Afraid of high inflation? Three hacks to manage big-ticket expenses now
Endowus Insights

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Afraid of high inflation? Three hacks to manage big-ticket expenses now

Updated
29
Mar 2023
published
30
Sep 2022
financial planning for housing, taxes, investments, and retirement amid high inflation

Around the world, high inflation dominates concerns today. In Singapore, core inflation surged to 5.1% in August from a year ago — the highest in almost 14 years.

Meanwhile, Singapore regulators on 30 Sept 2022 introduced new property cooling measures, which included tighter maximum loan quantum limits for housing loans to ensure prudent borrowing and avoid future difficulties in servicing home loans.

It’s no surprise then that the high cost of living in Singapore is a top concern for 9 out of 10 Singaporeans, according to the latest study by Milieu Insights.

What can be useful is to take a hard look at the big-ticket expenses that you have right now. Here are some hacks that may help to lighten the load. 

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Death and taxes — and SRS

taxes - SRS - Singapore tax incentive to beat inflation

The Supplementary Retirement Scheme (SRS) is an attractive tax deferment scheme in Singapore that more Singaporeans and foreigners living in Singapore should take advantage of. 

SRS is meant to motivate Singaporeans and foreigners working here to save for their retirement. Firstly, the scheme allows you to postpone how much you should pay on your tax bill now. Secondly, it allows you to pay less tax later in your retirement years. If you manage how much you withdraw from the SRS account each month for your spending needs at retirement, you can even withdraw without paying taxes on these sums annually.

The scheme may seem complicated at first glance, but let’s break down the mechanics.

Learn more here.

Dealing with rising mortgage rates, new cooling measures in Singapore

Singapore property cooling measures - housing - home loans

“Have you fixed your mortgage yet?”

Chances are, you would have heard this question making its rounds at dinner conversations these days. The concern comes as mortgage rates have spiked dramatically this year, in line with aggressive Fed rate hikes. 

Meanwhile, Singapore regulators on 30 Sept 2022 introduced new property cooling measures, which included tighter maximum loan quantum limits for housing loans to ensure prudent borrowing and avoid future difficulties in servicing home loans.

With the dramatic shift to sharply higher borrowing costs today, what are some options to manage your mortgage payments in this rising rate environment?

Find out more here.

Say no to trailer fees and high investing costs

Unit trusts, ETF investments - fees and returns

There are hidden fees behind your unit trust investments, and they are eating into your returns. Amid high inflation, it’s time to take a closer look at how much you’re paying to invest. 

By the end of June 2022, the tally of fees saved by clients investing through Endowus, since it offered retail services, had crossed $3 million. That’s all the money that traditional fund distributors would earn if they had sold the same funds to our clients. 

Learn why you’ve been overpaying all this while without Endowus, and how this digital wealth platform is fighting for lower costs while aligning with customers’ interests. The mission is clear: we want clients to have the best odds of success in building returns for a more secure future — raging inflation be damned. 

Understand more about our mission and how it benefits you from here.

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This article is for information purposes only and should not be considered as an offer, solicitation or advice for the purchase or sale of any investment products. It is recommended that you seek financial advice as to the suitability of any investment. Whilst Endow.us Pte. Ltd. (“Endowus”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies or typographical errors.

Any opinion or estimate above is made on a general basis and none of Endowus, nor any of its affiliates, representatives or agents have given any consideration to nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Opinions expressed herein are subject to change without notice.  

Investment involves risk. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Past performance is not an indicator nor a guarantee of future performance.

Please note that the above information does not purport to be all-inclusive or to contain all the information that you may need in order to make an informed decision. The information contained herein is not intended, and should not be construed, as legal, tax, regulatory, accounting or financial advice.

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