at least a day in a week and you are interested in investments, you can put $1k to start off buying shares and progressively add more money to the portfolio as you learn. The important thing is to get started, but do not neglect your long term needs at the same time!

Lifestyle

Personally I feel that learning driving is a must. It's a life skill that will be useful for times you never know. Then again, if auto drive cars are becoming a reality, people may not even need to learn driving anymore! Hahaha

Insurance

Family

Bank Account

Just a few pointers to note: 1) You are thinking of using money which has been set aside to protect your wealth, on accumulating wealth. These 2 purposes are totally different and if you do not have enough money, you should earn more or spend less, so that you have money to use for wealth accumulation. 2) It's precisely that you're healthy and have no family history that you are able to get life insurance coverage. Once your health deteriorates, or when you grow older, the chances of getting coverage becomes lesser and more expensive. In general, people lose between $1k to $5k of coverage per year that passes. 3) You're putting in about 10% of your income in insurance, which is pretty standard in the market. The $2.7k should not include savings plans, it should be a budget set aside for protection. So theoretically you're in a sweet spot for coverage. Surely you would not want to ask your parents for money if you fall sick and are unable to work? 4) You should consider reviewing the coverage amount with your agent. What CI and ECI plans do you have? Is the coverage amount sufficient, would it meet your expectations in case you fall sick? 5) You may also like to consider these questions. How eager are you in investing? How confident are you that you'll make money from investment? Find someone to talk to before making any decisions, so that you'll not regret your choice now. :)
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