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Retirement

Making sure you have enough for the later years

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Investments

Retirement

A mutual fund is an open-ended fund that pools investors monies and is invested by a fund manager. In Singapore, we call mutual funds, Unit Trusts. Not many other countries use this term, but they are interchangeable. An Index Fund is a type of mutual fund where the fund mandate (the investment objective) is to track an underlying index. It buys securities to try it's best to replicate the index it chose to track.
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Retirement

Investments

FIRE Movement

Hi anon, Wow, good question. This is a very broad topic and may not be possible to full answer in the confines of a forum. I'll highlight some key points which I also incorporate into retirement planning for my clients here, and hope that gives you something to work on. - You need to understand what kind of retirement lifestyle you want. Having a grasp of your expenses helps - You need to know what expenses are needs, and which are wants - You need to ensure that you have multiple streams of income, some of which must be guaranteed to meet your needs and some of which are variable to let you indulge in your wants - The more guaranteed income, the more peace of mind you have - With Excel, you will want to balance your cashflow over the years against your income stream over the years, factoring in inflation, etc. In the end, since no one knows how long you will live, instead of having a 'net worth number' to work towards, have a 'income stream' number instead.
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Insurance

Family

Retirement

Hi Anon, Based on the mentioned age, in regards to retirement, it might be good to find short term savings policies, as that would provide certain extend of coverge for your parents, and at the same time, at maturity there is a lump sum payout for your parents, that can provide some finances to add on to CPF Life. I would also advise maybe to do some investing on their CPF monies to increase their CPF, however with the current situation, that wouldn't be a smart move, and might end up affecting their CPF monies instead.
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Retirement

FIRE Movement

Nothing is foolproof in this ever-changing world. Choosing a profession out of passion and having the luck to be situated into a favorable work climate ambience makes FIRE useless.
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Investments

Retirement

Hi! Based on your shorter investment horizon of 5 years, I do not think it is suitable for you to invest in many of the roboadvisors, since the offer USD denominated investments. Your short investment horizon will limit you to safer investment instruments, and SGD exposure. From that angle, roboadvisprs are not a suitable platform for your investments. Choose safer SGD denominated investments if you really need the money.
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Investments

Retirement

Interest Rates

The most basic product will be your bank accounts, fixed deposit, certain bonds. Others include endowment policies, annuities from insurance companies. I share quality content on estate planning and financial planning here.
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COVID-19

Retirement

Savings

Payments

As always, I follow a strict budgeting process whenever it comes to my finances. Accordingly, I tend to have some surplus in my expenditure account at the end of each month. As a result, so far everything is fine and on track. How I do My Budget: How to create a Monthly Budget For readers who are negatively affected, I will suggest for you to spend quality time to have a complete understanding on your cashflow. Through this process, we will understand your earning ability and spending habit. Here is a Guide: Understanding Your Personal Cash Flow Thereafter, create a budget to ensure that you are not overspending your money. For the most part, maintain a basic savings ratio - do not give yourself an excuse otherwise. I share quality content on estate planning and financial planning here.
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Investments

Retirement

Sharon
Sharon
Level 5. Genius
Answered 2w ago
1) I wish I start learning more about investing! 2) ...so that I know what I'm buying into and accumulate more. 3) Stop going on expensive holidays when I get my bonus. 😆 4) Network with more people in finance and investing.
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CPF

Retirement

Property

Hi anon, A few points to consider here: - Does he want to increase his CPF life payout? ERS is an option that he can consider as there is nothing better than guaranteed income for life. He has to be aware of the fact that the monies once put in RA, can't be withdrawn. - Does he want to withdraw in cash? If he wishes to withdraw in cash, the shielding strategy will still work if he has sufficient funds (anything in excess of $40K in SA), as I have done this for a client who was age 63 - If he withdraws in cash; what will he do with the money? Other than immediate liquidity (if he needs it), he should aim to achieve 2.5% returns with the funds that are not used. This can be achieved in various ways, for example, dividend paying stocks, dividend paying UTs, a private annuity to provide more guaranteed income, etc. The allocation should be skewed more towards safer instruments as it is important for him to have predictable and reliable income sources. - In the context of his entire financial portfolio, what other income producing assets does he have? If he has sufficient assets (even with inflation factored in), then there might not be a need for him to fully withdraw all $500K from OA as some money can always be left there to earn 2.5% risk free The permutations are plenty and it is really not possible to detail all of them here, but I have outlined some important things that he might want to think about. I highly recommend him to view this $500K in tandem with his overall strategy for retirement, including all his assets. A discussion with an independent financial advisor would provide him clarity on his options so that he can have an idea of what he can do.
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AMA Christopher Tan

Retirement

Insurance

Investments

Dear anonymous, thanks for sharing about your investments and also for your question. Sorry for the late reply. Firstly, allow me to say that if you are not investment savvy, you should avoid owning individual stocks. In fact, even if you are investment savvy, holding on to just a few stocks might not be a good idea because you are taking on too much risks by concentrating your portfolio on just a few stocks. Personally, I do not own any individual stocks because I have no time to study and follow them and I also want to divesify my money across more stocks. I would suggest that you either invest in a portfolio of low cost ETFs (that tracks the index) or low cost funds such as Dimensional Funds. Low cost = less than 0.5% p.a. in terms of management fee. As a start, here are a list of equities ETF you can consider: 1. SPDR S&P500 ETF - US, a proxy to develop markets 2. SPDR Straits Times Index ETF - Singapore market 3. Db x-trackers MSCI Pacific Ex Japan UCITS ETF - A proxy to Asia By investing in then, you will be broadly diversified across different geographical regions. There are enough studies to show that it is very difficult to beat the market by trading and there is really no need to. The driver of returns for stocks is earnings or profitability. As long as world population continues to grow (and it is!) and people have needs and companies continue to exist to meet the needs, stock prices will (and have) gone up over the long run. Yes, some companies will fail but most will continue to be around. That is why you should invest in a broad diversified portfolio.So stay invested. Do not get in and out based on views or news. That will be gambling. Ok, hope this helps.
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