To many, insurance seems like an unnecessary expense that covers remote risks we are unlikely to experience in our lifetime, and medical advancements and increase in life expectancies might make us complacent. Similarly, investing your savings to grow your wealth especially for retirement may seem too far off to worry about and is not a priority.
With rising healthcare costs, higher costs of living, and a longer life expectancy, it is actually more necessary than ever to start early and with the right investment and insurance strategies at each stage of your life so that you can safeguard your quality of life into retirement, and live better today and in the future.
In this session we will cover the following:
- The personal journeys of Val & Sam
- What is more important? Insurance or investment?
- How do you balance insurance vs investment at different life stages?
- What are some common challenges associated with protecting our savings and wealth?
- How do we accumulate our wealth effectively in a post-covid economy?
- What do we need to do for our retirement and children's education?
5:05 Introduction to PolicyPal and Val's journey
22:22 Sam's journey
30:38 What kind of insurance protection do you need?
35:04 Why buy term, invest the rest?
43:00 How to effectively use Insurance and Investments to secure your financial future
52:25 How to fully utilise your CPF for health insurance?
1:00:51 Holistic financial planning
1:12:30 Achieving success in retirement
Excerpts from the Presentation
Sam's personal journey and motivation of leaving the corporate world and starting Endowus (22:22)
Sam: After a long time working in the asset management industry, I took a sabbatical in Korea. I came across a staggering statistic that states that 50% of old-age pensioners have income below the poverty level. This was shocking, given that Korea is a relatively developed country. Here in Singapore, we see a similar trend.
There is a lack of financial education in equipping people for their financial future. My partners (Greg and You Ning) and I also found it was difficult to find access to good investment products, good advice and it does not help that the cost of investment was high.
With the experience I had, and with my partners, we were determined to provide these financial services aligned to our clients' best interests, to try and solve the specific problems of investing here in Singapore within CPF, SRS and Cash.
Q: How should we think of financial planning? How do we segment our money by buckets working towards our goals across CPF SRS and Cash (1:00:51)?
Sam: Think of these buckets in investing and saving - first, you can use Endowus Cash Smart to manage short term money and liquidity. For the long term, with CPF and SRS, you can take more risk because growth assets like equities will deliver long-term returns.
Q: Should we cancel Investment-Linked Policies (ILP), convert to term and invest the rest (1:26:54)?
Val: Everyone has different circumstances and different policies which you might have bought previously. Before you cancel any plan, it is important to first review your current portfolio and find out the policy's surrender value. You can write to PolicyPal at email@example.com to arrange a digital zoom consultation with us.
Investment involves risk. Past performance is not necessarily a guide to future performance or returns. 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. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.
Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endow.us Pte. Ltd (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus Pte. Ltd., its affiliates, directors, employees, 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. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.
Investment into collective investment schemes: Please refer to respective funds’ prospectuses for details of the funds, their related fees, charges and risk factors, The listing of units of the fund on a stock exchange does not guarantee a liquid market for the units. Before making an investment decision, you are reminded to refer to the relevant prospectus for specific risk considerations.
For Cash Smart Secure, Cash Smart Enhanced, Cash Smart Ultra: It is not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested. Investment products are not insured products under the provisions of the Deposit Insurance and Policy Owners Protection Schemes Act 2011 of Singapore and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme. Interest rates are indicative and subject to change at any time.
Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.
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