Asked by Anonymous
Asked on 03 May 2019
Top Contributor (Jan)
Seedly has tons of articles on everything you need. So after reading up, speak to a FA and hear their thoughts.
There are tons of 'Rules of Thumb' that you can follow such as the 50/30/20 rule for spending and savings, the amount of insurance coverage you'll require, how you should build an investment portfolio.
I've covered these topics with my own thoughts and opinions for the last 7+ months on this platform. You can read my replies by going to my profile and seeing my questions anwered. :)
All the best.
Top Contributor (Jan)
First priority is always healthcare. The reason is simple - medical inflation hits 10% in 2019. Accordingly, a single medical treatment could potentially wipe out all your savings. To do this, it is always valued to have your own private integrated shield plan. Here is why: https://www.blog.pzl.sg/is-integrated-shield-plan-necessary-in-singapore/
After you have the basic foundation set up, you may consider a basic life insurance plan that covers for death, total & permanent disability, and most importantly for critical illness.
There are many options available in the market, therefore, take your time to understand which suits your needs. Here is a general comparison between a term and whole life insurance to help you with some basic understanding: https://www.blog.pzl.sg/term-vs-whole-life-insurance-singapore
Once you have a stable income, here is the 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
Having mentioned that, this is a general guideline that may or may not work for you. The best way is always to have an in-depth understanding on your cashflow, current situation and future goals. It is only when we know you well enough, then it is appropriate to give you the best advice or suggestion that fits into your needs.
On planning your finances, here is a guide to help you do some tracking: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/
Accordingly, this is how I do my budgeting to ensure saving more money over time: https://www.blog.pzl.sg/how-to-create-a-monthly-budget/
Of course, speak with a professional who is capable of helping you analyse your situation and create goals for the future. This is like having a personal coach who is able to help you maximise your potential. =)
Here is everything about me and what I do best.
Congrats on landing the job! I believe your concerns are very valid, and now you have the power of options :)
I think before looking into investing, we need to look at our protection first, hospitalisation and personal accident plans are the most foundational for every person in Singapore, have you looked into these?
Once you have those and when things have gotten more stable at work, you might want to consider looking into a Whole Life policy, as that will protect your income in the event unforeseen events happen.
Once you have those, then you can definitely start looking into investing because I believe the crucial components of income protection has been covered
There are plenty of safe ways to invest your money. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.
You can read here for a better understanding.
I work at Kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.
I hope this helps you make the right decision.
Read Seedly articles - they have a ton of good and relevant articles to learn from. Another tip is to no put your money into anything you do not understand. If you need to, you can ask questions on this forum and I'm sure we are all happy to help!