Retirement Planning is a big phrase that has different interpretation and meaning to different people. Regardless, a survey done by OCBC shows that the majority of working adults in Singapore are financially unprepared for retirement, with one in three saying that they do not invest and see investing as a form of gambling.
How should we determine how much we need for our retirement? Should we invest our CPF OA which could otherwise earn a 2.5% interest rate? What is the right way to invest towards your goals?
Join You Ning Sun, Endowus Co-Founder, as he shares his thoughts and research around investing effectively towards and throughout retirement. He interacts with viewers through the Live Q&A, and shares simulations on retirement withdrawals and how to make use of CPF to retire better.
1:31 Introduction to Endowus
9:16 Understanding what affects your retirement adequacy
17:46 How different withdrawal rates, different portfolio allocation affects your retirement
24:19 Understanding how your retirement spending affects your retirement sum
25:30 Why you should invest your CPF for retirement
33:20 Endowus CPF investments and performance
36:57 How to invest passively with low cost
53:52 How Endowus acts in your best interest
Extracted QnA from the session
Q: What are the recommended portfolios for various time horizons? (58:51)
You Ning: Through our platform's onboarding, you will be able to identify your personal situation goals (your financial needs and risk tolerance) and thereafter decide what is more appropriate for you.
You can also reach out to arrange a meeting with our MAS licensed representatives here.
Q: Should we invest in a recurring manner over a period of time or via a lump sum (1:00:24)
You Ning: It depends on your comfort level and risk tolerance - there is no right or wrong answer. If you're the type who invests and close your eyes, maybe you can consider doing a lump sum. If you're one who isn't comfortable with volatility as much and would like to take a more measured approach, you can always invest in portions. You can think about investing it consistently at a fixed time every month or so.
For me in particular, when I started (investing with) Endowus, I had some savings from my previous job, so I invested a lump sum into my Endowus portfolio and thereafter, a portion of my salary would go into it. With Endowus, you can set up different goals. At that time I had two young children, so in addition to the automatic recurring investment to my portfolio, I've set aside money which go into two other goals for them in order to support them when they grow up.
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.
This advertisement has not been reviewed by the Monetary Authority of Singapore.