Thinking of contributing to the Supplementary Retirement Scheme (SRS) to enjoy tax reliefs while building up another source of retirement savings? Here are some pros and cons you may wish to keep in mind when making your decision. What are the benefits of contributing to SRS? 1. An additional source of retirement income In addition to the tax incentives that come with making SRS contributions, you are also contributing
I was recently interviewed by Her World magazine (June 2022 issue) on an article titled “Dealing with Debt”. The subtitle reads: “Many millennials are finding themselves stuck with unimaginable debt. Why is this happening and what can they do about it?” Millennials are those who are between the age of 26 to 41 in 2022. Here are the interview questions and my responses: Question 1:Have you noticed an upward
Many investors like dividends. They see it as a regular source of income from their investments. But what are dividends? Dividends are the portion of earnings that is given back to the shareholders of a company or fund. Unlike bank interest or bond coupons, dividends are not guaranteed. Yet, some companies and funds are well-suited to give out dividends regularly, and even increase payouts consistently. This is largely due
Does it make sense to rent or own your property in Singapore today? Is paying rent similar to throwing some of your money away? The above two are “Yes or No” questions. Buying a property is a BIG decision for most people. It will likely become your main financial asset, and its mortgage your main financial liability. After thought and research, I have created this checklist of 10 pointers
The short answer is: yes. Just about any time is a good time to invest, as long as: The portfolio asset classes are inherently liquidBy liquid, we mean it is easy, quick and inexpensive to transact (buy and sell) at current prices. Stocks, bonds, and funds that are widely held in developed financial markets are good examples of assets that have liquidity. Real estate, whole businesses, cars, and art
With the significant relaxation of Covid-19 protocols, many of us are already making plans to travel with family and friends. In this article, I will share with you how you can effectively save money for your dream trips. This article was published in Scoot inflight magazine, November 2019 issue. Start Early For a big year-end vacation, begin saving at the start of the year. Otherwise, three to six months
I was recently interviewed by the Chinese newspaper Lian He Zao Bao, for an article on women and caregiving that was published on Sunday, 10 April 2022. The translated title reads “Ladies, Protect Yourself First Before Caring For Your Loved Ones”. Here, I’m sharing with you the interview questions and my response. Hi Karen, thank you for agreeing to share your thoughts with Zaobao. 1. I think many people
Comments on Business Times article “Break the Bias On Female Investors”, 28 February 2022 Women should not have preconceived notions that they don’t make good investors, or are too risk averse. The first step is to simply start the journey – keeping an open mind, and willing to learn the right lessons. Women, in fact, have some natural advantages over men in that they can be less impulsive, more
Recently, someone forwarded a well-meaning message to me on Whatsapp. Here it goes: 9 Personal Finance Rules We Should All Better Know 1) Rule of 72 2) Rule of 70 3) 4% Withdrawal Rule 4) 100 Minus Age Rule 5) 10-5-3 Rule 6) 50-30-20 Rule 7) 3X Emergency Rule 8) 40% for Monthly Repayments Rule 9) Life Insurance Rule 1. Rule of 72Number of years required to double your
Why Young Adults Need To Start A Financial Plan Now The end goal of financial planning is to be able to enjoy a worry-free, comfortable retirement. Wouldn’t you agree with me? A recent FinFit survey by HSBC shows that young working adults in Singapore aged 24-39 are weakest in their retirement planning as compared to other aspects of financial planning. Less than 50% of the respondents have a comprehensive
6 Behavioural Biases That Can Impact Your Investment Decisions Everyone has biases. Though we like to think we are rational human beings, the truth is we all have biases that influence the way we view the world and make judgements about people, opportunities, government policies and also investing. In fact, we are susceptible to a variety of cognitive and emotional biases which will cause us to think and act
8 Ratios that Will Reveal Your Current Financial Health Financial statements, specifically cash flows and balance sheets, can tell a lot about one’s financial position. To an even greater extent, personal financial ratios are useful benchmarks to help you evaluate your financial strengths and areas that need improvement. These benchmarks can help you to develop better financial habits in these areas: savings, retirement, spending, investing, and debt management. Here
What To Know About Emergency Fund It is no surprise that when life presents an emergency, it threatens our financial well-being and causes stress. Being prepared with an emergency fund gives you the confidence and assurance that you can tackle any of life’s unexpected events without adding more money worries to your list. If you have not given much thought to your financial safety net, you need to take
Critical Illness Insurance is More Crucial Than Ever Before Insurance is a great risk management tool that you can get at an affordable price in exchange for the leverage it gives you. Insurance is fundamental in a sound financial plan. The financial burden can be tremendous when unforeseen happens. Your plans and goals can derail and you can suffer financially if you are unable to work for a prolonged
Why Is It Important For Women To Close The Financial Literacy Gap Today? Financial literacy is the key to good money decisions. And good decisions are needed for financial stability and independence which are crucial in Singapore. We are, after all, not a welfare state and we are encouraged to secure our own resources for our later years. Therefore, financial literacy is a must. I would like to highlight
Which is Better – Term Life or Whole Life Insurance? An insurance policy provides protection for financial losses suffered as a result of a particular event. Such events include death and total and permanent disability (TPD). To put it simply, a life insurance policy is designed such that if you die or are unable to work due to a disability, the benefit payout should be enough for you and
6 Actionable Ideas about Personal Finance that Resurfaced during the 2020 Coronavirus Pandemic It has been almost a year since the World Health Organisation (WHO) declared the coronavirus outbreak a pandemic. The pandemic disrupted the way we live, work, and play. And it also gave us new realizations about the state of our financial health. As cliche as it sounds, life is unpredictable. Because the unforeseen can happen any
Is the Supplementary Retirement Scheme (SRS) Worth Your While? What is the Supplementary Retirement Scheme? The Supplementary Retirement Scheme (SRS) is a voluntary saving scheme to encourage individuals to save for retirement, over and above their CPF savings. As a sizeable portion of CPF money is often used for the down payment and to service mortgage loans, we could consider alternatives such as SRS as a supplementary source of