Rearing a pet can be a long term financial commitment: the initial cost of buying a pet, vaccination and health check, combined with the recurring cost of grooming, pet food and toys can add up to an astronomical amount.

While pet owners enjoy the company and fun associated with having a pet, the potential costs involved are not to be trifled with. In this session, join Gregory VAN, CEO of Endowus, and Rui Ming HE from the WokeSalaryman as they talk about:

  1. Costs of owning a pet, based on type of pet etc.
  2. Adopting from a pet shelter vs buying your own pet
  3. Saving and investing for a pet and pet care
  4. How pet lifespans tie in with your investment horizon
  5. Investment products to use based on that investment horizon
  6. How Endowus can prepare you for pet costs - before, during the lifespan, and end-of-life care for your pet
  7. Contingency planning for your pet

Timestamps:

0:00 Introduction  

3:39 How to invest with your pets with confidence  

5:29 Owning a pet is an emotional and financial commitment  

10:56 The emotional costs of owning a pet  

15:33 The financial costs of owning a pet  

24:02 Joy of owning a pet is like dividend investing  

26:22 Rui Ming’s pets  

27:38 Running costs of owning a pet vs ROI of your investment portfolio  

29:00 The importance of evaluating the investment horizon of owning a pet    

35:06 Preparing for the emotional and financial costs for your pet’s final days  

39:22 Consider the lifespan and investment risks of different animals  

47:48 Create an emergency fund for your pet  

50:22 How Endowus can help you invest for your pet

Excerpts from the webinar

The financial costs of owning a pet (15:33)

Greg: When you initially purchase a pet, for example a dog, you’re not thinking of the running expenses that come with it. All these costs, such as sterilization, vaccines, and the adoption fees will add up to become quite an expensive endeavor. So, it is really important to know what you are getting yourself into. Especially now that the popularity of owning a pet has increased, the inflation on pet goods has gone up quite a bit as well.

Joy of owning a pet is like dividend investing (24:02)

Greg: I personally think that deciding to invest in a pet is similar to dividend investing because the second you buy that pet, beside its costs, it will start paying dividends in the joy that it will bring to your life. This goes to say that owning a pet is similar to the Endowus philosophy, which is that money is not supposed to control your life, rather it is meant to serve your life. So if you are looking to invest in a pet, you are basically looking to invest in your quality of life.

Running costs of owning a pet vs ROI of your investment portfolio (27:38)

RM: When we talk about the affordability of owning a pet, one way to think about it is whether or not your investment returns can cover the running costs of your pet. For example, to own a hamster, which costs around $400 a year, you would need at least $6,000 invested at a baseline of 7% interest p.a. To own a cat, it would cost you $1,932 a year and you would need $30,000 invested at 7% interest p.a. and for a dog it would cost you around $3,222 a year and you would need $50,000 invested at 7% interest p.a. So if you are considering buying a pet, a helpful tip is to think of their running costs as part of the ROI of your investment portfolio.