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.