AMA Christopher Tan - Seedly
 

AMA Christopher Tan

Held on 24th Jan 2019, Thursday

ASK A QUESTION

(AMA Ended) I have over 20 years of experience teaching financial literacy. Ask me anything!

NOTE: Thank you for participating in our AMA! Christopher will answer all the questions tagged to him shortly! This is part of a series in a lead up to our Seedly PFF2019 happening in March this year as we feature some speakers.

Hi Seedly Community!

I am Christopher, the CEO and Co-founder of Providend as well as Executive Director of MoneyOwl . Providend is Singapore’s first fee-only independent financial advisory firm specialising in retirement planning. Providend was also the firm behind DIYInsurance, Singapore's first insurance comparison web portal. Today, DIYInsurance is part of MoneyOwl, a financial advisory firm as well as fund management company licensed by MAS. MoneyOwl is also Singapore's first bionic financial adviser.

I spent more than two decades of experience in the wealth management and financial planning industry, where I specialise in retirement planning issues and corporate strategies for financial planning and wealth management firms. 

I am also a frequent guest on major broadcast media and a contributor to print media and new media. In my free time, I volunteer with the Securities Investors Association of Singapore (SIAS) as their committee member from 2009 - 2017. Also sitting on the CPF Advisory Panel from 2014 to 2016. Using the "Finishing Well" framework that I developed, I encourage my clients to live a purpose-based life and how to make financial decisions to support their life decisions.

I am here to answer your questions in the following areas:

  1. General financial planning tips and tricks?
  2. Retirement planning and what is the right mindset?
  3. How to let your financial decisions support your life decisions?
  4. Why CPF may be a good strategy to adopt?
  5. What is the right investment mindset?
  6. Any forms of personal finances tips or rules?
  7. Experience going through an investment crisis?
  8. Family financial planning and starting a family in Singapore?
  9. What I define as 'success' for a typical Singaporean

NOTE: The host may choose at his/her preference to not answer particular questions. The AMA is moderated by Wen Fong from Seedly, so let’s keep the questions friendly and open!

  • Recent Activity
  • Unanswered
  • Trending

Investments

AMA Christopher Tan

Hi anonymous, thank you for your question. If you can wait till March when MoneyOwl launch our investment service, you will be able to gain access to Dimensional funds. If you can't and must invest now, you can invest via Endowus. The difference between Endowus and MoneyOwl is this: Endowus uses PIMCO for the bonds allocation of their portfolios. PIMCO is an active bond manager. Also, Endowus is a roboadviser. For MoneyOwl, for both the equities and bonds portion of our portfolios, we only use Dimensional, which is an evidenced-based fund manager who does not time the market. In addition, MoneyOwl is a bionic adviser -meaning you can use our roboadviser to get advice but at the same time, you have access to our salaried-based adviser to get a second opinion overlayed with human wisdom. Do check out www.moneyowl.com.sg when we roll out our investment service.

AMA Christopher Tan

Insurance

MoneyOwl

Hi Anonymous, thank you for asking this question. Let me share how MoneyOwl works, it’s pros and cons and you can decide if we are suitable for you. 1. MoneyOwl is set up as Singapore’s first Bionic Financial Adviser. To be Bionic means to have the best of both worlds – humans and technology. Technology integrates complex financial models into your financial plan with ease and precision. But we understand that money is very personal and involves emotions, aspirations and life decisions. That’s why both our dedicated client advisers and our technology platforms come together to journey with you in every stage of your life. 2. In our full form, MoneyOwl will offer insurance, investment, comprehensive financial planning and will writing service. Currently, only insurance planning service is available. We will roll out the rest of the services over the next few months. 3. The are many advantages in using MoneyOwl. But I would say that the biggest advantage is that we are conflict-free. All our advisers are salaried-based and they are not compensated based on volume sales target. They also do not participate In incentives given by product providers. As such, we are free to recommend what is best for you, including national schemes such as CPF, SSBs etc. 4. We do this so as to create a safe space for you to do your financial planning. We come to the portal, do some planning on your own and if you need to speak to an adviser, you activate us. The advisers will give you a second opinion on your plans. Of course, if you prefer someone to guide you at the onset, nothing is to stop you from speaking to our advisers either via email, phone or face to face. It is really up to you. 5. If you buy insurance from us, you also get a 50% agent’s commission rebate. In this way, we lower the cost of insurance for you. There is of course post sales service such as helping you with claims etc. 5. What are the cons? At this moment, if there are any cons, I would say that there is one. We do not use products from every insurer. This is because, we do not want to put a product provider on our platform simply because they are around. Their products must be good for our clients. But unfortunately, there are also insurers whom are unwilling to put their products on our platform because they do not want their products to be compared against others. The good news is that because we are a strong advocate of low cost term insurances, the best providers of term insurances are already on our portal!

Robo-Advisors

Investments

AMA Christopher Tan

MoneyOwl

Thank you for asking. To be Bionic means to have the best of both worlds – humans and technology. Technology integrates complex financial models into your financial plan with ease and precision. But we understand that money is very personal and involves emotions, aspirations and life decisions. That’s why both our dedicated client advisers and our technology platforms come together to journey with you in every stage of your life. At MoneyOwl, we believe that the best way to give advice is when tech precision works with human wisdom, Hope I answered your question.

Financial Planners

Retirement

Investments

AMA Christopher Tan

Hi anonymous, thanks for your question and sorry for the late reply. $4 million seems like a huge nunber. It will be difficult for me to answer this question unless I know 1. How much are you able to set aside per month to accumulate towards that? 2. How much lump sum capital can you set aside now to invest towards that? 3. What is your risk appetite? There are various instruments such as bonds, equities and properties that can help you achieve your goals. But without knowing the details as stated above, it would be difficult to suggest. I generally will not suggest using insurance as an instrument to save towards retirement (except for annuities, which is a useful instrument in retirement). This is because insurance is an expensive instrument and it is really meant more for protection rather than investment.

P2P Lending

AMA Christopher Tan

Isaac Chan
Isaac Chan
Level 8. Wizard
Updated on 21 Feb 2019
Hi! I hope that I can shed some light in this space because I had interned at one of such firms before. To be clear, the risk associated here with P2P financing is the default risk , where the firm you have lent your money to has defaulted and can't pay you back. There are many ways that the risk can be managed but my time at the p2p firm has taught me that it's really important to find a trustworthy p2p firm and understand what p2p product is being offered. P2P firms need to perform due dilligence on the borrowers that come on to their platform. When due dilligence is strong and investors trust the team, many investors are a lot more confident about their investments. In fact, the only way you would know about what p2p investment products are on offer and what companies you are lending to is through the p2p firm. Hence, most of the information about who you are lending through is filtered through the p2p firm before reaching you. There are a variety of P2P investment products on offer as well. This ranges from term loans to factoring. The risk and returns for each investment product is very different and it would pay to understand each one of them.

Investments

Retirement

AMA Christopher Tan

Eugene Wee
Eugene Wee
Level 3. Wonderkid
Answered on 20 Feb 2019
I think the articles written on Seedly well explains the purpose of having an ETF in your portfolio compared to picking individual stocks. Assuming you're only selecting ETFs, having this in your portfolio will be useful should you choose to retire in SG. Unless you're willing to devote a lot of your time picking stocks and chasing gains, a fuss free method of "playing the market" will be ETfs. My current allocation will be 110-my age for percentage in stocks and the remaining for bonds. With the percentage set for stocks, I've diversifited it half into SG markets and half into World markets. Hope it helps!

Insurance

AMA Christopher Tan

Hi Anonymous, thanks for asking the question., And well done for paying down your student debt. I have high respect for people who pay for their own education fees. With regard to your question, many of the participants here have jumped in to give you their answers. I will say that I generally agree with them. So just to summarize it for you and to share my thoughts on this: 1. The first policy you MUST buy is a hospitalization plan. All of us are current covered with MediShield Life. MediShield Life is meant for big bills incurred in public hospital’s B2/C ward. It has an annual claim limit of $100K and also not every expenses incurred is fully claimable. There is also no claim for pre and post hospitalization charges. You also cannot buy riders to lower the payable amount due to deductible and co-payments. In short, the claim amount is much lower than an IP plan. If you can accept that, there is no need to upgrade to an IP. 2. If you want to have the option to pay for alternative treatment in the event you suffer a dread dread disease that cannot be paid by hospitalization plans, consider buying a critical illness plan. A coverage of $50K-$100K should suffice. 3. If you have no dependents, the above should suffice. There is no need to really buy other insurance. However, if you have dependents that will suffer financially upon your unfortunate demise, you can consider buying the MHA/Mindef Group Term Plan. It is probably the cheapest insurance in Singapore. The above 3 plans should suffice for now. Treat insurance as an expense. Buy as much as you need but pay as little as you can,.

Financial Planners

Investments

Insurance

AMA Christopher Tan

Christopher Tan
Christopher Tan
Level 6. Master
Answered on 12 Feb 2019
Dear Anonymous, thanks for the question and sorry for the late reply. As you might know, MoneyOwl is a bionic financial adviser. To be Bionic means to have the best of both worlds – humans and technology. Technology integrates complex financial models into your financial plan with ease and precision. But we understand that money is very personal and involves emotions, aspirations and life decisions. That’s why both our dedicated client advisers and our technology platforms come together to journey with clients throught their stages in life. One more thing about the importance of the human element in advice. While it is easy to design and recommend an investment portfolio using technology, what is tough is when the markets becomes very volatile, or when the markets tank, or even when the markets become exuberantly bullish, machines cannot help us stay invested or prevent us from making silly decisions. This is when human intervention is necessary, to do the risk/investment coaching to help us make sensible decisions. So I don't think that machines will replace humans. But it is really up to humans to work with machines. Hope this helps.

AMA Christopher Tan

CPF

Retirement

Savings

Investments

Dear Anonymous, thank you for your question and so sorry for replying late. It is difficult to answer this question in full accuracy as I do not have the full context. So let me provide a general guide towards planning for retirement as well as make some assumptions. 1. You might want to decide how much money you need per month for retirement. And from the amount that you need, what portion of it is the "die die must have portion". This portion can be taken care of by CPF LIFE. The good thing about CPF LIFE is that it pays out a monthly amount regardless of market condition and it hedges against longevity risk as it is an annuity. Your funds in CPF LIFE is also currently guranteed at 4% p.a 2. So as a guide, if you need say $1400 per month in today's money at age 65, you will need to have about $176,000 (known as the Full Retirement Sum or "FRS) in your RA today at age 55. Currently, the FRS increases by 3% p.a. Assuming that remains the same, in 15 years time, your FRS requirement would be about $274,000. By then, with an FRS of $274,000, the monthly payout can be conservatively estimated to be about $1800 p.m. 3. So if your SA currently has not reach $176,000, you can consider topping up from OA to SA to build your FRS for the future. However, please be mindful that this transfer is irreversible and you need to be certain that you do not transfer so much that there is not enough money in your OA for other purposes such as your mortgage. 4. Nothing is stopping you from doing both the OA to SA transfer and investing in ETFs at the same time. However, I alway find that the STI ETF is too narrowly focused and as Singapore is a very small market, it might be better for you to consider investing in the S&P500. 5. Depending on your risk appetite, you might also want some bonds in your portfolio to moderate the volatility of your portfolio so that you can remain invested even during extreme market volatility. Hope this helps.

Retirement

AMA Christopher Tan

If you're single, you may not require any death coverage on your policies. If you're holding on to any WL policies without CI coverage that are also pay WL, then it may make sense to do both. Convert them paid up plus do partial surrender when you require the money. However, if you're still looking to grow your money while in your retirement years, your WL policy right now would usually provide you a steady growth as an investment asset. But lastly, if there's any CI coverage on the policy you require, it may make sense to hold on to it if you don't have any other CI options.
Load more questions