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Pang Zhe Liang

I love Consumer Finance because I am part of it! Like my FB Page for more content on estate planning & financial planning in SG!

Pang Zhe Liang

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Senior Financial Services Consultant at AIA Singapore Private Limited

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I love Consumer Finance because I am part of it! Like my FB Page for more content on estate planning & financial planning in SG!

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Senior Financial Services Consultant at AIA Singapore Private Limited

Pang Zhe Liang

Top Contributor

Senior Financial Services Consultant at AIA Singapore Private Limited

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Savings

Lifestyle

COVID-19

As a general guideline, it will be 3 to 6 months of your total expenses. Owing to my high expenses and incoming liability, I am more skewed towards 6 months of emergency fund itself. Here is a Guide (Part 4.1) Understanding Your Personal Cash Flow Meanwhile, if your job is affected, then spend the downtime to upgrade and make yourself relevant to the workforce. Moreover, consider working part-time and reduce luxury expenses to increase net cashflow. At the end of the day, staying relevant and having a healthy cashflow ensures that you keep yourself recession-proof. I share quality content on estate planning and financial planning here.
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Early Critical Illness (ECI)

Critical Illness (CI)

AVIVA MyWholeLifePlan

Whole Life Insurance

Term Life Insurance

Disability Insurance

Insurance

Summary Generally, you need life insurance when you have dependents to take care of, liabilities to pay off, or a legacy that you wish to leave behind. In a similar fashion, get critical illness coverage as long as you are alive since the payout is for you - to supplement the cost of living. Now, let's get into the details. Term Insurance Firstly, let's address your concern for term insurance. Yes, you are right to say that there exists term insurance policies in the market where the premiums are non-guaranteed and may (or likely to) increase on renewal. Hence, you will have to be careful when making this as your choice. More Details: What is a Term Insurance Policy? Types of Term Insurance Policies in Singapore How to use Term Insurance? If you intend to save the cost of policy through a term insurance (as compared to other options), then you should use the remaining budget to grow your money. In order to do so, you can either DIY or work with an experienced consultant to create a custom wealth accumulation plan. Since you mention that you are not confident to do so on your own, then working with a professional mentor will certainly help you to this end. Whole Life Insurance Otherwise, the easier solution will be a participating whole life insurance policy. Through features such as limited payment with lifetime coverage, cash value over time, it is an option that you may consider. More Details: What is a Participating Whole Life Insurance Singapore When to buy Whole Life Insurance Singapore Key things to look out for Participating Whole Life Insurance As part of your premium goes into the insurance company's participating fund (in order to generate returns for your cash value), you need to ensure that you are not overpaying for this cash value. Generally, we need to be comfortable with the asset allocation, expense ratio, and track records. This is simply because all these factors have a direct impact on your cash value over time. For instance, all my clients won't pick a higher risk asset allocation when they expect to receive the same rate of returns as a lower risk asset allocation. Moreover, a high expense ratio means that the participating fund is not performing as efficiently as it should be. More Details: What is a Participating Fund? Early Critical Illness As the answer is getting long (in an attempt to give you a proper answer), I will link you to a similar question regarding the need for early critical illness coverage. More Details: https://seedly.sg/questions/what-is-the-difference-between-early-critical-illness-and-critical-illness-plans-what-are-the-considerations-to-take-into-account-when-deciding-if-to-purchase-both-or-one In my answer, I broke down the difference between early critical illness coverage and major critical illness coverage, the potential cost involved, and the crucical factor to consider when choosing the right early critical illness protection (p.s. definition for payout). Final Thoughts Finally, the only way to know whether you should take minimum coverage now is to conduct comprehensive financial planning. Speak with your agent or an experienced consultant who is capable to mentor and provide you with responsible advice to this end. I share quality content on estate planning and financial planning here.
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Insurance

Whole Life Insurance

Term Life Insurance

A good age to purchase life insurance (or anything in general) is when you know your needs and plans for the long-term. By knowing yourself, we reduce the probability for regrets later in your life. Generally, we use life insurance to create wealth for our dependents, pay off liabilities, or to create a legacy. In addition, we get critical illness coverage to protect against income loss due to medical reasons. How much insurance coverage should You have? As a general rule, 10% to 20% of your annual income on healthcare insurance and life insurance Basic Life Cover = 10 times your annual income Critical Illness Coverage = 5 times your annual income For specific coverage, you may consider it on top of your life insurance coverage. For the most part, life insurance should come first as it provides a wider scope of coverage. If you are unsure on what to do, start by understanding yourself and start planning for your future. When the need arise, speak with an experienced consultant who is able to guide and mentor you along the way. This helps you to save precious time and resource for more important purposes in life. I share quality content on estate planning and financial planning here.
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Insurance

Term Life Insurance

AIA

Before we attempt to give you the best advice, it will be good to know your needs and planning for the long-term. This is because term insurance coverage will stop after a stipulate period of time - and this may or may not be favourable to you. Generally for death coverage, choose a reputable insurance company that provides a reasonable rate of premium and efficient after-sales service, e.g. for claim. For Total & Permanent Disability, you may wish to identify between coverage till age 65 (by industry's standard) or till age 70. Like death coverage, most reputable insurance companies work fine. For accident coverage, if you are looking at medical reimbursement for injuries, then you may wish to consider solutions from AIA Singapore. This is because it provides a reasonable amount of coverage for the price. Moreover, all my clients are satisfied with the claim efficiency as a whole. I share quality content on estate planning and financial planning here.
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COVID-19

Insurance

Investments

Savings

Save it for the future! I share quality content on estate planning and financial planning here.
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Payments

Transportation

Transport

Interest Rates

There are a few things that we need to know in order to give you specific advice. This is because not all banks will entertain car re-financing. As such, we need to know the age of the car as well as the outstanding loan for the car. Moreover, determine the early settlement fee to see if it is worth the switch. Without all these details, it is impossible to do any calculation and have a conclusion to this end. I share quality content on estate planning and financial planning here.
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Whole Life Insurance

Term Life Insurance

Basics If you do not want to mix investment with insurance, then there are two main solutions to this end: 1. Participating Whole Life 2. Term Insurance (More details about each choice in the link.) For participating whole life insurance, you will receive a cash value based on the participating fund's performance of the insurance company. On the other hand, if you do not want any form of cash value, then term insurance is the natural option. Avivia Group Term Life As a side note to this policy, take note that you are unable to submit a nomination. Accordingly, the death payout will follow the Intestate Succession Act. More Details: Intestate Succession Act Singapore Term Insurance coverage and cost Okay, back to point - Generally, the shorter the term of coveage, the cheaper the cost of premium. Hence, you are generally right to say that term till age 65 will be cheaper than term to 70. What You should do Firstly, one of the most important things to do is to have a complete understanding of your existing insurance portfolio. Through this process, it allows us to understand the coverage that we have, any financial gap, as well as to find out whether we are overpaying for our insurance policies. Key Reasons Why: Why Every Client needs an Insurance Policy Summary Thereafter, we need to have a detailed understanding about yourself and how to plan for your future. For instance, do you need life insurance coverage beyond age 65? And will you prefer to have critical illness coverage for as long as you can? All these require comprehensive financial planning to ensure that you get the right insurance coverage for your needs. To do this, either research and plan on your own, or to seek professional advice from an experienced consultant. Above all, I believe he or she will be capable to give you responsible financial advice. I share quality content on estate planning and financial planning here.
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Savings Accounts

Savings

Investments

Standard Chartered JumpStart Account

For the most part, emergency fund should be in a cash-equivalent instrument where you are able to assess it with ease without monetary loss. As such, bank accounts, fixed deposits are usually the main choices. If you are between 18 to 26 years old, then you should consider Standard Chartered JumpStart account. This is because it gives an interest rate of 2% per annum for your first $20k balance. Furthermore, there is no fees and minimum balance required in order to maintain the account. Moreover, it comes with a debit card that gives you 1% cashback on eligible spending. With this in mind, it is certainly a worthy account for a start. Alternatively, you may consider CIMB FastSaver. This is because it gives an interest rate of 1% per annum for the first $50k account balance. In like manner, there is no monthly fee associated with maintaining the account. Hence, it is worth taking a look as well. Here is everything about me and what I do best.
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Financial Planners

Insurance

More information is required in order to give you a better answer. For instance, mechanism for the workshop, agent's practice, etc. Since you didn't pay any fee, thus it is possible that the agent don't earn anything from the workshop or by meeting you. At this stage, we should first focus about you and your future, rather than the agent's agenda. For the most part, some of the things include your current insurance portfolio, needs, as well as planning for your future. More Details: Why Every Client needs an Insurance Policy Summary Thereafter, we shall evaluate whether both of you have established mutual respect and trust such that you all can work together for the future. Moreover, it also depends on the agent's character and level of responsibility. All in all, without knowing further details, there is no way to know the outcome. In any case, I will highly recommend you to have a detailed look at your existing portfolio and how you wish to plan for your future. Then, we can see whether the agent is capable of helping you achieve your goals, or if he is merely after his own goals. I share quality content on estate planning and financial planning here.
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Property

Undergraduate

Savings

Cash Flow Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a Guide: Understanding Your Personal Cash Flow As an undergraduate, this is even more important as it will be extremely helpful to track and know your highest income earning period, e.g. during vacation. Moreover, it is also crucial to keep your total expenses as low as possible. This is especially true for fixed expenses. By understanding your cashflow pattern, we can move on to the next step. Goal In order to have sustained motivation to realise what you want, we need to have a well-defined goal. For example, we need to have $100k cash in 10 years' time for the house. Furthermore, it will be helpful to plan and create a goal as if you are buying the house tomorrow. Accordingly, this makes the goal as realistic as it can be. Budget Thereafter, create a budget that is capable of helping you to achieve your goal. The best way to do this is via automation. How I do My Budget: How to create a Monthly Budget Based on our earlier illustration in simple mathematics, that is equivalent to saving $10k annually. However, we need to understand that our income potential is not as high as after graduation. Therefore, plan your cashflow and budgeting accordingly. Tools Naturally, we will want to make use of financial instruments available in the market such that we can achieve more with less. To put it another way, we will use the power of compound interest. More Details: What is Compound Interest? Back to our earlier example, assume that we are able to grow our money at 3% per annum. With the help of compound interest, we only need to save about $8,724 every year in order to achieve our goal; and that is more than $1,000 lesser than our initial calculation. With this purpose in mind, do your own research or speak with an experienced consultant who is able to guide you through your process. This ensures that you are able to achieve your goal in the most efficient manner. I share quality content on estate planning and financial planning here.
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