Should I consult a financial advisor/consultant in my situation? - Seedly
Seedly logo
Seedly logo
 

Career

Savings

Insurance

Financial Planners

Alcander Seow

Asked 4w ago

Should I consult a financial advisor/consultant in my situation?

Hi, currently without a significant other, would like to save up till $100K before 25 Y/O. Tend to spend a lot on Family (Spend about $600+, $200 on a shaver & 2 pair of shoes, $400 on an Oven for my mum' birthday present), so tab on my savings. Should I go consult an advisor on how to budget properly or manage my finances so that I can reach my goal of getting the 100K & helping my parents get a better home?

0 comments

2 answers

Answer Now

Answers (2)

Sort By

Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Updated 4w ago

When you need more resources an independent advisor could be of help

some of integrity are on this Seedly board (hint: among those with the most answers)

otherwise, generally it is, as with doctors (or with all professions): how to find the one free of conflicts of interest ? difficult.​​​

3 comments

👍 1

1 more comments

Alcander Seow
Alcander Seow

4w ago

Hi Frankie, thx for the reply. Understand the conflicts of interest. For the money spent on my family, from my point of view, the presents & all are like short term benefits to me. I was hoping to get them a long term benefit, E.g. a new house, higher allowance to allow my parents to live peacefully & happy.
Frankie Rappaport
Frankie Rappaport

4w ago

Hi, dear Alcander, I feel, these are almost two different things that You could follow separately. The short-term 'small things' You give them, are also very important, so they see how much You love them. For the bigger things You/they need a lot of patience, and there always remain risks. The question you ask is a recurring and important topic. Every situation is individual, but decisions are to be made. There are some important issues, where an advisor would be helpful to sort everything out. (I am not an advisor, for me managing my finances/investing is almost like a 'hobby'). Some important issues You should consider, are: -stability of your professional career -current and prospectuve future cash in-/outflows -debt -monthly contribution to your parents -your own life plans (own family) -a new house is a nice thing, but is it realistic given the costs? (also, when seen as investing, the pure financial gain of a house is very low) -when you're 20y now, to have 100000 SGD by age 25 through investing You'd need to put in roughly 18000 SGD per year with a supposed investment performance of 5% per year, which could already be an overestimated percentage. For stock investing you're in need of a horizon anyway of at least 10 years

You need to determine whether you are capable and disciplined enough to achieve your goals on your own. If yes, then we are done. If not, then we need to evaluate on how a financial advisor or consultant is able to help you achieve your goals.

Generally in your situation, I will suggest for you to approach this matter in three steps:

Firstly, determine your goal, and the time to achieve your goal.

Next, 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

Finally, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation.

How I do My Budget:

How to create a Monthly Budget

Of course, depending on the time that we have alongisde with your risk appetite, we may need to place your money into the right financial instruments in order to leverage on the yield to help you achieve your goals with lesser input.

I share quality content on estate planning and financial planning here.

0 comments

👍 0