Jin Shun Chia
Senior Financial Consultant at Prudential
Level 4. Prodigy
‧ 21 upvotes received
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There's two things in this world, one that can be eaten and the other which cannot.
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Senior Financial Consultant at Prudential
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  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 27 Sep 2018
    I don’t subscribe to them, but when I am interested in a particular stock I use their articles to research further. I don’t take in their recommendations. Their articles very informative and provides objective analysis of the stocks’ performance. That’s what I like about them.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 20 Sep 2018
    Actually I've personally benefited from endowment plans. In insurance, people rarely share their benefits publicly because it invites gossip, but I am doing that so that others who have not benefited know how it can help. So I have an endowment plan with flexible withdrawal allowance (or cashback, coupons, whatever you call these). I started the plan when I was in NS and it helped me on two occassions - first when I have exhausted all my savings after NS and uni, and I couldn't find work when I graduated in late 2009. Secondly, the plan helped me again when I changed jobs late on, as there was cashflow issues. I'm not a very disciplined saver, but having this endowment plan has helped me to set aside money to save when I needed it the most - I don't have to borrow from family or friends, or incur interest getting personal loans from banks. And as for retirement planning, you may want to ask how much you want for retirement. If you think less than $1,000/month is sufficient, there's already CPF LIFE in place. Just be sure that you're hitting the Full Retirement Sum when the time comes (no Basic Retirement, Full Retirement is needed). Though I must emphasise $1,000/monthly is hardly enough these days. Otherwise, endowment plans will help you set money aside for later use - can have one of these three types: 1) Provide a lump sum payment at certain age (Traditional Endowment Plans) 2) Provide regular payouts after a certain age (Annuities) 3) Provide flexibility for withdrawals (Whole Life Endowment Plans - these products are relatively new in the market, e.g. PruWealth) Can choose which one you like and how much to put in base on what you need.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 18 Sep 2018
    Hello, I would suggest taking a holistic approach to this. Here's a quick checklist to size up your needs: 1) does your hospitalisation coverage covers everything? is it 100% coverage rider and does it cover hospitalisation condition due to your autoimmune disease? 2) is the policy meant to cover critical illnesses (i.e. to help in your expenses during times of illnesses) or to leave money behind for your family in times of need? This would help you size up how much is enough. 3) what's your current monthly income-expense pattern? $200/month is reasonable and for a payment only 20years you're covered for whole life, i.e. you don't need to worry about the premiums after your mid 40s. For some of my clients even when they take home more than $4k they also can't afford $200/month premiums (due to family commitment and bills); other clients can afford $300/month even though they earn less than $2.5k monthly - so know your budget and what you can afford Hope this helps!
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    If you are able to hit the retirement sum at 55yo, then you should use cash to pay off the mortgage. Otherwise the money would be stuck in cpf anyways until 65yo. I’m considering this from the perspective that you like to have more cash flow in your later years.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    Why do you want to do that? Is it for investment or you like that place? Can’t say anything when you don’t explain the logic behind your question. Haha
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    There are at least two things to consider based on the information you gave above! 1) The size of payout matters: do you need a million dollar coverage or $300k coverage is sufficient? 2) The length of time matters too: term plan covers up to 99 yo, but you need to size the plan to the age you want to be covered. Would you be able to decide on that figure now? On the other hand, whole life plan covers until 99yo. And you’ll get a sum of money regardless of your situation at 99yo. After considering these factors, you can then calculate the costs using the methods suggested by Luke Ho and see which one is a more economical solution.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    I use this: https://www.fool.sg/ They provide news on stocks which gives me an idea of whether the stock is undervalued or overvalued. Price to book ratio is a good technical indicator but prices are driven by market sentiments. And to shortlist which stock I go for I use https://www.dividends.sg/ Because I am in more for the dividend strategy.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    Sorry I'm going to give a geeky answer - please don't downvote me for this! To get savings of $1million by age 55 when you are 35 now, I'm making the following assumptions: 1. $1million is future value of money - do note $1million now will bring you different amount of goods compared to $1million 20years later; it's called inflation 2. You manage to find an investment tool that gives stable returns of 10% p.a. compounded annually (in this time and day I'm not sure what gives though) 3. You can afford to set aside about $16,000 every year for the next 20years - this is about 28% of your annual income, or equal to 4 months salary Here's the calculations (courtesy of https://www.calculator.net/finance-calculator.html) Personally I think items 3 is do-able - need a stretch there. Item 2 would be an issue unless you are willing to take risks. The best instrument I know to generate this is via shares. The longer you wait, the more money you'll need to pump in. People forget investments is time sensitive - you need time for money to grow.
  • Asked by Anonymous

    Jin Shun Chia
    Jin Shun Chia, Senior Financial Consultant at Prudential
    Level 4. Prodigy
    Answered on 13 Sep 2018
    Your friends gave very good methods - a range of tools from insurance savings to stashaway robo advisors. With $200/month, you can cover at least 2 of the tools listed. To start investing, consider the following: 1) What's your risk appetite? - Do you believe that to gain some side income, you need to take some risk? How much risk would you be able to take? - Do you need liquidity? The $200/month is extra money or you may need the money 1year, 5 years, or more than 10years down the road? - Do you already have emergency funds set up? - Does your family rely on you for the bills? 2) How much would you like to be in control of your investment? - Do you want to drive the investment manually? i.e. spend the weekends reading up on companies, learning investments and analysing when to buy and sell - Do you prefer driving the investment on semi-auto mode? i.e. let the experts handle the money, sit back and check in once in a while (the frequency of check matters - savings insurance only need to check once a year; unit trust about half a year once; robo advisers is as and when needed, about once a month - Do you prefer to work with someone or be in control of your investments? Get started and keep yourself invested!
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